Thursday, 6 July 2017

What Are the Features of No Doc Commercial Lending?

Now, buying commercial property and investing in the commercial plants has become easier with no doc commercial lending and you need not submit any income proof for this lending. For this commercial loan, you do not need to provide any supporting documents like tax returns, business financial statements, or business activity statement, account’s letter and bank statements to the lenders. 
No Doc Commercial LendingNo Doc Commercial Lending
However, if you have any existing loans then you need to produce the supporting documents and repayment statement to the lenders. Along with that, you need to submit deposit papers and property papers for this no doc commercial lending. You can use the fund for buying a new commercial property, or you can use them as working capital. These types of loans are designed under the National Consumer Credit Protection Act or similar state regulatory authority, you cannot use the fund for your personal purposes, and you cannot use these funds for buying residential premises. 

So, when you apply for the no doc commercial loans, you should check the eligibility criteria of the lenders, and read terms and conditions before you submit your loan application. 

Why would you avail the no doc commercial lending services?

There are many business professionals in the market, who do not want to disclose their income to the lenders and the banks. Apart from that, partnership businesses are often not able to produce all documents to the lenders for individual commercial loan. In this case, if you want to extend your business and need some working capital for this, then you can apply for the no doc commercial loan. Apart from that, you can also buy offices, warehouse, retails and factories by this fund and start your new business venture. 
  • Most of the lenders provide 65% of the total property value as no doc commercial loan. The applicant must deposit rest 35% amount and you can arrange this amount from other sources.
  • If you have a bad credit score then also you can apply for this loan. However, lenders can charge you extra rate of interest for your poor credit score.
  • It is true that for no doc commercial loan, you need not submit any income proof. However, if you have calculated the income proof then you can provide these documents with your application kit. It will reduce your rate of interest and lenders can offer you higher amount of loan based on your income.
  • No doc commercial loans can only be provided for the prime location properties like commercial, industrial, warehouses, and factories. The property should be salable and you need to produce all legal documents of the property while you apply for the no doc commercial loans. You cannot avail this loan for buying the property in remote areas, residential properties, hotels, restaurants and day care centers.
  • You can choose different terms of repayment for the loans most lenders offer one to five years of loan term. In case of large amount, some lenders provide 15 to 25 years of repayment term and you can rollover the loan at the end of your term. 

How would you avail the no doc commercial loans?

No Doc Commercial LendingNo Doc Commercial Lending
You can find several websites that offer online application facility for the no doc commercial lending. However, consult with the brokers for this loan, because they can assist you to choose the best lenders. How to procure the low rate of interest loan, etc. 

So, extend your business or buy some new commercial property by availing the no doc commercial loan. It is a simple, fast, and hassle-free lending process, which will fulfill your business needs. 

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