Last Updated: 31st May, 2021

No doc equipment finance is an option for business owners to buy the assets for their day-to-day operations without needing to provide business financials.

It is a solution that works well if you haven’t kept up with your tax returns or Business Activity Statements (BAS) but you better off providing some financials if you can?

How much can I borrow?

  • Borrow up to 70% of the property value: Lenders will accept equity in residential property or standard commercial property as security.
  • Max loan term: 7 years (exceptions apply to strong borrowers).
  • Acceptable security: Residential property and non-specialised commercial properties such as office space, a warehouse, factory or a storage unit.
  • You can generally borrow up to $100,000 (higher amounts available for low risk borrowers).
  • You need to be in a strong financial position and have a clean credit history.
  • You need a business loan proposal that details the purpose of the equipment finance.

Call us on 1300 889 743 or fill in our free assessment form to find out if you qualify for no doc equipment finance.

How do I prove my income?

With no doc or no documentation solution, traditional business financials are not required, including your last 2 years tax returns, BAS statements, or business bank statements.

Instead, the lender will typically ask you to provide a signed statutory declaration that confirms that you can afford the amount that you want to borrow.

Alternatively, the lender will typically accept a signed statement of your assets and liabilities.

Can you provide more income evidence?

Interest rates for no doc equipment finance can be quite high because lenders are taking a higher risk compared to a borrower with full financials.

If you’re able to provide some business income evidence, then you may be able to qualify for cheaper low doc equipment finance rates.

These documents include:

  • Older personal and business tax returns if you cannot provide the most recent year.
  • At least one BAS statement as opposed to none.
  • An accountant’s letter.

When building your application, we tend to be selective with the financials that we choose in order to present a strong case.

With this in mind, we will not lie to the bank on your behalf. You need to be in a stable financial position in order to qualify for equipment finance.

How do I improve my chances of approval?

Acceptable security property

One of the common reasons business owners get declined for low doc equipment finance is because of the property they use as security.

Most lenders prefer standard residential properties in metro or semi-metro locations (low-risk postcodes).

In some cases, lenders will also consider the standard commercial property from which you operate such as a warehouse, factory, storage unit or office space.

Banks are risk-averse and want to know they can easily sell your property should you default on your equipment loan.

Specialised properties or residential properties in certain locations can be difficult to sell because there is a smaller market of buyers.

Adding back expenses

Speak to your accountant about what add backs you can include in your income in order to improve your borrowing power.

Business expenses aren’t “real” expenses, especially if they’re fixed or ongoing costs.

For example, the following expenses can typically be added back:

  • Extra superannuation contributions.
  • Losses carried forward from prior years.
  • Negative gearing deductions from your investment properties.
  • One-off expenses such as moving your business.
  • Trust distributions to family members for tax purposes.
  • Depreciation of our equipment and other assets like a company car.

What equipment finance options are available?

There are different equipment finance options depending on your needs and how you manage your business financials.

These options include:

  • Finance lease.
  • Commercial hire purchase.
  • Novated lease.
  • Chattel mortgage.
  • Sale and hireback or sale and leaseback.

You can learn more about these options on the equipment finance page.

What kind of equipment can we help finance?

We can help you finance such standard equipment and machinery as:

However, we can also assist with specialised equipment for technical industries as long as there is a secondary market.

This type of equipment includes medical equipment, and equipment and machinery for engineering and building-related industries.

Do you qualify for no doc equipment finance?

Speak with a business loan specialist for all of your equipment finance needs.

Simply call 1300 889 743 or fill in our online enquiry form to find out if you can get approved for no doc equipment finance.