Anxious with FOMO - fear of missing out on your new car because you don't think you'll meet the requirements for a car loan? FOMO for individuals might mean you miss out on something that you wanted but didn't absolutely need. Important yes, disappointing yes, but maybe not essential.
But for a business, missing out on finance to purchase a business vehicle can have devastating impacts on their operations and ability to derive an income. FOMO on a business car loan is a very real concern. When your current delivery van has mechanical issues requiring expensive repairs which put it past its used-by date can mean a big hit to your work capabilities. A landscaper or gardener definitely needs a ute to transport all their tools to their customer’s premises in order to carry out their work and make a living. Plumbers, electricians, carpenters and service technicians must have a vehicle to carry their equipment and supplies to/from the work site or they essentially don’t have a business. Regional business owners of many types usually need a car as a means of getting around to meeting with their clients.
If you’re facing any of these or other circumstances and you think you may not meet the requirements for a business car loan, Jade Car Loans may have a solution for you. We fully appreciate the importance of a vehicle to all types of businesses and we offer services to ease your FOMO: sourcing you a quote for a Low Docs Car Loan WITH a pre-approved loan at competitive business car loan rates.
Low Docs Loan Features
This type of loan category is made available by select lenders, often non-bank lenders, for businesses that do not meet the requirements for a standard motor vehicle finance loan set by institutions such as the Reserve Bank of Australia. The ‘docs’ refers to not having all the financial documentation required by most of the banks and some lenders.
Jade as a car finance broker is accredited with many banks and non-bank lenders, including those that do make cost-effective offers for low docs car loans. Your Jade consultant will contact the appropriate lenders to source you an offer subject to your application meeting the guidelines set by the individual lenders.
The better the quality and quantity of documentation in your application, the better your chances of being made a loan offer and the better the offer:
- Current ABN is essential.
- Registered for GST is preferred with presentation of BAS returns.
- Some form of current accounts, even those prepared by yourself but preferably by a professional accountant is highly preferred.
- Due to the increased risk assessment, the interest rate is usually higher on low docs loans compared with standard business car loans.
- Individual lenders may require a larger deposit be paid on the vehicle to reduce the loan amount.
- Individual lenders may require additional assets be put up as security in addition to the vehicle. This may be personal property or guarantees by the business owner.
- Individual lenders may have minimums and maximums in regard to loan amount, balloon/residual and the age of vehicles they will finance.
- The Low Docs category applies to commercial finance facilities including Chattel Mortgage, Leasing and CHP.
Your Jade consultant will negotiate directly with the lenders on your behalf to save you time and hassle. With our strong bargaining power in the motor vehicle finance sector, Jade Car Loans is well-placed to negotiate workable outcomes for businesses seeking loans without all the usually required documentation.
Don’t Wait – Get Pre-Approved
Waiting to apply for your car finance after you’ve decided on the vehicle you want can be stressful for low docs applicants. The seller may be pressuring you to finalise the deal while you’re scrambling to secure a loan by contacting banks, finance companies, and considering car hire purchase options. The result may be a NO all-round or you may be tempted into signing up to a loan that is not sustainable for your business.
By engaging Jade Car Loans as your broker before you start looking at cars and talking price with the dealer or private seller can result in significant benefits:-
- For a start, we have the finance industry contacts, including our network of industry-only lenders, that are more amenable to offering low docs car loans.
- By having a broker handle your applications to the lenders, you avoid the risk of having a negative impact on your credit profile. When an individual applies to multiple lenders for the same loan and is rejected, it may reflect negatively on your credit profile as lenders are required to report all loan applications.
- Your Jade consultant has the expert skills to negotiate the cheapest car finance interest rates and the most attractive loan terms and conditions that meet the lender requirements for your specific application.
- By having your loan pre-approved, you have the knowledge as to your budget for the car purchase and the confidence to proceed with negotiating price with the seller.
Jade Car Loans provides quick quotes across all our loan categories including pre-approved low docs loans. So the process can be streamlined and prompt to ensure your search for finance is finalised as quickly as possible.
Ease your concerns about your car loan prospects by having an obligation-free conversation with one of our consultants. They will explain the process and discuss your options with you.
To discuss a pre-approved low docs car loan, contact Jade Car Loans at 1300 000 003.
DISCLAIMER: THE INFORMATION PROVIDED IN THIS ARTICLE IS FOR GENERAL INFORMATIVE PURPOSES AND NOT INTENDED AS FINANCE ADVICE. INDIVIDUALS SHOULD REFER TO THEIR FINANCIAL ADVISOR OR ACCOUNTANT FOR ADVICE IN REGARD TO THEIR INDIVIDUAL FINANCIAL DECISIONS AND SPECIFIC CIRCUMSTANCES. DETAILS IN REGARD TO GOODS, SERVICES AND GOVERNMENT OFFERS AND POLICIES HAS BEEN SOURCED FROM PUBLIC MANUFACTURER AND SUPPLIER WEBSITES AND GOVERNMENT RESOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS OR MISREPRESENTATION OF INFORMATION AND DATA OBTAINED FROM THESE SOURCES.