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Low doc commercial

Self-employed, recently — and still creditworthy.

Low doc commercial loans for borrowers without two years of tax returns. Accountant-declaration files, BAS-verified files, and the non-bank lenders that price them sensibly.

Reviewed · Adam King — 30 years in finance, Sunshine Coast

Low-doc lending is a real product, not a workaround

If you've been self-employed for less than two years, or you've had a strong recent twelve months that the prior year's tax return doesn't reflect, a full-doc commercial loan often won't get up. Low-doc is the product that fills that gap. It's not a workaround and it's not the post-GFC mess people remember from 2008 — modern low-doc files are properly underwritten, with BAS verification, bank-statement analysis, and an accountant's signed declaration of income. The lender shortlist for low-doc commercial is narrower than full-doc. A handful of specialist non-banks sit at the top of the list. Most price 0.75–1.5% above the equivalent full-doc rate, at a more conservative LVR. The trade-off is straightforward: you pay a higher rate now in exchange for being able to settle on the asset before you've built the two-year track record. After 18–24 months on the loan, with a year of clean repayments and a fresh tax return behind you, we refinance to a full-doc lender at the sharper rate. Three kinds of files commonly run low-doc. Newly-incorporated traders with one strong year behind them. Existing businesses with rapid income growth — last year's tax return understates the current capacity. Trust structures where the family return makes a clean income reading awkward. In all three, the file gets up at a sensible rate if it's priced and structured properly. Where it goes wrong is when an inexperienced broker tries to force a low-doc file through a full-doc lender — slow decline, wasted time, dented credit file.

What low-doc lenders verify instead of returns

The credit officer still wants evidence — just different evidence.

  • Accountant's declaration of income — signed, on letterhead, stating annual taxable income. Some lenders accept just this.
  • Last 6–12 months of business BAS — totals the gross income the ATO has seen.
  • Last 6 months of business and personal bank statements — verifies cashflow against the BAS.
  • Trust deed (if applicable) and any related-entity financials.
  • ABN active for at least 12–24 months — minimum required by most lenders.

Indicative low-doc terms

  • rate range

    On application

    live panel pricing; full-doc typically sharper

  • ABN minimum

    12+ mo

    varies by lender

  • typical refi window

    18–24 mo

    to full-doc at sharper rate

Take it to a broker

Recently self-employed isn't a deal-breaker.

We'll pick the lender, structure the file, and plan the refinance to a full-doc rate once the second year of returns is in.

Related

Questions you might have

The honest answers.

Real numbers · honest answers

Self-employed and creditworthy — priced properly.

Twenty minutes to a real lender shortlist and indicative pricing.

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General information only — not personal credit advice. Rates and figures shown are indicative and subject to confirmation against current lender pricing and policy.