Finding the right low doc car loan for your business isn’t as hard as it may seem. Low doc car loans are designed for small business owners who may not have all the required documentation for traditional secured car loan approval. So really, these loans are designed just for you!
Document checklist for your low doc car loan:
- Credit rating – the lender will check this as part of the application process. You can get a low doc car loan even if you have bad credit
- ABN number
- Tax return information (if you have it)
- Bank statements
- Any proof of savings/assets
Once you have these documents, here are some features you can compare to find a loan that works for you and your business:
- Compare payment frequencies – check that you can pay weekly, fortnightly and monthly
- Compare sign up fees
- Compare interest rates – due to less security, low doc car loans may have higher rates than secured car loans but they are still competitive and can deliver tax benefits
- Compare balloon payment options – a balloon payment at the end of the loan term may lower monthly repayment amounts
- Compare documentation requirements
- Compare loan terms – longer terms reduce monthly repayment amounts
- Compare deposit requirements, you will usually need a deposit
Some benefits of a low doc or self-employed car loan:
- Claim on tax – a major benefit of a low doc or self employed car loan is that the ABN holder can claim costs as part of tax deductions. These costs include interest repaid on the loan, repairs and insurance. This can make purchasing a work vehicle more affordable in the long run.
- Less paperwork – sick of having to prove you’re actually making money? Having the option to take out a low-doc or self-employed car loan as a business owner should be a breath of fresh air as lenders are less stringent in asking for proof of income documentation
- The application process can be quicker: With less documentation involved, the applications process and waiting time for an outcome when applying can be quicker for a low doc car loan than traditional loans.
It’s likely that you may not have the time to do all the searching, comparing, and number crunching because you’re too busy running your business. We get it. We work directly with lenders and understand the products of not just one lender, but many.Call us today to get started.