Getting the commercial loan is not easy as it involves a lot of paper work, document verification etc. Sometimes the process becomes long and still people are unable to get the loans due to some unknown reason. So, a better way out is to go for the low doc commercial finance which has emerged as one of the brilliant choices. It not only involves less documentation but there are many more benefits that you can enjoy.
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But, before going for these loans, it is important to have a complete understanding of the same and accordingly decide whether it fulfills the purpose or not. Apart from that, low doc commercial finance may charge you higher rate of interest and you need to compare the interest rate before avail the loan. Along with this, you need to check the hidden costs of these loans such as foreclosing charges, late fine, application or processing fees and other related charges of the loan.
Amount of money that can be borrowed? The very first thing that comes into your mind is the amount of money that you can borrow. Now there are different options under this category and your choice as well. You can borrow 100% of the value of the property or you can go for 80% and 65% of the value as well. This will also depend on the company from which you are taking the loans. So, it will be a good idea to get in touch with their professionals and seek advice on the various loan options that are present and how to avail them.
Documents needed These are the loans which are taken up by the owners for their offices and that is why they may not have sufficient documents for the same. This is the time when you can make use of the low doc commercial finance which is best in every respect. Less documentation must be done and that is why it is a popular choice. Some of the necessary documents that you will have to provide are: -
• Copy of the rental history
• Copy of the lease agreement
• Copy of the bank statements
• BAS statements
• Letter from the accountant
So basically, these are the documents which you need to submit along with the application form. No other document is required and therefore you can move ahead with the process and apply for the loan. Even if you have bad credit score then also you can apply for the low doc commercial finance and many private lenders can provide you this loan without any good credit score.
Who can apply for the loan? Though the low doc commercial finance is open for everyone but still these loans are ideal for people who run their own business and cannot provide the income statement for the same. This is when these loans prove to be quite handy and becomes the first choice of the business owners. So, all the self-employed people are eligible for the loan.
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Rate of interest of the low doc commercial finance In case of the interest rate it entirely depends on the amount that you have taken for the loan but usually the interest is quite low. Thus, the monthly installments will be low, and it will not be a problem for anyone to avail the loan. Once you have abided by all the rules, you easily get the loan in no time.
Most people have a doubt that only short low doc is available, but this is entirely wrong. If you prefer to go with the long-term loans you can get the same as well. Accordingly, you can get in touch with the lender, gather the details and get the loan in the earliest time.