9.5 Excellent
9.5 Excellent
9.5 Excellent
9.5 Excellent
9.9 Excellent
9.9 Excellent
A no-doc business loan is an online business loan that connects to your business accounts instead of requiring you to submit paperwork, like financial statements or tax returns.
It’s not a true no-paperwork loan — you’ll still need to sign a contract — but it significantly simplifies the application. Because no-doc lenders use algorithms to underwrite the loan, they can often process your request in minutes and send you funds within 24 hours.
The main downside is that no-doc loans typically have higher APRs and shorter terms than your average business loan. For context, the average rate on a bank prime loan is 8.50% as of March 4, 2024. So, you can expect to pay points above that for a no-doc loan. No-doc loan programs can also require daily payments, which many businesses find inflexible.
If you can get a traditional business loan, it may be a better choice. But for small businesses that can’t spend weeks on an application or can’t qualify for a traditional loan, a no-doc loan may be a good alternative.
A no-doc business loan doesn’t mean you won’t fill out any forms — it just means you may not be required to complete paper forms or fax documents to your lender.
In some cases, you can get around document requirements completely by connecting with your business’s other online accounts. This is particularly common with e-commerce seller financing, especially if you’re borrowing from a platform like PayPal or Amazon.
Some lenders are low-doc, rather than no-doc. They require you to submit an online application and PDFs of a few key documents. You might also need to give them access to specific business accounts for verification.
New businesses and startups that don’t have previously established credit can apply for business financing with only their Employer Identification Number (EIN). But without a business credit score, most lenders will require you to use your personal score and to guarantee the loan personally.
If you don’t want to mix your personal finances with your business, you could try to establish business credit before you apply by using a small business credit card or paying off any existing debt your business has accrued.
When comparing no-doc lenders to find the best one for your business needs, ask these five important questions:
When you’re deciding between a no-doc 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.
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.
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This service has a network of over 75 legit business lenders.