High-risk borrower gets low-doc business loan for bad credit at 80% LVR


A small business owner with limited financial documentation plans to acquire working capital but their bank declined the loan application, citing the proposal does not meet credit guidelines.  


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, a small business owner applied for a loan with a major bank, with which he has been a long time client. However, the bank declined the application despite the long-term relationship, 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 is dim for self-employed, financially unpredictable or inadequately documented borrowers, the client nevertheless advised AgLend at the onset 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 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 favorable 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 positive 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.

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