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Need to secure a loan for your business? If you are self-employed, an investor, or a new business, it may be difficult to secure funding from one of the big banks. It’s times like these that you can turn to private lenders, who offer a level of flexibility and speed that traditional banks can’t match.
As specialists in sourcing no doc and low doc commercial loans in Australia, Hodgestone Finance regularly assists clients in finding smartly designed loans that work for their business. Whether you need a low doc construction loan or a no doc commercial property loan, our network of non bank lenders will be able to help.
So, is a low doc or no doc loan the best choice? Let’s discuss both now so you can make an informed decision.
What are Low Doc Commercial Loans?
Low doc stands for low documentation, and refers to the number of documents needed to secure this type of loan. Low doc commercial loans are for self-employed workers who don’t meet the stringent requirements of full doc loans at the big banks.
The professionals at Hodgestone Finance can assist you in getting low doc loans for $40M+, which can be paid back over anytime from 12 months to 25 years. However, we will still need to see some documentation to get the loan moving. This could include any (or all) of the following:
> Your Business Activity Statement (BAS) to show us expenses and how much the business brings in.
> An Accountant's Letter to confirm earnings based on your accountant’s knowledge of the business financials. A Signed Declaration of Income can also be used, but this may result in a higher interest rate.
> An ABN can be used to confirm your business’s legitimacy, and you will need to have had one of these for at least a year.
Read more details about what is usually required for low doc commercial loans in Australia in our blog, ‘What Documents Do You Need for a Low Doc Commercial Loan?’.
We often see low doc loans used by businesses wanting to invest in property, buy new equipment, or fund new operations to help the business grow.
What are No Doc Commercial Loans?
Like with low doc lending, no doc stands for ‘no documentation’, although this is a little misleading, as you cannot literally walk in with nothing at all and expect to get a loan. A better name for this type of loan is a ‘non-conforming’ applicant loan, as the types of clients we see needing this loan cannot meet the requirements set out by the banks and usually have either had their ABN for under two years, are a developer without a 100% debt coverage in pre-sales, or have a poor credit history.
The most important thing to know about no doc commercial loans is that you will need to have a suitable exit strategy in place to rely on. This is a backup plan to show the lender that you will be able to pay off the loan from them, one way or another.
Suitable exit strategies can include:
- The sale of existing property or assets
- Verifiable future income
- Refinancing property once your financials have been completed
Clients will also need to verify their income for a no doc loan.
Once a broker has this information, they will be able to match you with a suitable lender–for no doc commercial loans, it will usually come from a private lender or other non-bank option.
Which Type of Commercial Loan Should You Choose?
If getting a more traditional loan from a bank isn’t going to be feasible, then you’ll need to decide whether to try for a low doc or no doc loan. Speaking with the experienced loan brokers at Hodgestone Finance can help you learn which loan type is more suitable for your circumstances.
Before getting in touch, consider these points.
Low doc loans are ideal for people like:
- People without a regular PAYG income
- Investors
- Businesses having trouble getting the loan they need through their bank
- Self-employed sole traders
- Self-employed borrowers with complex company structures
Non-conforming applicant loans, or no doc loans, are more suitable for:
- Self-employed individuals
- Small business owners
- Borrowers who need funds quickly
- Borrowers who need to settle on a property purchase quickly
- Anyone with less-than-perfect credit
The less documentation that is provided, the higher the interest rates will probably be on the loan. This is because you are a riskier choice for the lender to finance.
At Hodgestone Finance, the types of low doc commercial loans we can offer include low doc construction loans, low doc business finance, and low doc property finance.
When a client contacts us for a commercial loan, we will:
- Guide you through what paperwork is needed and assist in collecting what is needed.
- One of our brokers will assess your eligibility and then work to connect you with the most suitable lender from our network who can provide the best loan.
- Once approved, we will work with you and the lender during the settlement to make sure everything goes smoothly.
Hodgestone Finance can link you with lenders for low doc commercial loans in Sydney, Melbourne, and Brisbane.
Frequently Asked Questions About Low Doc and No Doc Commercial Loans
1. What other types of low doc lending can Hodgestone Finance help me with?
Aside from low doc commercial loans, we can also assist clients looking for low doc home loans and low doc lending for personal loans.
2. What are your low doc loan rates?
Please see our current low doc rates by going to our commercial loans page.
3. Can Hodgestone Finance help me with performing the needed analyses for my financial situation?
Yes, if you take us on as a loan broker, we will perform a range of different analyses to help determine the best kind of low doc loan for your needs.
These can include an:
- Independent Valuation Analysis
- Stringent Research and Investment Analysis
- Location and Demographic Analysis
- Full Quality Assurance to make sure the purchase requirements are met without compromise
4. How long does it take to get a no doc loan?
Hodgestone Finance strives to secure financing as quickly as possible, usually within a few days. No doc commercial loans are usually much faster to get than a traditional bank loan.
Contact the Low and No Doc Loan Experts Today
Ready to get the right loan for your business? Whether you’re interested in no doc commercial loans or low doc commercial loans in Australia, Hodgestone Finance stands ready to match you with the perfect private or non-bank lender from our network.
Use our online form to request a quote, or call us directly on 1300 463 439 to speak with a member of our team. With offices in Victoria and NSW, we’ve also made it easy to meet with us in person if that’s what you prefer.
With over twenty years of experience in property finance, we know how to help our clients find competitive loans to help their businesses grow.
Get in touch today to get started!
We find you the suitable loan that works for you.
Take the first step toward financial freedom with our quick and hassle-free loan process. Apply now and secure your ideal loan.
