Are you doing business as a start-up company? If so, you may be put off by going into a traditional bank and providing a large amount of documentation. This can be a source of frustration for entrepreneurs as people who do business on their own often cannot accommodate a bank’s funding requests.
An Ideal Way to Fund a Smaller Business
That is why acquiring a low doc business loan online sounds appealing to most start-up companies. This type of loan is unsecured and the funds can be received in under 48 hours. Money is placed into a company’s business bank account.
How This Type of Loan Can Help You Better Run Your Business
Simply by applying online, you can receive money based on your business expansion or emergency needs. This type of short-term loan can help you if you need to do the following:
- Buy business equipment
- Hire an emergency staff
- Seek repairs for your office
- Expand your business
Whatever the reason for the funding, you can be assured that you will receive an almost-immediate reply. You don’t have a lot of time to spend on loan requests. That is why this type of funding cannot be surpassed.
For instance, in Australia, a low-doc loan does not require three years of tax returns or financial statements. However, you still need to show proof of income. Therefore, a low-doc lender may ask for an activity statement for your business for the previous 12 months as well as business bank statements and tax returns for the past two years. It also helps to provide a letter from your accountant to confirm your business income.
A Higher Rate of Interest
You should supply basic info about your company including the name, GST, or ABN details. Because a low-doc loan carries added risk to a lender, you usually will need to pay a higher interest rate. If you are self-employed or unable to prove your income because it fluctuates, you will like the benefits associated with applying for low-doc funding.
Low-Doc Funding: Several Loan Types
Low-doc financing comes in various loan types, each with various fees, charges, and rates of interest. For example, a no-pay-slip low-doc loan can assist anyone who cannot provide pay slips to show how much he or she makes yearly. In this case, you will usually be asked to provide your tax returns or your banking statement.
You can also secure a no-income and no-assets loan. In this case, you typically need to sign paperwork that declares that you can afford the financing. You will be asked how you can repay the obligation. When these loans are secured, the borrower normally repays the debt by selling a property.