ABN loans: how to borrow without two years of tax returns

Key takeaways

•      An ABN loan is a finance product designed for sole traders, contractors, and small business owners who cannot meet standard income documentation requirements.

•      Most lenders require two years of tax returns for a standard loan. ABN loans use alternative evidence such as bank statements, BAS statements, or an accountant's letter.

•      Your ABN generally needs to have been active for at least 6 months for consumer loans and 12 months for business loans, though this varies by lender.

•      ABN loans are available for car finance, business loans, equipment finance, and more through Finwave's specialist lender panel.

•      Rates are typically slightly higher than full-doc products but vary considerably between lenders. Finwave compares 80+ lenders to find the most competitive option for your profile.

If you run your own business, work as a contractor, or operate as a sole trader, you've probably experienced the frustration of being told you need two years of tax returns to borrow money. It's one of the most common barriers self-employed Australians face when trying to access finance.

The problem isn't that your income isn't real. It's that the standard lending system was built around employees. For anyone whose income looks different from a PAYG payslip, the traditional process can feel like it was designed to exclude you.

ABN loans exist to fix this. Here's how they work, what lenders actually need, and how Finwave can help you find the right option.

What is an ABN loan in Australia?

An ABN loan is a broad term for any loan product that accepts an Australian Business Number as the basis for assessing income, rather than requiring standard employee documentation. The name doesn't refer to a single product type. It refers to the way lenders assess your eligibility.

In practice, ABN loans are low-doc or alternative-doc products available across a range of finance types including car loans, business loans, equipment finance, and personal loans. The common thread is that lenders accept reduced or alternative income documentation in place of two years of tax returns.

Who is an ABN loan for?

•      Sole traders and freelancers who invoice clients directly

•      Contractors working across multiple engagements

•      Small business owners whose income flows through a business account

•      Gig economy workers and delivery drivers

•      New business owners who have been trading for less than two years

•      Tradespeople, creatives, consultants, and anyone who works for themselves

If your most recent tax return doesn't reflect your current earnings because you've reinvested in the business, had a strong recent period, or are in your first year or two of trading, an ABN loan can give you access to finance that a bank application would deny.

What do lenders accept instead of tax returns?

The documentation requirements vary between lenders and loan types, but most ABN loan applications will accept a combination of the following:

Standard full-doc loan	ABN loan (alternative evidence)
2 years of tax returns	6-12 months of business bank statements
PAYG payslips	BAS statements (last 2-4 quarters)
Employment contract	Accountant's letter confirming income
Employer letter	Self-declaration of income (select lenders)
Consistent employment history	Active ABN (typically 6-12+ months)

You don't need all of these

Lenders will typically ask for the combination of documents that best reflects your business structure. A Finwave broker can advise on which documents to prepare before you apply, based on your specific situation and the lender most likely to approve you.

How long does your ABN need to be active?

ABN age requirements vary by lender and loan type. As a general guide:

•      Consumer loans such as car finance: most lenders require a minimum of 12 months of ABN history

•      Business loans and equipment finance: most lenders require 12 months or more of ABN history

•      Some specialist lenders will consider newer ABNs where income evidence is strong and the loan is secured against an asset

If your ABN is less than 6 months old, options are more limited but not necessarily zero. Finwave can identify which lenders on our panel have the most flexible ABN age requirements for your loan type.

What types of loans are available on an ABN basis?

ABN and low-doc finance is available across a wider range of products than most borrowers realise. Through Finwave's lender panel, ABN holders can access:

•      Car loans and commercial vehicle finance

•      Business loans and lines of credit

•      Equipment finance including chattel mortgage and finance lease

•      Caravan and recreational vehicle loans

•      Second mortgages and equity release

Equipment finance and ABN loans

Chattel mortgages for equipment are among the most accessible low-doc products for ABN holders. Because the loan is secured against the asset being purchased, lenders are often more flexible on documentation requirements. See our guide to equipment finance structures for more detail.

What rates can ABN borrowers expect?

ABN and low-doc loans typically attract slightly higher rates than full-doc products. The additional rate reflects the reduced documentation, not your character as a borrower. The spread varies considerably between lenders, which is where working with a broker makes a real difference.

Finwave compares 80+ lenders to find the most competitive rate available for your profile. In many cases, the right specialist lender offers a rate that is meaningfully better than a standard bank's low-doc product, simply because they have more experience pricing this type of risk.

How Finwave helps ABN holders get approved

The biggest challenge for ABN borrowers isn't the application itself. It's knowing which lenders to approach and how to present your income in a way that gives you the best chance of approval.

Finwave brokers work with ABN holders every day. We understand which lenders on our panel are most receptive to different business structures, what documentation combinations work best, and how to position your application to reflect your actual financial position rather than just what a tax return shows.

We start with a soft credit check that won't affect your score, identify the most suitable options across our lender panel, and only submit a formal application once we're confident in the match. If you've been knocked back by a bank, a conversation with Finwave is the right next step.

Frequently asked questions

Can I get an ABN loan if I've just started my business?

It's more challenging with a very new ABN, but not always impossible. Some lenders will consider applications from borrowers in their first 6 months of trading, particularly where the loan is secured against an asset and income evidence is strong. Speak with a Finwave broker to understand what options may be available for your specific situation.

Do ABN loans affect my credit score?

The application process works the same way as any other loan. Finwave uses a soft credit check during pre-approval, which has no impact on your score. A hard enquiry is only placed when you formally proceed with a specific lender. Multiple direct applications would each generate a hard enquiry, which is one of the reasons using a broker protects your credit profile.

Is an ABN loan the same as a low-doc loan?

They are closely related. A low-doc loan refers to any loan that accepts reduced income documentation. An ABN loan is a type of low-doc loan specifically associated with self-employed borrowers who hold an ABN. Not all low-doc loans require an ABN, and not all ABN holders will apply for a low-doc loan, but in practice the terms are often used interchangeably.

What is the maximum I can borrow on an ABN loan?

Borrowing limits depend on the loan type, your income evidence, the lender's appetite, and whether the loan is secured or unsecured. For secured loans such as car or equipment finance, amounts of $100,000 and above are achievable for eligible borrowers. For unsecured business loans, amounts typically range from $5,000 to $500,000 depending on the lender and your trading history. Finwave can give you a realistic picture of your borrowing capacity before any formal application is submitted.

Speak with a Finwave broker about ABN lending

Finwave works with ABN holders every day, comparing 80+ lenders to find the right finance option for sole traders, contractors, and small business owners across Australia. No tax returns required to get started.

Call 1300 346 928  |  finwave.com.au/business-loans

This article is general in nature and does not constitute financial advice. Individual circumstances vary. Lending criteria and documentation requirements differ between lenders and are subject to change. Please speak with a Finwave broker to discuss your specific situation. Finwave Finance Pty Ltd holds an Australian Credit Licence (ACL 561258).