Quick answer
Full doc loans use tax returns and financial statements; low doc loans use bank statements or an accountant's letter instead. Full doc usually opens up more lenders, larger amounts and longer terms. Low doc is easier to get ready and suits businesses whose books are behind. If your returns are current, full doc is often worth the extra paperwork.
Key points
- Full doc proves income with returns; low doc with bank statements.
- Full doc usually means more lenders and longer terms.
- Low doc is quicker to prepare when books are behind.
- Current returns are a reason to consider full doc first.
- Full doc needs
- Two years of returns and financials
- Low doc needs
- 6 to 12 months of statements
- Lender choice
- Wider at full doc
- Preparation
- Faster at low doc
“Do I go full doc or low doc?” is one of the first real choices in any business loan. It’s not a question of which is better. It’s a question of which one your paperwork, your timing and your goals actually suit.
The short version
Full doc means proving income with official records: tax returns, profit and loss statements, a balance sheet. Low doc means proving it another way, usually with business bank statements, a recent BAS or an accountant’s letter.
Full doc asks more of you up front. In return it usually gives you more lenders to choose from, larger amounts and longer terms. Low doc asks less and is quicker to prepare, but the choice of lenders is narrower and the cost is often higher.
Side by side
| Full doc | Low doc | |
|---|---|---|
| Income evidence | Tax returns and financials | Bank statements, BAS or accountant’s letter |
| Preparation | Can take weeks if books are behind | Often ready in a day |
| Lender choice | Widest, including banks | Mostly specialist and non-bank lenders |
| Typical terms | Longer | Shorter to medium |
| Cost | Usually lower | Usually higher |
| Best for | Established businesses with current returns | Trading businesses whose books lag |
When full doc makes sense
If your returns for the last two years are lodged and they show the business earning what it needs to support the loan, full doc is usually worth the extra paperwork. That’s especially true for larger amounts, longer terms or anything secured against property, where a small difference in cost adds up over years.
Full doc also suits businesses planning ongoing borrowing, because a lender that has your full financials on file is easier to go back to.
When low doc makes sense
Low doc earns its place when:
- Your latest return isn’t lodged yet, or is well overdue.
- Last year’s figures understate what you earn now because you’ve grown.
- The money is needed soon and waiting for financials would cost you the opportunity.
- Your returns show a loss that doesn’t reflect current trading.
Our guide to getting a business loan when your tax returns are late covers that situation in detail.
The middle ground
Some applications sit between the two. A lender might take bank statements plus your last lodged return, even if it’s a year old. Or an accountant’s letter might confirm current income while the full return is prepared. It’s worth asking rather than assuming you’re at one end or the other.
Questions to ask yourself
If you’re still torn, these questions usually settle it:
- Are my last two returns lodged? If not, full doc is mostly off the table for now.
- Do they show the business earning enough? A return showing a small profit can limit you more than bank statements would.
- How soon do I need the funds? If it’s within weeks and your books are behind, low doc wins on timing.
- How big and how long? Larger amounts and longer terms reward the effort of full doc.
- Will I borrow again soon? A lender with your full financials on file is easier to return to.
There’s no shame in either answer. Lenders see both every day, and the right choice is simply the one that tells your business’s story most clearly and accurately.
A common path
Plenty of owners start low doc because they need funds now, then refinance to full doc once their returns catch up. That works well, but check two things before you sign the first loan: whether there are early repayment costs, and whether the term is short enough that refinancing is worth the effort.
An illustrative example
A Perth landscaping company with five staff wants $150,000 for machinery. Its last two returns are lodged and show solid profits. Low doc would be quicker, but full doc opens up more lenders and a longer term, which lowers the monthly repayment noticeably. The owner spends a week gathering financials and chooses full doc. A month later, a newer business in the same street, with returns two years behind, takes a low doc loan for a smaller amount instead. Both are sensible. Illustrative only.
Not sure which you are?
Use the paperwork matcher or run through the business loan checklist to see what you already have.
Let us look at both
Tell us what you have and what you need, and we’ll tell you honestly whether full doc or low doc gives you the stronger application. Making an enquiry involves no credit check, your details aren’t spread across a crowd of lenders, and one real person reviews it. Accurate answers mean a better first match. Start your enquiry and we’ll take it from there.
Frequently asked questions
Is low doc more expensive than full doc?
Often, because the lender takes on more uncertainty. The difference varies a lot between lenders and depends on security, so compare the total cost of each offer rather than assuming.
Can I start low doc and refinance to full doc later?
Yes. That's a common path. Once your returns are lodged, you may be able to refinance to a full doc loan on longer terms. Check for early repayment costs first.
My last return showed a loss. Should I still go full doc?
Not necessarily. If the loss was a one-off and current trading is strong, low doc may tell a better story. We'll help you work out which is the stronger application.
What counts as current returns?
Generally the most recent financial year lodged, or close to it. A return that's more than a year overdue usually pushes you toward low doc.