What is a Low Doc Loan?
Low Doc loans are equipment loans up to $250K, using business account statements to assess instead of financial statements.
We understand that clients don’t always have Accountant prepared financial statements when looking to undertake truck finance or any other form of heavy equipment finance.
As this is the case, Heavy Vehicle Finance has developed some great low doc funding options for our customers.
Low Doc Policy
Max loan amount $250K
ABN for 2 years
Property Owner (20% deposit for non-property owner)
Bank statements provided by customer through – www.bankstatements.com.au
Private sales or dealer purchases
Features of the Low Doc Policy
- Client can borrow up to $250K without financial statements
- Private sales can be done with a formal valuation
- Minimum credit score requirements (company and directors)
- No deposit for property owners
- No finance reference required
- Low doc loans using bank statements instead of financials is becoming a very popular form of funding in Australia
- Financial analysis is done on the clients bank statements within seconds of upload and attaches a risk profile to the deal / applicant
Benefits of the Low Doc Policy
- Most of the major banks do not offer loans up to $250K without financials
- Bank statements on some occasions, show a clearer picture of a business’s financial performance compared to accountant prepared financials
- Quick turnaround times for approvals given the instant financial analysis on the bank statements
- Provides customers with funding up to $250K if servicing is not evident on the financials
Example of a Low Doc Loan Application
- Existing client provided financial statements whereby we could not achieve servicing
- Client needed an additional excavator in order to meet demand for existing services
- Customer uploaded statements via our bank link and was issued a conditional approval within 24 hours
- Purchase price of new excavator was $240,000 (gst inc)
- Finance Type – Chattel Mortgage
- Term – 60 months
- Balloon – 30%
- Client was able secure the additional excavator without having to wait for another financial year to tick over before improved financials could be provided
- Customer was able to provide ongoing support to their existing customer base which meant they could grow the business even more
- On the basis these types of applications are assessed when client uploads their bank statements, the financial analysis software means deals can be approved / assessed faster than full doc applications
Want to ask more questions about our Low Doc Equipment Finance Product?
Our Low Doc product gives customers access to funding, even when traditional forms of funding are not an option. This form of funding is becoming very popular with Transport and Heavy Equipment Operators in Australia – given the out of the box assessment processes.
The financial analysis software that is applied to the bank statements cuts down on processing times – giving customers the ability to obtain conditional approvals faster than normal.
To discuss our Low Doc product in further detail, please call us on 1300 788 740 or apply online by clicking – online pre-approval.