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Are you thinking of starting a new business? Or are you planning to expand the existing infrastructure of your enterprise? Then first, you need robust capital backing to fund your entrepreneurial pursuits. However, acquiring business financing is easier said than done. There will be multiple hurdles blocking your path to fundraising, especially if you go to a bank or similar financial institution with a loan application.
Banks are cautious when approving and processing a loan application, especially from a new entrepreneur. They will ask for lots of documents, and if your inability to procure will cause rejection of the loan application. Here’s where Broc Finance can help you by facilitating low doc business loans.
Low doc business loans are popular among SMEs in Australia and similar to conventional secured and unsecured business loans. The main difference is that low doc business loans enable self-employed borrowers and small businesses to secure instant cash flow or business capital without the requirement to furnish supporting financial documentation typically needed for loan approval.
Traditional financial institutions like banks require financial statements, proof of income, tax returns, etc., for background checks. They need the documents to assess the viability of the business for loan approval. Lack of documentation often becomes an issue with small business owners, causing a strike for business loan approval.
Business owners are often confronted with financial emergencies, which demand instant access to cash. That might be a problem with loans that require full documentation. Why? That’s because it takes time to go through all those documents and process the loan, unlike low doc business loans that ensure fast approval in a matter of 24-48 hours.
Low doc business loans extend financial relief to new businesses, start-ups, and small businesses, helping them secure quick financing, minus the stringent trail of documents and long approval periods typical with banks. These loans can also help SMEs bolster their capital for business expansion, marketing investment, etc., or replenish the cash reserves in times of deficit.
Owning and running a small business in Australia can be challenging for an entrepreneur. Low doc secured and unsecured business loans offer fast and easy access to funds, accelerating growth and business development.
WHAT DOCUMENTS ARE NEEDED TO APPLY FOR LOW DOC BUSINESS LOANS?
| Borrowing Limits | |
|---|---|
| Loan Amount | $5k- $20M |
| Term | 3 months – 36 months |
| Can be used for |
|
| Repayments | Daily/Weekly/Fortnightly/Monthly |
| Security | Both Unsecured and Secured Options |
| Pre-Approval Time | Unsecured: 2-4 hours Secured: 24-48 hours |
| Unconditional Approval and Settlement Time | Unsecured: 24-48 hours Secured: 3-7 days |
| Interest Rates | Unsecured: Starts from 7.99% p.a. |
| Benefits |
|
The purpose of low doc business loans is to fulfil the short-term financial requirements of an enterprise or long-term business expansion strategy.
You might need urgent access to funds to restock your supplies and inventory or use the loan amount to cover emergency business costs. Some businesses depend on labour and require sufficient cash flow to pay the labour expenses. Hence, they need a steady stream of cash flow to maintain suffice the labour needs.
There are other popular uses, such as:
Compared to the conventional secured and unsecured business loans with full documentation, a low doc business loan is often considered risky in the world of financing. But there is no denying, if you are a new enterprise with minimal business documentation, in need of fast cash, then low doc is the best cash-flow option. Over the years, we at Broc Finance have helped many businesses, especially in the SME domain across Australia by facilitating low doc business loans.
The following business case scenarios will help you understand better:
Business Case 1:
Industry: Manufacturing
Loan Amount: $250,000
Term: 12 Months
Trading Time: 3 years
Situation: The client’s business had witnessed 80% dip in its sales due to covid lockdown and import/export restrictions. Due to deterioration in the financials in the last 18 months, no lender was comfortable taking an exposure on the business. That’s when the client approached Broc Finance.
Action: Considering the current position of the balance sheet, our lending specialist decided to apply a low doc business loan wherein in the lender assess the eligibility basis cash flow of the business.
Result: Since the client was still doing $200k+ of monthly business, the lender happily approved $250k basis low doc. This not only helped the client to procure more stock but also increase its turnover and overall profitability.
Business Case 2:
Industry: Construction
Loan Amount: $100,000
Term: 24 Months
Trading Time: 10 Months
Situation: In the above case, the business had a minimal trading history and insufficient documentation as required in conventional secured and unsecured loans. It was precisely the reason why the loan application got rejected every time.
Action: With our ability to pitch the application on its merits, our lending specialist highlighted the pros of the case and was able to comfort the lender to help this customer.
Results: We were not only able to assist this client with the much-needed funding when he was struggling to get a loan but also recommended them to get rid of a much expensive existing secured loan by refinancing it. This allowed him to save big on interest as well as free his property from mortgage.
At Broc Finance, we not only assist our client with their loan requirements but always try to improve the overall financial health of their business through our expert recommendations.
Generally, all the business with an active ABN is eligible for either a secured or unsecured low doc business loan.
Low doc business loans need minimal financial documents for a business background check. These loans are designed for small or new business owners who cannot procure extensive financial documentation as often demanded by traditional banks.
The benefits of low doc business loans are:
Since it is a low doc business loan, you would only need:
However, every business is different, and so is their requirement. In case of any additional documentation, our loan experts will inform you.
It is possible to get approval for low doc business loans with a low credit score. We have empanelment with a wide network of credible lenders across Australia who can help solve your financing woes. However, in that case, there might be alterations in standard loan terms, loan amount, and interest rates.
Contact us today and discover how our expertise can help your small business thrive.
CALL US
1300 253 041
EMAIL US
enquiries@brocfinance.com.au
Broc Financial Services Pvt Ltd.
ACN 648 088 304
Credit Representative number 540795 is Authorised under Australian Credit Licence Number 389328