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Exciting new product - Lease finance without tax returns

Most business owners would be familiar with the painful process you go through when trying to obtain finance. Many of us would not have the spare time or the patience to wade through the mountains of paperwork required just to get an equipment finance loan off the ground. However, things are starting to look up for business owner’s, as there now is a finance product which eliminates the tedious process of traditional finance applications.

‘No-Doc’ equipment finance provides a fast and simple process to purchase capital equipment for your business. Unlike conventional loans, No-Doc processes loan approvals within 24 hours, quick and simple loans agreements, speedy finance settlements, and there is no need for security of properties. Some instances when you might use this finance product include:

• You don’t have the time/desire to be distracted from your business to provide all the paperwork for your Bank;
  
• The finance amount is too small for traditional banks to finance;
  
• Financial statements/tax returns are not to the Bank’s liking and you
  have every confidence in your own ability to afford repayments; and
  
• When you want the finance quickly
  

The parameters of ‘No-Doc’ equipment finance products are as follows:

• Finance amounts from $2,000 to $150,000
  
• New and used business equipment
  
• New and used motor vehicles
  
• Assets must be predominately used for business purposes
  
• Available for lease finance and hire purchase, loan terms of 2-5years
• Assets must be sold from a reputable supplier (not private sale)
  
• Your business must have a registered ABN
  
• The applicant business and directors must have a clear credit report (no defaults)
  
• In some instances, proof of property ownership and/or minimum term in business may be required

What does it cost? This product is not much more expensive than a more traditional equipment loan / lease that you may have arranged direct with your bank in the past. Payments are fixed and paid monthly. Repayments will be a little higher to offset the extra risk that the lender is taking in approving finance without doing a full assessment of the tax returns. Most business owners would agree that the extra few dollars is neither here nor there given the time saved. The payments are still tax deductible.

As opposed to a straight interest rate calculation for traditional leases, repayments for ‘No-Doc’ are calculated using a more practical matrix method which ‘score’ a customer’s credit quality by looking at things like amount of equity in property, length of time in business etc…

For example: Peter, a successful businessman who has owned his own business for more than 2 years, is looking to buy a piece of equipment for $25,000. If he opted for a traditional lease his repayment would be approximately $110 per week, on the other hand if he went down the path of a No-Doc lease the repayments would be $130 per week (*payments calculated on a 5 year term with 20% residual). As you can see, the extra cost is only $20 per week, and the payments would be claimed as a tax deduction in the normal manner.

If you’re a business owner looking for equipment finance, this product could be just what you’re after. It provides a hassle free loan process, with quick and simple loan processes. If you require more information on No-Doc equipment finance loans simply contact one of 6-Point Finance’s specialist loan consultants.