Low Doc Business Loans For Sole Traders in Australia
We help sole traders find the best low doc business loan for them. It's free to compare with no credit score impact.
How Lend can help you get a low doc business loan
Compare multiple lenders
Access low doc business loan options from specialist lenders. We help you compare rates, fees and more.
Low doc business loan pros & cons
Pros
• Fast and simple application
Requires minimal paperwork, so you can get approved and funded quickly.
• Accessible for small businesses
Available to most businesses, including sole traders and startups with limited financial history.
• Bad credit considered
Lenders may still approve your application even if you have a poor credit score.
• Flexible use of funds
Can be used for a wide range of business needs, from working capital to equipment purchases.
Cons
• Higher interest rates
Rates are typically higher than standard business loans due to the increased risk to lenders.
• Larger repayments
Shorter loan terms can result in higher monthly repayments, impacting cash flow.
• Possible exit fees
Some lenders charge fees if you repay the loan early or break the contract.
• Lower borrowing limits
You may be restricted to smaller loan amounts unless you provide collateral.
How to apply for a low doc business loan
When you apply for a low doc business loan, you’ll still need to provide some supporting documentation, although it will be less stringent than other types of business finance.
Low doc paperwork
You'll need to submit some alternative forms of financial documentation, including bank statements for the last 6 months, business Activity Statements (BAS) or credit sales/merchant statements, a signed declaration confirming your current business income, a letter from your accountant.
You may be asked to provide a personal guarantee if it’s an unsecured business loan, which would mean you would become personally liable for the loan if the business cannot repay it.
Low doc loan terms & repayments
Loan term
Most low doc unsecured loans have terms of between six months and five years.
Fixed or variable interest
Whether your loan is fixed or variable will impact the amount you pay, whether or not you have the flexibility to make early repayments, and how exposed you are to interest rate fluctuations.
Repayment schedule
You can make equal monthly payments or variable payments to match your cashflow.
Additional restrictions
Be aware that some lenders may impose restrictive conditions on account of the additional risk of a low doc loan.
For example, you could be prevented from offering credit terms to your customers or dealing with customers with a poor payment history. It's important to consider the potential impact of these conditions when evaluating loan products.
Tax implications
The type and structure of your loan can have a major impact on your financial circumstances, and the costs can be substantially influenced by your tax position. Be sure to consult a finance broker to help you select and structure your loan.
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