Low Doc Loans Explained
Announcement posted by Revolution Finance 28 Oct 2016
When you’re a business owner, there are things that you have time for, and things that you don't.
Customers and growing your business – Yep, plenty of time for those!
Sorting through paperwork, spending hours on the phone organising finance, waiting in your local branch for someone to get around to you – Nope, I can think of better things to do.
When you are time poor, or lack the financial paperwork required for a regular loan, a Low Doc loan can be the saviour of the small business owner.
What the Hell is a Low Doc Loan?
A Low Doc loan is essentially the same as a regular loan, except the only paperwork you need is a declaration of income, a signed privacy form, the application form and proof of identification. Given the declaration of income is all you need to prove your financial situation; Low Doc loans are often referred to as self-declared loans.
Pretty simple, right?
It provides access to the same interest rates and similar loan types, but without the need to run around trying to find all the essential financial documents you need for a traditional loan.
As an added bonus, it isn't just confined to cars. You can get a Low Doc loan to finance business equipment, caravans and more, so long as it is deemed Fit for Purpose (i.e. it is deemed required, and will be used for business or commercial purposes).
Who Can Get One?
A Low Doc loan is available for small-business owners or self-employed workers who may not have access to, or the time to organize the necessary paperwork to qualify for a regular loan.
Approval criteria for Low Doc loans varies from financier to financier, which is great news for Sole Traders, Business Partnerships, Trusts and Corporations with a clean credit history, because it means there is normally a Low Doc loan available to suit your circumstances.
To meet the basic requirements with most lenders you must meet the following conditions:
1. ABN registered for at least 1 day
2. Property owner or able to provide a deposit
3. Maximum lend $200K for cars and $500K for trucks and equipment
The following help, but are not essential:
1. Clean credit file
2. GST Registered
3. ABN Registered for 12 months
Do you qualify and want to get started, or just want to ask one of our expert finance consultants a question? Give us a call on 1300 882 851 or get an online quote by clicking here!
Without the paperwork usually required to apply for a loan, such as tax returns, bank statements and accountant's letters, a Low Doc loan will usually require security to fall back on.
Being a homeowner gives your lender confidence that you are suitable for finance, however, if you don't own a home, most lenders are happy to take a deposit from you and then use the asset you are financing as security. Lenders will rarely take security over your property, however they like to know you have a fall back position.
Furthermore, if you have had finance within the past six months (and the account has good repayment history), we're happy to chat to your lender and use that history to get you financed again. No running around trying to round up paperwork all over again!
How Do You Apply?
Revolution Finance works for you to ensure you get finance, even if you don't have the documentation available. If you meet the above requirements, Revolution Finance can arrange your finance quickly and easily. Give us a call on 1300 882 851 or get an online quote by clicking here! Revolution Finance, your car finance experts.