Low-doc and impaired credit: your questions answered

Low-doc reduces the financial statements required; it does not remove verification. A lender will still check identity, ABN and GST registration, credit files for the business and the directors, and usually recent bank statements or BAS to see turnover and conduct. For asset finance, they will also verify the asset and the supplier. Expect a declaration from you about servicing capacity, and sometimes an accountant's letter. Providing more information often improves the terms available.

Possibly, depending on the size, age, type and whether it is paid. A small telco or utility default from four years ago is treated very differently from a recent unpaid default to a finance company. Some lenders on our panel specialise in impaired credit and will consider defaults, judgments and past arrangements, generally with a higher rate, a deposit or a shorter term. We will be straight with you about what is realistic rather than lodging applications that are likely to be declined.

No, though it narrows the options considerably and timing matters. Lenders generally want the bankruptcy discharged and a period of clean trading afterwards, and they will look closely at what caused it. A director of a company that entered administration will be asked to explain the circumstances. Files like these are usually placed with specialist funders, at a higher cost, and often with security or a substantial deposit. Each lender applies its own policy.

It can. Every formal application usually creates an enquiry on your credit file, and a cluster of enquiries in a short window suggests to the next lender that you have been shopping hard or declined elsewhere. That is one practical benefit of using a broker: we assess the fit first and lodge selectively rather than scattering applications. We explain any credit check and obtain your consent before submitting anything.