Securing finance for business vehicles can often feel like navigating a maze. The traditional banking process is notoriously complicated, with stringent criteria and overwhelming paperwork. What’s needed is a quick and easy solution that offers low-rate finance without adding to the stress of managing a business. At Fox Finance Group, we understand these challenges and are here to help debunk common myths about Low Doc business car loans, so that we can show you how they can be a practical and efficient solution for your business needs.
You might think that Low Doc loans are just for businesses with poor credit. This isn’t true. Low Doc loans are designed for businesses that have trouble providing traditional income documentation for one reason or another. Although there are lenders that can assist with Low-Doc finance for customers with adverse credit history, the primary goal of Low Doc loans is to make the process as simple and easy for business owners as possible. Many businesses with good credit successfully use Low Doc loans to finance their vehicles in a simple, quick and seamless way. The flexibility of these loans makes them suitable for a wide variety of credit profiles.
For example, a small construction company with good credit history but inconsistent income due to seasonal work cycles can use alternative documentation, such as business activity statements (BAS) and bank statements, cash flow projections or accountant letters to show income and secure the necessary financing without the hassle of traditional loan applications.
A common misconception is Low Doc loans come with higher interest rates. While it’s true that rates depending on a customer’s profile can sometimes be higher, they are often some of the most competitive rates and options on the market for business finance. Low Doc options are commonly sought after by business owners who have experience in financing vehicles, specifically due to their combination of being quick, easy, and offering a highly competitive repayment & rate with desirable terms.
Some believe Low Doc loans are risky and unreliable, but this is far from the truth. Although low-doc loans require less documentation than traditional loans, they often have stricter criteria around credit history and business stability. This allows lenders to build comfort around the strength of the business without verifying income from financial documents. As a result, many banks and lenders including the bigger banks have a Low Doc product as part of their offering, to ensure they are catering to business owners and their needs.
There’s a myth that Low-Doc loans require no documentation. While they require less documentation than traditional loans, some paperwork is still needed. Typical documents include Identification documents such as a driver’s licence and Medicare card, a completed application form containing business turnover and a summary of assets and liabilities. Some Low Doc loans will still require something to verify the businesses income, this can include business activity statements (BAS), bank statements, as well as invoices, contracts for future work to be undertaken by a business, or even an accountant’s letter or cash flow projection. The primary goal of Low-Doc loans is to alleviate the need for full financials, such as tax returns & notice of assessments to be used when evaluating the business’s income, which can add unnecessary complexity and delays to the process.
For example, a landscaping business looking to purchase new trucks can provide alternative documentation, like a letter from their accountant and recent bank statements, to demonstrate income and repayment capacity. This streamlined process helps to secure finance without the extensive paperwork required when full financials are used in traditional Full Doc loans.
It’s often thought that Low-Doc loans are only for small businesses needing smaller amounts financed. In reality, they are flexible enough to be used by businesses of all sizes and for the purchase of a wide variety of vehicles. Medium and large businesses can also benefit from Low-Doc loans, especially when expanding their fleets or upgrading their vehicles, specifically due to their accessibility and speed from application to settlement, as well as ability to finance amounts up to $250,000.
Many assume that getting approved for a Low Doc loan is a very difficult task. However, with the right guidance, the process is very straightforward and can happen quickly without delays and complications that can be experienced when financing through more traditional loans. By being prepared and having your documents ready to go, as well as a clear understanding of what you are trying to achieve, and keeping your credit history in good standing, you will be able to ensure you have the best chance at a quick approval that matches what you are looking for.
There’s a misconception that Low Doc loans come with hidden fees and charges. Regardless of whether a lender is assessing under Low Doc or Full Doc criteria, they must clearly list and disclose all fees and charges. Although some lenders may have additional fees for their Low-Doc products, these are always disclosed.
Transparency is essential when looking at Low Doc finance to ensure you have considered all options and clearly understand all fees as well as the structure and features of your loan. Our Team here at Fox Finance Group ensures you understand all terms and conditions of your loan, meaning you avoid any hidden fees, and are provided clear and transparent communication about your loan, giving you peace of mind & clarity throughout the process.
The best way to navigate the landscape of Low-Doc loans and overcome the perceived difficulties outlined in the above points is to let us be your guide. Partnering with Fox Finance Group for Low Doc business car loans offers numerous advantages such as preserving your cash flow, offering flexible financing options and even providing potential tax benefits. We tailor our solutions to meet your specific needs, ensuring competitive rates and the best terms for your business.
Our customers consistently highlight the positive experiences they’ve had with our team. For instance, David recently shared his experience:
“Fox Finance did a great job on the purchase of a new vehicle for our business, particularly Sam Drew, who went above and beyond to facilitate the deal.”
To find out more about Sam and the rest of the team, visit our Meet The Team page. We are also rated 5/5 stars on Google from over 600 Google reviews. Click here to see what our customers have to say about our team.
Partnering with Fox Finance Group ensures you have a team of experts by your side, making the financing process smooth and stress-free. Reach out to us today, and let’s get started on finding the perfect Low Doc business car loan for you.
For more information, visit our Business Car Loans page. If you’re ready to apply right away, you can apply here, or If you have any questions our team is ready to help and can be reached on 07 3505 3099.
 Rowdie Lang |
Rowdie has been a part of our Team since 2020. He has witnessed firsthand the ongoing evolution of the finance industry as technology continues to change the way customers' access financial services. He has a passion for helping people and relishes the opportunity to work alongside our teams every day as they help our customers financial dreams come true. |
