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General information only: This guide does not consider your objectives, financial situation or needs and is not financial advice. Credit eligibility, rates and terms depend on the lender's assessment.
Start with the loan purpose
Self-employment does not automatically place an application into commercial low doc. A personally used car can be assessed as consumer credit, while a vehicle or equipment purchase predominantly for business use can follow a commercial pathway.
The purpose affects responsible-lending obligations, borrower structure, documentation, available products and tax questions. Do not choose a business product merely because it requests fewer consumer income documents.
Consumer and commercial evidence pathways differ
A self-employed consumer applicant may be asked for a recent individual tax return, notice of assessment and transaction data. A commercial applicant may instead be assessed through low doc, mid doc or full doc depending on trading history, amount, asset, credit conduct and available comparable credit.
The reviewed commercial policies commonly considered ABN and GST continuity, business bank conduct, property or asset backing, comparable credit and whether the asset genuinely matched the business purpose.
Keep business and personal information consistent
Provide accurate figures and explain material changes, one-off expenses or recent trading history. The lender may consider existing debts, tax liabilities and the stability of drawings or income available for repayments.
- Confirm the intended loan purpose
- Prepare current financial records
- Separate turnover from personal income
- Disclose existing commitments accurately
Low doc, mid doc and full doc answer different evidence questions
Low doc can rely on established trading history, declarations, asset backing or comparable credit. Mid doc commonly adds business bank statements and conduct tests. Full doc can require financial statements, tax returns, commitment schedules and tax-position information.
A start-up or recently registered business may face a separate pathway with a deposit, industry-experience evidence and bank statements. Low doc does not mean no assessment, and “no doc” is not an accurate description of these reviewed policies.
Sources and further reading
Primary sources checked when this guide was reviewed:
Read BaseRate's editorial policy and calculator methodology.