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Low Doc Options for Australian Borrowers Seeking Commercial Loans for Heavy Machinery Vehicles
Acquiring a heavy machinery vehicle, such as trucks, trailers, excavators, and tractors, is a significant investment for any Australian business. It can help widen their operational capabilities, reduce downtime, and increase productivity. However, the cost of these vehicles can be high, and some businesses may not qualify for traditional loans due to low credit scores or unestablished financial records. This is where low doc options come in.
Low doc loans are a type of commercial financing that enables borrowers to apply for a loan without extensive documentation requirements. The process is faster, more straightforward, and flexible than traditional loans. This article will provide a comprehensive breakdown of low doc options for Australian businesses seeking commercial loans for heavy machinery vehicles.
Eligibility Criteria for Low Doc Loans
To qualify for a low doc loan, borrowers need to meet specific eligibility criteria. Some of the common requirements include the following:
- Self-employed or small business owners with an ABN that is at least two years old.
- A minimum trading history of twelve months.
- Business owners with a good credit history.
- Evidence of income through bank statements, financial reports, or tax returns.
- Collateral for the loan, such as the machinery being financed.
Loan Application Process for Low Doc Loans
The application process for low doc loans is simple and fast. It involves the following steps:
- Determine how much you need to finance your heavy machinery vehicle and the type of loan that you require.
- Provide the required documentation, such as proof of identity, business registration papers, and bank statements.
- The lender will assess your application, and if approved, they will give you an offer that outlines the terms of the loan.
- If you accept the offer, you sign the loan contract, and the funds are paid directly to the supplier.
Interest Rates and Repayment Options for Low Doc Loans
Interest rates for low doc loans are normally not higher than for chattel mortgage sometimes called traditional loans if the borrower fits the lenders standard lender rules and criteria. It is important to understand it’s generally a requirement to be registered for GST to get a lower rate. However, they offer more flexibility in repayment options. Loans are for a fixed interest rate and term. Repayment options include flexible payment schedules, generally monthly. This allows you to plan your cash flow and budget according to your business needs. For Startup business’s there are options. This is a very complex area as all lenders have their own assessment criteria and lending rules. That’s why using Find that Finance and their experienced commercial brokers to find the best deal for you from their many lenders.
Real-World Examples of How Australian Businesses Benefit from Low Doc Loans
Many Australian businesses have benefited from low doc loans for their heavy machinery vehicle financing needs. Here are some examples:
- A trucking company in Victoria used a low doc loan to purchase a semi-trailer to expand its operations. The company would not have qualified for a traditional bank loan due to their limited financial history.
- A construction company in NSW used a low doc loan to purchase a new excavator to speed up their building projects. The loan process was quick and allowed them to secure the equipment they needed without disrupting their cash flow.
- A farming business in Queensland needed a loan to buy a new tractor to plant their crops. The business owner was self-employed and did not have a sufficient financial record to qualify for a traditional loan. However, they were eligible for a low doc loan and were able to secure the funds they needed.
Conclusion
Low doc loans provide a viable financing option for Australian businesses seeking heavy machinery vehicle loans. They offer a simple and fast application process, flexible repayment options, and lower documentation requirements than traditional loans. If you are a business owner in need of financing for your heavy machinery vehicle purchase, consider low doc options to access the funds you need.
