Not sure a low doc loan is right for you? Don’t worry, you’re not the only one to be sceptical of them. The reality is that borrowing money is a scary factor, especially when many lenders turn you away. Often, it’s down to your employment and not having a ‘steady income’. Being self-employed or a seasonal worker can put you at a disadvantage when borrowing money because some lenders will reject your application outright.
It’s not right but it’s part and parcel of the modern era. So, why are low doc car loans perfect for small businesses, and should you consider them?
An Easy Loan Process to Work With
Low doc loans have a simple application process. It works similar to that of a traditional car loan – however – you don’t need the same standard of documentation to support the application. This is great news for those who are self-employed or run a small business. It means you get a good finance option which benefits the business too.
Most lenders review the application and make the relevant checks before they decide on the outcome. It shouldn’t take more than a few days at best; sometimes, you get a decision quicker. Again, it depends on the lender and how much you wish to borrow.
Why Do Traditional Lenders Reject Your Application?
Obtaining a car loan can be tricky when you don’t have the necessary paperwork to support your application. It puts you in a difficult situation which also puts your business at risk. A low doc loan, however, could present the best opportunity for small businesses. You can get the right finance which benefits the business as a whole.
Understand the Restrictions Imposed by Lenders
Low doc loans offer great benefits, but there are a few factors to consider first. For instance, there could be restrictions on the amount of money you can borrow. Lenders may only allow you to borrow the value of the car. That could throw a spanner in the works if you wanted to borrow more. Typically, it falls to the vehicle, its condition, and how flexible the lender is willing to be.
Shop Around to Get a Good Bargain
A low doc car loan can be ideal for any small business. It gives you a simple finance option and one that could be advantageous. However, it is important to shop around to find a lender that offers a great and affordable loan. Remember, it isn’t just about the lender but the terms and conditions of the loan. You must ensure the low doc loan offers the best value for money so that your business reaps the benefits.
Give Your Business a Boost
Low doc car loans give you the best opportunity to improve your business. The car can be used for business needs and you can spread the costs too. Low documentation loans are ideal for businesses because they do not require the same type of paperwork as other loans. It’s great if your business is new and doesn’t have the relevant paperwork to show lenders. Low doc loans are also useful when you need a finance option for a business vehicle.