How Do Banks Assess Low Doc Loans for Trucks, Trailers and Equipment?

Truck & Trailer Finance Australia

When you’re financing a truck, trailer, or commercial equipment, you won’t always have your financials ready. That’s where a Low Doc Loan comes in.

A Low Doc loan is when a lender reviews basic and readily available information to approve your truck or trailer loan. They do it without requiring your financial documents or detailed serviceability calculations.

In fact, a large portion of truck, trailer and machinery loans in Australia are written via low doc applications.

Why? Because many business owners:

• Need fast access to funds. The equipment is often needed urgently for a job or contract.
• Don’t have up to date financials ready.
• Don’t always have a bookkeeper or accountant keeping their records current.

The 5 C’s of Credit in Low Doc Lending

In the banking world, loan assessments are based on the 5 C’s of Credit: Character, Capacity, Capital, Collateral and Conditions.

Here’s what that means in the truck and trailer finance and the equipment finance world:

Business Trading History

• Lenders check how long your ABN and GST registration have been active.
• Generally, 2+ years is preferred for low doc approvals.
• The longer your trading history, the stronger your application.

Type of Asset Being Financed

Assets fall into three categories:

• Primary Assets – trucks, trailers, excavators, commercial vehicles
• Secondary Assets – machinery, manufacturing equipment
• Tertiary Assets – office fitouts, IT, non-core items
• Primary assets (like trucks and trailers) are easier to approve under low doc policies.

Age of the Asset

• Newer assets are favored because they hold value better.
• Major banks often cap low doc loans at 5 years old.
• Second-tier lenders may stretch to 15–20+ years for trucks, trailers and machinery.

Company & Director Credit Score

Lenders run credit checks on both:

• The company, and
• The director(s)

Most lenders have a minimum credit score requirement and clean history matters.

Director’s Asset & Liability Position

• Property ownership plays a big role here:
• If a director owns property, they’re often not required to provide a deposit.
• If they don’t own property, lenders typically require a minimum 20% deposit for a low doc approval.

Confirmable Credit History

• Lenders prefer applicants with a verifiable repayment history.
• If they can’t see this through their own systems, they may ask for proof such as recent loan statements showing good conduct.
• This is sometimes referred to as “confirmable credit.”
• This could be a statement of account on another truck or trailer loan you have or previously had.

Key Takeaway

Low doc loans can be a powerful way to secure a trucks, trailers, or heavy vehicles quickly, but approvals still depend on the fundamentals lenders care about: your trading history, the asset itself, your credit, and your financial position.

Before applying, speak with a specialist truck finance broker who knows which banks and non-bank lenders have the most flexible low doc policies.

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