Small Businesses can now access finance based on an arm’s length tenancy lease against their commercial property. We are proud to be Australia’s Business finance specialist especially when it comes to Lease Doc Lending.
Why would you want to borrow money as a Lease Doc Loan?
There are many benefits to borrowing money as a Lease Doc Loan as there are also some points to be aware of:
- The key advantage of Lease Doc Lending is that is greatly reduces the amount of documentation required to assess the affordability of the loan. Generally the lease is taken as income verification to service the debt against the commercial property.
- Given the reduction in the amount of documentation required, the time for assessment is also reduced meaning money to you sooner.
- Other debt is generally not considered and additional security not required. Provided the lease meets the servicing requirements and the loan to value ratio is acceptable other income documentation is usually not required.
Some things to keep in mind:
- Given the limited income verification completed, lenders will limit the loan to value ratio against the commercial property to 60%.
- An application form, identification documentation and financial position of the directors will still be required.
- A lease being relied upon must be arms-length meaning the tenant must not be a related entity or business to the borrower and owner of the security.
- You should speak to an experienced Commercial Finance Broker such as Edgeview Direct to ensure this is the best for your business and particular situation.