Sourcing finance and loans for some businesses can be a challenge, especially if you’re handling the process yourself. Not all businesses can meet the guidelines, tick all the boxes and adhere to the stringent loan requirements which are set by the banks in particular. Many non-bank lenders, the well-known finance companies, also have strict business loan requirements.
In order to be eligible for business finance with most lenders and achieve an acceptable loan offer, businesses must provide certain specific financial records and other documentation. In addition, the business may have to meet other benchmarks such as trading time in business etc.
The reality is, achieving those targets is not always possible in today’s current economic environment. There are many new start-ups and people starting out in business. There are people flipping full-time jobs in favour of running their own operation. There is a growing trend to self-employment and contractor status. All these situations and others may mean that a business operator does have all the documents required for a car loan, truck loan or equipment finance.
When that car, truck or equipment is an essential requirement in order for the business operation to function, the need for finance can become critical and often businesses are forced into accepting loan offers which are simply – too expensive to sustain.
Jade Finance offers realistic pathways for businesses in these situations which may take you in the right direction achieving a sustainable and workable loan. We provide a specialist low docs loan service for business car loans, truck loans and equipment finance.
How Our Service Works
Our Low Docs Loans service operates on a very personal and individual basis. Your Jade consultant will discuss your situation and your requirements to get a full picture of both your business and the purpose of your loan.
While major banks rarely offer low docs loans, we have other lender sources which are usually far more accommodating with their requirements in this area. We are accredited with many non-bank lenders which have more flexibility when it comes to business applicants who don’t have all the usual docs required for a standard business loan.
Your Jade consultant will work towards sourcing you a loan offer based on your individual requirements. We handle the negotiations with the lenders so there is no need for you to address them directly.
If we manage to source you an acceptable loan offer, your consultant will assist with the paperwork to finalise your application and proceed with settlement on your purchase.
As many businesses in these situations hold-off on even applying for finance due to doubt as to how successful they will be, we offer a pre-approved loan service. This allows you to apply for a low docs loan before you start discussions with a seller in regard to your car, truck or equipment purchase.
A pre-approved loan may save you the potential embarrassment of having to withdraw from a purchase due to the lack of a workable loan deal to make the necessary payment.
With a pre-approved loan you’ll know ahead of time how much you can spend, based on what you’ve been approved for, and be in a more confident place to move forward with your purchase.
The process for a pre-approved low docs loan follows the same format as for a post-purchase loan except it is arranged prior to purchase. Many people utilise this service as it provides them with surety around how much they are approved for and therefore they know how much they can pay for their goods.
There are 3 loan options in this category, each with slightly varying requirements:-
- Low Docs Loans
- No Docs Loans
- ABN-only Loans
For all of these loans you will require:-
- Current ABN
- Some form of simple accounts detailing income/expenditure. These may be prepared by the business owner. Professionally-prepared accounts not always essential
- GST registration with recent BAS returns
Loan conditions vary depending on the level of docs provided and individual lender requirements. These may include:-
- A higher interest rate will apply than for a fully documented loan.
- Limit may apply to the total loan amount.
- Lender may request a larger deposit be paid to reduce the total loan amount.
Types of Low Docs Loans
If eligible and accepted, Low Docs Loans can be utilised for the purchase of cars used in the business, motor vehicles, trucks and a wide range of machinery and equipment. The full range of commercial finance facilities can be used with a low docs loan, subject to lender requirements.
- Low Docs Chattel Mortgage
- Low Docs Leasing
- Low Docs Commercial Hire Purchase
- Low Docs Rent to Own
Applying for a Low Docs Loan
The process for applying is quite simple – just give Jade Finance a call and discuss your requirements with one of our consultants. They will go through the documentation required and explain how the process will work and the timeframe involved. In requesting a quote, there is no obligation to proceed. If we are successful in sourcing you an acceptable loan quote, it is at that stage that you would will be have the opportunity to accept or reject that offer. If accepted, then the consultant will proceed to finalise the loan.
If you don’t have all the required docs for a standard loan, please call Jade Finance and discuss your low docs options. Call 1300 000 008
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