Alt doc lending, for business owners and self-employed borrowers whose numbers don't tell the full story
As banks tighten servicing criteria, more business owners and self-employed borrowers are finding their tax returns don't reflect where the business actually is today. Alt doc lending exists for exactly this gap, using an alternative set of documents in place of two years of tax returns to assess what your business can genuinely support.
Alt doc lending is ideal for if...
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You run a company or trade as a sole trader, and your latest tax return understates how the business is going now
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You've reinvested profit back into the business rather than drawing it as income
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You've moved from PAYG to self-employed or contracting, and your returns don't yet reflect your new income
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Your income sits across more than one entity and doesn't read simply on paper
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Your business is trading strongly but has a short or unconventional financial history
What alt doc lending actually means
Alt doc (or low doc) lending lets eligible borrowers show their income using documents such as:
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Recent BAS statements
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Business bank statements
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A signed letter from a registered accountant confirming trading performance
Lenders assess your application on this evidence instead of two full years of tax returns, which can open up finance a standard PAYG-style application would rule out. Requirements, including maximum loan-to-value ratio and any rate difference compared with a full-doc loan, vary by lender.
How we work with you
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We start with a conversation, not a form. We look at how your business actually performs and how it's structured.
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We match you to the right lender. Of our 80+ lenders across banks, non-banks and private credit, only some assess alternative documentation well. We know which ones suit your situation.
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We work directly with your accountant. We liaise with them on the letter confirming your trading position, so you're not left chasing paperwork between us.
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We structure it properly from day one. One senior point of contact from first conversation to settlement.
A recent scenario we worked with
Reinvested profit, thin tax returns, approved on BAS and an accountant's letter.
An established Sydney electrical contracting business, ten years in and going well: a full order book, a growing crew of apprentices, and a fleet of vans bought and maintained outright rather than financed.
For two years running, the director put most of the profit straight back into the business instead of drawing it as income, new equipment, an extra van, wages for two more apprentices. A good call for the business but less sound for the tax return, which showed barely enough taxable profit to service the loan needed to buy the industrial unit the business had been renting for eight years.
The bank looked at two years of returns and saw a business that couldn't service the debt. What they couldn't see was a business turning over more every year, with BAS lodgements and bank statements telling a very different story. Using twelve months of BAS statements and a letter from the business's accountant confirming its trading position, an alt doc lender assessed the application on what the business was actually doing, not what two years of reinvestment made it look like on paper. Finance was approved, and the business now owns the building it used to rent.
Common questions
What documents will I need?
Usually a combination of recent BAS statements, business bank statements and a letter from your accountant. The exact mix depends on the lender, and we'll tell you upfront what's needed.
Is alt doc lending more expensive than a standard loan?
It can be. Some alt doc loans carry a higher rate than a full-doc equivalent, and some lenders cap how much you can borrow against the property's value. We'll walk you through the trade-offs for your situation before you commit.
How much can I borrow?
It depends on the lender, the property and what your documents show. The best starting point is a conversation about your numbers.
Can I move to a standard loan later?
Often, yes. Once your tax returns catch up with your trading performance, refinancing to a full-doc loan may be an option. We can review this with you as your business grows.
Do I need to organise the accountant's letter myself?
No. We work directly with your accountant on what the lender needs, so you don't have to manage it between us.
Talk to us about your situation
Fill in the form and we'll be in touch, or call us on 02 9299 1144.