The challenge:
A small business owner with limited financial documentation plans to acquire working capital. Still, their bank declined the loan application, citing the proposal did not meet credit guidelines.
The outcome:
Aglend sourced a solution with a major bank and successfully structured a low-doc business loan for borrowers with bad credit profiles.
Aiming to infuse his venture with much-needed additional capital, the small business owner applied for a loan with a major bank.
Despite being a long-term client, the bank declined the application, citing the lack of financial documentation that supports the client’s creditworthiness.
The business owner approached Aglend for a viable solution, hoping to acquire a business loan for bad credit.
Aware that prospects for getting a market-leading rate are dim for self-employed, the client advised Aglend that he didn’t want “to be punished with high rates.”
Leveraging its vast network, Aglend Finance sourced a funding package with another major bank, securing the low-doc loan with a residential property.
Loans of a such type commonly fetch low Loan-to-Valuation ratios, with 80% of property value usually offered as the maximum loanable amount. For low-doc loans, getting such a favourable rate is not typical.
But by providing a carefully prepared set of supporting documents from the client’s accountant and his previous bank, Aglend established the client’s favourable income profile.
As a result, the small business owner successfully acquired much-needed capital for his venture at the friendliest rate (80% LVR) in the market.
The good news doesn’t stop there.
Aglend is currently developing other lending solutions with credit partners to further improve the small business owner’s financial position.
