No Doc Business Loans

Find out more about no doc business loans and compare them with Savvy before diving into your application.

Last updated on April 20th, 2022 at 03:14 pm by Thomas Perrotta

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.

site-logos OnDeck Business Loan
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $10,000 $250,000 6 to 24
Months
3% $0
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Lightning business loans up to $150K can be funded in as fast as 2 hours - simply provide 6 months of recent bank statements.

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site-logos Lumi Unsecured Business Loan
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $5,000 $500,000 3 to 36
Months
2.5% $0
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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.

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site-logos Lumi Lux Rate Reducing Business Loan
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $200,000 $500,000 12 to 48
Months
3.50% $0
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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 months

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site-logos Valiant Finance Business Loan Broker
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $5,000 $1,000,000 3 to 60
Months
$0 $0
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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.

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site-logos ebroker Unsecured & Secured Business Loans
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $5,000 $3,000,000 6 to 360
Months
$0 $0
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Compare, find and match fast to over 80 bank and non-bank lenders accessing much needed working capital from a unsecured business loan.

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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

PROS

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.

CONS

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.

Common no doc business loan queries

Can I get a no doc business line of credit?

Yes – there are lines of credit offered by lenders which come with essentially the same documentation requirements. A no doc business line of credit is an alternative finance option for businesses which enables them to draw funds whenever they wish and only pay interest on the amount used.

Are there low or no doc business equipment finance options?

Yes – equipment finance is different to a standard business loan in that the asset itself is used as collateral for the loan. There are also, however, low doc equipment finance options for businesses who can’t supply financials in the same way as any other no or low doc commercial loans. In most cases, these too are used primarily by sole traders and startup businesses.

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

The borrowing range offered on no doc unsecured business loans will vary between lenders. You can generally be approved for any amount between $5,000 and $500,000 at its minimum and maximum, but this will also come down to a number of personal variables, including:

  • Business credit score
  • Trading time
  • Total cashflow
  • Value of assets and liabilities
  • Borrowing history
How long are their loan terms?

Similarly, loan terms are dependent on your business’ financial situation and how great a risk it poses to your lender. However, in general, you can take out your loan over as few as three months up to as many as five years. If you decide to go for a line of credit, you may not have a set end date, as they can be revolving and remain open as long as they’re viable.

What can I use my no doc business loan for?

Just about anything you like – there aren’t any restrictions on how you can use your business loan, provided it’s for business use. This means that you can use it to pay for inventory, fit out your business premises or even buy an existing business.

How much will I need to put down as a deposit?

In terms of how much of a deposit you need, the answer is $0. Our business lending partners can finance up to and over 100% of the cost of the expenses you’re looking to cover. This is because no doc unsecured business loans aren’t tied to any collateral which dictate their value. However, if your business is in a position to do so, you may benefit from reducing your loan amount by reducing your interest and associated fees.