No Doc Business Loans: The Ultimate Guide

Where to find no doc small business loans.
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Where to Find No Doc Business Loans

On the hunt for small business loans?

The next question to ask yourself is whether you’re ready to apply for a business loan.

Because getting a business loan takes a lot of time. And if you don’t have the time to wait for the approval process of a larger, longer-term business loan, then you might have to adjust your search a bit.

If you need fast financing without the hassle, then you might want to consider no doc business loans. We’re talking business financing that takes no (or almost no) documents to get through the application process.

In this guide, we’ll walk through all the no doc small business loans available, and what you need to know about each.

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Why Are There More No Doc Business Loans Than Ever?

If you looked for “no doc” business loans just about 10 years ago, you’d really have no options front of you.

Maybe you’d have low doc business loan options on the table—maybe.

That’s because 10 years ago, the only real options for getting a business loan was from a traditional bank.

And traditional banks are certainly not offering no doc small business loans.

Instead, they have the lengthiest application process around. On average, business owners spend 25 hours on applications for bank loans, according to this Harvard Business School study.

And often times, that effort and time compiling mountains of paperwork is for naught: Bank loans are hard to qualify for, and many, many small business owners get rejected.

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Enter: Alternative Lenders Offering No Doc Business Loans

Luckily, the small business lending landscape is no longer dominated by big banks.

Just about 10 years ago, online, non-bank lenders stepped in to fill the void.

These alternative lenders offer what banks do not: fast, accessible applications. Essentially, they opened up credit for unbankable business owners.

That’s why, when you’re looking for no doc business loans, we’ll point you towards the many alternative lenders operating in the business funding market.


What Sets No Doc Business Loans Apart

So, you’re looking for a no doc business loan that will get you the funding your business needs without the hassle or long, grueling wait. There are options for you.

However, these business loans are pretty unique. And the lenders offering no doc business financing are very different than traditional banks offering business loans.

What sets them apart from the rest? Here’s what you need to know.

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More Technology

Alternative lenders are mostly operating online. Meaning their applications are fully online.

Long gone are the days when the only way to get a business loan was to compile a big stack of paperwork and bring it into you local bank.

By using technology to process your loan application, and smart algorithms to underwrite the loan itself, these lenders don’t need to see as many documents from the borrower.

Instead, these no doc business loans are available by just syncing your business bank account to your file. Then the lender’s technology gets to work and collects the information the lender needs to see from what you’ve provided.

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Faster Time To Funding

Alternative lending is much, much faster than traditional lending.

These lenders are not traditional banking institutions—meaning they’re not subject to the same government regulations as the big banks are. This is because banks make loans using money from personal checking and savings accounts, and thus are heavily regulated on how they can lend out the money that they’re making from America’s consumers. Alternative, non-bank lenders get money from other sources—like hedge funds, accredited investors, or secured lines of credit.

Alternative lenders of course also require less paperwork—they don’t ask for a business plan or full financials, for example—so there’s less for you to gather and for them to process.

While a bank needs to see everything, an alternative lender offering close to no doc business loans only need to see what’s important.

The technology aspect also plays a big role in its speed. With efficient underwriting programs and highly automated applications, alternative lenders can process many small business loan applications without spending much time or energy.

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Higher Interest Rates

Banks charge low interest rates because they’re so selective with their borrowers. If they only lend to business owners with long and successful track records, they can be sure that they’ll get their money back.

Alternative lenders, on the other hand, don’t spend as much time looking at paperwork to see if you’re a qualified borrower. With no doc business loans, they won’t have as good of a sense of your revenue, cash flow, and general financial stability. And in general, alternative lenders accept entrepreneurs with shorter times in business, lower credit scores, less proven revenues and cash flow.

In order to balance the scales out and compensate for the risk of lending to you, alternative lenders are forced to charge higher rates. That way, even if they only get a portion of the loan repayments, they’ll end up getting a fair amount of their money back.

With no doc business lenders, your interest rate depends on the typical factors like credit score, annual revenue, and time in business.

But there’s a wider range, and you should expect to see higher interest rates on loans that are easy to apply for and require very few documents.


The Best Types of No Doc Business Loans

When you’re looking for no doc business loans, what options do you have on the table?

Well, there are now many types of no doc (or low doc!) small business loans out there. Here’s a review of your best options.

Merchant Cash Advances

When you search for no doc business loans, odds are the first type of business loan that will come up are merchant cash advances.

Not technically a business loan, a merchant cash advance is a lump sum advance of capital, based on the value of your future credit card receivables.

Merchant cash advance companies essentially advance you a sum of money by purchasing your future credit card sales. This means that you’ll pay back a merchant cash advance by allowing the company to take a fixed percentage of your credit card and debit card sales each day until you’ve repaid the advance, plus interest.

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How to Apply for a Merchant Cash Advance

Merchant cash advances are hands-down the most accessible financing products on the market.

They really are “no doc” business loans.

To apply, you’ll likely only need to provide your social security number, address, and tax ID to verify your credit score. Some merchant cash advance companies might require you to sync your bank statements or your credit card processing statements just to get a sense of what revenue volume you’re bringing in on average.

It’s important to note that cash advance loans are the most expensive financing option on the market.

They are absolutely no doc business loans, but they should be avoided if you can qualify for a different, lower-rate financing solution.

Short-Term Loans

Short-term loans are next up on the list of no doc business loans, as a step up from merchant cash advances.

Short-term loans are like the term loans you know well, but are a little different.

They’re lump sum loans that get repaid over a set period of time with regular payments, and interest on top.

However, short-term loans are of course, shorter. Terms last for only 3 to 18 months, and you’ll repay the capital with daily or sometimes weekly repayments. Loan amounts go up to $250,000 and rates range from to 10% to a lot higher—even up to 100%.

Short-term loans are particularly good options when you have working capital needs, or one-off business investments or expenses you need to make.

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How to Apply to Short-Term Loans

Okay—short-term loans aren’t fully no doc business loans.

You’ll need some paperwork to apply to short-term loans, but what you need to provide will be very minimal.

Here’s the list of what you might need, as a maximum:

  • Tax ID
  • Social Security Number
  • Bank Statements
  • Credit Score
  • Personal Tax Returns
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The Top Lenders Offering These No Doc Business Loans

Who are the best lenders offering these nearly no doc business loans?

Here are the two of the best to work with:

LoanBuilder, a PayPal Service

Convenience is the name of the game for the LoanBuilder program.

While not technically a no doc business loan option. LoanBuilder is fast. LoanBuilder boasts preapprovals in just five minutes. This short-term loan has convenient automatic daily repayment transfers from your business checking account.

The average days to funding is 3 business days for loans ranging from $5,000 to $75,000 at terms of 13 to 52 weeks.

OnDeck
With a minimum personal FICO score of just 500, OnDeck offers short-term loans to business owners with very poor personal credit.

In their application process, they’ll look to see that you have been around for a minimum of 1 year and have at least $100,000 in annual revenue.

Again, these aren’t no doc business loans, but to verify your eligibility, OnDeck only needs 3 months business bank statements, a driver’s license, and a voided business check.

Read more OnDeck Capital reviews.

Short-Term Lines of Credit

Short-term lines of credit are like the lines of credit you know well: they offer borrowers access to a pool of funds they can tap into at any point. You only pay interest on the amount you draw, and once you pay it back with interest on top, your credit line gets refilled to its original amount.

However, the reason why we call these products short-term lines of credit is similar to why we separate short-term loans from the term loan counterpart:

These lines of credit offer much smaller amounts, over shorter repayment periods, and at higher rate.

Because they’re almost essentially no doc business loans and extremely accessible, short-term lines of credit come with higher interest rates than most products, ranging from 10% to 80%.

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How to Apply to These No Doc Business Loans

Again, these aren’t technically no doc small business loans, but they come close to it.

You certainly won’t be submitting a mountain of paperwork for short-term lines of credit.

Here’s a list of the maximum amounts of documents you’ll need to provide:

  • Driver’s License
  • Voided Business Check
  • Bank Statements
  • Credit Score
  • Personal Tax Returns
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The Best Lender Offering These No Doc Business Loans

If you think a short-term line of credit is the best, most accessible option for your business, we recommend checking out the following lender:

Kabbage

Kabbage offers a line of credit that helps provide working capital for business owners who need very accessible capital—lines of credit with Kabbage range from $2,000 to $150,000.

As far as no doc business loans go, Kabbage comes pretty close. In fact, there’s no physical paperwork you’ll need to submit, and very little information to upload.

To apply, you’ll create a Kabbage account, give basic business information (name, address, industry type, tax ID, etc.), and connect the financial platform you use.

Kabbage will then pull data from the integration to underwrite your loan.

Read more Kabbage reviews.

Invoice Financing

The next close-to no doc business loan is invoice financing.

Invoice financing helps you get paid for your outstanding invoices, freeing up your cash flow. Invoice financing companies advance you a lump sum amount that’s typically a large percentage of the value of the outstanding invoice in question—around 85%.

Invoice financing is a great option for borrowers with less-than-stellar credit, little time in business, and in need of an fast, accessible option as your eligibility for the financing largely depends on the details of your outstanding invoice (and less on your business).

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How to Apply to Invoice Financing

As far as no document business loans go, invoice financing comes pretty close.

Really, the most important part of your application will be your outstanding invoices.

Here’s your list of everything you might need to provide for the application:

  • Driver’s License
  • Voided Business Check
  • Bank Statements
  • Credit Score
  • Outstanding Invoices
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The Best Lenders Offering These Low Doc Business Loans

Have outstanding invoices you’d like to finance? Then working with an invoice factoring company could be the right move for you. Here are two of the best.

Fundbox

Fundbox offers cash advances based on your outstanding invoices, for up to $100,000 in value.They’ll charge about a 0.5% factor fee for each week the invoice goes unpaid, and typically extend financing for 12 months.

Fundbox is extremely easy and fast to apply to. You’ll only need to sync the accounting software you use such as QuickBooks Online, QuickBooks Desktop, Freshbooks, Harvest, Wave, Xero, and more), and on average you can be approved in one day.

Read more Fundbox reviews.

BlueVine

BlueVine is another invoice financing company that offers a similar product to FundBox. Invoice financing with BlueVine, however, can go up to $2.5 million—meaning they have the capacity to work with much bigger businesses.

You’ll need a personal credit score of at least 530 and a minimum annual revenue of $100,000 to qualify, but the application process is very simple:

You’ll need your accounts receivable aging, 3 months of business bank statements, and general information about the business.

Read more BlueVine reviews.


The Bottom Line on No Doc Small Business Loans

Are no document small business loans too good to be true?

Merchant cash advances aside, the answer is yes. Business loans requiring literally no documents whatsoever are hard to find.

However, there are these accessible lenders that offer applications that take no longer than a few minutes. Just sync your bank account, and most of the documents the lenders need to see are all right there.

When it comes to these business loans, though, you need to be careful. These easy-to-access business loans can have exorbitantly high interest rates and uncomfortable repayment periods. If you can stand to handle a slightly more intensive application period, and are slightly more qualified, you should look to term loans, longer-term lines of credit, or SBA loans instead.

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