FAQ

Yes, it can be. ABN only loans are in the category of low docs and no docs finance. With these types of loans, applicants do not have all the financial records and documents that are usually required for motor vehicle finance. With less documentation to verify the financial position and ability to service the loan, this type of loan is considered as a higher risk. As a higher risk loan, ABN only loans can be offered at the same rate as fully documented loans but with additional conditions. In some cases, the interest rate may be higher. Applicants can improve their chances of achieving a lower interest rate by providing more financial documents. In general, the more docs provided and the better quality of docs the better the loan outcome.

All loan applications including ABN only car financing, are assessed on an individual basis. Lenders make their own risk assessment of each business and offer the interest rate and loan conditions based on that assessment. In most cases, it is presumed that some form of trade/business is being conducted by an ABN-holder. In order to be offered car finance, the applicant will need to prove they have the ability to repay the loan. This will require some form of income which would normally come from the trading of the ongoing business. Some lenders may accept a self declaration of this income.

An ABN-only loan is a type of car loan in the same broad classification as no doc car loan. This type of loan is structured for businesses that have an ABN but very little, or no substantial financial accounts as is required for a fully-documented business vehicle finance deal. The minimal requirements for this type of loan are a current ABN and proof of identity. Preferable is being registered for GST, presentation of BAS returns and presentation of some form of business financial accounts, even simple spreadsheets. As this type of loan is assessed as a higher risk than a fully documented loan, the interest rate may be the same as an advertised rate but with additional conditions placed on the loan. Loan conditions depend on individual lenders and may include requesting a higher deposit be paid to reduce the loan amount and maximums on the amount that will be lent.

A pre-requisite for a business car loan is to be a business and in Australia, that requires the holding of an ABN. So if you currently hold an ABN, you are technically in a position to apply for business vehicle finance. However, there are other requirements to be offered business vehicle finance. Lenders will request some form of financial documentation relating to your business. This may be BAS returns, financial accounts and other such verification of your business. Accounts. If an ABN holder only has minimal financial documentation as is often the case with a business that is just starting up, then an ABN-only car loan can be sourced through specialist vehicle lenders. Not all banks and lenders provide ABN-only loans.