It can be difficult to get much needed financing if you have bad credit or are self-employed. However, low doc business loans offer a viable alternative to the traditional route. Oftentimes, income fluctuates and changes month to month for self-employed individuals, especially if your work is commission based. This is a red flag to traditional lenders, and it makes it hard to come by the financing you or your business needs.
What Is a Low Doc Business Loan?
A low doc business loan is normally used by business owners or self-employed individuals to buy or refinance a commercial property. When you don’t have all of the required paperwork and numbers to be approved by a traditional bank, a low doc commercial loan can provide a convenient solution.
Banks often require all kinds of assurances based on predetermined factors that you are not high risk when it comes to lending. Low doc commercial loans are willing to take the risk.
Fast and Simple Application and Funding
The application process is fast and simple, and you can receive funding in as little as 24 to 48 hours after approval. This provides the access to cash that you may need for a major repair or any other emergency.
What Kind of Business Needs a Low Doc Business Loan?
Any kind of business can benefit from low doc commercial loans. Even businesses that have a credit history can benefit when they need quick access to money. If an investment opportunity appears, there isn’t always time to wait for financing. These loans provide a viable alternative to traditional lending.
Businesses are always changing and growing, and unexpected repairs can come up. In addition, there may be a sudden expansion opportunity that requires new commercial space or the hiring of additional staff quickly. Low doc commercial loans can provide the cash for any of these situations.
What Are the Benefits of a Low Doc Business Loan?
The largest benefit of a low doc commercial loan is access to funding that might not otherwise be available. If you own a business with a short operating history, or if you have a bad credit score, most large banks will turn you down. This can be a huge problem if you need quick access to cash for a tax payment, major repairs, or hiring new staff for an expansion.
Sometimes a small business grows quickly, and the time may be right to jump in and take advantage of the timing. You won’t have to wait and establish years of success and you can take advantage of the opportunities as they arise. With a low doc business loan, you can have quick access to cash with very little documentation, which is a huge asset to anyone trying to run a business.