Most tradies don’t run their business around the tax calendar. The work comes first, the paperwork comes later, and it’s common for returns to be a year or two behind. That’s where the difference between low doc and full doc lending really matters, because it decides how quickly you can get money when a job, a supplier or the ATO won’t wait.
Key takeaways
- Full doc loans need tax returns, financial statements and sometimes an accountant’s letter. They suit businesses with tidy, up to date books.
- Low doc loans use other evidence: business bank statements, BAS, invoices or the equity in property you already own.
- Property secured loans (first or second mortgage) need no financials or cash flow records at all, and bad credit is considered.
- Unsecured cash flow loans need 6+ months trading with an ABN and recent business bank statements.
- Loans run from $20,000 to $5 million, for business purposes, and every loan is priced on your circumstances.
What does “full doc” actually mean for a tradie?
A full doc loan is the traditional way banks assess a business. The lender wants to see that your business earns enough, on paper, to repay the loan. Typically that means:
- the last two years of business and personal tax returns
- profit and loss statements and a balance sheet
- notices of assessment from the ATO
- sometimes an accountant’s letter confirming current trading
- a full list of assets and liabilities
If you’ve got all of that ready, full doc lending works fine for long term borrowing. The problem is that a tradie’s taxable income often looks nothing like their real capacity to pay. Depreciation on the ute and gear, a big year followed by a quiet one, or a new company structure can all make the numbers look weaker than the business really is.
What does “low doc” mean?
Low doc simply means the lender uses different evidence. Instead of tax returns, it might rely on:
- Business bank statements showing money coming in and going out over recent months
- BAS lodged with the ATO, which show turnover each quarter
- Invoices and contracts for work that’s booked in
- Equity in property you or a guarantor already own
That last one is the big one. When a loan is secured against existing real estate, such as your home, an investment property, commercial property or land with equity, the lender’s main focus is the property and your plan to repay. That’s why our property secured loans need no financials or cash flow records.
For a deeper look at the products, see our page on low doc loans for tradies.
Low doc vs full doc: side by side
| Full doc | Low doc (bank statements) | Property secured | |
|---|---|---|---|
| Main evidence | Tax returns, financials | Recent business bank statements | Equity in property you already own |
| Up to date returns needed? | Yes | No | No |
| Trading history | Usually 2+ years | 6+ months with an ABN | Not the main test |
| Bad credit | Often a deal breaker | Case by case | Considered |
| Typical speed | Weeks | Some approved and funded within hours | As little as 24 hours in some cases |
| Typical term | Longer term | Short term | Typically 1 to 12 months |
When does a low doc loan make more sense?
Low doc isn’t a second best option. For a lot of tradies it’s simply the right tool. It tends to fit when:
- Your tax returns are behind. You can’t wait months for your accountant to catch up before you pay a supplier.
- Your income is seasonal or lumpy. Big progress claims land in some months and nothing in others.
- You’ve recently changed structure. Moving from sole trader to a company can leave you with little history in the new entity.
- You’ve had a credit hiccup. A default or a payment arrangement with the ATO can shut the bank door, but may not stop a property secured loan.
- Speed matters more than anything. A land settlement, a materials order or a tax deadline won’t wait for a full doc assessment.
Example: A tiler in Newcastle has a four bedroom house with plenty of equity but hasn’t lodged a return for two years because he changed accountants. He needs $80,000 to cover wages and materials on two new townhouse jobs while he waits for the first progress claims. A full doc lender can’t assess him. A fast second mortgage against his home can, because the lender is looking at the equity and his plan to repay once the claims are paid.
When is full doc the better choice?
Full doc lending still has its place. If your books are current, your profit is solid on paper and you want a loan over many years, a full doc lender may suit you. It’s also worth considering for longer term finance once you’ve used a short term loan to get through a crunch.
A sensible pattern for many tradies is:
- Use a short term low doc or property secured loan to solve the immediate problem.
- Get your returns and BAS up to date while the loan is running.
- Refinance into longer term full doc finance, or pay the loan out from project income or a property sale.
That’s why having a clear exit plan matters from day one. Talk to your accountant about getting your returns current, because it opens more doors later.
What documents will I need for each type?
Here’s a practical checklist so you know what to have ready.
Property secured loan (first or second mortgage)
- Photo ID for each borrower and guarantor
- Details of the property offered as security, and the current home loan statement if there’s one
- ABN or company details
- A short explanation of what the money is for and how you’ll repay it
Unsecured cash flow loan
- ABN, trading for 6+ months
- Recent business bank statements (often provided through a secure online link)
- Photo ID
Full doc loan
- Two years of tax returns and financial statements
- ATO notices of assessment
- Business and personal asset and liability details
- Sometimes an accountant’s letter
If you don’t own property, an unsecured cash flow loan for tradies is often the low doc option that fits, sized to your turnover.
Does low doc mean I’m paying more?
It’s the question everyone asks. There’s no single answer, because every loan is priced on your circumstances: the security, the loan size, the term and your plan to repay. What we do is find the sharpest rate available for your situation and lay out every cost before you commit. Compare the total cost against what happens if you don’t act, such as losing a job, missing a supplier discount or copping ATO penalties.
Key facts about our low doc and property secured loans
- Loan size: $20,000 to $5 million
- Security: existing property (home, investment, commercial or land with equity), or unsecured for businesses trading 6+ months
- Speed: property secured loans can fund in as little as 24 hours in some cases; typically a few days once valuation and documents are in
- Term: typically 1 to 12 months for property secured loans
- Credit: bad credit considered
- Suits: tradies, subbies and small builders who need money now and don’t have tidy financials
How do I work out which one to apply for?
You don’t need to decide on your own. Answer three questions:
- Do you (or a guarantor) own property with equity? If yes, a property secured loan is usually the fastest, least paperwork option.
- No property, but trading 6+ months with steady deposits? An unsecured cash flow loan may fit.
- Books fully up to date and no rush? Full doc may be worth exploring for longer term finance.
The quickest way to find out is to check your options with our 60 second form. Enquiring won’t affect your credit score, it costs nothing, and a lending specialist will call you back to talk it through. We’ll tell you quickly if we can help.
