Alt Doc Loans
Alternative doc loans use bank statements rather than financials to assess applications
Alt Doc Loans
Alt doc loans are an alternative to mainstream credit assessment, often referred to as fintech lenders. Bank statements are used to assess a business cashflow position over a period ranging from 3-6 months. These lenders are often backed by large global investment companies and can achieve approvals where mainstream lenders cannot. The benefit of cashflow assessment is that traditional financial analysis works of historical servicing and this can be detrimental to growth businesses (They are single figures at a single point in time). Cashflow lending can see the income variations instantly.
As the name fintech suggests, their processes are often digital this includes assessment of information along with digital contacts making signing a breeze.
The information required is relatively minimal and the process easy;
- Application form (collects business and director details)
- Bank statements (often retrieved electronically via secure services)
- Commitment Schedule – Often not required as lenders can see loan repayment via bank statements
Approval timeframes vary from 4 – 48hrs as lenders often have smaller staff levels and can slow when they receive an influx of applications, but the process from approval to settlement can be very fast.
Your next step to an Alt doc approval
Alt Doc approvals can be incredibly fast and simple but there are often minimum credit parameters;
- Age of business (Generally 2yrs plus but some lenders will accept younger businesses)
- Clear Credit History
- Good operating cashflow (Inflows & outflows)