Understanding No Doc or Low Doc Equipment Finance
Written by Phillip Gruppelaar
When you search the Internet, you will quite often see advertisements for No-Doc or Low-Doc Equipment Finance and No-Doc or Low-Doc Machinery Finance. The problem is when you enquire it’s a whole lot harder to sort out than the advertising suggests.
No-Doc Equipment Finance and Low-Doc Equipment Finance comes in many forms. However you will only be able to get a No-Doc or Low-Doc agreement if the finance agreement is genuinely for business use. (i.e. consumer credit regulations in Australia, require applicants to prove the they can genuinely afford any finance agreement they enter into. This cannot be done without documentation.)
Low-Doc Finance can be a misleading term. The financier may not want financials, but could ask you for a quantity of other paperwork, such as bank statements, tax portal or BAS statements.
With No-Doc Finance and Low-Doc Finance in many cases finding the correct lender is the hardest part.
Finance Brokers such as Harley Finance have intimate knowledge in what lender will do what.
Below are examples of No-Doc or Low-Doc Finance Are:
Replacement of an existing agreement – most main stream lenders will lend without any paperwork up to approx. 130% of the finance agreement being paid out, for similar loans and similar goods, provided they can get a good credit reference. (e.g. if you borrowed $50,000 on your old loan, the financier would lend you up to $65,000 on the new loan)
Professional Applicant Packages – The primary requirement here is proof of membership of an appropriate professional association (e.g. Law Society) for a minimum of 3 years, in most cases no other paperwork will be required. Lenders for equipment will lend up to approx. $100,000, for motor vehicles $150,000. Commonly accepted occupations include. Doctors, Lawyers, accountants, Dentists, Engineers etc.
General No-Doc or Low-Doc (No Deposit) – If you have been in business for 2 years, own or have mortgaged property and have a clear credit file, you can expect to have access to funds up to approx. $50,000
Other No-Doc or Low-Doc (30% Deposit) – Dependent how loan you have been in business, there are facilities available up to $35,000. In limited cases you may be able to get up to $50,000.
Bad Credit – There are facilities available if you are prepared to pay a high interest rate or enter into a rental agreement. The lenders for these products will want to be well covered for security. (i.e. they will only want to lend up to a quick sale value in the event of default).
Should you have any question about No-Doc equipment finance or any other kinds of finance, contact Phillip via live chat or ask us a question via contact form.