Low Doc Asset Finance: Everything You Need to Know
If you’ve come across the term "Low Doc" but aren’t sure what it means or how to qualify, you’re in the right place. This guide explains everything about Low Doc loans and why they might be the perfect asset finance solution for your business.
A Low Documentation (Low Doc) loan is a popular and flexible financing option for small businesses. Whether you’ve been trading for two years or more than 20, Low Doc loans cater to businesses at various stages of growth.
What Is a Low Doc Loan?
A Low Doc loan simplifies the financing process by requiring minimal paperwork, making it fast and easy to secure funding.
Key Features:
- Alternative eligibility assessment: Your businesses eligibility is assessed by alternate means.
- No deposit required: Many Low Doc loans eliminate the need for an upfront deposit.
- Quick approval process: Applications are typically processed within a day.
- Competitive rates: Interest rates are often comparable to traditional bank loans.
This simplicity makes Low Doc loans ideal for small businesses looking to purchase vehicles or equipment without the hassle of extensive documentation.
How Does a Low Doc Loan Work?
Loan eligibility is determined through a straightforward assessment process. The main factors lenders consider include:
- Length of ABN/GST registration: Your business should have been registered for GST for at least two years.
- Credit score: Both the business and guarantors should have good credit scores.
- Proven payment history: A record of making on-time payments for similar commitments, such as mortgages or other equipment loans.
If your business meets these criteria, you’re likely eligible for a Low Doc loan.
Benefits of a Low Doc Loan
Low Doc loans offer a range of advantages:
- Minimal paperwork: No need for bank statements, tax returns, or financial records.
- $0 deposit options: Many lenders offer loans with no upfront payment.
- Flexible loan limits: Borrow between $150k and $250k, depending on lender policies.
- Quick outcomes: Enjoy fast approvals and swift settlements.
- Competitive rates: Benefit from rates comparable to those offered by major banks.
What Can You Buy With a Low Doc Loan?
Low Doc loans can finance nearly any vehicle or equipment used for commercial purposes.
Common purchases include:
- Utes
- Vans
- Trucks
- Trailers
- Wood and metal work equipment
- Specialised equipment for industries like construction, healthcare, hospitality, agriculture and more
- Excavators and other earthmoving equipment and attachments
- Forklifts
- Manufacturing equipment
- Fit outs
Whether you’re upgrading existing equipment or expanding your fleet, Low Doc loans provide the flexibility you need.
How Long Does the Process Take?
Low Doc loans are designed for speed and simplicity.
- Same-day approvals: The process can often be completed within one business day.
- Quick settlement: Settlement can take place the same day as approval.
This makes Low Doc loans an excellent option for businesses needing quick access to funding. While the process can be quick, we’d always suggest getting started early to secure the best possible terms for your loan.
It is crucial to select the correct lender both for the asset being purchased and your business profile to avoid delays.
What Are the Interest Rates for Low Doc Loans?
The rates for Low Doc loans depend on both your profile and the asset being financed. Many Low Doc lenders offer competitive and bank-comparable rates.
Factors that influence the interest rate include:
- The type of asset being financed
- The age of the asset
- How long your business has been operating
- The loan amount
- Credit score of the business and guarantors
- If you or your spouse own property
- The term of your loan
Ready to see your tailored finance options? Click here to get started by speaking with our team today!
Why Choose Low Doc Loans for Asset Finance?
Low Doc loans are a great solution for small businesses that need:
- Quick and easy financing
- Minimal paperwork requirements
- Fast access to funding for vehicles or equipment
- Leverage your proven track record of making payments on other lending
Get Started With Low Doc Loans Today!
If a Low Doc loan sounds like the right solution for your business or you’d like to explore your options further, book a call with our team today.
We’re here to help you find the best financing solution to grow your business. Click here to get started!
Alliteratively call us today on 1300 857 451 or email the team at hello@wcfb.com.au to discuss how we can help your business grow.
FAQs About Low Doc Loans
What is a Low Doc loan?
A Low Doc loan is a financing option that requires minimal paperwork and offers competitive rates.
Can I get a Low Doc loan without a deposit?
Yes! Many Low Doc loans do not require an upfront deposit.
How much can I borrow with a Low Doc loan?
Loan limits typically range from $150k to $250k, depending on the lender’s policies.
How quickly can I get a Low Doc loan approved?
Applications can be approved and settled the same day.
Can I buy used vehicles and equipment with a Low Doc loan?
Yes, you can purchase both new and used equipment with a Low Doc loan.
What Is the Maximum Loan Term for a Low Doc Loan?
Loan terms vary depending on the type of asset being financed. For vehicles, terms can extend up to 5–7 years, while equipment may have shorter or longer terms based on its category and lender policies.
What Documents Do I Need for a Low Doc Loan?
Low Doc loans require minimal documentation. Typically, lenders may only need your ABN/GST registration details, proof of comparable credit, and identification, making the process fast and hassle-free.
Can I Get a Low Doc Loan Without Property Ownership?
Yes, property ownership is not always required for a Low Doc loan. However, loan limits may be lower for non-property owners, and additional conditions, such as deposits or higher rates, may apply depending on your credit profile.
Are There Fees Associated With Low Doc Loans?
Yes, Low Doc loans may include fees such as an establishment fee, PPSR fee, or other charges depending on the lender. These costs are typically transparent and included in the loan agreement.
Can Sole Traders Apply for a Low Doc Loan?
Yes, sole traders can apply for Low Doc loans. These loans are particularly beneficial for self-employed individuals who may not have extensive financial records but need quick access to funds for business growth.
Can I Upgrade Existing Equipment With a Low Doc Loan?
Yes, Low Doc loans are ideal for upgrading or replacing outdated equipment, ensuring your business stays competitive without the need for complex paperwork.
What If I Am Not Eligible for a Low Doc Loan?
If you don’t qualify for a Low Doc loan, don’t worry—there are other financing options we can explore together. You may not be eligible for a Low Doc loan for reasons such as:
- Poor credit history: If you have a history of missed payments or defaults, it may impact your eligibility.
- Existing Low Doc loans: Having multiple Low Doc loans already in place can affect your borrowing capacity.
- Limited time in business: Businesses with less than 24 months of ABN/GST registration may need alternative solutions.
- Insufficient comparable credit: Lenders look for a track record of managing similar loans, such as mortgages or equipment finance.
- Prohibited industries or assets: Certain industries or asset types may not qualify under Low Doc criteria.
What Are Your Other Options?
If a Low Doc loan isn’t the right fit, we can guide you through alternative options, including:
- Mid Doc Loans: These loans require limited financial documentation, such as bank statements or BAS statements, and may offer higher loan amounts or flexibility.
- Full Doc Loans: A more comprehensive option that requires detailed financial statements, and other documentation but can provide access to larger amounts.
- Adverse Credit Loans: If poor credit is the issue, we can explore specific loan products designed for businesses or individuals with adverse credit histories. These loans cater to borrowers with less-than-perfect credit, offering tailored funding solutions to help you move forward.
- Cash Flow Loans: Lending for businesses that often doesn't require security and can be used for almost any business purpose.
Low Doc loans offer a simple, flexible, and fast solution for small businesses looking to finance vehicles or equipment with minimal hassle.
Whether you’re expanding your fleet, upgrading equipment, or need quick funding, Low Doc loans are designed to meet your needs efficiently.
Ready to take the next step? Book a call with our expert team today and discover how a Low Doc loan can drive your business forward. Click here to get started!
