When it comes to business finance, low doc business car loans can be a fantastic solution for all business owners. Whether you’re a sole trader in need of a work vehicle or an expanding small business with not enough delivery vans, finding the right car finance can mean the difference between your business growing or failing.
However, if you’re one of the over 406,000 new businesses that started operating in 2023, you may find it difficult to qualify for a business car loan. If that’s the case, you may benefit from a low doc car loan.
What is a Low Doc Loan?
What is a low doc loan? It’s a loan product designed for small business owners with limited documentation. These loans offer borrowers a simplified application process, with minimal paperwork and competitive terms.
A low doc car loan can provide your business with the funds you need to purchase vehicles for commercial use. This could include expanding a delivery fleet, upgrading executive vehicles or investing in an industry-specific work car. This same loan can also be used to purchase equipment for your business or other assets that your business needs.
Understanding low doc vehicle loans can empower you to make informed decisions for your business’s transport and equipment needs.
Benefits of Low Doc Business Car Loans
- Streamlined Application Process: Say goodbye to endless paperwork! With low doc business car loans, the application process is expedited, enabling you to access the funds you need with no unnecessary delays.
- Flexible Criteria: Whether you’re a startup with a limited financial history or a seasoned business with a fluctuating income, low doc vehicle loans prioritise your business’s potential rather than solely relying on past performance.
- Competitive Terms: Despite the simplified application process, low doc vehicle loans offer competitive terms and interest rates, so you can secure financing without breaking the bank.
How to Apply for a Low Doc Car Loan
So, you’ve done it, you’ve started your own business. Congratulations! Now if you could just get your car finance sorted…
While the application process for low doc business loans is less strict than traditional loans, there are still some essential steps you’ll need to follow:
- Gather Documentation: You will need to provide some documentation, such as proof of income or a declaration of assets. To avoid unnecessary delays, make sure these documents are accurate and up to date.
- Research Lenders: Not all lenders offer low doc vehicle loans for businesses, so it’s essential to research and compare options. Look for lenders who have experience working with businesses in your industry and make sure they’re offering competitive terms.
- Consult with Experts: To ensure you get the right car loan to suit your business, seek advice from a business finance broker. They can do all the research for you, offer invaluable insights and provide expert assistance throughout the application process.
Low Doc Car Loans vs No Doc Car Loans
While the terms are sometimes used interchangeably, there is a difference between low doc and no doc car loans:
- Low Doc Car Loans: These loans typically require minimal documentation, such as proof of income or a declaration of assets. They provide a streamlined application process, ideal for self-employed individuals or businesses with fluctuating incomes.
- No Doc Car Loans: In contrast, no doc car loans require no documentation whatsoever. They generally come with strict eligibility criteria. Because of the high level of risk associated with this type of loan, very few lenders now offer no doc loans in Australia.
Ask Muscle Money About Low Doc Business Car Loans
Low doc loans can be a great solution for Australian businesses looking to drive growth. By understanding how these loans work and following the necessary steps to secure financing, you can unlock new opportunities for your business’s success.
If you’re ready to explore your options or have any questions, don’t hesitate to reach out to the team at Muscle Money. Apply for low doc business car loans online today or contact our brokers for some expert advice.
Caleb Waye-Harris, Senior Manager of Asset Finance at Muscle Money, has almost 15 years of relevant experience in the finance industry. His extensive background includes project management, consumer and commercial lending and asset-based lending.
