FAQ

When approved for a low docs car loan, the business can take up the offer for the full range of commercial finance facilities. These include Car Leasing, Chattel Mortgage, Commercial Hire Purchase and Novated Leasing. Each of these loan types are available for low docs loans. They vary in their treatment of GST and tax deductions, balance sheet entries, ownership of the vehicle through the loan term and suitability to either the cash or accruals accounting method. Deciding which is the most suitable type of motor finance for your business should involve a consultation with your accountant or financial advisor.

The interest rate that Jade Car Loans advertises is a general guide to business vehicle interest rates and is the minimum best rate that can be achieved. This rate would apply to fully documented business vehicle finance applications submitted by strong businesses with low risk assessments. Low Docs Loans are considered a higher risk and as such attract a higher interest rate than fully documented loans. The interest rate advertised by us on a daily basis can be achievable for Low Doc Loans. In some cases, the interest rate may be higher. The key consideration is that additional conditions apply to the loan and stricter criteria to be approved such as a good credit profile.

The essential requirements for a Low Docs Loan are to have a current ABN and proof of identity of the business owner(s). From that minimal requirement level, the more docs an applicant can provide to support their vehicle loan application, the better it is likely to be considered by the lender. Being registered for GST is considered preferable and this would be supported by recent BAS returns. Basic financial accounts are highly desirable. If a business is just starting up, projections may be requested by the lender. A lender may request additional security against the loan in the form of business owner guarantees.

Docs is the finance industry’s reference to documents, specifically financial accounts and other financial documentation such as business income tax returns, BAS statements, business trading figures etc. Low Docs means that the business does not have all the documentation that is requested to qualify for business vehicle finance, especially by lenders such as the major banks. To assist this type of business, there are non-bank lenders that offer ‘low docs car loans. Many lenders including these non-bank lenders have access to sourcing low docs loans. This type of loan is considered a higher risk than a fully documented loan and will attract additional conditions on the finance