What is a low doc loan?
A quick overview
A low doc loan is requires fewer documents than a full loan application. It’s ideal for self-employed Aussies or small businesses that can’t provide full financials.
Not every business has financials ready to go (or is comfortable sharing them). That’s where a low doc loan comes in. If you’re self-employed or simply not ready to provide all your details, a low doc loan lets you access funds quickly with minimal paperwork. In this article, we’ll explain how they work, who can apply, and what makes them different from regular business loans.
What exactly is a low doc loan?
A low doc loan is short for "low documentation loan". It’s a type of finance where the lender only asks for basic business info. This usually includes questions like:
- What is your credit score?
- What is your annual income?
- How long has your ABN been registered?
- How long have you been registered for GST?
If these answers are sufficient enough you may not need to provide anything else. And you definitely don’t need to provide full tax returns, financials, or BAS. These loans are popular with small business owners, freelancers, and sole traders who have solid income but can’t yet show all the usual documents. Compared to a no doc loan, low doc options typically allow for higher borrowing limits and slightly lower rates.
It can be a great option if you’re looking to finance cars, trucks, trailers, equipment or any other asset.
In the context of asset finance in Australia
In Australia, low doc loans are often used for vehicle finance, equipment purchases or and cash flow support.
They’re a go-to for time-poor tradies, small businesses with patchy books, or anyone going through a busy growth phase.
As long as the business has steady income and a legitimate purpose for the loan, lenders are usually willing to assess the deal without needing the full financial package.
Brokers (including us) use low doc loans to fast-track deals when timing matters.
For example, a landscaping business in Melbourne wants to upgrade its ute and trailer. They’ve got strong weekly income but haven’t completed their latest tax return. Instead of waiting months, their broker secures a low doc loan using 6 months of bank statements. The new setup is funded within three days. This is a very common scenario for us at Stacked Finance.