Why is it so hard to find no doc commercial loans?

For so many people out there, they are so confused as to why some people can easily obtain finances, whereas others tend to struggle. There can be many reasons for this and it seems like there is a certain recipe that banks want to see in order for them to lend money. This usually includes seeing that someone can save, seeing that someone has had a regular income for a long time, that they are in a stable position in their workplace, that they haven’t moved around too much, and that they have a clean credit rating. While this may be the case for most people, they need to be able to prove all of this. This proof can be in the form of bank statements, payslips, rental agreements, evidence of previous bills or debts, as well as personal references. This can become a problem for some when they struggle to come up with this kind of evidence. When this does occur, they will need to search for a no doc commercial loans. No doc commercial loans are greatly desired by those who are needing finance to invest into property for their business but are unable to come up with the proof of reliability that most banks want. Furthermore, no doc commercial loans can be advantageous for those who have bad credit. While there are many benefits to no doc commercial loans, they can sometimes be hard to find and so this article will explore where and how to find them.

Look into specialised finance companies

What some people may not know is that no banks in Australia will offer no doc commercial loans. This is because they see it as too much of a risk, even when the person who wants to borrow is a reputable and responsible person. When this is the case, people seeking no doc commercial loans will need to look into specialised finances companies. These are private lenders who are able to provide finance to reliable people who may not have the perfect recipe that the banks require. They are usually able to achieve this by offer finance with higher interest rates. While, of course, in a perfect world, no-one would have to pay higher finance than anyone else, it is still a great option for those who are really needing the kick-start to get things going.

How much can usually be borrowed?

Those who are seeking no doc commercial loans will probably be worried about how much they can borrow. Generally, up to 65% of the property value can be borrowed and no proof of income is required for this. There may even be some cases where people can borrow this amount even with bad credit. Most specialised finance companies will have online assessment tools that can be used to see if someone qualifies or not. While this is still an easier option than trying to get finance from a traditional bank, there are still a few requirements that will need to be met. For example, money cannot be borrowed against properties that are in remote locations, that are specialised properties such as hotels and motels, or that are in bad condition. Having said this, the requirements are still usually quite small compared to the hoops that must be jumped through to gain finance from a bank. All in all, there are many benefits to looking into no doc commercial loans, and by simply putting in a bit of time to research, they don’t have to be overly hard or complicated to get.