Lots of online lenders offer no-doc business loans, and some even advertise how easy it is to apply and get hundreds of thousands of dollars within 24 hours. With these lenders, you’ll usually pay a lot more in interest or factor rates in the long run. But, there are reputable lenders with competitive interest rates that offer loans that don’t require documentation.
Here, I’ll explain what no doc business loans are, in detail, and how to get yourself set up to obtain one. And, I’ll share a list of the established banks that offer no doc business loans as well as how to apply.
This is what’s in store:
- What are No-Doc Business Loans?
- What Banks Offer No-Doc Business Loans?
- Here’s How to Apply for No-Doc Business Loans
- No-Doc Business Loan Requirements
- How Do You Build Business Credit Fast?
- Frequently Asked Questions
- Final Thoughts
Now, let’s get crackin!
What are No-Doc Business Loans?
A no-doc business loan or a “stated-income” loan is a type of loan where the borrower is not required to provide the documentation typically required for traditional business loans. “No-doc” is short for “no documentation.” And, stated-income essentially means that you “state” or say what your income is on the application.
These loans and lines of credit are often sought by small business owners or entrepreneurs who may not have all the paperwork or financial records to prove their business income. While these loans may offer more flexibility in terms of documentation requirements, they can come with a catch.
For example, popular online lenders can offer higher interest rates and stricter repayment terms to offset the increased risk to the lender. A good example is a merchant cash advance where a portion of daily income goes toward repayment. However a select few legitimate banks do offer no-doc, traditional business loans at competitive rates.
Keep in mind, no-doc loans are not intended as a means to secure startup business loans with no revenue. If your business is pre-revenue, you may have better luck entering an accelerator like Y Combinator, exploring grants for niche businesses, or tapping into your personal capital.
Recommended: What are the Best Unsecured Business Credit Cards for Startups?
What Banks Offer No-Doc Business Loans?
A cornerstone of getting a business loan without sharing income documentation is to find the banks that offer them. You can establish your business and build your business credit, but you can’t get the funds without a lender. And, as you’ve probably found if you’ve done any searching, these banks don’t advertise.
Now, tons of online lenders like FundBox, OnDeck, and Lendio can get you no-doc loans…with higher-than-necessary factoring and interest rates. But, you’ll get the best rates with actual banks, which are harder to find (but they do exist)
So, what banks do no-doc business loans? I’ve been doing this for over a decade now…and keeping track of the best offers. Here’s my list of ten actual banks that offer no-doc and “low-doc” loans for businesses.
1. Celtic Bank (Bluevine)
While Bluevine is frequently touted as a source for no-doc business loans, and they do offer business checking accounts and loans, Bluevine isn’t actually a bank. Their loans are serviced through Celtic Bank. And, they’re pretty close to “no-doc.”
If you apply for a business loan through Bluevine.com, you can get approved for up to $250K without providing documentation.
But, the catch is that you’ll have to connect to your bank through Plaid. So, Bluevine and Celtic Bank will have access to your business transactions, which are required to qualify for a loan. i.e. You need to show that your business has the ability to repay the loan.
You might also like: Bluevine Review: Free, High Yield Small Business Checking!
2. PNC Bank
PNC Bank offers various business lending products, including loans and lines of credit, with options for simplified documentation processes. They cater to small businesses and have competitive rates.
You might also like: PNC Bank Business Credit Card Review & Comparison
3. TD Bank
TD Bank provides business lines of credit and loans with options for reduced documentation requirements, making it easier for small businesses to access financing. They typically have promotional offers such as waiving term loan fees or promotional interest rates.
You might also like: This is How to Leverage Business Credit to Transform Your Life
4. Amex (Small Business Line of Credit)
American Express (Amex) offers business lines of credit with streamlined application processes and minimal documentation requirements…and they’re even suitable for small businesses. Did you know Amex also offers business checking?
Note: To prevent misuse of these offers and avoid them disappearing (like the Floor & Decor business credit card) the rest of the list is exclusive to Business Credit Workshop members.
Here’s How to Apply for No-Doc Business Loans
At this point, you might still be wondering how to get a business loan without proof of income. Well, it’s not all that much different than getting any other business loan — The main difference is in the preparation.
To apply for a no-doc business loan, follow these general steps:
- Look for lenders that offer no-doc business loans and compare their terms, interest rates, and eligibility requirements.
- While no-doc loans require minimal documentation, you’ll still need to provide basic information about your business, such as its and revenue.
- Review the lender’s eligibility criteria to ensure your business meets their requirements, which may include factors like legal structure, industry, business credit score, revenue, and time in business.
- If needed, establish your business credit – Download our Business Credit Building Checklist if you need some guidance.
- Fill out the lender’s application form, providing the necessary information about your business and financial situation. Be honest and accurate in your responses. See our Free, Printable Business Credit Application Template if you’d like an example.
- While no-doc loans require minimal documentation, you may still need to provide some basic financial records, such as connecting your business checking account with Plaid – this depends on the lender’s underwriting requirements.
- Once you’ve submitted your application and any required documentation, wait for the lender to review your information and make a decision on your loan application.
- If approved, carefully review the terms and conditions of the loan, including interest rates, repayment terms, and any fees associated with the loan.
- If you’re satisfied with the terms, formally accept the loan offer from the lender.
Once the loan funds are disbursed, use them responsibly for the intended business purposes – Consider consulting with financial advisors or business consultants to ensure you choose the right financing option for your business needs.
Recommended: Should You Hire a Business Credit Consultant
No-Doc Business Loan Requirements
No-doc business loans and/or low-doc loans (which require some documents), have fewer documentation requirements compared to traditional business loans. However, the specific requirements vary depending on the lender and the type of loan.
Some general aspects of no-doc business loan requirements are:
- Minimal documentation
- A good personal and/or business credit score
- Business revenue
- Collateral
- Business history
- Personal guarantee
- More exorbitant repayment terms when offered through online lenders
Always carefully review the terms and conditions of any loan offer and consider the potential risks before proceeding. This is especially true with any no-doc business loan, since they’re known to cost more in the long run.
Moreover, you should explore multiple financing options and consult with financial professionals to make sure your financing solutions align with your business goals and your expectations are realistic.
Recommended: Here’s How to [Actually] Get Business Credit With Just an EIN +More Options
Are There No-Doc Business Loans With No Credit Check?
Let’s set this one straight right away. The answer is yes, but there’s a catch…a big one.
No-doc business loans without credit checks are rare and usually come with higher costs and risks. Be wary of lenders that offer these loans, as they are more likely to engage in predatory practices. Do your due diligence and seek professional advice before you ever commit to a loan like this.
You will get the best business financing options after you establish and build your business credit.
You might also like: Here’s How to Check Your Business Credit Score, Step-by-Step
How Do You Build Business Credit Fast?
To get a no-doc loan from a reputable bank, you’ll need a good business credit score. So, you’ll need to build it.
And, there are a handful of key items you’ll need to establish your business credit:
- Established business with a low-risk NAICS code
- Employer Identification Number (EIN)
- DUNS Number
- Business checking account
- Credible online business presence
- Trade lines linked to your business — net 30 accounts
- On-time payments to the trade lines
Seems easy enough, right? There are some nuances to the process, but if you stick around here, you can learn a lot more about how it all works.
Recommended: This is How to Build Business Credit Fast [Step-by-Step Guide]
Frequently Asked Questions
Do business loans require bank statements?
Yes, many lenders require bank statements as part of the documentation process for business loans. Bank statements help lenders assess your business’s financial health, cash flow, and ability to repay the loan.
Are no-doc loans still available?
Yep, some lenders still offer no-doc loans, but they are less common than traditional business loans. No-doc loans require minimal documentation, which makes them appealing for borrowers who may not have all the paperwork required for traditional loans.
Can I get a no doc business loan with bad credit?
It’s possible to get a no-doc business loan with bad credit, but it can be challenging. Lenders that offer no-doc loans without thorough credit checks often charge higher interest rates and fees to offset the increased risk. Always research lenders carefully and explore alternative financing options if you have bad credit.
How long does it take to get approved for a no-doc loan?
The time it takes to get approved for a no-doc loan can vary depending on the lender and the complexity of your application. In some cases, approval may be relatively quick, while in others, it may take several days or weeks. It’s best to check with the lender directly for an estimate of their approval timeline.
Can I get a business loan with a cosigner?
Yes, some lenders allow you to apply for a business loan with a cosigner, also known as a “guarantor.” A cosigner with strong credit and financial stability can help strengthen your loan application and improve your chances of approval. However, both you and the cosigner will be responsible for repaying the loan, so consider the implications carefully before you proceed.
Final Thoughts
Navigating the realm of no-doc business loans requires careful consideration and informed decision-making — These loans offer a pathway to financing for small business owners who may lack extensive documentation typically required by traditional lenders.
While they provide flexibility, no-doc loans from online lenders can come with higher costs and risks. However, with proper research, diligent preparation, and consideration of multiple financing options, you can find funding solutions that fit your needs and fuel your business growth.
Remember to review each lender’s terms and conditions, seek professional advice when needed, and proceed with caution to ensure that your financing aligns with your goals.
If you’re ready to learn how to obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today!