Commercial Loan

Everything You Need to Know About Low Doc Commercial Loans

By: Amelia Varley
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When on the market for a loan, it can seem as if there are only a few options available to you. This is especially so if you have a poor credit history, have defaulted in the past or otherwise do not have the documentation required for obtaining a commercial loan in the traditional way from a bank. Thankfully, a host of lenders is emerging to provide alternatives, such as low doc commercial loans, to get your business off the ground with minimal hassle. Low doc loans differ from full doc loans in that they require far less documentation, making them a more accessible loan option for those who are not able to provide financial statements, tax returns or proof of income.

A low doc commercial loan can help you obtain the property you require to bring your business to the people. This can be building a brick-and-mortar store, office, factory or anything in between. Just some of the advantages of a low doc commercial loan include:

Reduced Paperwork

Completing the paperwork is by far the most time-consuming and troublesome part about obtaining a loan. Even if you have the necessary assets to secure a loan, you may be missing some of the required paperwork, making applying through the usual avenues difficult. This is particularly the case for self-employed individuals, who may not have financial statements or tax returns to back up their loan application. Low doc loans, as the name suggests, do not require masses of documentation, therefore making it a far more accessible option those who are self-employed, have a poor credit history or otherwise lack the proper documents.

Wide Variety of Options

Financial brokers have a vast network at their fingertips, being able to find the best low doc commercial loan for your needs. The stronger their connection with their contacts, the more likely they are to be able to find a loan solution that suits you best, rather than the cookie-cutter options often offered by banks. This also allows for greater flexibility, allowing you to choose a borrowing option that best suits you, instead of ending up with a loan that doesn’t properly meet your needs. The more complex your financial history is, the more important it is to go for a lender with the knowledge to recommend a tailored solution. Make sure to partner with a well-known broker who has connections with lenders that provide rates in line with the usual rates for full doc loans.

A Helping Hand

If you are trying to get your business off the ground with a commercial loan but are being barred from doing so because you do not have the right documentation, your financial progress is further hindered. A low doc commercial loan gives you the helping hand you need, allowing you to potentially improve your financial state by bolstering your business. Specialist bad credit loans may also be available if you have a particularly difficult financial history.

Who Should Go for a Low Doc Commercial Loan

Anyone who is not able to provide financial statements, tax returns or proof of income should consider a low doc commercial loan, as these eliminate much of the paperwork usually required in full doc loans. This makes low doc commercial loans particularly attractive for self-employed individuals or small business owners who need to bolster their business.

Low Doc Commercial Loans

Lenders will often have up to three low doc commercial lending options:  low doc commercial loans, no doc commercial loans and lease doc commercial loans. A low doc commercial loan allows individuals to declare their income based on their business profits, while no doc loans require no income declaration and lease doc commercial loans require no financial statements or tax returns.

Individuals who do not have two years of lodged accounts, have a complex business structure or have not kept up with your tax returns, speak to a financial broker that specializes in providing low doc commercial loans. Remember that low doc commercial lending is a specialist area, meaning you should only contact a broker that has expertise in this area to ensure the most competitive rates.

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