Loan Guides · Self employed · 7 min read
What Can You Use Instead of Payslips or Bank Statements for a Loan?
If you’re self employed, a contractor or a casual worker with irregular pay, the standard loan document list can feel like it was written for someone else. Lenders ask for payslips, two years of tax returns and months of bank statements, and you either don’t have them or they don’t show the full picture of what you actually earn.
The good news is that low doc lenders accept other documents in place of payslips, and you don’t need to supply bank statements at all. This guide covers what you can use instead, what you’ll still need to provide, how identity checks work, and what to expect if you’re on a visa.
Why lenders ask for payslips and bank statements in the first place
Every lender in Australia has responsible lending obligations. Before approving a loan, they need to make reasonable inquiries about your income, your living expenses and your existing debts, and then verify what you’ve told them.
The two questions every lender needs answered
For a PAYG employee, payslips confirm income and bank statements confirm spending. When you don’t have payslips, the lender still needs to answer the same two questions: how much do you earn, and can you afford the repayments? Alternative documents are another way to answer them.
Why you might not want to use traditional proof of income
Plenty of borrowers can technically produce payslips or tax returns but have good reasons not to rely on them. Common ones we see:
You don’t pay yourself a salary
Many sole traders and business owners draw money from the business as needed, so there are no payslips to give.
Your tax return understates your real income
Legitimate deductions, depreciation and business expenses can make your taxable income much lower than the cash your business actually generates.
Your latest tax return isn’t lodged yet
It’s common for accountants to lodge returns well after the end of the financial year, which leaves the most recent year undocumented.
Your business is new
If you’ve been trading for less than two years, you won’t have the two full years of returns a standard lender asks for.
Your income is seasonal or irregular
A strong quarter followed by a quiet one can look unstable on a single snapshot.
You have several income streams
Business income, contract work and rental income can be hard to show on one standard document.
You’ve recently changed structure
Moving from sole trader to a company or trust resets how your income appears on paper.
In each of these cases, alternative documents often give a lender a more accurate picture than the standard ones. This is what a low doc personal loan is designed for: income assessed on the documents that reflect how you’re actually paid.
What can you use instead of payslips?
These are the documents lenders most commonly accept in place of payslips. You usually won’t need all of them. Most lenders ask for one or two, and the right mix depends on how your income is structured.
01
Business Activity Statements (BAS)
Your BAS shows the revenue your business has reported to the ATO, the GST collected and your overall turnover. It’s one of the strongest substitutes for payslips because it’s lodged with the ATO and shows the business is actively trading. Lenders typically ask for the most recent 2 to 4 quarters.
02
An accountant’s letter
A letter from your accountant (usually a registered tax agent, CPA or Chartered Accountant) on their letterhead, confirming your income and that the business is trading. Many lenders will accept this in place of tax returns, particularly when your latest return hasn’t been lodged.
03
Profit and loss statements
Management accounts or a profit and loss statement for the current financial year help show income that hasn’t reached a tax return yet. They carry more weight when prepared or signed off by your accountant.
04
ATO Notice of Assessment and income statements
If you have lodged a recent return, your Notice of Assessment confirms the income the ATO has on record. If you have some PAYG income alongside your business, your tax-ready income statement from myGov can also help.
05
Invoices and client contracts
Recent invoices and ongoing contracts show the income coming into your business and that it’s likely to continue. Contractors on a fixed rate with one or two main clients often find these are the clearest evidence they have.
06
An income declaration
Some specialist lenders accept a signed declaration of your income, usually alongside another document such as BAS or an accountant’s letter that supports the figure you’ve declared. A declaration on its own is rarely enough.
07
ABN and GST registration
Lenders check your ABN on the Australian Business Register to confirm how long you’ve been trading and if you’re registered for GST. Most look for at least 12 months of ABN history, and some specialist lenders ask for 24 months.
Other income documents
If part of your income comes from somewhere else, you can usually evidence it directly:
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Rental income: a lease agreement or rental statement from your property manager
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Investment income: dividend statements or interest statements
What can you use instead of bank statements?
With a low doc personal loan, you don’t need to provide bank statements. That’s essentially one of the key reasons that it’s deemed to be “low documentation.”
Instead of bank statements, the lender builds its picture of your finances from:
Your ABN status
An active GST registered ABN, registered for at least 12 months (24 with some lenders), shows your business is real and trading. You can check yours on the Australian Business Register.
Your income documents
BAS, an accountant’s letter or the other documents above confirm what you earn.
Your declared living expenses
You tell the lender what you spend each month, and they compare it against standard household expenditure benchmarks for someone in your situation.
Your credit report
This shows your existing loans, credit cards and repayment history, so the lender can see what you already owe.
Why some borrowers prefer not to share bank statements
Bank statements show every transaction, business and personal, which is more than many people want a lender reading through. If your business and personal spending run through the same account, statements can also make your income look messier than it is. Applying with alternative documents lets your BAS, ABN status or accountant’s letter tell the income story cleanly.
If you’d still like to provide them
If your income is very seasonal or you’re a newer business, a few months of business bank statements can sometimes strengthen your application. We’ll tell you if they’d help in your case.
Low doc is not the same as “no checks”
Be cautious of lenders advertising loans with no bank statements and no checks at all. Those are typically short-term, high-cost loans. A low doc loan still involves an identity check, a credit check and an assessment of your income and expenses. It simply uses different documents to get there.
You still need 100 points of ID
Alternative income documents don’t change the identity check. Under Australia’s anti-money laundering and counter-terrorism financing laws, every lender must verify who you are before they lend to you. Most use a points-based system, commonly known as the 100 point ID check.
Documents are given different values depending on how strong they are. Points vary slightly between lenders, but a typical breakdown looks like this:
Document type and examples
Typical points
Primary photo ID
Australian passport, foreign passport with a valid visa
70
Primary non-photo ID
Australian birth certificate, citizenship certificate
70
Secondary photo ID
Australian driver’s licence, proof of age card
40
Other secondary ID
Medicare card, bank card
25
Proof of address
Utility bill, council rates notice
25
In practice, a passport plus a driver’s licence, or a driver’s licence plus a Medicare card and a recent utility bill, will usually get you over the line. Make sure the name and address match across every document. If you’ve changed your name, include your marriage certificate or change of name certificate.
Identity checks are usually done through an app
You rarely need to post certified copies anymore. Most identity checks are now done electronically. You’ll typically receive a link that opens a verification app or web page on your phone, where you:
1
Take a photo of your driver’s licence or passport
2
Take a selfie or short video so the system can match your face to the ID
3
Confirm your personal details
The details are checked against government records through the Document Verification Service, and the result is usually back within minutes. Have your physical ID with you when you start, and do it somewhere with good light.
Can visa holders get low doc loans?
It depends on your visa and the lender. Lending to visa holders is one of the areas where policies vary the most, so here’s what to expect.
Permanent residents
Generally assessed the same way as Australian citizens, including when you use alternative income documents.
New Zealand citizens
Living in Australia on a Special Category Visa (subclass 444), you’re treated like a resident by many lenders.
Temporary visa holders
Can be approved by some lenders, usually on skilled or employer-sponsored visas. Most lenders want a minimum amount of time left on your visa, and the loan term generally can’t run past your visa’s expiry date.
If you’re on a temporary visa, options using alternative documents are more limited, because lenders want to see a track record of Australian income as well as your residency status. Expect to provide:
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Your passport
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Your visa grant notice
+
A current VEVO (Visa Entitlement Verification Online) check showing your visa conditions and expiry date
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Your income evidence from the lists above
Visa policy changes often, so the quickest way to know where you stand is to ask us to check which lenders on our panel accept your visa type before you apply.
Your document checklist
Use this as a starting point. You won’t need everything on it, and we’ll confirm exactly what your lender needs before you submit anything.
Identity
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Driver’s licence and/or passport (100 points of ID in total)
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Proof of address, such as a utility bill or rates notice
+
Visa grant notice and VEVO check, if you’re not an Australian citizen or permanent resident
Income (usually one or more of)
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BAS for the most recent 2 to 4 quarters
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Accountant’s letter
+
Profit and loss statement
+
ATO Notice of Assessment
+
Recent invoices and client contracts
+
Signed income declaration
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ABN and GST registration details
Buying a vehicle? Our guide to what documents you need for a car loan covers the extra paperwork for vehicle finance.
Frequently asked questions
Can you get a personal loan without payslips?
Yes. Specialist lenders accept alternatives such as BAS, an accountant’s letter, profit and loss statements or invoices in place of payslips.
Can you get a loan without bank statements?
Yes. With a low doc loan, you don’t need to provide bank statements. The lender relies on your ABN status and income documents like BAS or an accountant’s letter, plus your declared spending and credit report.
Do I need 100 points of ID for a personal loan?
Yes. Every lender has to verify your identity, and most use a 100 point check made up of photo ID, secondary ID and proof of address.
Can I verify my ID online?
Usually, yes. Most lenders send a link to a verification app where you photograph your ID and take a selfie. It typically takes a few minutes.
Can temporary visa holders get a low doc loan?
Some lenders consider temporary visa holders, mostly on skilled or employer-sponsored visas with enough time remaining. Options using alternative income documents are more limited, so it’s worth checking your visa type with us first.
Is a statutory declaration enough to prove my income?
Rarely on its own. Lenders that accept an income declaration usually want it supported by BAS or an accountant’s letter.
Not sure which documents you need?
Every lender has its own list, and the documents that work best depend on how you’re paid. We work with 40+ lenders, including specialist lenders that assess self employed income every day, and we’ll tell you exactly what to gather before you apply. If you’re self employed and don’t have payslips, start with our low doc personal loan options or get in touch for a quick chat.
