Low Documentation Boat Finance

Boat financing without paperwork is a higher risk for lenders. Therefore, more restrictions are placed on this loan-type, and less lenders will offer the product. Lenders that do offer this loan solution will generally have significantly increased interest rates and fees. Obtaining a low doc boat loan is straightforward if you have a good borrowing and repayment history, and provide all the necessary documentation/proof of income.

A key advantage of a low doc boat loan is the streamlined application process. Due to less paperwork and documentation being required, individuals can save time and effort, and access funding more quickly. Easy Boat Loans are a viable option for borrowers who don’t fit the traditional borrower profile, like self-employed individuals and new business owners.

Another advantage of a low doc boat loan is they are typically easier to qualify for than a traditional boat loan.

A low doc boat loan is a form of boat financing that requires less documentation than a standard application for a boat loan. It is beneficial for individuals who have less documentation to prove their financial position like self-employed individuals and new business owners.

For majority of our 80+ lenders, the basic documentation required to secure a low doc boat loan are:

• Business and personal bank statements.
• Letter from accountant.
• ABN.
• GST registration.
• Business Activity Statements.
• Tax returns.

At Jade Finance, we can settle minimal documentation boat loans on the same day and full-doc loans within a few days to a week, depending on the lender.

To qualify for a boat loan, the basic criteria you must satisfy are:

• You must be a permanent resident or citizen.
• You must be 18+.
• You must earn a regular income.
• The stronger your credit profile, the better the rate and approval you will receive.

At Jade, the rates on marine finance can vary significantly from lender to lender, enabling our brokers to shop around to find you the best rate available for your boat purchase.

As a rule of thumb, minimal documentation boat loans generally have a higher interest rate than full-doc loans because more risk is involved. This risk is calculated based on the reduced amount of documentation required in the application process. Low doc loans are also often unregulated and may culminate in higher fees in addition to more interest.

The amount you will be able to borrow for low documentation boat finance is dependent on your personal borrowing profile. If you have a history of reliable and consistent repayments, you will be considered less risky as a borrower and may be able to borrow more money.

Early repayment of a low doc loan is dependent on your lender. With Jade Finance, borrowers are permitted to make additional payment throughout the loan term for secured boat finance. These can be intermittent payments, or regular extra payments.

A default is an unpaid or overdue payment on bills which is 60 days or more overdue. Late payments are payments made between 14 and 60 days after the due date. With Jade Finance, when you default on your low doc boat loan:

• If you miss one payment, the lender will likely notify you with actions to take so you can make the payment.
• Late Payments attract fees so your bank account will likely be deducted this fee.
• If you miss more than one payment, meaning your loan is 60 days in arrears, it is classified as in default and a process will be commenced by the lender. The process will vary from lender to lender but the end result is that your boat may be repossessed by the lender.
• With a Secured Boat Loan, the lender accepts your boat as security against the loan.
• When the repayments schedule is not met, i.e. you fail to make the repayments for 60 days, the lender is entitled to repossess the boat and sell it to recover monies owed to them.
• If you pay the arrears before the repossession action, you will be charged default fees.
• The bad debt/repossession process is covered by protocols which will involve a number of actions by the lender.
• The loan default will be reported to the credit agencies by the lender and this is a negative note on your Credit Report. This can affect your future applications for credit and loans.