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Low Doc Business Loans
In the financial services industry, the term ‘low docs’ refers to loan applications which do not have the complete documentation that banks and lenders usually require to be accepted. This documentation is essential financial records.
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Comparison
Low Doc Commercial Loans – Compare Interest Rates
These commercial loans can be approved for a wide selection of lending products. Applicants can be offered the same interest rate as fully documented applicants but with stricter criteria and conditions. This comparison chart allows you to quickly see the different interest rates we are achieving on different loan products and calculate repayment estimates for each lending facility to use in your planning process.
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| {{Loan Product}} | {{From - Advertised Rate}} {{Rate Type}} |
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Disclaimer: This interest rate comparison tables shows rates for different loans as currently offered by this lender. The purpose of providing this resource is purely for comparisons of different loans. Using this table is not in any way a lending application. Lender and broker fees and charges that may apply to an individual loan are not included in the interest rate calculations. The repayments calculated do not represent an offer of a loan or approval in any way of a loan. The repayments in any loan offer made and the interest rate on any loan offer may be different from the values as shown.
Today's best rate
Finance Equipment From
4.99 % Fixed
* The interest rate is calculated on a secured loan for commercial use, effective 16/02/2024 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.
Today's best rate
Finance Equipment From
4.99 % Fixed
* The interest rate is calculated on a secured loan for commercial use, effective 16/02/2024 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.
What Is
Find Low Doc Commercial Loans
Low Docs may be sought by many operators including sole traders, owner-operators, small commercial loans Australia wide and others. The low docs situation may arise as the enterprise is starting up or has not been trading for an extended period. That is, a long enough trading period to meet bank loan guidelines.
This is considered a higher risk loan category and attracts a higher interest rate than loans which have the complete documentation. But this type of loan is offered, dependent on individual lender requirements and individual applications.
To improve the chances of being offered a loan, applicants can take actions to enhance their loan applications.
We have connections with lenders that do offer commercial low docs and we can share these contacts with you. Using the services of a professional broker to source your low docs commercial loan may have a significant positive impact on the outcome. Ensure you broker has experience in dealing with this type of loan category, has the right lenders in their lending panel to approach and has a positive and cooperative attitude to assisting you.
Low Doc Loan
Requirements and Conditions
While individual lenders will have their own set of conditions and requirements, we can provide you with a general indication of what you may expect regarding your loan.
- ABN is essential. You must hold a current ABN. Recently acquired ABN holders are not viewed as favorably as longer term ABN holders.
- As with all financial matters, you will need to provide proof of identification. This will include proof of your personal ID and of aspects of your business ID.
- GST status must be advised. ABN holders that are registered for GST are usually viewed more favorably than those that are not registered for GST.
While understanding that you do not have all the docs required for a standard loan application, some forms of information and records will be required.
These may include:-
- BAS Statements
- Bank account statements
- Accounts – simple accounting records that you have prepared yourself and are verifiable from bank statements or accounts as prepared by your accountant or tax agent.
- Tax Portal information
As a higher risk loan category, lenders will usually apply certain additional conditions on the loan which may include:-
- A larger deposit be paid on the goods being purchased.
- Security in addition to the goods being purchased. This may take the form of property, commercial owner’s personal guarantee or other security.
- Not offered for older goods such as trucks and motor vehicle over a certain age or equipment with a short working life remaining.
Full Range
Low Doc Commercial Loan Types
Low Doc Loans can be achieved for the full range of commercial products, subject to individual lender requirements.
- CHP Loan
- Equipment loan
- Rent to Own Lending
- Chattel Mortgage
Once accepted, commercial enterprises can utilise low docs loans to acquire a range of assets including both new and second-hand motor vehicles, truck finance and equipment.
Connect with us
Securing a Low Docs Commercial Loan
We have connections with lenders and brokers that may be able to assist you. It is a specialist area and we know the specialists!
Connect with us for possible solutions for a low doc loan.
FAQs
Low Doc Financing
This type of loan is not a specific loan type but a description of the entity applying for the funding. It is funding for operators that do not have all or any of the documentation or docs that are required in the standard commercial loan application form. Low doc generally means the applicant has some but not all of the required documentation.
When a lender approves a low doc application, the operator may then select the specific type of loan. The selection includes Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase. The decision is made based on which best suits the structure and objectives of the operation.
A wide range of assets or goods may be financed with this type of loan. They include motor vehicles, cars, commercial vans, trucks and a wide range of equipment and machinery used by enterprises. New and second-hand goods may be financed.
No. It is not a requirement for this type of loan that the applicant be registered for GST. The GST status must be advised at time of application. Some lenders may view GST registration more favourably than applicants that are not registered. Enterprises with a turnover of $75,000+ per annum must be registered for GST.
Yes. All kinds of motor vehicles which are to be used in a business operation may be financed with this type of loan. That includes work vehicles such as dual cab utes and commercial vans, SUVs and all kinds of passenger cars.
The interest rate offered will be based on the individual assessment of the application by the lender. The creditworthiness of the entity and often the owner and/or directors forms part of that assessment. The better the credit rating may result in a better interest rate.
The security or guarantee required for this kind of loan will be dependent on the lender assessment of the application. Additional security – additional to the goods being purchased, may be requested by the lender. This may take the form of assets owned by the owner, a personal guarantee by the owner/director or other form as agreed between lender and borrower.
The conditions attached to this type of loan will depend on the review of the application by the lender. Conditions such as a maximum loan amount or additional security may be applied.
Yes. This type of loan is particularly applicable to new and start-up enterprises. These operations typically do not have all the financial records for a standard application as they have not been operating long enough to accrue such detail.
No. Bad credit loans are for applicants that have a poor or bad credit rating. These enterprises may have all the documents required to complete the application form. Low Doc applicants may have a good credit rating but not the documentation.
Doc or docs is the reference to documentation or documents in the lending sector. These docs encompass a range of records and documentation relating to the trading and financial position of a business. Specifically they may include BAS returns, bank statements, tax returns, annual accounts, profit and loss statements and similar.
All kinds of enterprises may apply for this type of funding if they do not have all the documentation required in a standard application form. These include sole traders, owner-operators, incorporated entities, partnerships, family enterprises and ABN-only holders.
When the full purchase price of goods is included in the loan total, this may be referred to as no deposit funding. The approval of the total loan amount requested forms an integral part of the application approval process. The approval of no deposit funding is based on lender assessment of the creditworthiness of the applicant and an assessment of the goods. There may be maximum limits placed on this type of loan. The applicant may reduce the amount requested by paying a deposit on the goods.
Lenders will adhere to their own individual guidelines when conducting credit checks as part of the application approval process. With less documentation to support this type of application, a credit check of both the business and the owner(s)/director(s) may be undertaken.
