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Low-Doc Business Loans

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Low Doc Business Loans

Written by

Shaun McGowan

Low Doc and No Doc business loans allow self-employed individuals and small businesses to access business finance without providing extensive financial statements.

The easiest and most popular method to gain fast approval is by applying online with a specialist non-bank lender.

In summary, low doc and no doc business loan in Australia:

  • Require limited paperwork and supporting documents for approval
  • Are time-consuming and difficult to apply for through a bank
  • Can be accessed from non-bank lenders much faster
  • May have a factor rate applied instead of a percentage rate
  • Will have higher interest rates and fees than a standard business loan
  • Can be used for almost any business purpose

Key Features

  • Borrow from $5,000 to $500,000
  • Fixed or variable interest rates
  • Repayments to suit your budget
  • Terms from one month to five years
  • Secured & unsecured options
Secured business loans with Money Matchmaker

Who is eligible?

  • Own a business and have an ABN
  • Business is GST-registered
  • Permanent Citizenship or Residency
  • Minimum business-operating time of six months
  • Can provide business bank statements
Minimum requirements for a business loan

Shopping around

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What is a Low Doc Business Loans?

Low doc and no doc business loans are similar to traditional unsecured and secured business loans.

The main difference is that low doc (low documentation) and no doc (no documentation) business loans allow small businesses and self-employed borrowers to access vital cash flow when they cannot provide financial statements or supporting documentation that would be required for traditional business loan approval.

The three primary benefits are:

  1. Fast access to funding for small businesses
  2. They don’t require security or extensive supporting documentation
  3. Simplified application process — non-bank lenders will often allow you to apply online

Low doc and no doc loans are mostly used by small businesses with a short operating history, and self-employed individuals. Importantly, they are used by borrowers who cannot provide the necessary documentation for standard business loan approval. Owning a small business isn’t always easy, and having fast and simple access to business funds can be the difference between growth and closure.

Low doc loans are used when you are unable to meet qualifying criteria for a standard business loan and cannot provide business financial statements and tax returns for the past two years.

No doc loans are used when you are unable to provide any evidence of your business income or supporting documents.

Need fast access to finance or a one-time credit facility?

Find the best rate on a low doc business loan


Self-employed (sole trader) business loans

Low doc business loans are designed for business owners who have difficulty in meeting the strict approval criteria with their bank. This is why they are incredibly popular with new businesses and small businesses in Australia.

Small businesses benefit from the fast approval times offered by non-bank lenders — applying with these lenders requires minimal paperwork and provides access to finance which can then be used for a number of useful purposes.

Small business loans with Money Matchmaker

This type of finance is often used by:

  • Self-employed individuals
  • New businesses
  • Businesses with complex structures
  • Entrepreneurs
  • Small Businesses

There are no restrictions on how you can use a low doc or no doc business loan. The number of uses for low doc business finance is as varied as the businesses who apply. You may wish to use funds to increase working capital, or purchase time-sensitive inventory or stock.

Other popular uses include:

  • Paying BAS or Tax Payments
  • Buying equipment or machinery
  • Balancing seasonal cash flow
  • Employing new staff
  • Renovating your offices
  • Buying a competitor business

Need a new business vehicle or equipment for your business?

Best Low-Doc (sole trader) Business Loan rates

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

  • The trading history of the business
  • The reputation of the business with suppliers and customers
  • The credit history of the business
  • The length of the loan period
  • The value of any deposits or security — if any — used on the loan

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, which can make it more difficult to understand than an interest rate percentage — the amount of interest you pay on a low doc business loan will be calculated on the initial loan amount, not the ‘reducing balance’ — i.e. loan amortisation.

As interest rates and loan flexibility are assessed on the level of risk presented to a 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.

How lenders determine interest rates

Find the best rate on a low doc business loan


How to qualify and apply

Applying for a low doc or no doc business loan will be easiest through non-bank or specialist lenders. You may be asked to sign an income declaration, and you’ll still need to meet basic lender criteria and have:

  • An ABN
  • A GST-registered business
  • Permanent Citizenship or Residency
How to qualify for a loan in Australia

The most important aspect of your application is proving your ability to meet your repayment obligations. For the majority of non-bank and specialist low doc finance lenders, you may also need to provide:

  • A letter from your accountant
  • Business Activity Statements
  • Bank Account Statements

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:

  • Your balance sheets for the past two or three years
  • Details of any business equity or any existing debt finance
  • Profit-and-loss statements for the past three financial years (provided by your accountant)
  • Business revenue projections for the next 24 months A debtors and creditors report
  • Copies of any significant contracts or sales agreements your business may rely on for continued revenue
  • Your personal and business credit records
  • Details of any assets you wish to use as security on the loan — such as vehicles and property

You may also need to provide:

  • A business plan, showing your understanding of the market and how your business will compete with other, similar businesses to maintain a profit
  • 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.

Here are the most popular self-employed business loan questions people are asking:

What does low doc and no doc mean?

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.

Where can I apply for low doc business loans?

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!

What is a factor rate for a low doc business loan?

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.

Are low doc and no doc business loans the same as an unsecured business loan?

No, a low doc or no doc business loan is defined by the application process — i.e. limited documentation is required to grant approval. Low doc and no doc loans can still be unsecured, however an unsecured full doc business loan will provide lower interest rates than an unsecured low doc business loan or unsecured no doc business loan.

About the Author

Shaun McGowan from



Shaun McGowan

Shaun is the founder of and is determined to help people pay as little as possible for financial products. Through education and building world class technology. Previously Shaun co-founded and Lend.


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