Switchboard Finance logo

Director’s Declaration

A Director’s Declaration is a formal statement by a company director confirming that the financial statements provided are true and accurate. Lenders rely on this when assessing Low Doc Loans, No Doc–style applications, and other finance applications. Key related glossary terms include Turnover, Cashflow, and Affordability. Relevant blogs: Low Doc Asset Finance, Fast-Track Asset Finance, Low Doc Cashflow Loans, Cashflow Mistakes SMEs Make, Business Cashflow System.

Why Director’s Declaration Matters

Lenders depend on a signed declaration to reduce risk and verify the integrity of financial statements. This strengthens Borrowing Capacity and ensures Approval Criteria are met. SMEs in the Tradie Hub, Truckie Hub (for Australian truckies and truckers), Café Hub, and Whitecoat Hub all benefit from providing this declaration as part of their finance story.

How It Works

  • The director reviews company financial statements.
  • The director signs the declaration confirming accuracy.
  • The signed declaration is submitted to the lender with the loan application.
  • Lenders use it to verify turnover, cashflow, and trading history.
  • Reduces documentation requirements for Low Doc / No Doc–style applications.

Related Switchboard Resources

Official info: business.gov.au

What is a Director’s Declaration?
A formal statement by a director confirming that the company’s financial statements are true and accurate.
Why do lenders require it?
It verifies the integrity of financial information, reducing risk for the lender.
Is it required for all finance types?
It is most common for Low Doc, No Doc–style, and other streamlined finance applications.
Who signs the Director’s Declaration if multiple directors exist?
All directors may be required to sign, depending on lender requirements and company constitution.
Can a Director’s Declaration be used in Low Doc finance for new businesses?
Yes — it allows new businesses to provide assurance to lenders without full financials.