ARE you a small business enterprise that are searching for low doc Australian business loan, then you are at right place.
In this article, we will provide you all the details about the low doc business loans in detail. It is very beneficial information for all those who don’t know much about this loan, but are willing to take this type of loan. For all the business owners, who are not having the company track records to show at the time of taking traditional loans, low documents business loans is the most feasible business finance option available in the market today for them.
No doubt there is a lot of freedom involved in the profession if you are a contract worker or a self-employed professional in your life. But great freedom comes with great problems as well, which can make you feel depressed about it sometimes. This is applicable in the case when you are asked to show your income proof during the process of buying anything for your business company. However, now it’s just a matter of past because now you can be helped by a low doc loan in such a situation.
This is fortunately possible because low doc loans have bridged the major gap between showing the proof of your ownership and income for many of the Australian business owners. On the other hand, this is also much helpful because there are millions of self-employed people there in Australia. And they are majorly satisfied by this solution.
What is referred as a low doc business loan?
The term low doc business loan is often misunderstood when you try to opt for this option. Therefore read about this term in detail and increase your understanding related to this. A low doc loan is also referred to as a low documentation loan. It is an important type of business loan granted to people with many key differences with regard to the needs of any established financial institution in particular.
Moreover, when you visit any bank for a traditional type of business loan they will ask you to show your previous two years’ tax return. In addition to this, you have to provide all your financial statements like balance sheet, cash flow, income statement as proof of your consistent earning. In other cases like for example with any new business company, one has to showcase their full business plans in front of the bank to actually be validated for applying for any business loan. Thus if you are a new business company it’s an efficient idea to make your business plans first, although it will take much of your time and you may not have that amount of time while starting your new business.
On the other hand, there is much probability of not having your detailed accounting information which the lenders may ask for especially if they are new to the Australian business field. Therefore many of the established business owners are facing problems in getting loans easily. Thus the concept of low doc business loans was introduced for the people facing many of the challenges in applying for loans from traditional business loan patterns. While applying for low doc Australian business loan one does not have to provide any sort of detailed documentation as proof, thus it is easy to apply and more business persons are attached towards this loan now in Australia.
Why it is better than others?
It is a highly efficient concept for applying for business loans for the people doing start-up business or involved in small size business. This way such loan seekers are saved from showing and keeping the track of record about their business documentation or incomes. On top of that, they are also saved from traditional banks’ terms and conditions of seeking a loan for their business. Moreover, it is the most time-saving option to choose because many a time it may take the duration of almost 3 months to get eligible and approved by the bank business loans.
How to get qualified for a low doc loan?
There are some of the basic documents needed for applying for the low doc Australian business loan. However, the documents required may differ by the different loan providers. But to let you understand the eligibility there are some lenders which may ask for a minimum of the 2 documentation such as:
- You have to show your registered name of the business company
- A borrowers income declaration signed and stating your usual income
- Your ABN number which is Australian business number
- Your BAS i.e. business activity statements for the last twelve months
- You have to validate that you have registered for GST for twelve months
All this is important because it’s worth it if you are well prepared beforehand. Moreover, the applicants have to know that the risk involved in lending a bigger amount of money is much greater in this type of low doc loan.
To wrap up this topic of criteria of eligibility, it is specified that to qualify for low doc Australian business loan is very easy. The most important thing to have in you is the willingness to work harder in terms of paying the loan back. Moreover, these types of low doc loans are tagged as the unsecured type of loans since you don’t have to do much paperwork in terms of getting approved for the loan. On the other hand, the past history of bad credit is not any barrier to be treated for granted in this loan type. Moreover having a no credit history will not be going to affect the applicant’s loans.
Some of the uses of a low doc loan
One of the widely selected ways you can use this loan is for starting up a new business or for expanding up the existing business venture. You may also require it to refill your stocks of the business so that you can cover any unexpected cost. On the other hand, it is also helpful when you have to provide the labor expenses, then you can easily use low doc loan for such purpose.
Hope this article gave you a better understanding of the term low doc Australian business loans.