No Doc Business Loans
The financial services industry uses the term ‘no doc’ or ‘no docs’ to describe loan applications which do not contain all the documentation required for standard loans. By documentation, the industry means financial records and other related information. No docs might mean that the business has none of the usually required information or it may only have some. Despite the ‘no doc’ title, to be offered this type of loan there are some essential requirements.
This loan is considered in a high risk category and as such includes a higher interest rate than a comparable application with full documentation and usually includes additional conditions which may vary from lender to lender.
No Docs Business Loans may be sought for a range of asset acquisitions including motor vehicles to be used, trucks and a wide range of equipment.
A business may find itself in a situation to require a no docs loan for a number of reasons, here’s just a few:-
- Newly started commercial enterprise or just starting. With many people choosing or needing to move from employee to self-employed, to become a contractor to be in a position to seek work in their chosen field or individuals wanting a side business as an additional source of income, there are many new emerging.
- Tradespeople very often move into their own businesses and require loans to purchase the necessary vehicle and equipment to carry out the work.
- Documents may have been lost or destroyed for example in a fire and copies not accessible.
Not many major banks readily offer no docs loans but fortunately there are non-bank lenders that are active in this space and we have connections with these lenders. We also have connections with brokers who cater for commercial services that are seeking no docs loans. Using the services of a professional to assist you can be highly beneficial and worth considering.
Loan Conditions and Requirements
While it is a given that you will not have the full documentation that is usually required, there is still some essential requirements:-
- ABN-holder is essential. Your business must have a current ABN.
- Advise the GST status of your business – if you are registered or not registered for GST
- Businesses that are registered for GST are usually viewed more favorably than those that are not. GST registered will also have BAS statements.
- ID proof. As is required with all financial matters, you will need to provide complete proof of your identity.
- Financial records are not required but if you do have some financials, this may enhance your application.
Individual lenders may apply their own set of conditions to no docs loans, which may include:-
- A larger deposit be paid on the goods.
- Some form of loan security in addition to the goods being purchased. This may include property or other commercial assets or personal guarantee by the owner.
No Doc Loans for businesses apply across the full range of commercial loan facilities:-
- No Docs Equipment Finance
- No Docs Chattel Financing
- No Docs Commercial Purchase Hire
- No Docs Rent to Own
For full details on each type of finance, please refer to our web pages.
While the loan type that is best suited to your business depends on aspects of your structure and treatment of tax and GST, some lenders may have a preference for one or the other when approving no docs loans.
Securing a No Docs Business Loan
We have connections with many lenders and many brokers that may be in a position to assist with a no docs loan for a car, commercial vehicle, truck or the equipment your require to get your business happening.
Just send us your details and requirements and we’ll provide you with the contacts that may be able to make it all happen.
Connect with us for possible solutions for a no docs business loan.