Low-doc finance when your returns are not up to date
Plenty of profitable businesses have messy paperwork. Some lenders assess on other evidence — within limits.
A lender's first question is whether you can afford the repayment. Full financials are the usual way of answering it, but they are not the only way, and a business waiting on an accountant is not the same as a business that cannot pay.
Low-doc assessment substitutes other evidence: bank statements showing consistent trading, BAS lodgements, a clean repayment history on existing facilities, or equity in the asset through a larger deposit. Some lenders will lean on time in business and the credit file instead.
The trade is usually rate. A lender taking a view on less information prices for that, and the gap can be meaningful. It is often worth taking the low-doc rate now and refinancing once the returns are lodged — a conversation worth having at the outset rather than two years in.
What low-doc is not is a way around affordability. A lender still has to be satisfied you can meet the repayments, and responsible lending obligations do not relax because the paperwork is thinner.
This guide is general information only. It does not take your objectives, financial situation or needs into account, and it is not financial, legal, tax or credit advice. Speak to us or another professional before acting on it.
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