In today’s society having debt is often viewed very negatively, as if some members of the public are without options and are confined by inflexible conditions set by financial institutions. That may not be so in your case; your business could be on the rise, you’ve established your niche market, demand is growing, you have steady suppliers and your staff are reliable and knowledgeable.
You may decide it’s time to consider the next move for the expansion of your business’ capacity and borrowing really is a viable option. If it’s a truck you need, this article is for you. Let’s consider if Low Doc truck financing is right for your business; look at its features and how it can work for you.
What is Low Doc Financing?
Low Doc or Low Documentation financing are loans designed for people/ entrepreneurs who have the financial capacity to service debt but are unable to supply sufficient supporting documentation. This type of financing caters mainly for upcoming businesses and self-employed professionals.
Cost of Financing
Low Doc facilities are usually charged at a higher interest rate to reflect the additional risk undertaken by the lender. As an entrepreneur, you should weigh up whether your business is able to meet the cost (including interest charges) of your extra asset, the new truck, as well as give a good return on your investment. This is important; especially when you consider that a Low Doc truck finance facility is more expensive than an ordinary loan.
How Much You Can Borrow?
Most lenders cap the value of a Low Doc finance deals at 60% to 80% of the value of the security provided. More specifically, if you have been in business longer than two years or are servicing a property mortgage and have a sound credit history, the majority of financiers favour Low Doc truck finance valued at $ 50,000.
You may also get a Low Doc truck facility by replacing an existing agreement. In that case, the value will be capped at 130% of the former agreement value, or for your professional services up to $ 150,000.
Collateral
A Low Doc truck finance facility is almost the same as any other loan; the collateral appraisal and document perfection processes are similar. The main difference is the interest charged and documentation required.
How Low Doc Truck finance Can Work for Your Business
If you have not yet prepared the paperwork necessary for a bank loan, a Low Doc truck finance facility is ideal for your growing business. It will allow you to access financing to acquire that essential asset without the elaborate paperwork. Alternatively, you can use it as a bridge to meet an urgent need, and refinance the facility later at more acceptable terms.
Here’s the bottom line; your growing business needs financing. It takes time and sometimes extra costs, such as additional staff expenses, to organise all the paperwork necessary for a bank loan, whereas Low Doc truck finance is right there to provide timely financing for your business without elaborate paperwork.
Once you have secured your Low Doc Truck Finance, you will need to organise insurance for your truck. Call the Truck Insurance HQ office on 1300 815 344 for advice form our specialist Truck Insurance advisers and they will find the best product to suit your needs. For a call back from one of our Truck Insurance HQ advisers you can fill out the quote request online.