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No document — or no-doc — business loans can be a good choice for small businesses owners that need short-term working capital fast. By connecting to your accounting software and bank accounts no-doc lenders can often fund a business loan by the next business day.
But for larger loans, say, over $100,000, even no-doc lenders might ask for some kind of paperwork. You may also find that no-doc lenders tend to charge higher rates and fees than traditional banks. If costs are your main concern, consider a bank first.
However, if you have a strong credit score and a solid history of repaying loans on time and in full, you could qualify for a competitive rate from a non-traditional lender.
6 best lenders with low or no document requirements
SharpShooter Funding offers loans for small business in amounts from $500 to $500,000 with terms ranging from 6 months to 5 years. Offers unsecured term loans, merchant cash advances and invoice factoring to meet a variety of business needs. Businesses need to have been in business for at least 6 months with a monthly revenue of at least $10,000.
Pros
Offers large loan amounts with long terms and no collateral required.
Cons
Has strict eligibility criteria and high annual revenue requirements.
OnDeck Canada offers fast business loans ranging from $5,000 to $300,000 with terms between 6 and 18 months. Types of financing include secured term loans, lines of credit and merchant cash advances. Both fixed and flexible repayment terms are available.
Pros
Receive financing in as little as 24 hours, and no collateral is needed to qualify.
Cons
Not open to bad credit borrowers or businesses that are less than 6 months old.
Interest Rate
8.00% – 29.00%
Loan Amount
$5,000 - $300,000
Loan Term
6 - 18 months
Fees
No additional fees
Turnaround Time
in as little as 24 hours
Loans Offered
Secured Term, Line of Credit, Merchant Cash Advance
Loans Canada provides a single, streamlined application process that matches business owners with a list of possible lenders. Loan types vary with amounts ranging from $2,000 to $350,000, and terms of up to 5 years. Interest rates vary based on your credit score, how long you've been in business and other factors.
Pros
Makes it easy to narrow down your options. Options available for self-employed business owners and a wide variety of credit scores.
Cons
Not great for small loans of less than $2,000. Must have monthly revenues of at least $4,166 per month.
Lending Loop is Canada's first fully regulated peer-to-peer small business lending platform. If your business meets minimum credit criteria, the company's credit assessment team will review your loan application and assign your business a loan grade ranging from A+ to E. Your loan request will be published on a marketplace to be reviewed and funded by various lenders.
Pros
Low starting APRs for qualified borrowers and no early repayment penalty fees. Plus, financing is available for sole proprietors.
Cons
Loan requests are published on the marketplace for up to 30 days, so it could potentially take that long to get fully funded.
Offers lines of credit, merchant cash advances, secured business loans and term loans for Canadian businesses. All types of credit are acceptable as long as businesses don't have any open bankruptcies. Weekly, biweekly and monthly repayment schedules are available for secured business loans. Plus, there are no early repayment fees for term loans.
Pros
Credit score requirements are flexible, and multiple financing options available with flexible repayment plans. There's no early repayment fee for term loans.
Cons
Must have total revenues of at least $100,000 over the past 12 months plus a good to excellent credit score (around 610 or above).
Interest Rate
From 9.99%
Loan Amount
From 9.99%
Loan Term
12 to 120 months
Minimum Revenue
You’ll need to make $5,000 in credit/debit sales each month to get a merchant cash advance and $100,000 in annual revenue for a business loan
Lendified offers fast and affordable business loans with no collateral required. Loan amounts can be anywhere between $5,000 and $150,000, with terms ranging from 3 months to 2 years. Approved applicants can receive funds in as little as 48 hours. Interest rates range from 8%–18%.
Pros
No collateral is required, and funds can be disbursed in as little as 48 hours. Plus, you'll get a free quote upon applying, so you can see how much your interest will be if approved.
Cons
Does not offer business lines of credit or merchant cash advances. Businesses must be at least 1 year old and generating an annual revenue of at least $100,000.
Loan Amount
$5,000-$150,000
Loan Term
3 - 24 months
Fees
You’ll be charged a one-time origination fee of 3% to cover the costs of processing and delivering your loan
Turnaround Time
48 hours
Minimum Revenue
You won’t need to put up any collateral to secure your loan but you’ll need to have good credit and at least $100,000 in revenue in the past year to qualify
These lenders represent some of the more flexible and transparent options available to borrowers with good credit. To compile our list, we considered the loan types available, minimum and maximum APR, repayment terms and the loan amount. We also considered options for a wide range of financing needs.
What is a no-doc business loan?
A no-doc business loan doesn’t mean you won’t fill out any forms. It means you won’t be required to complete paper forms or fax documents to your lender.
In some cases you can get around document requirements altogether by connecting with your business’s other online accounts.
Some lenders are low doc rather than no doc, only requiring applicants to submit an online application and scanned copies of a few key documents. You might also need to give them electronic access to certain business accounts for verification.
Why are online lenders less likely to require paperwork?
Online lenders don’t require paper forms because their processes usually involve you submitting your information through an online application. They also employ alternative methods to analyzing and verifying your business information. In other words, they’re willing to dig into your financial records themselves.
One way they might do this is by connecting to your company’s bookkeeping software or taking advantage of temporary read-only access to your business accounts. They can also run a hard check on your personal credit score online.
Are online business loans actually faster?
Yes. Whereas bank applications can take weeks or months, no-doc loans may deliver your money in days or even 24 hours. With online applications, your lender can process information quickly and with a smaller underwriting staff.
No-paperwork business loans are also faster because lenders typically ask for access to your accounting software and bank accounts online. It cuts down on the time it takes to provide documentation and speeds up the underwriting process by giving your lender raw data — rather than answers that need to be verified.
Is it safe to give a lender access to a bank account or accounting software?
It’s generally safe. Many lenders don’t store login credentials in a database and they’re usually not accessible to more employees than absolutely necessary — if at all.
Sharing this kind of sensitive information with any third party does come with risk, however. This is for the simple reason that it gives hackers one potential point of access to your accounts or software. Remember, even the most secure encryption is not impenetrable. It’s advised to change your financial account passwords every few months to keep your information safe.
How to find the best no-doc lender
When comparing no-doc lenders to find the best one for your business needs, ask these 5 important questions:
Is this the right loan for what I’m trying to accomplish? Find the right loan type for your needs. Need new equipment? Look at equipment financing. Need funds to cover a one-time expense? Look into a fixed-term loan.
Can this lender give me all the funding I need? Look for a provider that offers the amount you’re looking for. Taking out too much or too little can put you in a worse financial position.
Are the rates and fees competitive? You can often save more with a lender offering a low APR — a rate that combines interest and fees.
How long will it take to get my money? Applying with a lender that offers quick turnaround times is especially important if you’re trying to cover an urgent expense.
Do I meet the eligibility requirements? You probably don’t want to waste your time applying to lenders you don’t qualify for.
Online business loan providers that don’t require physical paperwork
1 - 4 of 4
Bottom line
No-doc loans are a good option for businesses that need money fast to cover emergency expenses. They’re also a convenient way to avoid waiting around for a bank loan to go through.
Make sure to read the fine print — some online lenders can hide fees and repayment conditions that could wind your business up in even more debt. And be sure to compare your options before deciding on one lender.
Frequently asked questions
You could, although your options may be limited. Make sure your personal finances are in top shape to get the best deal. You’ll likely need to provide your tax Notice of Assessments for the last 2 years to show proof of income. Alternatively, you could consider a personal loan for business use.
Yes, legit business lenders can request scanned documents to verify things like your business ownership or income statements — or even identification. If the document contains personal information such as your Social Insurance Number (SIN), you may want to ask if you can block that part out of the document or revisit the lender’s privacy policy to be sure that information won’t be shared.
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
If you’re looking for alternatives to Clearco, here are 7 types of business financing to help grow your operations or get your company off the ground.
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