What is a low docs car loan?

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.

What are the requirements for low docs loans?

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.

Do low docs loans attract the interest rate you are advertising for business car finance?

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 assessment. 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.

What types of finance products are available for low docs car loans?

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.

Low Docs Car Loans for Business Vehicles

Low Docs Car Loans – Finance Comparison Table

Low docs car finance can be challenging to source and the less time you waste asking around the better. We’ve provided this handy reference guide to show you how Jade interest rates rate in comparison popular financing products. The rate on your loan may be higher than the one used in these examples but it gives you a quick way to compare what lenders are offering.

Loan Amount $ Loan Term

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*The purpose of the interest rate comparison table is to provide a guide only and for comparing the interest rates on different commercial loan products. Quoted repayments are based on advertised rates and do not include lender fees and charges. An offer made to you by a lender may be at a different interest rate and have a different repayment. Using this device is not an application, any indication of an offer, and is not a loan approval.

In reference to borrowing the term ‘low docs’ loans means the applicant does not have all the documents usually required by the bank or lender to secure car finance. It can apply for people seeking personal car loans and for businesses seeking finance for vehicles to operate in their business. Here we’re looking specifically at low docs car finance for business. That may include SMEs, sole traders and other self-employed operators that have registered an ABN.

At Jade Car Loans we write a lot of motor vehicle finance business and we have assisted many customers seeking a low docs loans. This can be people starting a new business and have only been trading for a short while. Those who have recently transitioned from employee status to their own business, which is very common in the trades. It could be someone who has set up a business structure to run a side-business as additional income to supplement their regular income.

Whatever your particular scenario, you may not necessarily need full documentation in order to secure an affordable, cost-effective and workable motor vehicle finance deal with Jade Car Loans.

Our Jade consultants have a wide network of banks and lenders and know which one will offer you the best deal and will negotiate hard to secure that deal for you.

Specific Requirements

Let’s look at what is required and what’s not essential for low docs motor vehicle finance.

You must have an ABN - that is essential.
Proof of Identification is essential to all loan applications.

As distinct from a No Docs Loan where no financial information is available and hence required, a Low Docs Loan still requires some form of financial information about your operation.

This may include:

Tax portals
BAS statements
Bank statements
Financial Accounts either prepared by an accountant or by yourself or your staff

Some conditions may apply and these will depend on the individual lender and your specific application, they may include:-

A deposit may be required by the lender for new, as in recently acquired, ABN holders and where no other security by way or property is available as security.
The GST registration status of your business may also have an impact on certain conditions around the finance.

Low docs loans will most likely be rated as a higher risk for some applicants than a fully documented loan application and as such may attract a higher interest rate.

Low Docs Loan Types

There is a range of commercial finance products available for the purchase of business vehicles. They include:-

Car Leasing
Commercial Hire Purchase (CHP)
Chattel Mortgage

Refer to our dedicated web pages for complete details of the features and benefits of each of these loans. Depending on the lender, low docs car finance is available for all these types of loans.

Securing Finance with Jade

As professional finance brokers, Jade Car Loans has extensive experience securing quality loan offers for low docs customers. So if you are hesitant about approaching the bank yourself or have had an application rejected, contact Jade Car Loans to discuss how we can achieve a workable outcome for you.

Give us a call and discuss your low docs car finance options with one of our Jade Car Loans consultants. Call 1300 000 003

Low Docs Business Vehicle Finance FAQs

Low Docs car loans are extremely helpful for businesses that do not meet all the criteria demanded by most banks and many other lenders. By their very nature this is a specialised category of vehicle finance which requires specialised management. These FAQS are provided with the intention of expanding on the general information provided on our website but by directly answering key concerns. Low Docs loans are quoted individually and we invite you to simply call Jade for an obligation-free discussion.