Going out on your own this fin year? Access Loans for Self-Employed Operators

Loans for self-employed operators for cars, trucks and equipment are available from specialist lenders and brokers with Low Doc and No Doc finance. It can be a bold, daunting decision to make, but with support from affordable financing, working for yourself can be rewarding. Low Doc finance through our specialist connections can provide individuals with the loans to acquire the necessary assets for their operation. Whether already operating on a small scale or making new business plans a reality.

This is a popular time of year, the new financial year, for many to make the move to work for themselves in a range of fields. Possibly with a van as an owner-driver, as a qualified tradie, as a business consultant, in a creative or IT area and in many other sectors. Many may have planned this move for a long time. But when vehicles or equipment are required, if the plan does not cover how to secure the necessary asset finance, challenges may be encountered.

Loans for both new and established self-employed operators can be difficult to obtain. Not all banks and lenders allow for the special requirements of smaller operations within their strict approval criteria.

New operators can especially face issues without at least one year of trading and financial records. Without the complete set of financials required by most lenders, the loan application may not be approved. Those that have worked for themselves for many years but on a smaller, self-employed scale, may still find obstacles if they have relatively low turnover.

Solutions are available. Working with specialist lenders, our brokers source the most affordable and workable finance for smaller and new operators with Low Doc and No Doc Loans.

Asset Loans for Self-Employed Operators

Individuals working for themselves on a small scale or just setting up can be apply for asset finance on a Low Docs or No Docs basis with specialist lenders. Using a broker to connect with these lenders is advisable. Not all specialist lenders work directly with customers.

A Low Docs or No Docs basis refers to the business entity and is not a type of loan. It simply means that the business does not have all the financial documents which are normally required for a commercial credit application.

When a loan application without complete financial records is approved by a lender, the operator has the same choice of asset finance facilities as fully documented businesses. The business selects the type of loan that is compatible with their accounting method and approach to tax deductions and their balance sheet strategy. The range of asset finance facilities include Chattel Mortgage, Leasing, Rent-to-Own and Commercial Hire Purchase. Consulting with the accountant that has assisted in setting up the business structure on the choice of credit facility is the normal process and highly advisable. A broker will source your finance, but the accountant knows the set-up and objectives of the business and is best placed to assist with this important decision.

Sourcing finance without complete financials does not mean having to compromise on any of the benefits of the credit facility selected. Self-employed operators can still get the relevant tax deductions and other benefits relevant to type of loan.

While the benefits of the selected credit facility are realised, there can be differences in what small and new operators are offered by lenders. Without full financials, extensive trading history and other assets, a higher interest rate may be expected. Applicants may also not be approved for as large loans as established businesses. A larger deposit may need to be made for the vehicle or equipment.

Additional collateral to secure the loan may be required. This will depend on the goods being financed – new or used, and the loan amount approved.

Loans for self-employed operators on a low and no doc basis can be used to finance all types of assets to be used in the business. These include cars, vans, trucks, machinery and equipment, the assets may be new or used.

Requirements for Loans for Self-Employed Operators

Before applying, new and small businesses should check their eligibility for commercial credit. The essential requirements are to hold a current ABN and have full identification. Businesses do not have to be registered for GST, but it may work in their favour with lenders if they are.

Applicants should prepare as much financial information and data on the business as they can. The type of information lenders will be looking for include bank statements, turnover figures, tax returns and annual accounts for those that have been operating for some time.

For those that are in the process of setting-up and are yet to start trading, including business plans and details of any client arrangements or contracts secured can be advisable.

With small businesses of this nature, lenders typically request the financials for the individual. Gather personal income tax returns for the past 2 years and list personal assets and liabilities, bank statements may be requested and personal credit profiles are also checked.

Expert Assistance Available

The process may seem daunting, but our expert brokers are available for you. We will source the most workable car, truck and equipment loans for self-employed operators to assist and support you at every step.

Contact Jade Finance for professional brokers to source workable loans for self-employed operators 1300 000 003.

DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.