If you’re looking for a faster way to secure business funding compared to traditional loans, no-doc and low-doc business loans might be the solution. These loans skip much of the usual documentation, allowing you to apply and get approved quickly — sometimes within a day.
Whether you need $50,000 to cover cash flow shortages or jump on a new business opportunity, this guide helps you navigate your options and choose the right no-doc or low-doc loan for your needs.
Check out these no-doc and low-doc lenders. They offer various types of financing for your business — including 50K loans — without the hassle of extensive paperwork.
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A no-document business loan (or no-doc loan) refers to financing that requires little to no documentation to qualify. Instead of piles of paperwork, no-doc lenders may only need to review your bank statements or connect to your online accounts to approve your loan. While you’ll still need to complete an application and sign a contract, you typically do these steps online.
No-doc loans are most commonly used for short-term financing and offer fast turnaround times. However, the tradeoff is often higher interest rates than other funding options, along with repayment schedules that may require daily or weekly payments.
Despite their drawbacks, no-doc business loans can be a practical solution if you don’t qualify for traditional financing. These loans generally come with more lenient eligibility requirements, making them accessible to a broader range of businesses. They’re particularly useful for companies needing quick, short-term funding to cover cash flow gaps or invest in new opportunities.
While $50K business loans are available at most banks and credit unions, your best shot at a no- or low-doc business loan is with an online lender. Online lenders typically have a streamlined application and lending process that utilizes algorithms and other technologies to link directly to your accounts. Thanks to these processes, getting approved is often faster and easier than with traditional lenders — and requires less paperwork.
“No-doc business loans are frequently advertised online, on the radio and on television,” says Ben Johnston, COO at Kapitus. “A simple Google search will reveal many types of no-doc lenders, as well as aggregation sites that compare different lenders.”
“Before choosing a no-doc lender,” Johnston continues, “read the company’s reviews and search for information about that company online. See if they are mentioned in the press and if they disclose their management team and company history. Generally speaking, the longer a company has been in business and the more positive information available, the more sustainable and reputable they are.”
The application process varies a bit depending on the lender you choose, but the typical steps to get a $50K no-doc business loan are:
While no-doc business loans require less paperwork, lenders still have a few key criteria you’ll need to meet, such as:
The cost of a $50,000 no-doc business loan varies depending on the lender and the loan type. For example, lenders can charge interest rates or factor rates that range anywhere from 3% to 60% or more.
Lenders that offer invoice financing or factoring may charge a factor rate instead of an interest rate. A factor rate is basically a percentage of the loan you’ll need to pay on top of the principal. For example, a factor rate of 1.2 for a $50,000 loan means you would owe a total of $60,000 ($50,000 x 1.2).
Many no- or low-doc business loans have shorter loan terms, which make them more expensive to budget. In addition, short-term financing may require a weekly or daily repayment schedule, which may not be feasible for some businesses.
No-doc loans may also come with origination or other fees. Always review the terms carefully and ask your lender about any extra charges to avoid surprises.
It’s important for borrowers to be aware that no-doc loans are usually more expensive for a reason, says Ben Johnston, COO of Kapitus. “Because these loans are issued with relatively little due diligence and often without collateral, the loss rates on no-doc business loans tend to be higher than full-doc loans. As a result, their cost is also higher.”
To find out exactly how much a $50K no-doc business loan could cost you, plug your loan amount plus your estimated repayment term and interest rate into our payment calculator.
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If you’re looking for a no- or low-doc business loan, consider these five loan types to see which meets your business needs.
MCAs might be a good solution for companies that bring in a lot of revenue from debit and credit card sales. Merchant cash advance providers lend you a lump sum in exchange for a percentage of future credit card sales. This type of financing is usually very expensive and typically requires a weekly or daily repayment plan.
A business line of credit could be a good choice if you’re unsure how much you need and want some borrowing flexibility. Lines of credit can be drawn from as needed, usually for one to two years, and you only pay interest on what you borrow. A strong credit score is usually needed, but recent bank statements might be the only paperwork required.
Invoice factoring requires little to no documentation because it’s almost entirely dependent on the value of your invoices. It’s a type of lending where you sell your unpaid invoices to a factoring company that advances funding based on a percentage of your unpaid invoices. The factoring company collects payments on the invoices until the loan, along with any interest and fees, is fully repaid — which can be costly.
Invoice financing is similar to invoice factoring in that you borrow money based on the value of your unpaid invoices. The difference is that you maintain control of your invoices and repay the loan as customers pay their bills. Because of the high rates and fees, both invoice financing and factoring should only be considered for very short-term financing.
When you take out an equipment loan, the asset you purchase is used as collateral for the loan. Because it’s a secured loan, it may have more competitive interest rates than other types of business financing, but there is a risk of losing the asset if you default on the loan.
Lenders might ask for a down payment and proof of sufficient revenue to repay an equipment loan but usually require minimal paperwork. Loan terms for equipment financing are typically longer than other low-doc loans, which can be easier to budget.
If you’re facing a cash flow shortage or need quick funding to seize a business opportunity, no-doc or low-doc loans can be a fast solution. These lenders use technology to eliminate the hassle of extensive paperwork, making it possible to qualify in minutes and receive funds within a day or two. Just be sure to do your research and compare multiple business lenders to ensure you’re getting the best deal.
Yes, no-doc loans are still available, especially through online lenders. While less common than traditional loans, they remain a fast and flexible option for businesses that want to skip the paperwork.
Maybe. Usually, no-doc business loans rely on business revenues and business credit scores as well as personal credit history to determine loan approval. However, if you have excellent personal credit, a low debt-to-income ratio (DTI) and sufficient income, you may qualify for a $50K loan to start a business.
Yes. Many no-doc lenders offer business loans ranging anywhere from thousands to millions of dollars. Of course, qualifying for higher-dollar loan amounts depends on your revenues, credit scores and other factors.
The credit score needed for a $50K no-doc loan varies by lender, but many look for a score of at least 500. Some lenders may prefer higher scores, but others focus more on your business’s revenue than your credit.
No-doc loans are generally easier to get than traditional loans because they require less paperwork and have more flexible requirements. However, keep in mind that interest rates can be high, so it’s important to weigh the costs before applying.
Maybe. If you meet other lender requirements, such as strong financials and other criteria, you may be able to get a $50,000 no-doc loan even with bad credit. In fact, many lenders, such as BusinessLoans.com and Credibly, will consider borrowers with scores as low as 500 for some loan types.
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