Also called: Lite doc, Streamlined assessment
Low-doc finance
Low-doc finance is lending assessed without full financial statements, relying instead on evidence such as bank statements, BAS, an accountant's letter or a borrower declaration. It reduces the paperwork required, not the lender's obligation to verify who you are and whether the loan is affordable.
What is a low-doc finance?
Low-doc finance is lending assessed without full financial statements, relying instead on evidence such as bank statements, BAS, an accountant's letter or a borrower declaration. It reduces the paperwork required, not the lender's obligation to verify who you are and whether the loan is affordable.
Example
A sole trader with an ABN active for 18 months finances a $70,000 excavator on a low-doc basis using six months of bank statements and recent BAS.
Why it matters
Low-doc widens access for businesses whose financials are not yet finalised, usually in exchange for a higher rate or a deposit.