Category: Business Finance

Ethical Finance Broker AU Published on January 12, 2025 | 3 min read What Are Low Doc Loans? Low doc loans are designed for individuals and businesses with an Australian Business Number (ABN) who may not have the traditional paperwork to verify their income. These loans are particularly useful for self-employed individuals, freelancers, and small business owners. Who Can Apply for a Low Doc Loan? Benefits of a Low Doc Loan How Does the Length of Time an ABN Has Been Registered Affect the Loan? ABN Registered Over 12 Months New ABN (Less Than 12 Months) Key Factors That Influence Loan Approval and Interest Rates 1. Credit Score A strong credit score increases the chances of approval and may lead to better loan terms. 2. GST Registration If the business is GST-registered, it may be viewed more favorably by lenders. 3. Deposit Amount 4. Providing Bank Statements or BAS Some lenders may request bank statements or two recent BAS statements to assess the financial health of the business. Providing these can improve the chances of securing a competitive loan. Example of a Successful Low Doc Loan Application In 2010, Alex and Casey from West OZ Concrete Pumping needed financing for a second concrete pump. Since their business was relatively new, the lender required a security deposit. Instead of using cash, we arranged to use their existing second pump as security. This allowed them to grow their business without tying up their working capital. How to Apply for a Low Doc Loan? Step 1: Assess Your Financial Position Step 2: Gather Necessary Documents Even though less documentation is required, having the following can improve loan terms: Step 3: Compare Lenders and Loan Options Not all lenders have the same criteria for low doc loans. Comparing multiple options can help find the best fit. Step 4: Submit Your Application Once you have the required documents, submit your loan application and wait for lender approval. Get Started with a Low Doc Loan If you’re a self-employed individual or a business owner looking for a loan with minimal paperwork, a low doc loan could be the right option. Preparing the right documents in advance can help secure better rates and smoother approval. For more information, feel free to message me or get your quote.   Table of Contents Finance CalculatorsConsumer LoansBusiness LoansContact Us 16 Ambrose Street Rockingham, WA, Australia 6168 [email protected] 04 0115 1558 08 9525 3577 Legal Disclaimer, etc. Realistic Brokerage Services Ltd Pty Ltd (ABN 93 712 332 635) trading as Ethical Finance Broker AU and Financebroker.ai, is an Authorised Credit Representative (ACR #552958) of Fintelligence Pty Ltd (ABN 80 625 017 174), Australian Credit Licence # 511803.

Ethical Finance Broker AU Quote Enquire Now Published on November 1, 2024 | 3 min read When considering business financing, understanding business loan options is essential. Here’s a guide to the best loan options for businesses. Traditional Business Loans Traditional business loans offer lump-sum financing with longer repayment terms and fixed or variable interest rates. These loans are ideal for well-established businesses aiming for significant growth, renovations, or real estate investments, though they often require strong financial records and collateral.   Short-Term Business Loans Short-term business loans provide quick funds for immediate needs with repayments typically within 3–18 months. This option is ideal for temporary cash flow issues, seasonal inventory, or urgent expenses, often coming with higher interest rates due to shorter terms.Your loan might also depend on your repayment schedule. Some lenders may offer a weekly or monthly repayment while others take repayments out daily. If you’re not sure how much you can borrow, you can try our free loan calculator to review your options. Business Lines of Credit A business line of credit is a revolving credit source that lets businesses withdraw funds as needed, paying interest only on the borrowed amount. It’s particularly useful for managing fluctuating cash flow and unforeseen expenses.   Revolving Credit Option Revolving credit allows businesses to draw and repay funds repeatedly, which is beneficial for managing fluctuating cash needs. Equipment Financing Equipment finance allows businesses to finance essential machinery, vehicles, or technology, with options to lease or purchase. This option often enables tax-deductible benefits, as the equipment itself is used as collateral. Invoice Financing Invoice financing allows businesses to borrow against unpaid invoices, offering immediate cash flow to cover operational costs while waiting for customer payments. This option benefits businesses dealing with slow-paying clients by reducing payment delays. Merchant Cash Advances Merchant cash advances provide funds based on anticipated future sales, which are repaid through daily credit card transaction percentages. This is useful for businesses with strong card sales, though rates are higher due to fast repayment requirements.  Secured vs. Unsecured Loans Secured loans require collateral, often offering lower interest rates, while unsecured loans do not require collateral but come with higher rates and stricter requirements.   Table of Contents Legal Disclaimer, etc. Realistic Brokerage Services Ltd Pty Ltd (ABN 93 712 332 635) trading as Ethical Finance Broker, is an Authorised Credit Representative (ACR #552958) of Fintelligence Pty Ltd (ABN 80 625 017 174), Australian Credit Licence # 511803. Facebook-f Twitter Legal Disclaimer, etc. Realistic Brokerage Services Ltd Pty Ltd (ABN 93 712 332 635) trading as Ethical Finance Broker AU and Financebroker.ai, is an Authorised Credit Representative (ACR #552958) of Fintelligence Pty Ltd (ABN 80 625 017 174), Australian Credit Licence # 511803.