🚗 Introduction
Starting a new business comes with its own set of challenges — and one of the biggest hurdles can be securing finance. If you have limited business history or your ABN is relatively new, it might seem like getting approved for a low doc loan is difficult. But don’t worry! With the right approach, you can still access the financing you need to grow your business.
In this article, we explain how to get approved for low doc loans with limited business history, what lenders are looking for, and how to improve your chances of securing the loan.
💡 Why Business History Matters for Low Doc Loans
Lenders typically prefer businesses with a stable income and a proven track record. However, low doc loans are designed to help small businesses, sole traders, and startups that might not have the traditional financial documents required for full-doc loans.
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⚙️ What Lenders Look for with Limited Business History
Even with limited business history, lenders are still looking for:
- Active ABN (6–12 months is often acceptable)
- Stable personal income or previous work history
- Solid business plan that outlines your business goals and revenue potential
- Consistent cash flow demonstrated through bank statements
- BAS statements (if available) to show GST compliance
📋 What You Need to Apply
- Active ABN – Most lenders require your business to have been operating for at least 6–12 months.
- Recent bank statements – 3–6 months of business bank statements to demonstrate income and cash flow.
- BAS or tax returns – If available, these can strengthen your application, especially if you have limited business history.
- Vehicle purchase quote – A quote or invoice from a dealer or supplier showing the vehicle you intend to purchase.
- Proof of business use – Lenders will typically require evidence that the vehicle will be used for business purposes (typically 50% or more).
💬 Tips to Improve Approval Odds
- Show consistency in your bank statements – Even with limited history, showing regular business income and smart financial management can improve your chances.
- Offer a deposit – Putting down a deposit (10-20%) can demonstrate your commitment and reduce lender risk.
- Provide a clear business plan – Outline your goals, target markets, and how the vehicle will be used in your operations.
- Work with a broker – A finance broker can help you present your application in the best light and find lenders who specialize in low doc loans for businesses with limited history.
- Provide personal financials – If your business history is short, lenders may look at your personal income or assets to assess your ability to repay the loan.
💥 The Benefits of Low Doc Loans for New Businesses
- Quick approval – Low doc loans typically have faster approval processes, which means you can get started sooner.
- Flexible terms – Tailored repayment plans to suit your business cash flow, even with limited financial documentation.
- Access to equipment and vehicles – Even with a short business history, low doc loans help you acquire the assets necessary to run and grow your business.
🚀 Final Thoughts
Securing a low doc loan with limited business history can be challenging, but it’s not impossible. By presenting a clear financial picture, offering a deposit, and working with a broker, you can improve your chances of approval. With the right preparation, you can gain access to the vehicle or equipment you need to get your business off the ground.
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
