Low and No Doc Business Loans Australia


Complete credit guide relating to low doc business loans and no doc business loans in Australia, differences, and how loans work?

The Zip Business Finance product is a hybrid of a short term and a business loan, constructed to meet the needs of today’s businesses. A lending criteria arrangement gives you flexible access to funds you can borrow as a loan to improve your cash flow bottom line. The application process is assessed thoroughly, and if a line of credit is approved, funds are made available for a limited time for you to drawdown. You need only use what you require, as it is necessary. Your credit line is typically accessible for between one and three months, with the endless possibility to renew. You can draw down money  as often as you like during this period, up to your approved limit. Each sum you drawdown becomes a separate business loan repayable in weekly, fortnightly, or monthly principal and interest instalments, spread over 6 to 36 months. Because of its short-term nature, we don’t require proof of income or your recent tax returns. However, we want to see your business plan on how the funding will be repaid or you need an extension. Learn how you can expand your small business with our low doc business loan. Having worked with numerous small businesses, we know what it is like to work with an experienced business company. We have assisted thousands of small businesses before to finance their growth. Let us help you with your unique vision. Start your business loan application today.


What is a low doc business loan?

The abbreviation ‘Low Doc’ means ‘low documentation”. A low doc business loan, therefore, is one that you can apply for without needing to provide all the paperwork that a bank or second-tier lender usually requires.

For example, you don’t need to provide proof of taxable income or financial statements for the past few years as you would for a standard business loan.

No-doc loans: lending criteria


There is no proof of income

  • In contrast to a low doc loan, you do not need to provide evidence of your income.
  • To prove your income, you don’t need tax returns, BAS statements, an accountant’s letter, or bank account statements.
  • Bear in mind  that some lenders will still require you to sign a statement of your assets and liabilities or a declaration confirming your ability to service your mortgage
Purpose of loan

NCCP-unregulated loans must be available to you. Your loan must meet one of the following criteria:

  • You must use the loan for business purposes, or
  • the loan must be secured by commercial property, or
  • the loan must be used for investment purposes (other than residential property), or
  • The loan must be in the name of a company or trust with an ABN.

All no-doc lenders will decline your loan if it does not meet at least one of the above conditions.

Due to the NCCP Act, all loans with personal purposes, owner-occupied, and residential property investments.

If the lender does not verify your income, they break the law.

To prove that the loan is NCCP-unregulated, you will need to sign an investment or business purpose declaration.


Lenders rely entirely on the security for the loan. Due to this reason, the lender is very particular about the property they’re taking as security.

As a general rule, the property must:

  • A good location.
  • Good condition.
  • Units are more significant than 50m2 or land smaller than 2 hectares.
  • They are easily marketed.
  • Residential real estate, offices, factories, warehouses, and retail may qualify for a commercial no-doc loan.
An overview of your credit history

  • While some no-doc lenders will approve a loan for someone with an impaired credit history, this is not the case for all lenders.higher interest rates won’t affect your rate if you have a poor credit history.
A strategy for exiting

  • No-doc loans aren’t designed to last for a long time.
  • They often have a term of 6 months or three years, and then the interest rate will increase.
  • Lenders want to know how you will repay the loan.
  • The borrower usually plans to sell the property or another asset to repay the loan.

Difference between a low doc and a no doc business loan?


No doc’ is an abbreviation for ‘no documentation. A ‘no doc’ loan doesn’t require documentation, and a ‘low doc’ loan requires minimal documentation.

It’s important to know that a ‘no doc’ loan can be more challenging to get approved for. Additionally, even if you’re approved, you’ll have to pay a higher interest rate and fees to compensate the lender for the increased risk.

Who uses low doc or no doc business loans in Australia?

Low doc loans could be an option for entrepreneurs just starting up their business or for self-employed individuals with a short history of operation.

The only paperwork you usually need to provide for low-doc finance applications is:

  • The Australian Business Number (ABN).
  • Proof of Australian citizenship or permanent residency.
  • Evidence of your ability to make your loan repayments. For example, a letter from your accountant supporting your application or bank statements that you can provide.

It is much easier to apply for a low doc loan than a traditional business loan with a bank. The lending criteria of banks are rigorous. With a standard bank business finance application, you would typically be expected to submit the following documents:

  • Business balance sheets, income statements, and tax returns for the last two years.
  • A detailed business plan with revenue projections.
  • Please provide copies of any sales agreements or contracts.
  • Details of collateral that will be used as security for the loan.

A lot of companies cannot afford to do this.

What can I use a low doc commercial loan or no-doc commercial loan for?

Among the business purposes for which low doc commercial loans can be used are:

  • You can increase your working capital or boost your cash flow.
  • You are purchasing stock, equipment, machinery, or vehicles for a business.
  • GST or other taxes to be paid.
  • They are employing staff.
  • You are buying a competing business.
  • Renovating 

They can be used for any commercial purpose!

How much can I borrow with a low doc or no-doc business loan?

Different lenders have different policies. In general, however, the amount you can borrow depends on your ability to demonstrate that you can repay what you borrow. You may borrow as much as you can afford to repay. We can offer you terms depending on your circumstances. 

What are low doc loan rates?

As a result of the higher risk to the lender, low doc loans have higher interest rates than standard business loans. These loans, however, have lower interest rates than no doc loans.

Where can I get low doc or no-doc business finance?

There are both banks and private lenders in Australia who provide low-doc business financing.

Although you may find it easier to get approval from a private lender than a bank due to the strict lending criteria banks must meet. Private lenders will usually be able to get you the funds you need faster.

How do low doc business loans and no doc business loans from Zip Funding work?

ZF specializes in private lending. Private lending is an alternative to bank financing. Private lending involves borrowing funds from a non-bank third party. A third party could be a private individual or a company.

Private loan contracts set out the terms and conditions of repayment schedules and interest charges for both borrowers and lenders. Our low doc finance repayment schedules can be tailored to meet the specific cash flow requirements of your business. Private lending is permitted in Australia, and it is the fastest-growing sector of the industry.

I am self-employed, is a low doc business loan or no-doc business loan a good option for me?

If you are self-employed, low doc business finance may be the only viable option, especially if you are just starting out. Starting (or continuing) your own business could mean the difference between success and failure.

Can I get a low doc business loan or no-doc business loan if I have a bad credit history?

If you have insufficient (or no) credit, you are more likely to be approved for a loan by a private lender than a bank. Banks are traditionally very risk-averse, and they are even more so since the recent Financial Services Royal Commission and the economic downturn caused by COVID-19.

As part of your private low doc loan application, ZF does not conduct credit checks. A bank, on the other hand, will ALWAYS check your credit history when assessing your application. Your credit score will be further damaged if you have a bad credit history.

Can I get an unsecured low doc or no-doc business loan?

Yes, as long as you can demonstrate that you can repay the loan.

With a letter from your accountant, we can get your approval in some cases.

Unlike secured loans, unsecured low doc loans do not require you to provide collateral security. Providing collateral security for financing means that if you do not make your repayments, your lender can repossess and sell the collateral to recoup your debt.

In contrast, lenders of unsecured loans cannot repossess any of your assets. You will be charged a higher interest rate, however, to compensate the lender for the increased risk.

Need a low no doc loan?

We strongly believe that finance should not be that complicated.

Pre- Qualify in Minutes

No Postcode Restrictions

Australias Lowest Rates

Lvr Up to $90%

Pre Paid Terms

Loan Amounts up to $30 Mil

Loans on your Terms

No Doc or Credit Checks

Scroll to Top

Get a Free Quote