People say that money doesn't make you happy, but from experience, I can tell you that not having enough money is not fun either. Sometimes getting a quick loan can be just the trick to get you back on your feet. This site is all about how to get loans and financing for small amounts of money and a short time when you just need a little more cash to tide you over and pay some bills. I like to be able to feel confident that all of my bills are paid and be able to put food in the fridge, without putting my family's finances in crisis.
If you are a small business owner or self-employed, you may have limited options in terms of accessing finance options. For instance, when you need a car loan, you may find yourself with less or limited documents such as the financial documentations and tax returns that are often required during loan application. A low doc (low documentation) car loan will help you overcome this lack of documentation obstacle when applying for the loan. However, before seeking low doc car loan options, here are a few things you need to know about this financing option first.
You Will Be Charged Higher Interest Rates
Since less documentations are required for a low doc car loan to be approved, lenders tend to consider them as having high financial risks because it becomes quite hard for them to identity the stability of your financial situation. For this reason, they will try to find a way to offset any of the risks expected when they finance your car purchase. To do this, many of them choose to charge higher rates on their loans. However, before you decide on a low doc car loan lender, find out if the rate you will be charged is fixed or variable. Essentially, a fixed interest rate tends to be more stable because it doesn't change over your loan repayment period. A variable interest rate would be a good choice in a decreasing interest rate market where you can take advantage of the low interest rate. However, the rates can rise drastically and this will have an impact on your loan payments. Therefore, if you must choose a variable interest rate, find out how a change, particularly an increase in the rate will affect your payments.
You Still Have to Provide Certain Documents for Approval
Before your low doc car loan is approved, lenders will still require some documents from you. While these documents may vary amongst lenders, most of them tend to be the same. First, potential lenders may need for your business number and your business activity statements. Your lender will inform you of the length of time for which the activity statements are required. In addition, your business number should show that you have been in operation for a given period. Your lender will also have this information. You may also be required to provide proof of goods and services tax registration although some lenders will have options for you even if you don't have the registration. Last, while financial evidence is often not required, you may have to declare your income and may even be required to sign off on the declaration depending on your lender.Share
20 March 2017