Compare no doc business loans
Owning and operating a business is never easy, particularly in the early stages. You can learn more about no doc business loans, how they work and whether they’re the right option for your business, as well as compare a variety of different loan offers from around Australia, with Savvy.
|Lumi Unsecured Business Loan|
Boost your business with fast hassle-free funding from Lumi. Apply online in five minutes without harming your credit score and get funds in as quickly as 24 hours. For a limited time: Business Loans with No Repayments for the first 6 weeks. T&C apply.More details
|Lumi Lux Rate Reducing Business Loan|
Lumi Lux™ is an innovative rate-reducing business loan that rewards customers with good repayment histories and no contractual breaches throughout their loan term by dropping interest rates by 25 basis points (0.25%) every six monthsMore details
|Valiant Finance Business Loan Broker|
Valiant is Australia’s leading business loan broker with a network of over 80+ lenders. Apply for a business loan between $5,000 and $1 million and get approved in as little as 24 hours.More details
|ebroker Unsecured & Secured Business Loans|
Compare, find and match fast to over 80 bank and non-bank lenders accessing much needed working capital from a unsecured business loan.More details
Disclaimer: Savvy is not advising or recommending any particular product to you. We provide general information on products for the purposes of comparison, but your personal situation or goals are not considered here. Although we try to make our comparisons as thorough as possible, we do not have information on all products on the market on our site.
You should always consult a given offer's PDS or further documentation in the process of deciding on which loan to choose, as well as seeking independent, professional advice. If you decide to apply with one of the lenders listed above via our website, you will not be dealing with Savvy; any applications or enquiries will be conducted directly with the lender offering that product.
No doc business loans explained
What are no doc business loans and how do they work?
No doc business loans are largely as they appear: they’re a type of business finance whereby you can apply for a loan without supplying any major financial documentation. No doc loans are primarily used by small startup businesses looking for finance or sole traders who otherwise don’t meet the requirements set by conventional lenders and can’t supply the evidence needed of their business’ turnover. Instead of the usual documents, you’ll likely be required to submit the following:
- Personal ID such as a passport or driver’s licence
- ABN/ACN and GST registration
- Business bank statements
- Record of expenses such as rent
While some standard business loans may require you to supply further business financials, no doc finance sidesteps this requirement. Because of this, they’re often very quick to be approved, streamlining the application process considerably by avoiding the need for lenders to pore over documents.
In most cases, no doc business finance won’t require the borrower to be asset-backed, meaning you won’t need to supply a valuable asset you own, most often property, to act as collateral for your finance deal and instead opt for an unsecured business loan. Lenders may request security to offset the increased risk taken on by them by not requiring you to supply any evidence of your business’ financial situation beyond a self-declaration of business revenue, but this is less common than unsecured.
Risk is a relevant topic to discuss when talking about no doc loans, as they’re often considered the most risk-laden type of business finance due to their lack of documentation requirements. Not only is this offset by collateral as mentioned, but also by a higher interest rate and fees charged.
While your business may be in a position to claim the interest portion of your loan as a tax deduction, you should always look to minimise it in the event you do end up having to pay it. Regardless, though, steeper fees are always a consideration, so it’s important to assess what fees you may be charged by your lender before you sign up for your loan.
What’s the difference between no doc and low doc business loans?
No doc and low doc business loans are, for all intents and purposes, the same product. Where they may differ simply comes down to which lender you end up deciding to go with. For instance, some financiers may not require you to supply documents such as GST registration or BAS statements on their no doc loan, while others will include these as part of their assessment.
It’s important to note that what many traditional lenders, such as banks, consider low doc and no doc are actually considered full doc by a range of unsecured business financiers who operate online. The definition of no doc and low doc in lending circles has changed over the years, with business bank statements now considered by many lenders to be the major financials required to proceed with an application.
Because of this, no doc and low doc commercial loans have become far more accessible for small, medium and large businesses all around Australia. With more lenders in the market offering affordable and accessible loans to borrowers, they’re increasingly common and continue to serve as the fastest and easiest financial solutions to obtain.
Savvy is a great place to compare business loan offers. With reputable lending partners all across Australia, you can get started with your application today after choosing from our comparison table and have your loan funds hit your account as soon as a few hours after.
The pros and cons of no doc and low doc business loans in Australia
Accessible for small businesses
By sidestepping extensive financial requirements, more small businesses are now in a position to obtain a loan.
Fast to process and approve
Once your application is sent off, you can be approved and funded within a matter of hours in some cases.
Convenient online applications
You don’t have to leave your home or office when applying for these loans, as they’re 100% online from start to finish.
Bring financial goals within reach
Businesses can use their loan to cover expenses and make purchases they otherwise may not have been able to achieve.
Fewer lender options
By not providing the full two years of business financials, you’ll rule out some potential options in the form of banks (although you won’t be lacking in options).
Higher interest rates
The higher risk posed by no doc and low doc business loans in Australia will often result in higher interest rates and fees on your loan.
Shorter repayment terms
Because of that risk, you may not be able to take the time you prefer to remain comfortable with your loan repayments.