- Personal Loans
- Vehicle Finance
- Business Loan Brokers
- Mortgage Broker
- About us
- Contact us
- How we work
Australia’s most accessible financial broker
What You Need To Know About Low Doc Loans
Are you self-employed or a small business owner who doesn’t have the required documents for a full doc loan? A low doc business loan can help you! Before you start applying for a low doc loan online, it’s important you know about the requirements, loan terms, fees and charges, and the types of loans available. Read on to learn what you need to know about low doc loans.
- What you need to know about low doc loans
- What does a low doc loan mean?
- What is needed for a low doc loan?
- Types of low doc loans
- What credit history do I need for a low doc loan?
- What can I use a low doc loan for?
- Pros and cons of low doc loans
What you need to know about low doc loans
What does a low doc loan mean?
A low documentation loan, also known as a low doc loan, is a type of business loan that is available to people who don’t have the required documentation. It’s also an alternative finance option for people who don’t want to deal with mountains of paperwork. Low doc loan applicants are commonly self-employed or small business owners, who may not possess financial statements to prove eligibility.
What is needed for a low doc loan?
The low doc loan requirements will change depending on your lender. But as a general rule, lenders will need enough documentation to verify your creditworthiness and proof of income. At a minimum you will need to supply:
- ABN or ACN
- Personal identification
- Business verification
Types of low doc loans
A secured loan uses a valuable asset such as a car or house as collateral. Because this is generally a safer option for the lender it typically comes with lower interest rates.
An unsecured loan is not guaranteed by an asset. And therefore the interest rates tend to be higher and your borrowing power more limited.
What credit history do I need for a low doc loan?
Having a good credit score will improve your chances of being approved for a low doc loan. And it should also help you get a better rate on your loan. But it is still possible to get a low doc loan even if you have bad credit history.
The credit history requirements vary for each lender or bank. Therefore, it’s important to discuss your credit history with a lender before applying. At Oceania Finance, we offer a range of loan options for all credit scores, from excellent to average and bad. Speak to our team today about your options.
What can I use a low doc loan for?
Low doc loans are a flexible option for self-employed people to finance their business. You can use your low doc business loan for any of you business needs, including:
Pros and cons of low doc loans
Before you apply for a low doc loan, you should carefully review the pros and cons to see if it’s the right choice for you.
Non-conforming loan option for borrowers who don’t fit traditional lending requirements
Not every bank or lender offers low doc loans
Flexible repayment options
Interest rates can be higher
Higher risk than business loans
Approval can be faster
May come with more fees
What you need to know about low doc loans: FAQs
What are the interest rates for low doc loans?
The interest rate for low doc loans in Australia will depend on multiple factors, including the lender, the type of loan, your credit rating, your current financial situation, and how much money will be borrowed. As low doc loans are considered higher risk, they usually come with higher interest rates than standard business loans.
Are low doc loans safe?
A low doc loan is a safe option for freelancers and business owners who cannot provide full financial documentation. The only concern people may have about low doc loans are the higher interest rates. If you speak to one of our financial business brokers, we will discuss all your options and the low doc loan features.
Oceania Finance is here to help
Now that you’re aware of what you need to know about low doc loans, you may be thinking that a low doc business loan is right for you! At Oceania Finance, we have been helping self-employed people finance their businesses for over 20 years. We offer a range of flexible repayment options to fit your individual needs. To enquire about our business loans, please contact us or apply for a loan online today.