Are you self-employed or a small business owner in the market for a new vehicle? Don’t have your financials up to date? No worries. You could still drive away in a new business vehicle. And you won’t have to pay the earth in interest payments either. Low interest rates are now available on low doc loans.
Thanks to record low interest rates, contractors, tradies, freelancers and small business owners who may not earn a regular income or otherwise struggle to provide up-to-date financial information, now have an ideal opportunity to snap up a great deal on a low doc loan for purchasing a new business vehicle.
Why consider a low doc loan?
Low doc loans allow the self-employed and small business owners who can’t provide (or who may be unwilling to share with their bank) up-to-date financial documents required for a traditional loan such as tax returns, BAS or financial statements.
As financials are not provided, low doc loans are naturally considered a higher risk by lenders, even where borrowers are in a good financial position. Interest rates and fees are usually higher than those on offer through a traditional loan. However, with interest rates now at all-time lows, interest rates on low doc loans are also falling.
Westlawn low doc loans for business vehicles
At Westlawn, we currently have some great deals available on finance for new business vehicles with no financials required. Interest rates are now available from as low as 4.95% p.a[1].
Through a low doc loan, we can finance up to a maximum of $100,000 with loan approvals usually within 24 hours.
You can qualify for a low doc business vehicle loan through Westlawn if you:
- Are ABN & GST registered for at least 2 years
- Have a clear credit history
- Are a home owner with reasonable equity, or
- Have a 20% deposit if a non-home owner.
Here’s just one example:
We recently secured finance through a low doc loan for a tradie for the purchase of a new Mazda BT50 dual cab ute for business purposes:
- Loan amount of $45,000
- 20% balloon payment at end of term
- 60 month term
- Repayments of $727 per month
- Loan approved within 24 hours.
Tax benefits for business owners
Business owners who obtain car finance (whether a low doc loan or traditional loan) are able to claim tax deductions and GST benefits if they are an ABN holder. You may be able to claim the interest on a vehicle loan as tax-deductible. Businesses registered for GST can also claim the GST portion within the purchase price of the vehicle in their next BAS return.
You should discuss your individual situation with your accountant.
Speak to a Westlawn Business Finance Specialist today about financing your next business vehicle.
You might also like to read:
- Self-employed? A low-rate home loan is within reach
- Hit the highway with tax-effective business vehicle finance
[1] Fees and charges may apply. For approved customers only. Interest rates may differ from those specified in this article.
29 August 2016
