The start of a new year is a great time to reassess personal circumstances and situations. After the last few years it’s likely that many more people than usual will be ready to change-up a lot of aspects of their lives. For those seeking to start their own business from scratch there will likely be the need for low docs business finance.
Low docs business finance is for new and young businesses that do not have all the financial records required for standard loan applications. It relates to the description of the business loan applicant rather than being an actual form of finance or loan type.
For those in the process of making or enacting plans to start their own business in e-commerce, as a construction contractor, a courier or delivery service or in any other field, we outline what is involved in achieving low docs finance, what products are available and why Jade Finance is ideally placed to assist in securing these types of loans.
Eligibility and Criteria
All types of business set-ups in many industry sectors can consider low docs business finance. Businesses setting up e-commerce operations from home to take advantage of the surge in online shopping or turn a talent into a real money earner; courier and deliver drivers buying their own vehicle to meet demand in the delivery and transport sector; owner-operators of machinery to work as contractors in construction, civil works and other sectors; or simply those looking to move from an employment to self-employment situation.
There are essential requirements for all types of finance applications which include having a current ABN and identification. These also apply to low docs finance. These types of loans are also often referred to as ABN-only Loans. Essentially meaning that all the documentation the business owner has is an ABN.
GST is required for all Australian businesses with turnover in excess of $75,000 per year. It is not a requirement for low docs loan applications but lenders can look more favourably on businesses that are registered for GST.
To fully complete a standard application for business finance will require a range of financial documentation and records. These include docs such as BAS returns, bank statements, tax returns and the annual accounts as usually prepared by the business accountant. Businesses usually need to have traded for a minimum time period as designated by the lender.
Start-ups usually don’t have these docs. But whatever the owner can prepare to submit with the application may contribute to achieving a better interest rate and cheaper loan. Preparing a business plan can be beneficial and templates for these can be sourced online.
Low docs applicants can be offered very attractive and cheap interest rate loans in many instances but often with additional loan conditions applying. These may include additional guarantees or security as well as the goods being acquired.
To meet this guarantee, the business owner may need to utilise personal goods and assets. Addressing their personal credit profile and ensuring they have a good credit score can contribute to a better outcome.
Not all banks and finance companies will offer low docs business finance. A quick browse of the loan requirements listed on some of the major banks’ websites and you’ll easily see what their requirements are for business finance.
Jade Finance is accredited with a selection of specialist non-bank lenders that do offer low docs loans to new businesses. These lenders are often only available via brokers like us and businesses need to engage with a broker to access these finance channels.
Low docs finance is available to purchase goods, equipment, motor vehicles, trucks, plant and machinery as well as for general business support.
For asset acquisitions, the standard range of finance facilities is available:-
- Low Docs Chattel Mortgage
- Low Docs Lease
- Low Docs Commercial Hire Purchase
- Low Docs Equipment Rental
It is strongly recommended that new business owners consult with a professional bookkeeper or an accountant as the decision around which loan type will work best with an individual business set-up is primarily determined by accounting measures.
Pre-approved loans are available for all finance products. This can be a good way to go for all businesses but especially for new set-ups who may not know how much they will be approved to borrow. Knowing that prior to purchase can assist in framing purchase options according to make, model and price point.
For general business purposes, finance is available for:-
We have provided extensive detail on each of these products which we encourage those interested to review. Alternatively, feel free to contact us and work through the options with one of our consultants over the phone.
2022 can be a great year for you to go new in your approach to working and business. Jade Finance consultants are available to assist new businesses achieve their objectives and set-up their operation with cost-effective low docs loans.
Contact Jade Finance 1300 000 008 to new business finance.
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.