No Doc Business Loans are a type of financing that eliminates some documentation requirements. This can save time and money during the application process.
These products can be unsecured or secured with collateral, depending on the lender and type of loan. Many offer fast approval times, often in a few hours.
Online Lenders
Some online lenders are now offering No Doc Business Loans, which require minimal paperwork and can be processed quickly. For example, OnDeck’s LoanBuilder program offers pre-approvals in just minutes and automatic weekly repayment transfers from your business checking account. These types of loans generally have shorter terms and higher interest rates than traditional business loans.
Other online lenders, such as fintechs and peer-to-peer (P2P) lenders, offer unsecured No Doc business loans with flexible repayment schedules. These products are designed for businesses that have been in operation for less than a year and may have difficulty qualifying for a bank business loan. These loans typically have lower minimum credit requirements than a traditional business loan and will be based on your personal credit score, your business revenue, and the amount of assets you have available to secure the loan.
Invoice financing and merchant cash advances are other No Doc business lending options. The former allows you to sell your unpaid invoices to a third-party financial services company for cash, and the latter provides an advance on your future credit card sales. Both types of financing have high costs and fees but can help you avoid cash flow issues that might otherwise prevent you from borrowing money to grow your business.
The lack of documentation can make no doc business loans more risky for lenders, and they often have short repayment terms and higher interest rates than traditional loans. However, for many small business owners, the convenience and speed of no doc lending is worth the higher cost.
Unsecured Short-Term Loans
Many online lenders offer unsecured short-term loans to small business owners. These financing products usually require little documentation and can be processed quickly. However, there is some risk involved with these types of loans and they typically carry higher interest rates than traditional business loans.
Some lenders also specialize in unsecured business lines of credit, which are similar to personal lines of credit but are designed specifically for businesses. These products are easier to qualify for than a typical business loan and may only require a one-page application with minimal financial paperwork (typically bank statements). Invoice financing or accounts receivable funding is another option that provides financing based on unpaid invoices, rather than the borrower’s personal income or credit history. This type of product typically works best for B2B businesses.
Some alternative lenders also offer no-doc or low-doc loans, but they are typically higher-risk lending products that come with stricter terms and conditions. For example, they may not have as much flexibility with repayment schedules or they might only provide funding for a specific purpose. Additionally, these lenders tend to charge more in exchange for reducing the amount of documentation that they require from borrowers. You can compare business loan providers who offer no-doc or low-doc financing products by comparing terms, requirements and features in our comparison tool.
Merchant Cash Advances
No doc business loans are a form of financing that allows you to obtain a loan without having to provide much documentation. You will still have to provide basic information about yourself and your business, but you can usually connect your financial accounts with the lender’s system rather than uploading a ton of documents. This is a form of financing that has its pros and cons, and it’s important to understand the risks and benefits before applying.
These types of financing typically come with higher interest rates than traditional financing, as they are considered more risky for financial institutions. They may also have shorter repayment terms, which can be challenging for small businesses that want to grow and expand their operations.
Most no doc business loans are offered by online or alternative lenders, and they can be structured like short-term or unsecured business loans. Some of these loans can be processed within 24 hours, and they don’t require extensive paperwork. They may still have to review your personal and business credit scores, but they don’t necessarily have the same high requirements that other loans might have. Depending on the provider, merchant cash advance issuers can offer funding in a lump sum or in daily payments that are tied to a percentage of future credit card sales. This is a great option for businesses that struggle to qualify for other financing options because they have little to no historical business financials.
Invoice Financing
No Doc Business Loans don’t require the same level of documentation that traditional business bank loans do. This type of financing is typically provided by alternative lenders who operate online. These lenders often only need to see basic identification details, proof of revenue or income, and a business credit score to determine the capacity of your business for timely loan repayment. The lenders use technology to process this information and underwrite the business financing products they offer.
As a result, these financing products can be approved and funded much quicker than traditional business loans. This can be especially beneficial if your business is in need of emergency funding to cover unexpected expenses or to expand its operations.
Depending on the lender and loan type, you may still need to provide other documents to prove your eligibility. These could include personal and business tax returns, profit and loss statements, balance sheets, and more.
These no-doc business loan products usually have shorter repayment periods than other types of financing. This can be advantageous for businesses that need to make quick payments, but it can also lead to more interest charges over time. Ultimately, it’s important to research these financing options and find one that best meets your needs. Compare offers from several lenders to ensure you’re getting the best business financing terms available.