Securing loans from many commercial institutions to fund your projects or run your business may prove pretty tricky sometimes. For sure, you would have to deal with a truckload of documentation.
Often, you would file your tax returns as evidence of your income, put up with high interest, you have to have an excellent credit history and mortgage most of your properties.
Not everybody meets these qualifications, but does that have to be the end of your dream? Even if you can’t get ahead with commercial banks and lenders, there is still a sure way you can get loans to fund your projects and business.
And that is through Low Doc Business Loans.
Low Doc Business Loans is for you if you are self-employed, a start-up, immigrant or just anyone who finds it challenging to maintain a good credit history, probably due to fluctuating income.
Do you think you fit into the category of those who have difficulties meeting up all the requirements of a traditional bank? Low Doc Business loan is one of the quick loans you can get to keep your business running.
How Does a Low Doc Business Loan Work?
Getting a low doc business loan works through the following process.
You will need to apply for a low doc loan. Luckily, most lenders that provide a low doc business loan operate online. As such, you probably will fill a loan form online that takes less than ten minutes.
After this, you are likely to receive a response within a short time. This response will contain a personalised repayment plan that suits your budget.
If you are okay with the repayment plan, you will verify and sign the contract. Depending on how fast your lender is, you can get the loan the same day.
The amount you can borrow depends on your type of business. You can reach out to your lender to know what factors they use to determine how much you can get.
As always, you then begin to make repayment of the sum you borrowed.
Should you consider a Low Doc Business Loan?
You might still be in doubt about getting it. Some of what you stand to gain if you go for it are;
Short Approval Time
Unlike traditional banks where you keep pressing for days or months before your loan approval, you don’t have to wait all week to get a low doc business loan. Some lenders can get you the fund you need in a day.
Usually, the pre-approval time is between one and five hours. The settlement time is also between one and five days. So, if you are looking for an accelerated funding plan to fund your truck purchase, reach out to any of your low doc business loan lenders.
Flexible Repayment Schedule
Usually, the repayment schedule for a low doc business loan fits your cash flow. Let’s get straight to it, many of the lenders know that you don’t have an excellent credit history, so they slow down on you.
The repayment schedule is always between one and forty-eight months. Plus, you have a bonus for a loan extension. You can agree to a periodic repayment option, or you can always drop a lump sum payment. Some lenders even accept a combination of both.
For many, the interest rate is meagre. You get as low as two per cent interest on your monthly repayment.
Requirements for a Low Doc Business Loan
A flexible loan plan for business truck finance? Yes, but, there are still some boxes you need to check with your lender before you get a low doc business loan. Some of them are:
Like your traditional bank, you would have to advance to your lender some money. In most case, this advance is between twenty per cent of what you would need to borrow.
Proof of Credit History and Performance
Many lenders would want to value your repayment possibility. To do this, they ask to verify your credit history. This often gives them an overview of your financial stability. Some may go further to ask for evidence of your existing credit performance. This is so they can see your repayment performance on unsecured loans and current debts if you have any.
One significant advantage of a low doc business loan is in the name. You are dealing with very low documents. For most lenders, they only ask you to submit evidence that you are receiving a regular income.
This is so they can know how sure and fast you would be able to repay your loan. In most cases, you will need to submit a business activity statement (BAS), a bank statement that contains your business expenses and probably a letter for the accountant.
So, instead of delaying your truck loan for business by queueing up at the bank, why not reach it to any of the low doc business loan merchants around. You would have yourself to thank for that decision.