Finance

Traditional Bank Business Loans – The End of an Era?

For as long as we’ve used currencies, the good old bank manager would be the person you need to talk to whenever you needed a business loan, and armed with your business plan and a statement of accounts, you then have to convince the bank manager that you are, in fact, a safe bet. More often than not, you would leave his office without the loan approval you so desperately needed, and wait patiently over the next few days for a phone call. For some entrepreneurs, obtaining a start-up loan was much, much harder than creating the business itself, and who knows how many great business ideas never made it past the drawing board, due to lack of funding. Fortunately, there is an alternative to your local bank, and it comes in the form of an online business loan provider.

Low Doc Business Loans

Basically, a “low doc business loan” means the borrower can obtain a loan by showing the minimum amount of documentation, which is a far cry from the traditional bank loan application that could take weeks, and there’s no guarantee that the loan will be approved. For a majority of small businesses in the first year, the bank will generally refuse business loan applications until a business has been trading for 2 years – which doesn’t help you in your first few months, and in modern business circles, timing is everything, and the last thing you want is your business expansion plans to be put on hold while you try to find funding.

Online Solutions

There are established finance companies that specialise in low doc business loans, and here’s the amazing thing, you can actually receive a provisional loan approval within a few minutes of submitting the online form! The amount of loan you need should be covered, as the online business loan provider would offer loans from $500 to $500,000, which is a lot more flexible than traditional banking, loan packages, and what’s more, the lender does not want to see a business plan. By answering a few simple questions, you will receive pre-approval within a few minutes, and some applications are processed in a single working day and at the most three days.

No Additional Collateral Needed

The greater majority of low doc loans are created as loans that do not need any collateral to back them up. Traditionally, we would have to put up a house or a car as some kind of backup for the lender. In the event you couldn’t pay back the loan an interest, then the lending institution would sell the house or car to recover their money. The key is to find a lender who will offer you the best rates and conditions for your business loan. Be sure to check the small print and make sure all the costs involved are upfront and clear to understand.

There are a number of lenders in Australia who are currently offering low doc loans, so get yourself online and take a look at what they all have to offer. It should be easy and you should get a decision fairly quickly with all the right documentation.

Show More

Related Articles

Close