No-doc and low doc business loans have become incredibly popular over the last few years. Businesses are constantly looking at these loans because it’s the only finance option available to them. The troublesome part is that you have the means to pay the loan but don’t have the paperwork to back your application. It means you can’t get the loan you need. Fortunately, no-doc and low documentation loans have become a lifeline for millions. So, what do you need to know about them?
Understanding the Differences Between No and Low Doc Loans
A low documentation loan requires less income verification. Fewer documents are needed to back your loan application and it’s ideal for millions. A no-doc business loan doesn’t require any documentation to secure a loan; you only need to declare income from your business. Typically, these loans are found with specialist lenders rather than traditional banks. The reason for this is down to risk. Most banks don’t want to take such risks, even when your credit history speaks volumes. To find out more, check out www.lowdocloansco.com.au.
The Pros and Cons of No-Doc Business Loans
Firstly, no-doc loans do not need any documentation. That is a huge advantage, especially if you don’t have a lot of current documentation to prove your income. What’s more, approval time can be quick too and that’s ideal, to say the least. One drawback to no-doc business loans is that they tend to come with a higher rate of interest. This is down to the risk the lender takes. It’s the same with most low doc loans too, however.
The Pros and Cons of a Low Doc Business Loan
A low doc loan tends to be unsecured with quick approval time. That is fantastic for those who need to secure a business loan quickly. Another huge advantage of a low documentation loan is that they’re available to those with poor credit history or no history at all. It can, however, mean higher interest rates. On the plus side, if your credit rating is good, that could reduce the rate. Of course, there are many factors that determine your interest rate, including the actual lender themselves.
Which Loan Should You Consider?
No-doc and low doc business loans are both viable options to consider. Of course, it comes down to your personal circumstances. For example, your business is six-months old. Your credit rating isn’t great, and you have virtually no documentation. You may benefit more from a no-doc business loan. On the other hand, you have a few documents and a great credit history; you could benefit from low doc loans instead. It comes down to your current circumstances.
Choose the Right Loan
Borrowing money is never easy and when you don’t have the necessary documents at hand, things can look bleak. Fortunately, no-doc and low doc business loans provide you with alternatives to traditional bank loans. If you aren’t eligible for these loans, you have to look elsewhere, and low documentation loans are ideal. A low doc loan can provide you with an excellent option to secure finance for your business.
