When you want to improve your business, you want a quick solution — not hours of filling out and faxing paperwork. But that’s exactly what many lenders require for a business loan.
Here’s how to cut out the pain of paper and pencil with a no-paperwork business loan.
Lending Loop Business Loan
Lending Loop Business Loan
A no-paperwork business loan doesn’t mean you won’t fill out any forms. It simply means you won’t be required to complete paper forms or fax documents to your lender.
No-paperwork lenders typically require you to submit an online application and possibly scan a few key documents. You might also need to give them access to certain business accounts for verification.
Online no-paperwork lenders don’t require paper forms because their processes usually involve you completing your information through an online application. They also employ shortcuts 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.
Yes. Whereas bank applications can take weeks or months, no-paperwork loans may deliver your money in days. 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.
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 3 months to keep your information safe.
When comparing no-paperwork lenders to find the best one for your business needs, ask these 5 important questions:
No-paperwork 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.
Want to explore more options for financing your business? Check out our guide to business loans and compare your choices.
