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6 online no-doc business loan lenders

Online no document loans may be faster than your typical bank loan—but you could end up paying more.

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By

Anna Serio

&

Stacie Hurst

Reviewed by

Leanne Escobal

Updated

Fact checked

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 low- or no-doc business loan providers

There are only a few no-doc business lenders, so we’ve also included lenders with low document requirements.

Merchant Growth Business Loan

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Online lender Merchant Growth specializes in helping businesses across a range of industries like ecommerce, restaurants, automotive, retail, salons and spas, and manufacturing. It offers various types of loans, including ecommerce financing that can be used for just about anything you need for your business. You can also choose from merchant cash advances, flexible financing repayment plans, and fixed loans that are similar to traditional business loans.

OnDeck Business Loan

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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.

Loans Canada Business Loan

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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.

2M7 Merchant Cash Advance

2M7 offers cash advances based on a percentage of your monthly sales. It's a good option for businesses without a long operational history or that have trouble being approved for conventional business loans. 2M7 only does a soft credit check during the approval process, so an inquiry won't show up on your credit report. You'll repay the cash advance with a set percentage of each sale you make until it's been fully paid back.

SharpShooter Funding Business Loan

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.

iCapital Business Loan

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.

Compare no-doc business loans by the numbers

Compare features of no-doc and low-doc business lenders side by side.

LenderAPRsLoan amountsTurnaroundLoan terms
Merchant Growth12.99% - 39.99%$5,000 - $800,00024 hours6 - 24 months
2M7varies$5,000 - $350,000A few hours up to two business days, depending on how accurate and complete your application is
3 - 6 months
OnDeck8.00% – 29.00%$5,000 - $300,000in as little as 24 hours6 - 18 months
Loans Canada6.60% - 29.00%$4,000 - $500,00048 Hours3 - 60 months
SharpShooter FundingFee based, prime starting at 6.33%$1,000 - $300,00048-72 hours3 - 24 months
iCapitalVaries$2,500 – $250,000Approval in 24 hours3 - 24 months

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.

What banks offer no-doc loans?

It’ll be difficult to get a business loan from a bank without providing paperwork. Banks have strict eligibility criteria and at minimum will require your financial statements from the last two years, personal income documents like your T1 and personal net worth documents. If you’re looking for a business loan with minimal documents required, alternative lenders are an option.

How to find low- or no-doc business lender

When comparing no-doc lenders to find the best one for your business needs, ask these 5 important questions:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Do I meet the eligibility requirements? You probably don’t want to waste your time applying to lenders you don’t qualify for.

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.

Pros and cons of online no-doc lenders vs. banks

When you’re deciding between a no-doc business lender vs. a traditional loan from a bank, it’s essential to assess your business’s specific circumstances, financial situation and priorities. Here are some pros and cons to consider.

Pros

  • Quick application process. Most no-doc lenders use AI to scrape your accounts for the information they need, which can lead to a decision within minutes or hours compared to weeks or months with a bank.
  • Faster funding. A quick decision allows lenders to fund your loan within 24 to 48 hours from approval.
  • Options for bad credit. Many lenders are willing to work with poor- and fair-credit borrowers.

Cons

  • Higher interest rates. No-doc business loans are seen as higher risk by many lenders and can come with a higher interest rate than you may find at a traditional bank.
  • Daily or weekly repayment. Depending on the lender, you may have to pay back your loan weekly or from a percentage of your sales, which can be harder to keep up with and less flexible than a more traditional monthly payment.
  • May be more expensive. Some no-doc lenders require down payments or charge high underwriting fees.

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.

Alternatives to no-doc business loan providers

You’ll find that most lenders do require some type of paperwork — especially when it comes to business loans. But if you’re looking to compare your options without submitting mountains of paperwork, you do have other options.

  • Business loan broker. Also sometimes called a connection service, a loan broker allows you to fill out one set of forms that can be completed within minutes and submit your information to several lenders at once. You can apply for free and you’ll get matched with lenders you qualify with.
  • Bank or credit union. This option may require lots of documentation the first time around. But once your loan officer gets to know your business, they may be able to get your financing within a day or even hours without requiring extra paperwork.
  • Startup funding. No-doc loan providers tend to require at least three months in business to qualify, so if you’re looking for startup financing, you’ll need to look for lenders who specifically cater to brand new businesses and those that haven’t yet opened their doors.

Compare online business loan providers

Narrow down top business lenders by minimum and maximum loan amounts, APR and requirements to find the best for your budget and financial goals. Select Compare for up to four products to see their benefits side by side.

1 - 3 of 3
Name Product Interest Rate Loan Amount Loan Term Minimum Revenue Minimum Time in Business Loans Offered
OnDeck Business Loan
OnDeck Business Loan
8.00% – 29.00%
$5,000 - $300,000
6 - 18 months
$100,000/year
6+ months
Secured Term, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months with a minimum annual gross revenue of $100,000.

OnDeck offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.
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Merchant Growth Business Loan
Merchant Growth Business Loan
12.99% - 39.99%
$5,000 - $800,000
6 - 24 months
$10,000 /month
6 months
Unsecured Term, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months and have a minimum of $10,000 in monthly sales.

Merchant Growth offers financing tailored to business needs. It specializes in providing capital based on future cash flows, but it also offers fixed solutions. Fill out an application within 5 minutes and get your funds within 24 hours.
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Loans Canada Business Loan
Loans Canada Business Loan
6.60% - 29.00%
$4,000 - $500,000
3 - 60 months
over $10,000/month
100 days
Unsecured Term
To be eligible, you must have been in business for at least 100 days, have a Canadian business bank account and show a minimum of $10,000 in monthly deposits ($120,000/year).

Loans Canada connects Canadian small business owners to lenders offering financing up to $500,000. Complete one simple online application and get matched with your loan options.
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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 about low- and no-doc business loans

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