What is a Full Doc Loan?
Full Doc Loan assessments for Equipment Loans require Accountant prepared financial statements for the last 2 years.
Full Doc Policy
- Max loan amount based the strength of the profit and loss and balance sheet
- Financials required for the company (last 2 years)
- Personal tax returns for the directors (last 2 years)
- Property owners and non-property owners
- Private sale and dealer purchases
Features of the Full Doc Policy
- This form of financing means clients can secure the best interest rates, particularly if servicing position is strong
- Applicants and applications have a high level of scrutiny to abide by governmental legislation and responsible lending practices
- Company needs to service company debts, whilst personal tax returns need to service personal commitments
- Gives access to funding for specialist type goods – drilling rigs, tower cranes
- Provides a higher level of total borrowing for a customer
- Assessment times can be longer on full doc compared to low doc, due to the additional level of financial analysis required
- Higher level of financial analysis required on large applications
Benefits of the Full Doc Policy
- This form of funding allows client more choices with what equipment they purchase
- Provides access to a higher level of capital compared to either Low Doc of No Doc funding options
- Allows customers the ability to obtain a good credit history through the National Credit Reference Scheme
Example of a Full Doc Loan Application
- Purchase Price of 5 prime movers
- Client provided 2 years company financials and 2 years personal tax returns
- Client provided tax portals on the integrated and income tax accounts
- Loan Amount – $1,750,000 (gst inc)
- Facility Type – Chattel Mortgage
- Term – 60 months
- Balloon –30%
- As financial statements were available, client was able to obtain 5 prime movers that would reduce their repair and maintenance expense by approx. $500K per annum
- Client was able to source trucks that met their required specifications
- This type of funding package allowed them to maximise their borrowing capacity and would ultimately give them greater access to capital in the future
Who would use Full Doc Equipment Finance?
Full doc equipment funding would be used for companies that are seeking a finance approval above the $500K low doc limit or in a situation where the goods are older than 5 years old.
Heavy Vehicle Finance specialises in truck and yellow goods finance and often have success in financing the bigger deals that other lenders would not consider. If in the event servicing is tight based on the current figures, we have highly trained analysts that can prepare detailed cash flow projections – to ensure the deal gets approved.
Need more information on our Full Doc Equipment Finance Product?
If you need help with a particular funding scenario, please call one of our Finance Consultants on 1300 788 740. We will be able to offer the best funding option, tailored to your business.