Jade has extensive experience and expertise across all areas of motor financing and includes low docs car loans as one of our services to our business customers.
Low Doc car finance is essentially a description of a automotive application category rather than a motor finance product. A low doc loan describes the status of the business applying for the loan not the loan itself. We should first start by defining doc which is the financial industry’s definition for documents or specifically financial documents or documentation. This refers to the documents that are requested by lenders in the normal course of a loan application.
Banks have strict guidelines when approving business car financing and rarely have the flexibility to move on these. You can see some of their minimum requirements on their websites which usually include the business being operational for at least 12 months. If a business has been operational for that period, it would be assumed that they would have sufficient financial information for a standard loan.
Jade Finance is accredited with non-bank lenders that are prepared to be more flexible in regard to business car loans and do offer cost-effective low doc car loans. Every application is assessed on an individual basis and individual lenders will apply different conditions. Your Jade consultant will handle your loan process, presenting your application to the lenders that we know are best suited to your requirements, negotiate the best interest rate and conditions and advise you of the offer we have sourced.
As a specialist loan category, better outcomes can be achieved with low doc car finance when utilising the services of the experts at Jade.
There are several levels within the docs category and this is best illustrated with a description and differentiation of each. Whether it’s a fully documented motor finance application or a low doc car loan, Jade Finance seeks out the cheapest business loans available at the best interest rates. To show how well we can achieve better commercial loans, use our comparison tool below. Loans are individually assessed but this resource shows how we compare with different loan types. Enter your loan amount and preferred term and see the results.
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The minimum requirements to apply for a low doc loan are to hold a current ABN and have proof of identification. GST registration is preferred but not essential.
Providing some documents by way of financial accounts, BAS returns, income tax returns etc is preferred and will strengthen the application.
The interest rate offered on low doc car loans will be higher than that offered on a comparable fully documented loan application. So it is in the best interest of the applicant to prepare as strong an application as possible to achieve a cheaper interest rate.
Individual lenders may require more security than the car being purchased. This may be provided either through other business assets or property owned by the business entity or in some cases through assets owned by the business owner.
For small enterprises, the financial details of the business owner(s) may be requested to support the application. The business owners may be required to provide personal guarantee against their business loans. If you are required to do this, your Jade Finance consultant will explain what is involved in essentially ‘going guarantor’ for your own business loans.
Individual lenders may require a business to pay a greater deposit for the car in order to reduce the total amount being borrowed. Lenders do not usually request deposits for business loans and in most cases 100% of the purchase price of a vehicle can be borrowed. In the case of low doc loans this is not always the case.
Both new and used cars can be financed with low doc car finance. Used car loans may be subject to conditions based on the age of the car. This may include a threshold on the maximum loan term or loan amount. Vehicles purchased at auction, through a private seller and through an authorised dealer are eligible for low doc car finance.
As a low doc car finance applicant, you are eligible for the full range of finance products. These include Chattel Mortgage, Leasing and Commercial Hire Purchase. While conditions unique to your particular loan may apply, the structure and features of the finance product would be the same as for a standard loan. That is in relation to the treatment of GST, tax deductibility, suitability to cash or accruals accounting methods and ownership title of the car over the period of the finance term.
As the type of finance is very much determined by accounting measures, it is advised to speak with your accountant in regard to the choice of loan product.
When arranging a low doc car loan through Jade Finance, if approved, your loan will include:-
Our guides offer quick comparisons and simple explainers to help you motor through the financing process with confidence.
Sourcing a low doc loan can be a challenging experience if you approach it yourself. Engaging the services of Jade as your lender can save you time and hassle and provide high level professionalism and expertise in sourcing a cost-effective finance solution that works for your business.
For a no obligation discussion on low doc vehicle finance for your car purchase contact Jade Finance on 1300 000 008 and speak with one of our consultants.
This would be the standard business credit scenario where a business provides all or at least the majority of financial records and documents to meet the bank/lender requirements. This may include all or part of: GST registration, BAS returns, income tax returns, annual business accounts, profit and loss statements, details of assets and liabilities including other loans and debts and in some cases sales/profit projections and forecasts.
Contact us for more information.
When a business application for a motor loan provides only some and in some cases a minimal amount of the documents as required for a fully documented loan. The docs may include simply prepared business accounts rather than professionally prepared by an account, perhaps BAS statements or limited trading bank statements. The greater the quantity and quality of documents provided to support a low doc loan the greater the prospects of the credit application being approved with a better interest rate and conditions.
Get in touch to speak to a broker.
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THE INTEREST RATE IS CALCULATED ON A SECURED LOAN PREDOMINATELY FOR BUSINESS USE, EFFECTIVE 16/09/2024 AND SUBJECT TO CHANGE. WARNING: THE INTEREST RATE IS TRUE ONLY FOR THE EXAMPLES GIVEN AND MAY NOT INCLUDE ALL FEES AND CHARGES. DIFFERENT TERMS, FEES OR OTHER LOAN AMOUNTS MAY RESULT IN A DIFFERENT INTEREST RATE.
Low docs car loan is a specialist area of motor vehicle finance and is not as straightforward as fully documented with financials loans. We appreciate that people seeking low docs loans may have a raft of questions and we’ve put together a selection of the most popular to assist you. If our web site content and these FAQs do not answer all your queries or you are still unsure if you are suitable for a low docs loan, please reach out to us for an obligation-free discussion on 1300 000 008
Low documentation vehicle financing is a commercial credit facility which is only available to business entities for vehicles to be used by and in that business. This type of loan is not available for personal car purchases.
The difference between no and low documentation financing is the quantity of financial records made available in the application.
Interest rates are subject to lender assessment of each application. Competitive rates can be achieved on low documentation with strong turnover and financial stability.
Where a new sole trader has an ABN and ID, they can be eligible for low documentation vehicle financing.
The minimum requirements for low documentation vehicle financing are to hold an ABN and provide ID. Financials documents are requested to prove income and financial stability.
When approved for financing with less paperwork, operators may select from Chattel Mortgage, Leasing and Hire Purchase.
Yes. All types of motor vehicles used by a business operation can be eligible for low documentation financing.
New businesses will need an ABN and ID as minimum requirements for low doc car loans. In addition, they should provide proof of income through turnover so far, a business plan and financial stability through assets or financials of the owner.
No deposit low doc financing is available, subject to individual lender guidelines. A low doc applicant may be required to prove a strong financial position to be approved to borrow the full purchase price of the vehicle.
Yes. A balloon payment is an optional inclusion with Chattel Mortgage and Hire Purchase. With Leasing, a residual is included in the structure of the finance.
