Low Doc Personal Loans
Self-employed? Contractor? Gig worker? Traditional lenders often can't assess your income from standard payslips and tax returns. Low doc personal loans use alternative verification to help Australians with non-traditional income get the finance they need.
Finance for the Modern Workforce
The way Australians work has changed dramatically. More people than ever are self-employed, contracting, freelancing, or working in the gig economy. But traditional lenders haven't caught up - they still want payslips and tax returns that don't reflect how you actually earn.
Low doc personal loans recognise that your last tax return might not tell the full story. Maybe your business has grown since then. Maybe your deductions make your taxable income look lower than your actual cash flow. Maybe you just started and don't have returns yet.
At Your Lending Friend, we work with lenders who understand non-traditional income. They use bank statements, BAS statements, and other alternative verification to assess your real financial position.
Who Are Low Doc Loans For?
Low doc loans are ideal for people with non-traditional income
Self-Employed Business Owners
Running your own business means irregular income that traditional lenders struggle to assess.
Contractors & Freelancers
Project-based work with varying income periods between contracts.
Gig Economy Workers
Uber, Deliveroo, Airtasker - modern work arrangements that banks don't always understand.
Seasonal Workers
Tourism, agriculture, retail - industries where income fluctuates throughout the year.
Commission-Based Earners
Sales professionals, real estate agents, and others whose income varies month to month.
Recently Self-Employed
Just started your business? You may not have tax returns yet, but you still need finance.
What Documentation IS Required
"Low doc" doesn't mean no documentation - here's what you'll typically need
Standard Low Doc Requirements
- Valid ID (driver's licence or passport)
- ABN registered for 6-12+ months
- Bank statements (3-6 months)
- BAS statements (last 2 quarters)
- GST registration (if applicable)
May Also Be Requested
- Accountant's letter confirming income
- Business activity statements
- Recent invoices showing work
- Contract or letter of engagement
- Asset and liability statement
Full Doc vs Low Doc Comparison
Understanding the differences helps you choose the right option
| Feature | Full Doc | Low Doc |
|---|---|---|
| Tax Returns Required | Yes (2 years) | No |
| Financial Statements | Yes | Usually no |
| Bank Statements | 3 months | 3-6 months |
| BAS Statements | Sometimes | Usually yes |
| Interest Rates | Lower | Higher (1-3% premium) |
| Processing Time | Longer | Often faster |
| Loan Amounts | Higher limits | May be capped |
Alternative Income Verification Methods
How lenders assess income without traditional payslips
Bank Statement Analysis
Lenders review 3-6 months of bank statements to assess income patterns, even without payslips.
Works best for: Best for steady deposit patterns from various sources.
BAS/GST Verification
Your Business Activity Statements show reported income to the ATO - strong verification.
Works best for: Best for registered businesses with regular BAS lodgments.
Accountant Declaration
Your accountant provides a letter confirming your income based on their records.
Works best for: Best for established businesses with an ongoing accountant relationship.
Contract/Invoice Review
Current contracts or recent invoices demonstrate ongoing work and expected income.
Works best for: Best for contractors with documented work arrangements.
Understanding the Rate Premium
Low doc loans typically cost 1-3% more than standard loans - here's why
Higher Verification Risk
Without tax returns, lenders have less certainty about income accuracy.
Income Variability
Self-employed income can fluctuate, increasing repayment risk.
Less Historical Data
Fewer documents means less track record to assess.
Specialist Lending
Fewer lenders offer low doc products, reducing competition.
The trade-off is worth it: For self-employed Australians who can't provide traditional documentation, the alternative is often no finance at all. A slightly higher rate is better than missing opportunities or struggling without the funds you need.
Tips for a Stronger Low Doc Application
Keep Clean Bank Statements
Lenders review your bank statements closely. Avoid gambling transactions, dishonours, and unexplained large withdrawals in the months before applying.
Lodge BAS Statements On Time
Up-to-date BAS statements show you're running a legitimate, compliant business. Overdue BAS can delay or derail your application.
Maintain an Active ABN
Most lenders require 6-12 months of ABN history. The longer your business track record, the better your options.
Consider a Secured Loan
If you have a car or other asset to use as security, you may access better rates and higher loan amounts than unsecured low doc options.
Low Doc Personal Loans FAQs
Common questions about loans for self-employed Australians
A low doc (low documentation) loan requires less paperwork than traditional loans. Instead of tax returns and detailed financial statements, lenders use alternative verification methods like bank statements, BAS statements, and accountant declarations to assess your income and ability to repay.
Yes - "low doc" doesn't mean "no doc." You'll still need to ...
Yes - "low doc" doesn't mean "no doc." You'll still need to provide ID, bank statements, and usually BAS statements or an accountant's letter. The difference is you won't typically need full tax returns or audited financials.
Low doc loans typically carry a 1-3% rate premium because le...
Low doc loans typically carry a 1-3% rate premium because lenders take on more risk with less verification. However, for self-employed borrowers who can't provide traditional documentation, the alternative is often no finance at all - making the premium worthwhile.
Most lenders require a minimum of 6-12 months with an active...
Most lenders require a minimum of 6-12 months with an active ABN. Some specialist lenders may consider shorter periods if you have strong bank statement history or were previously employed in the same industry.
Yes, though your options will be more limited and rates high...
Yes, though your options will be more limited and rates higher. We work with specialist lenders who offer low doc options for people with credit issues. The combination of bad credit and low documentation means higher rates, but options exist.
Low doc personal loans typically range from $5,000 to $75,00...
Low doc personal loans typically range from $5,000 to $75,000, though some lenders offer up to $100,000 for strong applications. Amounts depend on your demonstrated income and overall financial position.
Low doc loans can actually process faster than full doc loan...
Low doc loans can actually process faster than full doc loans since there's less paperwork to verify. Many applications receive decisions within 24-48 hours if documentation is complete and straightforward.
Absolutely. This is common for businesses that have grown si...
Absolutely. This is common for businesses that have grown since the last tax return, or where deductions make taxable income appear lower than actual cash flow. Low doc lenders focus on current bank statements and recent BAS, giving a more accurate picture of your current income.
Still have questions? Contact our friendly team