Turning your business idea into realty can be extremely challenging, especially when it comes to acquiring starting capital to set up the business. Most of the corresponding paperwork and documentation is hard to procure/ doesn’t exist, making acquiring other forms of commercial loans impossible. No doc small business loans allow you to get your business up and running, despite the lack of paperwork.
What is a no doc loan?
A no doc loan, sometimes known as low doc, is short for a no documentation loan. The no documentation part of no doc loan is referring the lack of need to provide financial statements that give in-depth and specific review into your cash-flow and current income.They provide easy to obtain, flexible and useful funding opportunity for you and your business.
What documentation will I need?
No doc loans still require some documentation.If you applying for a no doc loanssmall business loan you will need to provide:
– Your name
– Your ABN
– A self-declaration of your income
Depending on the lender you might also need to provide additional information, some of includes:
– Your address
– Contact information
– A form of identification
– Future projections of your financial revenue
Although for the most part these extra items are usually needed.
How can it help your business?
No doc small business loans are perfect if you are creating or starting out a business and you need extra capital to properly lay the ground work.These loans allow for you to have the requisite financial backing so you can get your business moving.
Typical ways the start-up capital can help:
– Paying a web developer
– Covering your own expenses while you are still preparing your service
– Investing in future development
– Receiving business consultancy
– Paying your employees before you have shipped any products
No doc loans can also be great if you are trying to elevate your small business to the next level. Marketing campaigns or expansion can be expensive up front, but pay dividends down the line, receiving that initial infusion of funding can be exactly what your business needs to grow and expand.
How they work?
Most no doc loans are made of the same features. To acquire one you need to start with a down payment, this is usually between 5-20%. Some, but not all lenders require a starting fee to cover various costs. The loan comes with a competitive interest rate that allows you to achieve the main goal of any business loan, to put you in the best position to create a successful business.And many have varying time periods, from a couple months to years.
Should I get a no doc loan?
Every individual applying for a loan must ask this question and while they can be extremely useful for your business, not everyone should apply. If you are knowingly unable or highly unlikely to pay back the loan, then consider other means. If you do not have at least a basic understanding of how loans work, research and learn before you apply for a no doc loan. No doc loans can be exactly what you or your business needs to get off the ground and become successful, but they might not always be the right choice, so make sure it’s the right choice for you.
If you are thinking about a no doc loan, make sure to compare your options and do research into the actuality of what you are receiving.