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No Doc Business Loans | Commercial Finance Australia

16 Mar Today's
best rate
Finance Equipment From
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*The Interest Rate is calculated on a Secured Loan for business use, effective 21/03/2023 and subject to change. WARNING: The interest rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

No Doc Business Loans

The financial services industry uses the term ‘no doc’ or ‘no docs’ to describe loan applications which do not contain all the documentation required for standard loans. By documentation, the industry means financial records and other related information. No docs might mean that the business has none of the usually required information or it may only have some. Despite the ‘no doc’ title, to be offered this type of loan there are some essential requirements.

This loan is considered in a high risk category and as such includes a higher interest rate than a comparable application with full documentation and usually includes additional conditions which may vary from lender to lender.

No Docs Business Loans may be sought for a range of asset acquisitions including motor vehicles to be used, trucks and a wide range of equipment.

A business may find itself in a situation to require a no docs loan for a number of reasons, here’s just a few:-

  • Newly started commercial enterprise or just starting. With many people choosing or needing to move from employee to self-employed, to become a contractor to be in a position to seek work in their chosen field or individuals wanting a side business as an additional source of income, there are many new emerging.
  • Tradespeople very often move into their own businesses and require loans to purchase the necessary vehicle and equipment to carry out the work.
  • Documents may have been lost or destroyed for example in a fire and copies not accessible.

Not many major banks readily offer no docs loans but fortunately there are non-bank lenders that are active in this space and we have connections with these lenders. We also have connections with brokers who cater for commercial services that are seeking no docs loans. Using the services of a professional to assist you can be highly beneficial and worth considering.

No Doc Loan Conditions and Requirements

While it is a given that you will not have the full documentation that is usually required, there is still some essential requirements:-

  • ABN-holder is essential. Your business must have a current ABN.
  • Advise the GST status of your business – if you are registered or not registered for GST
  • Businesses that are registered for GST are usually viewed more favorably than those that are not. GST registered will also have BAS statements.
  • ID proof. As is required with all financial matters, you will need to provide complete proof of your identity.
  • Financial records are not required but if you do have some financials, this may enhance your application.

Individual lenders may apply their own set of conditions to no docs loans, which may include:-

  • A larger deposit be paid on the goods.
  • Some form of loan security in addition to the goods being purchased. This may include property or other commercial assets or personal guarantee by the owner.

No Doc Loan Types

No Doc Loans for businesses apply across the full range of commercial loan facilities:-

For full details on each type of lending, please refer to our web pages.

While the loan type that is best suited to your business depends on aspects of your structure and treatment of tax and GST, some lenders may have a preference for one or the other when approving no docs loans.

Securing a No Docs Business Loan

We have connections with many lenders and many brokers that may be in a position to assist with a no docs loan for a car, commercial vehicle, truck or the equipment your require to get your organisation happening.

Just send us your details and requirements and we’ll provide you with the contacts that may be able to make it all happen.

Connect with us for possible solutions for a no docs commercial loan.

No Doc Business Loans FAQs

This type of loan is a more specialised area of commercial financing as these types of loans are not available through all banks and lenders. If you are in the position of not having sufficient lending docs to meet the bank lending guidelines, it’s likely you will have queries about securing no docs lending. We have addressed some issues here and invite you to contact us to discuss further or to request a lending quote.

What does No Doc Finance mean?   

Doc or docs is the lending services industry term for documents or documentation. More specifically, it is the term used for the whole of the lending documents which a commercial applicant is requested to provide when applying for a loan. The exact docs, accounts, records or files can vary depending on the lender and on the type of operation. Typically, these docs include BAS returns, commercial income tax returns, operational accounts files, profit and loss statements, income and expenses records and annual commercial accounts. No Doc means that the entity applying for the lending does not have those documents. They may have some but not all and in some cases may have none. That can occur when a commercial operation is only just starting up and is applying for lending prior to commencement of trading. In these instances they would not have records of income/expenses and other transactions. Operators can apply for commercial lending if they have a current ABN and identification but no other documentation.

What finance products are available for No Doc Loans?   

When applying for a commercial loan, the organisation may specify which particular lending product they are applying for. The choice of commercial lending products for the acquisition of assets and goods includes Chattel Mortgage, Leasing, Rent-to-Own and Commercial Hire Purchase. As these loans are essentially secured against the asset, they are available for no doc applicants. There are other types of commercial lending including Business Overdraft, Insurance Premium Funding, Invoice Lending and general Unsecured Commercial Loans. These loans are not usually secured against an asset and as such approval for a No Docs Loans will subject to individual lender decisions. Additional security may be requested. If using a broker to source your loan, they may have the lender connections to source loans across the complete portfolio of lending products.

What interest rate will I get with a No Doc Loan?   

All applications for lending are assessed by lenders on an individual basis and the purpose of the loan, e.g the equipment or asset, is also taken into account. Interest rates vary across types of loans and can vary depending on the equipment being acquired. Applicants can achieve the interest rates as advertised by lenders such as those shown in the interest rate comparison chart but with conditions. Lenders may apply stricter criteria and apply special conditions. To achieve the same interest rate as a fully documented loan applicant, an applicant typically will require a good credit rating. Additional conditions may include providing additional security against the loan such as property and limits on the total loan amount.

Are there any special conditions on No Doc Loans?   

Lenders can place conditions on loans which are not usually applied to fully documented loans. These may include stricter application criteria such as the applicant requiring a good credit profile. Conditions may also include the need to provide additional security against the monies being lent. Security may be requested in terms of property or other assets in addition to the security provided by the asset being acquired. Other conditions may include the lender imposing a maximum threshold on the total loan amount they will approve. If this is the case, the borrower may need to pay a deposit or upfront payment to the seller to reduce the total amount being financed.

Are No Doc Loans the same as Bad Credit Loans?   

Loans are not necessarily Bad Credit Loans but applicants can be both bad credit applicants with no docs. Applicants may have a very good credit profile but just not all the lending record and documents as requested by a lender. This may occur when a commercial operation is starting up. A lender may review the credit profile of the owners/directors as they would likely be responsible for the loan. An applicant may have extensive lending records, especially if they have been trading for some time, but still have a poor record. The terms are different and the criteria and conditions around loan application approval also differ.
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