A low doc (low documentation) business loan is designed for businesses that don’t have the full set of financial records typically required for traditional loans. This type of finance can be ideal for:
- Self-employed individuals who may not have detailed tax or reporting documents
- Startups that are still building their financial track record
- Small business owners with fluctuating cash flow and irregular income records
Unlike standard business loans, which usually call for at least two years of tax returns and financial statements, low doc loans offer more flexible documentation requirements. However, because lenders take on more risk when approving loans with limited paperwork, interest rates may be higher compared to standard “full doc” business loans.
Why apply for a business loan with Savvy?
What do I need to apply for a low doc business loan?
When applying for a low doc business loan, you’ll need to show alternative proof of income in place of detailed financial records. Requirements vary, but you'll commonly be asked to provide:
- Business Activity Statements (BAS)
- Business bank statements
- An accountant’s letter confirming projected earnings
You’ll also typically need to have an ABN registered in your name that has been active for at least six months (or more, depending on the lender), and to be registered for GST.
This is on top of standard eligibility requirements for a business loan, namely:
- Being at least 18 years old
- Being an Australian citizen, permanent resident or eligible visa holder
- Meeting your lender’s minimum personal and business credit score requirements
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What can I finance with a low doc loan?
Through Savvy, you could access funding from $5,000 up to $5 million for a low doc business loan, though your exact borrowing power will depend on things like your revenue, expenses and credit score.
The funds are flexible, giving you the freedom to use them for a wide variety of business needs, such as:
- Growing your business
- Property repairs or maintenance
- Purchasing new equipment or stock
- Covering the costs of marketing or events
- Hiring staff or managing payroll
- Buying a business vehicle
As long as the loan is used for business purposes, it’s up to you how you spend the money.
The pros and cons of low doc business loans
Pros
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Broad eligibility
Your business only needs to have been trading for a minimum of six months to qualify for most loans, with ABN and GST registration and permanent residency other common requirements.
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Minimal paperwork
You can apply without extensive financial records, making the process quicker and less stressful.
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Fast approvals
Even without the documents required for standard commercial loans, you can have your low doc business loan turned around in a matter of days, giving fast access to the funds you need.
Cons
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Lower amounts
Compared to standard business loans, low doc loans often have lower borrowing limits due to the higher risk for lenders.
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Higher interest
Less documentation means more risk, which lenders offset with higher interest rates.
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Short-term finance
Many low doc loans are designed for short-term use, meaning shorter repayment periods that may result in higher regular repayments.
How to apply for a low doc business loan
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Fill in Savvy’s online application form
Start by completing our simple online form. You’ll be asked for key details like how much you’d like to borrow, what you need the loan for, and information about your business – including its name, ABN, revenue and size – as well as your own personal details.
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Provide your documents
Even for a low doc business loan you’ll need to upload some paperwork to support your application. This includes proof of income (like BAS statements or bank statements), proof of business ownership and your ID.
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We assess your options
Our team will review your profile and check your eligibility. If you qualify, we’ll search our panel of lenders to find suitable loan offers and get in touch to talk you through your best options.
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Complete and submit your application
Your application can then be completed and submitted to your chosen lender. If everything’s in order, you could receive formal approval in as little as 24 hours.
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Sign and receive your funds
Once approved, you simply need to sign the contract to accept your loan. Your Savvy consultant will manage the settlement, and the funds will be transferred directly to your account.
What are the repayments for a low doc business loan?
Your repayments on a low doc business loan will depend on factors like how much you borrow, the loan term, the interest rate offered and how often you make repayments.
Because low doc loans are considered higher risk by lenders, they usually come with higher interest rates than standard business loans, so it’s important to check how your repayments will fit into your cash flow.
You can use the calculator below to get an estimate of your potential repayments before you apply:
Crunch the numbers
with our business loan repayment calculator
Your estimated repayments
$98.62
| Total interest paid: | Total amount to pay: |
| $1233.43 | $5,143.99 |
Is a low doc business loan the only finance type available for a self-employed individual?
If you’re self-employed, a low doc business isn’tloan can be a useful way to access funds without the need for full financial statements. However, it’s not your only option. Depending on your situation, you could also look at:
- Personal loans: the flexibility of personal loans means they can be used for business purposes if you choose. They are often easier to qualify for than business finance if you have a strong personal credit score but borrowing limits may be lower and rates higher.
- Unsecured business loans: unsecured business loans may suit short-term needs or smaller amounts, with faster approval times, though they typically come with higher interest rates and shorter repayment terms.
- Asset finance: designed for purchasing vehicles, equipment or machinery, asset finance uses the asset itself as security. However, funds can only be used for that specific purchase, not for general business expenses.
- Short-term business loans: short-term loans provide quick access to cash over periods ranging from a few months up to three years, but repayments can be higher due to the shorter terms and potentially higher rates.
- Business start-up loans: available from some lenders for businesses under two years old, business start-up loans offer up to $50,000 to newly established businesses to help you get up and running.
If you’re unsure what you could qualify for or which type of finance would best suit your business, you can compare your options through Savvy and find the right fit based on your needs and the documents you have available.
