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What can you finance under low-doc loans?
Low-doc loans cover a wide range of prime assets, including cars, commercial vehicles, equipment (such as excavators, tractors, and forklifts), and farming equipment (such as harvesters and tractors). However, there are certain limitations on the borrowing amount and age restrictions for these assets, which may vary depending on the lender. It is advisable to consult with your broker to determine the specific details for your situation.
What are the eligibility criteria for low-doc loans?
Each lender sets its own criteria for low-doc loans. Generally, lenders require your ABN to have been active for at least 12 months, and in some cases, they may require GST registration for the same duration. Due to the impact of COVID-19, many lenders now prefer the business owner or director to have assets in their name, such as owning a property, rather than in their spouse's name. However, as lenders gradually ease their criteria back to pre-pandemic standards, they may consider accepting a deposit (cash or trade-in) of 20-30% instead of requiring the owner to own a home. It is important to note that the home is not used as collateral for financing, but rather to demonstrate the business's profitability and the owner's financial stability.
It is highly recommended to consult with a finance broker to explore your options and determine if you qualify for a low-doc loan. A broker can provide valuable insights and facilitate a smoother and faster financing process for your commercial assets.
