Quick answer
A low doc business loan is assessed on alternative evidence of income, usually 6 to 12 months of business bank statements, instead of tax returns and financial statements. Many don't need property. Lenders look at regular deposits, how the balance moves, existing repayments and any dishonours. They suit trading businesses with steady income whose books are behind, typically from $5,000 to $500,000.
Key points
- Assessed mainly on 6 to 12 months of business bank statements.
- Often no property needed for smaller amounts.
- Most lenders want around six months of trading or more.
- Typically $5,000 to $500,000 for trading businesses.
- Paperwork
- Bank statements, ID, ABN, often a recent BAS
- Security
- Usually unsecured; property optional
- Typical size
- $5,000 to $500,000
- Trading history
- Usually 6 months or more
Your tax return tells a lender what your business looked like last financial year. Your bank statements tell it what your business looks like right now. For a lot of small businesses, especially ones that are growing or have had a messy year, the bank statements are actually the more flattering and more accurate picture. That’s the idea behind a low doc business loan.
Instead of asking for two years of returns and accountant-prepared financials, a low doc lender assesses the money moving through your business account. If deposits are regular, the balance doesn’t spend half the month in overdraft and existing repayments are being met, that’s strong evidence the business can handle another one.
Who low doc loans suit
Low doc loans are built for trading businesses whose paperwork lags behind reality:
- Sole traders and tradies whose returns are lodged late every year because they’re busy working.
- Businesses that have grown quickly, so last year’s return understates what they earn today.
- Owners who changed accountants, structures or bookkeeping software and are still catching up.
- Anyone who simply needs money now and doesn’t want to wait months for financials.
They suit owners who don’t want to use property, or don’t have it. Smaller unsecured low doc loans are often approved without any security at all, with the lender relying on the business’s cash flow and usually a personal guarantee.
What lenders look for in your statements
A low doc lender reads your statements the way a mechanic listens to an engine. They’re listening for a steady rhythm. Common things they check:
| What they look at | What they want to see |
|---|---|
| Deposits | Regular income from customers, not one-off transfers |
| Average balance | Money staying in the account, not hovering at zero |
| Dishonours | Few or no bounced payments or failed direct debits |
| Existing loans | Repayments to other lenders, and that they’re being met |
| ATO payments | BAS and payment plan amounts being paid |
| Personal use | Business and personal spending kept reasonably separate |
Our guide to how lenders read your business bank statements goes through each of these in detail, including what to do if your statements have a rough patch.
What you’ll be asked for
A typical low doc list is short:
- 6 to 12 months of business bank statements, or online banking access so they can be linked.
- Photo ID for each borrower and guarantor.
- Your ABN, and ACN if you’re a company.
- A recent BAS and ATO portal statement, if you’re registered for GST.
- What the money is for. A quote or invoice helps.
Some lenders add an accountant’s letter or a simple income declaration. Larger amounts, closer to the top of the range, may get a closer look and a few extra questions.
How much can you borrow?
Unsecured low doc loans for trading businesses typically run from $5,000 to $500,000. Where you land depends mostly on your turnover and how your account behaves. A business with steady deposits and room in its cash flow will be offered more than one whose account is stretched every month. If the unsecured amount falls short of what you need, property can make up the difference.
Low doc versus the alternatives
Low doc sits between two other options. A no doc loan asks for even less about the business but needs property security. A full doc loan asks for the most but can give you the widest choice of lenders and terms. If your returns are lodged and current, read full doc vs low doc before choosing.
An illustrative example
A Wollongong café has traded for three years and wants $35,000 for a new espresso machine and refrigerated display. The owner switched bookkeepers in March and the latest return won’t be lodged for months. The café’s account shows steady daily card deposits, rent and wages paid on time and no dishonours. A low doc unsecured loan fits: the lender links twelve months of statements, checks the last BAS and the supplier’s quote, and assesses the application without waiting for the return. Illustrative only.
Getting ready
Before you apply, do three things. Make sure online banking is working so statements can be linked on the spot. Lodge any overdue BAS, even if you can’t pay it all yet. And if business and personal spending are tangled in one account, be ready to explain the main personal items. None of these takes long, and each makes the assessment smoother.
See what you could get
Tell us what you need and roughly what goes through your account each month. There’s no credit check to make an enquiry, we won’t push your details out to a crowd of lenders, and one real person will look at your situation and call you. The more accurately you answer, the more likely the first lender we approach is the right one. Start your enquiry here, or try the paperwork matcher first.
Frequently asked questions
What counts as low doc?
Any loan where the lender accepts alternative evidence instead of full financials. Most often that's business bank statements. Some lenders also accept an accountant's letter, a recent BAS or an income declaration.
How many months of bank statements do I need?
Most low doc lenders want 6 to 12 months. Many can link to your online banking directly, which is quicker and more accurate than sending PDFs.
Do I need to be registered for GST?
Not always, but it helps. A lodged BAS is useful supporting evidence. If you're not registered, an accountant's letter or income summary can fill the gap with some lenders.
Can I get a low doc loan with bad credit?
Sometimes. Recent defaults or judgements make unsecured low doc lending harder, but older or minor issues are often considered. Be upfront so we can approach the right lender.
Is low doc the same as no doc?
No. Low doc uses your bank statements as the main evidence and often needs no property. No doc relies on property security and asks even less about the business.