Is it Possible to get Finance Without Paperwork?
Car loans are generally associated with stacks of paperwork. But what if your mountain of paperwork is more like a molehill? Does that mean you've got no chance of getting the finance you need?
Not necessarily.
There may still be avenues open to you via the "low doc" or "no doc" routes. But what exactly is involved in these processes? We explain in our brief guide to getting low doc car finance.
What are low doc car loans?
And what chance is there of me getting one?
A low doc loan is precisely what it sounds like - it’s when somebody is applying for a loan but has little documentation available that proves their income level.
This applies mainly to providing loans for ABN-holders and self-employed persons who have not yet filed a tax return for the previous year. Most lenders want to see a tax return because, unlike company employees, ABN holders aren’t able to produce payslips as a means of proving regular income (i.e. the normal process for a “full doc” loan).
The process of obtaining low doc loans focuses on what’s called “alternative verifications”. This allows documentation other than a tax return, such as bank statements, to be used to verify income.
This can make it difficult for ABN-holders to obtain car finance - especially if the business is brand new. Often, it leaves them in a catch-22 situation, as they may require a car in order to conduct their business.
So the process of obtaining low doc loans focuses on what’s called “alternative verifications”. This allows documentation other than a tax return, such as bank statements, to be used to verify income.
What if I don’t have any documentation?
This is what’s known as a “no doc” loan; the applicant is unable to provide bank statements, or any other acceptable means of proving income. While some lenders won’t touch, no doc applicants, there are still plenty of options available.
Essentially, it may be possible to obtain car finance simply by providing proof of identity (like a driver's licence).
So... Can I get a loan without paperwork?
Maybe. Even lenders who generally accept low doc and no doc applicants will want to see the wider picture. They may look at your previous employment history prior to starting your business, and they will definitely run a check on your credit file.
To give yourself the best chance possible, make sure you dig out any and all paperwork that may help prove your income - particularly bank statements.
It's also wise to obtain a copy of your credit history to ensure there are no unpaid defaults on there, as this may derail your application. In reality, no credit check car loans are not really possible in Australia, however, when applying through a broker, the number of 'hard' credit enquiries may be limited.
Credit reporting agencies like Veda and Dunn & Bradstreet can provide this information too, so get in touch with them directly.
Contact the experts
With over two decades of car financing experience, Rapid Finance has successfully obtained finance for a great many people who've had limited documentation available - even for low doc home loans.
And we've built a reputation for matching our clients with the right lender. No matter your situation, we could help you find the most suitable car loan for your circumstances.
Call 1300 467 274 to discuss your situation today.