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Low-Doc Business Loans

Updated 29 Jul 2025

Compare your best low-doc business loan options and get expert help with your application.

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Sean Callery Editor Money.com.au
Tony Penn - Money.com.au Asset Finance Broker
Money's asset finance expert, Phil Collard

Our business finance experts are here to help.

Low Doc Business Loans

How to get a low doc business loan with Money.com.au

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What is a low-doc business loan?

Low doc (low documentation) and no doc (no documentation) business loans allow small businesses, sole traders and self-employed borrowers to access cash flow when they cannot provide the financial statements or supporting documentation required for traditional business loan approval.

They are often used by small businesses with a relatively short operating history. Owning a small business isn’t always easy, and having fast and simple access to business funds can make a massive difference.

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  • Low-doc loans are used when you are unable to meet qualifying criteria for a standard business loan. That’s usually because you cannot provide business financial statements and tax returns for the past two years, but you can provide some documentation.
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  • No-doc loans are used when you are unable to provide any evidence of your business income or supporting documents.
Money's asset finance expert, Phil Collard

Phil Collard, Money.com.au Commercial Finance Expert

"Low doc loans require very little supporting documentation. Aside from the standard ID and application details, borrowers may be able to source approval with a lender without the need to provide evidence of business income/turnover and/or profits. Lenders will usually have a limit on what they’re willing to lend under a low doc application. There will also be some qualifying criteria to meet the requirements of a low doc loan. Your broker will be able to guide you on whether your business qualifies for a low doc loan."

Phil Collard, Money.com.au Commercial Finance Expert

Benefits of low and no-doc business loans

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Fast access to funding for small business

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No security and minimal documentation required

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Simplified application process

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No need for a detailed credit check

How do low-doc business loans work?

In many ways low-doc and no-doc business loans are similar to traditional secured and unsecured business loans. The main difference is in the documents required as part of the application process.

In summary, low-doc and no-doc business loans in Australia:

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  • Require limited supporting documents for approval
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  • Can be accessed more easily from non-bank lenders
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  • May have a factor rate applied instead of a percentage rate
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  • Will have higher interest rates and fees than a standard business loan
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  • Can be used for almost any business purpose

Depending on the business and its needs, other ways of sourcing credit quickly can include invoice finance, a business line of credit and a business overdraft.

Key features of low-doc business loans

Here's what's usually on offer with a low-doc business loan:

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  • Borrow from $5,000 to $150,000
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  • Fixed or variable interest rate
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  • Repayments to suit your budget
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  • Terms from one month to five years
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  • Secured & unsecured options

Who is eligible for a low-doc business loan?

To qualify for a low-doc business loan you'll generally need to meet these criteria:

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Own a business and have an ABN

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Business is GST-registered

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Australian citizen or permanent resident

Trading history requirement on low doc business finance

Tony Penn - Money.com.au Asset Finance Broker

Tony Penn, Asset Finance Specialist

"Traditionally all low-doc lenders would require 24 months of ABN and GST registration. But now there are lenders offering loans with a lower bar for trading history. They’re targeting the likes of tradies who have come from PAYG and opened their own business, but haven't been trading that long and don't have financials yet. Instead, lenders are basing the approval on a self-declaration from the director outlining what the business is turning over on a monthly basis."

Tony Penn, Asset Finance Specialist

Self-employed (sole trader) business loans

Low-doc business loans are designed for business owners who have difficulty in meeting the standard bank approval criteria.

This is why they are incredibly popular with new businesses, small businesses, sole traders and self-employed individuals in Australia.

These kinds of borrowers benefit from the fast approval times offered by non-bank lenders. These lenders require minimal paperwork and offer loans for a wide range of purposes.

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Our data shows 42% of all business loan requests come from sole traders, with an average loan amount of $93,027, which is less than half the overall average for business loans.

Loc doc and no-doc business loan purposes

The majority of sole trader loans are used to either purchase a vehicle (37.4%) or to provide working capital for day-to-day operations (29.3%), our recent business lending data shows.

But there are generally no restrictions on how you can use a low-doc or no-doc business loan. Common purposes include:

Best low-doc (sole trader) business loan rates

Interest rates on low-doc business loans vary between lenders. The actual rate applied to your loan will be dependent on a number of factors, including:

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  • The trading history of the business
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  • The length of the loan term
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  • The credit history of the business (rates will likely be higher if you need to apply for a bad credit business loan)
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  • The value of any deposits or security — if any — used on the loan

As interest rates are assessed based on the level of risk the borrower represents for the lender, low-doc loans will have higher interest rates than standard business loans, and no-doc loans will have higher interest rates than low doc loans.

Factor rates on low and no doc business loans

Similar to unsecured business loans, low doc and no doc lenders may apply a factor rate to your loan instead of an interest rate.

A factor rate is expressed as a multiple of the loan (e.g. 1.2, in which case the loan amount would be multiplied by 1.2 to arrive at the total amount to be repaid).

If a factor rate is applied by the lender, the amount of interest you pay on a low doc business loan will be calculated based on the initial loan amount. In contrast, with a standard business loan interest is calculated based on the current balance which reduces over time.

How to qualify and apply for a low doc business loan

For low doc applicants, figuring out how to get a business loan approved is a slightly different process. For starters, you may not be able to apply with some of the major banks and other mainstream lenders. In fact, getting a business loan with low documentation is generally easiest through non-bank or specialist lenders.

You may also be asked to sign an income declaration, and you’ll still need to meet basic lender criteria and have:

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  • An ABN
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  • A GST-registered business
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  • Citizenship or permanent residency
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  • A letter from your accountant

Expert tip: Keep your credit history clean

Money's asset finance expert, Phil Collard

Phil Collard, Money.com.au Commercial Finance Expert

"Particularly if it's a low doc application, a busy and active credit file could cast some doubt with prospective lenders. Although your application may otherwise be very strong, applying for credit with various lenders across a relatively short period of time is not a good look in the eyes of a typical lender. Needless to say, it doesn’t help your credit score either."

Phil Collard, Money.com.au Commercial Finance Expert

Low doc business loans: Bank vs non-bank lenders

Applying for a low doc loan with your bank can be a time-consuming and stressful process. Fast approval without needing to provide endless amounts of supporting documents is the main reason businesses apply for loans with non-bank lenders.

If you do choose to apply with your bank, you’ll need to supply extensive documentation about your business, such as:

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  • Your balance sheets for the past two or three years
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  • Profit-and-loss statements for the past three financial years (provided by your accountant)
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  • Business revenue projections for the next 24 months
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  • A debtors and creditors report
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  • Copies of any significant contracts or sales agreements your business may rely on for continued revenue
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  • Your personal and business credit records
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  • Details of any assets you wish to use as security on the loan — such as vehicles and property
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  • A business plan, showing your understanding of the market and how your business will compete with other, similar businesses to maintain a profit
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  • A detailed business case indicating how you will use the funds and how you plan to repay the loan

For the majority of self-employed individuals or small businesses, collating this much supporting documentation can be an arduous task. Even if you are able to provide this documentation, there is no guarantee you will be approved by your bank, and if you require fast access to finance, the length of the process may make applying a waste of time.

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FAQs about low doc business loans

Low doc (low documentation) and no doc (no documentation) business loans are used when an individual or business owner cannot provide sufficient paperwork or supporting documentation to qualify for a traditional business loan. The main difference between a low doc or no doc business loan and other loans is the required paperwork to qualify for approval.

Many lenders in Australia offer low doc business loans. You can apply through your bank, however a low doc or no doc business loan will be easier to apply for through non-bank or specialist lenders. You can even apply online.

Lenders may also advertise a factor rate instead of an interest rate, and will be fixed for the entire term of your loan. A factor rate is a fixed amount calculated upfront on the full balance you apply for when taking out your low doc business loan. Even if you decide to make extra payments on the loan balance during the term, the amount of interest you pay won’t change.

No, a low doc or no doc business loan is defined by the application process — i.e. limited documentation is required to grant approval. A low doc loan can be secured by an asset you or your business owns or unsecured (where no collateral is required). A secured low doc loan will generally come with a lower interest rate than an unsecured loan.

Can I get a low doc loan if I’ve only just started my business? Yes, some lenders now accept low doc applications from sole traders and small business owners with very limited trading history for loan amounts up to $150k. Approval may be based on a self-declared income statement rather than full financials.

What documents do I need for a low doc loan as a sole trader? Typically, you’ll need an ABN, proof of GST registration (if applicable), photo ID and a self-declared income statement or a letter from your accountant. Can I get a low doc loan with bad credit? Yes, it’s possible to get a low doc loan with a less-than-perfect credit history, especially through non-bank lenders. However, you may face higher interest rates or stricter lending terms as a trade off if the lender cannot rely on your credit history. Do I need to offer security to get a low doc loan? Generally not, as many low doc lenders offer unsecured business loans. However, offering security (usually an asset like a vehicle or property) may help you qualify for a larger loan or lower interest rate.

Can I apply for a low doc loan without an accountant? While some lenders may ask for an accountant’s letter, others will accept a self-declared income form. Having an accountant’s involvement can make the process smoother, but it's not always essential.

How fast can I get approved for a low doc loan? If you’re applying through a non-bank lender, your low doc loan could be approved the same day, or at least within 24–48 hours. The loan funds are usually available the same or next business day, especially if the loan amount is under $100,000.

Is there a minimum or maximum amount I can borrow? Most low doc lenders offer loans from $5,000 up to $150,000, though some may lend more if additional information or security is provided.

Can I top up or refinance a low doc loan later? Yes, many lenders allow you to refinance or top up your loan if you’ve demonstrated a strong repayment history and your business revenue has grown. But if you need ongoing access to finance, a business line of credit may ultimately be a better option as you can access funds whenever you need them and only pay interest on what you draw down.

Yes, some lenders now accept low doc applications from sole traders and small business owners with very limited trading history for loan amounts up to $150k. Approval may be based on a self-declared income statement rather than full financials.

Typically, you’ll need an ABN, proof of GST registration (if applicable), photo ID and a self-declared income statement or a letter from your accountant.

Yes, it’s possible to get a low doc loan with a less-than-perfect credit history, especially through non-bank lenders. However, you may face higher interest rates or stricter lending terms as a trade off if the lender cannot rely on your credit history.

Generally not, as many low doc lenders offer unsecured business loans. However, offering security (usually an asset like a vehicle or property) may help you qualify for a larger loan or lower interest rate.

While some lenders may ask for an accountant’s letter, others will accept a self-declared income form. Having an accountant’s involvement can make the process smoother, but it's not always essential.

If you’re applying through a non-bank lender, your low doc loan could be approved the same day, or at least within 24–48 hours. The loan funds are usually available the same or next business day, especially if the loan amount is under $100,000.

Most low doc lenders offer loans from $5,000 up to $150,000, though some may lend more if additional information or security is provided.

Yes, many lenders allow you to refinance or top up your loan if you’ve demonstrated a strong repayment history and your business revenue has grown. But if you need ongoing access to finance, a business line of credit may ultimately be a better option as you can access funds whenever you need them and only pay interest on what you draw down.

Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.

Jared Mullane is a finance writer with more than eight years of experience at some of Australia’s biggest finance and consumer brands. His areas of expertise include energy, home loans, personal finance and insurance. Jared is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821).

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