Can I get a low-doc loan for my landscaping business with limited financials?

[LuluY0Hikaru]

Hello everyone. Does anyone have information about low-doc loans? I need advice. I own a landscaping business and have recently been struggling to keep my head above water. I started the business from a ute and $500 in the bank, and now own trucks and diggers. I never had any savings to fall back on, just went with the flow, and the business ran smoothly for the past year and a half. Now times are hard, and I need funds in the bank to fall back on for wages and other costs, as all my profits are being eaten up by inflation. I am sitting down to reevaluate everything, but in the meantime, I would like to get a low-doc loan to give me some breathing!room.

Has anyone had one of these before? And who are the best people to use? How do I go about it, and what do I have to supply?

I am going low-doc because I was under the radar until the start of this year and therefore need a full year of financials. I don’t want negative Nancys, just straightforward advice. I am a struggling fella who does not want to lose his business.

 

[LodurRedDude]

Hey! I know times are hard. This is tough. I feel you should get an OD limit. It's better than a loan. You only pay when you use the credit line. Hope this helps.

 

[Maria43]

Check your prices from time to time.
I talk to many businesses that don't keep up with real inflation.
It usually hurts them in the end.
A small review can go a long way.

 

[FrozenInfinity7]

Please be very careful. Take a step back and make sure you're profitable before you go down that rabbit hole.

Google and run some liquidity ratios on your business.

If you have other liabilities such as super, machine loans, or ATO, then getting another loan is dangerous.

I fully understand the position and desire to hold out because the next job or whatever will turn things around. But what if it doesn't?

After 20 years in a trade business, I did the same thing. Years later, it all fell apart anyway, and I was left holding the ball on 300k in loans with personal guarantees.

I don't mean to be negative, but this is real. Cash flow loans should only be used to fund gaps in client payments, not ot prop up gaps in profitability.