Types of Commercial Loans in Australia: Full Doc, Low Doc, Lease Doc, Unsecured & Private Lending Explained
When it comes to financing a commercial property or growing your business, choosing the right type of commercial loan can make all the difference. With so many options available — from traditional bank loans to flexible private lending — understanding how each one works is the first step to making a smart decision.
In this guide, we’ll break down the five main types of commercial loans available in Australia, their features, pros and cons, and which one may be best suited to your situation.
1. Full Doc Commercial Loan
A Full Documentation (Full Doc) loan is the most common and widely available type of commercial finance. It requires you to provide complete financial documentation to prove your income, assets, liabilities, and serviceability.
Common Documents Required:
- Business financial statements (usually last 2 years)
- Personal tax returns
- BAS statements
- Bank statements
Key Features:
- ✅ Typically lowest interest rates
- ✅ Higher loan-to-value ratio (LVR) (up to ~80%)
- ✅ Wide range of lenders and products available
Best for: Established businesses with consistent revenue and strong financial records who want the most competitive terms.
2. Low Doc Commercial Loan
A Low Documentation (Low Doc) loan is designed for self-employed borrowers or businesses that don’t have full financial statements readily available. Instead, lenders accept alternative evidence of income like BAS statements, business activity summaries, or accountant’s declarations.
Key Features:
- ✅ Faster approval and simpler application process
- ✅ Flexible documentation requirements
- ❗ May come with slightly higher interest rates
- ❗ LVR usually capped at around 65%–70%
💡 Best for: Self-employed borrowers, startups, or growing businesses without up-to-date financial statements.
3. Lease Doc Commercial Loan
A Lease Documentation (Lease Doc) loan is a niche product ideal for property investors who rely on rental income to service the loan rather than business trading income. The loan is assessed primarily on the lease agreement and rental returns from the property.
Key Features:
- ✅ Income assessed based on lease income
- ✅ Faster approval as less documentation is required
- ❗ Often requires a long-term lease agreement in place
- ❗ Slightly lower LVR than full doc loans
💡 Best for: Commercial property investors purchasing a tenanted property or refinancing an existing one.
4. Unsecured Business Loan
An unsecured commercial loan provides quick access to funds without requiring property or assets as collateral. These loans are usually based on business turnover, credit profile, and trading history.
Key Features:
- ✅ Fast approval (sometimes within 24–48 hours)
- ✅ Great for short-term cash flow or working capital needs
- ❗ Higher interest rates due to increased lender risk
- ❗ Loan amounts generally smaller (often $50k–$500k)
💡 Best for: Businesses that need quick capital for expansion, stock purchase, marketing, or bridging cash flow gaps.
5. Private Lending
Private lending involves borrowing funds from non-bank or private investors rather than traditional banks. These loans are usually more flexible and faster to arrange, but they come at a higher cost.
Key Features:
- ✅ Flexible lending criteria — perfect for unique or complex deals
- ✅ Rapid approval and settlement (sometimes within days)
- ❗ Higher interest rates and fees
- ❗ Usually short-term (6–24 months)
💡 Best for: Borrowers who don’t qualify with banks, need fast settlement, or are funding a specialised project.
Quick Comparison Table
| Loan Type | Documentation Required | Interest Rate | LVR | Best For |
| Full Doc | Full financials & tax returns | Low | Up to 80% | Established businesses |
| Low Doc | BAS, bank statements, accountant’s letter | Moderate | Up to 70% | Self-employed / SMEs |
| Lease Doc | Lease agreement & rental income evidence | Moderate | Up to 70% | Property investors |
| Unsecured | Minimal – turnover & credit check | High | N/A | Short-term funding |
| Private Lending | Varies (often asset-backed) | High | Up to 65% | Urgent or non-bank deals |
Choosing the Right Commercial Loan
The right loan depends on your business type, financial situation, and goals.
- 📊 Established business? Go for a Full Doc loan for better rates and terms.
- 🧾 Self-employed or no updated financials? Low Doc could be the answer.
- 🏢 Investing in a leased property? Lease Doc makes the process easier.
- ⚡ Need fast funds? An Unsecured or Private loan can be arranged quickly.
Final Thoughts
Whether you’re purchasing a new commercial property, expanding your operations, or bridging a short-term cash flow gap, there’s a commercial loan product to suit your needs. Understanding the differences between full doc, low doc, lease doc, unsecured loans, and private lending will help you make an informed decision — and save you time and money.
📞 Need help choosing the right commercial loan?
At Molomo Finance, we help Australian businesses secure tailored commercial finance solutions — from traditional bank loans to private funding.
