It is still a common belief that ultra-high quality-factors (Q-factors) are a prerequisite in optical resonant cavities for high refractive index resolution and low detection limit in biosensing applications. In combination with the ultra-short steps that are necessary when the measurement of the resonance shift relies on the wavelength scanning of a laser source and conventional methods for data processing, the high Q-factor requirement makes these biosensors extremely impractical. In this work we analyze an alternative processing method based on the fast-Fourier transform, and show through Monte-Carlo simulations that improvement by 2-3 orders of magnitude can be achieved in the resolution and the detection limit of the system in the presence of amplitude and spectral noise. More significantly, this improvement is maximum for low Q-factors around 104 and is present also for high intra-cavity losses and large scanning steps making the designs compatible with the low-cost aspect of lab-on-a-chip technology. Using a micro-ring resonator as model cavity and a system design with low Q-factor (104), low amplitude transmission (0.85) and relatively large scanning step (0.25 pm), we show that resolution close to 0.01 pm and detection limit close to 10-7 RIU can be achieved improving the sensing performance by more than 2 orders of magnitude compared to the performance of systems relying on a simple peak search processing method. The improvement in the limit of detection is present even when the simple method is combined with ultra-high Q-factors and ultra-short scanning steps due to the trade-off between the system resolution and sensitivity. Early experimental results are in agreement with the trends of the numerical studies.