Unlocking opportunities: commercial loans tailored for the self-employed

Understanding commercial & business loans in Australia

Commercial loans are financing solutions designed to fund business-related activities - including purchasing commercial property, expanding operations, acquiring equipment, or managing cash flow. These loans may be secured or unsecured and typically offer larger borrowing limits and flexible terms.

There are several types of commercial and business loans available in Australia, including:

• Commercial property loans – used to purchase or refinance warehouses, offices, retail spaces or industrial property
• Business term loans – lump-sum loans with fixed repayment schedules
• Lines of credit – revolving credit for ongoing cash flow needs
• Equipment or asset finance – to acquire vehicles, machinery or office equipment

For self-employed borrowers, the purpose of the loan and the type of security offered (e.g. property, business assets) will influence the lender's assessment and the available terms. Learn more about Yard's commercial property loan solutions.

Commercial and business loans for the self-employed

Self-employed applicants often face greater scrutiny from lenders due to income variability, limited financial history, or non-traditional income structures. This is especially true for sole traders, freelancers, or business owners in early stages of growth.

Some of the key challenges include:

• Demonstrating consistent income over time
• Providing complete and up-to-date financial statements
• Separating personal and business finances
• Addressing irregular cash flow or seasonal earnings

Despite these challenges, many lenders now offer business loan products designed with the self-employed in mind. These options include:

• Flexible documentation requirements for income verification
• Use of alternative income evidence, such as BAS statements or accountant declarations
• Loans based on business potential and performance, not just income stability

Yard provides commercial loan options that suit self-employed individuals, including those who may not meet the full documentation standards of traditional lending. Visit our low doc commercial loan page for more information.

Low doc commercial loan options

Low doc (low documentation) commercial loans are designed for self-employed borrowers who may not have access to all the standard financial paperwork required by major lenders.

These loans typically:

• Require fewer documents, such as BAS statements, bank statements, or an accountant's letter
• May allow declaration of income without full tax returns
• Often suit sole traders or small business owners in early stages of trading or recovering from disruptions

While interest rates may be slightly higher than traditional full-doc loans, low doc options provide critical access to finance when conventional routes are inaccessible. They are especially beneficial for entrepreneurs with complex or evolving financial structures.

To understand if a low doc commercial loan is right for your business, explore our detailed overview on self-employed lending solutions.

Advantages of self-employed commercial loans

Tailored commercial loan products offer a number of benefits for self-employed borrowers, including:

• Access to funding that supports business growth through property acquisition, equipment upgrades, or expansion
• Flexibility in documentation and assessment, which recognises the nuances of self-employment
• Opportunity to separate business and personal finances, creating clearer accounting and financial control
• Improved cash flow management, helping to stabilise operations during seasonal or variable income periods
• Greater borrowing power, particularly when supported by property security or proven business performance

These loans allow self-employed Australians to leverage their business potential without being penalised for income irregularity or administrative complexity.

How to apply for self-employed commercial loans

The application process for a self-employed commercial loan may differ depending on the lender and the documentation route. Here are some general steps to prepare:

1. Clarify your borrowing purpose – whether for purchasing commercial property, investing in equipment, or improving cash flow
2. Prepare your financial documents – including recent BAS, profit and loss statements, and bank statements
3. Engage your accountant – for formal declarations or business assessments
4. Review your credit history – and address any outstanding debts or issues
5. Determine your capacity to offer security – such as a commercial or residential property

At Yard, we assess each application on its individual merits, taking into account your business goals and trading position. For a deeper look at what you might need, read our article on how to qualify for a home loan if you are self-employed.

Conclusion and final thoughts on commercial loans for self-employed in Australia

Securing a commercial loan when you're self-employed may feel complex, but it is increasingly achievable thanks to flexible lending products designed for this growing segment of the economy. From low-doc commercial property loans to business finance tailored for sole traders, there are real opportunities to access capital and support sustainable growth.

With the right preparation and a lender who understands the unique nature of self-employment, your business can secure the funding it needs without compromising on flexibility or transparency.

To learn more about how Yard can help, explore our options for commercial property loans and business loans for small business owners.