Getting a young business off the ground often requires the kind of money that you just might not have. Sure, your business might be making a healthy income, but at the rate it’s generating cash, growth is going to take too long. A low doc loan can be a solution for business owners looking to leverage the growth potential of their business.
What is a low doc loan
The ‘low doc’ in a low doc loan refers to the fact that securing one requires a lower level of documentation than a normal loan – otherwise, they’re the same as any other loan you’d get from a traditional lender.
The reason they allow for a lower level of documentation is that they’re designed for self-employed people or start-ups that mightn’t have the normally required financial statements or tax returns due to their youth.
How can it grow my start-up?
According to Startup Muster’s 2017 annual report, almost 45 per cent of Australian startups will require more funding within the next 12 months. When asked the kind of support they’d be needing in the next six months, 37.2 per cent said that a seed investment would be needed. This is basically a need for cash, but for those that are unable to secure funding through this channel, a low doc loan could be another avenue for getting the required money.
How can I get a low doc loan?
At Redrock, there are some criteria you must fulfil to get a low doc loan:
1) Have an active Australian Business Number, which you have held for at least six months, but the longer the better;
2) Provide at least one of the following documents: accountant’s letter verifying your income, a business banking statement or a business activity statement.
Some other criteria may apply, depending on the loan product you’re applying for. In general, however, your application is assessed on the strength of your income, and the proof you can provide for it. In this case, the more the better, as it can lead to a lower interest rate.
If you’re ready to take the next step in growing your business to it’s maximum potential, get in touch with the team at Redrock today to find out more on how a low doc loan can help.