Online lenders may offer no-doc business loans, but you’ll likely pay more by opting for less paperwork.
Brian O'ConnorBrian O’Connor is a freelance writer, specializing in finance, business strategy and digital marketing. He's held various staff positions at Morgan Stanley, Foreign Affairs magazine and Student Loan Hero.
Randa KrissWriter | Small business, business banking, business loans
Randa Kriss is a small-business writer who joined NerdWallet in 2020. She previously worked as a writer at Fundera, covering a wide variety of small-business topics including banking and loan products. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona College.
Last updated on June 20, 2024 Sally LaucknerSally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
⏰ Estimated read time: 9 minutes
Applying for virtually any business loan will require at least some paperwork. Although true no-doc business loans don't really exist, there are some options that require far less documentation than traditional small-business loans.
A no-doc business loan refers to a business loan that requires minimal documentation, such as only business bank statements, to apply. Business loans with minimal documentation tend to have higher interest rates and shorter repayment terms than bank or SBA loans. However, for borrowers who can’t qualify for more traditional funding options and/or those who need capital quickly, no-doc business loans can offer flexible qualification requirements and fast funding times.
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
The documentation that traditional lenders request usually helps them paint a picture of your business’s ability to repay a loan. This repayment ability usually comes from monthly cash flow and profit. Lenders that require less documentation can typically do so because they are basing their lending decision off of other factors, like the amount of collateral you can pledge or your incoming invoices. They may also turn to other risk mitigants like high interest or weekly payments. These methods can help lenders feel more secure that they will be repaid so they don’t need to look so deeply into your business’s financials.
Here are some types of financing that may require minimal paperwork, as well as the pros and cons of opting for a no-doc business loan.
Unsecured short-term business loans don't require physical collateral, such as equipment or property. Compared to secured, longer-term loans, these products tend to have less documentation and fund faster.
Many short-term lenders only ask for minimal paperwork, and some even allow you to connect your financial data to their system so that they can evaluate your business information more quickly, without asking you to upload various documents.
As an example, in order to apply for a short-term loan from OnDeck, you only need to provide basic information about yourself and your business, as well as three months of business bank statements. According to the lender, the application process can be completed in minutes and funds can be available as fast as the same day.
Therefore, if you need a quick business loan, an unsecured loan may make sense. But you should be careful and confident in your ability to pay it back — short-term loans tend to have high interest rates and quick repayment terms.
OnDeck’s maximum term is months, for instance, and interest rates can range as high as% (based on loans originated in the half-year ending March 31, 2024; minimums provided are rates that at least 5% of customers received) . You’ll likely need to provide a personal guarantee on an unsecured business loan as well, which creates additional personal liability.
AdvertisementBluevine - Line of credit
OnDeck - Online term loan
Funding Circle - Online term loan
Max loan amount
Max loan amount
Max loan amount
Min. credit score
Min. credit score
Min. credit score
with Fundera by NerdWallet
with Fundera by NerdWallet
with Fundera by NerdWallet
Like unsecured short-term loans, many online business lines of credit have minimal documentation requirements. These credit lines offer flexible funding that can be used for working capital and general business expenses.
For example, Fundbox offers a business line of credit up to $150,000 with repayment terms of 12 or 24 weeks.
To apply, you’ll sign up for a Fundbox account, enter some basic information about yourself and your business and then provide financial data by connecting your accounting software, business checking account or another source. The entire process can be completed in just a few minutes and if approved, you can receive funds as quickly as the next business day.
In many ways, business lines of credit are similar to business credit cards, which can also be a funding option with minimal paperwork. Business credit cards can be a good option for everyday purchases, especially for new companies that are just starting out.
However, it’s important to note that you’ll typically need good personal credit to get a business credit card and annual percentage rates, or APRs, can be high if you don’t pay off your balance every month.
Invoice factoring isn’t technically a loan, but it does provide businesses with money quickly and with minimal paperwork. With invoice factoring, also called accounts receivable factoring, you free up cash by selling unpaid customer invoices to a third-party company at a discount. Typically, you’ll get around 85% to 90% of your money upfront, with the rest coming — minus fees — after the invoice is paid.
When you apply for invoice factoring, many factoring companies give you the ability to create an account and connect your accounting or invoice software to their online platform.
With the company FundThrough, for example, you can provide basic information about your business and connect your QuickBooks account to the FundThrough platform. Then, you can pull invoices from QuickBooks into FundThrough and select which ones you’d like to submit for funding. Once they’re approved, funds are deposited into your bank account as soon as the next business day.
With this streamlined, simple process, invoice factoring helps business-to-business companies access capital quickly and often without the same kind of requirement as other types of small-business funding.
Similar to invoice factoring, invoice financing, or accounts receivable financing, allows you to use unpaid customer invoices to get funding for your business. Instead of selling your invoices to a third-party company, you use them as collateral against a business loan.
Applying for invoice financing is simple like factoring, and can even be faster. Your application requirements will vary based on your lender, but generally you’ll be asked for things like bank information, articles of incorporation and access to your invoices.
Merchant cash advances (MCAs) provide upfront funding that you repay with a portion of your credit or debit card sales, plus a fee. These advances require minimal paperwork, as you may be able to qualify with just a few months of your business’s credit card statements.
However, it’s important to note that MCAs are one of the most expensive types of business financing and require frequent (sometimes daily) payments.
APRs on merchant cash advances can reach triple digits and these products can quickly create a cycle of debt that’s difficult to break. If possible, you’ll want to look at all other options before turning to an MCA.
You may also see merchant cash advances referred to as business cash advances or business payday loans.
Simple application. Compared to more traditional types of financing, you don’t need to spend too much time gathering or preparing paperwork to apply for a no-doc business loan. You can apply for one of these products quickly and easily online, and in many cases, the process only takes minutes.
Higher interest rates. Because you don’t provide as much paperwork with a no-doc business loan, the lender can’t be as confident about your ability to repay the debt. To lessen its risk, the lender charges higher interest rates as a result.
Quick access to funds. Many of these online lenders can approve and fund applications within just a few business days, sometimes even faster.
Shorter repayment terms. No-doc business loans typically have short terms, anywhere from 12 weeks to 24 months. More traditional loan options, on the other hand, can have repayment terms up to five, 10 or even 20 years.
Easy to qualify. Like other online loan options, no-doc business loans tend to have flexible eligibility requirements; startups and borrowers with bad credit may be able to qualify.
Risk of debt cycle. With high interest rates, short terms and frequent payments, no-doc business loans can quickly become a problem, especially if your business is already struggling with cash flow. If you can’t keep up with your payments, you may try to take out another loan or refinance your existing one in order to repay, which can create a cycle of debt that’s difficult to break.
To get a business loan with minimal documentation, you’ll likely be limited to working with alternative or online lenders.
When you start your search, you’ll want to consider how much funding you need and why you need it. You’ll also want to think about your business’s qualifications — personal credit score, annual revenue and time in business — to get a sense of where you’ll stand with different lenders.
As you research and compare no-doc business lenders, you should evaluate the following factors in order to find the right option for you:
Available loan types. Interest rates. Repayment terms. Application process. Funding speed. Customer support. Lender reputation.Once you find a lender, you’ll be able to submit your loan application and hopefully receive an approval within a few business days. The minimal documentation you’ll need will typically include the following:
Business plan. Business legal documents and tax ID number. Invoices for invoice financing. Business bank statements.If you’re a startup with few or no business financial documents. If you’re a pre-revenue startup with no business financials, you may consider crowdfunding your business, which involves raising money in small amounts on an online platform.
If you’re an early-stage business with good personal credit. There are several business credit cards you can get with minimal documentation; however, you’ll usually need strong personal credit to qualify and get the best rates and terms.
If you have bad credit or no personal income. If poor credit or lack of personal income gets in the way of traditional financing, you may try a friends and family loan to finance your business. To avoid the potential for personal disputes, just make sure you put any agreement into writing.
Not really. True no-doc business loans don’t exist, but there are options that require minimal paperwork to get funding.
Is it hard to get a no-doc business loan?Because no-doc business loans typically exist for businesses that don’t qualify for traditional forms of lending, they can be fairly easy to qualify for; however, they will likely come with higher interest rates and shorter repayment terms.
Which banks offer no-doc business loans?Most banks and credit unions do not offer no-doc business loans. Online lenders are more likely to offer loans with less paperwork.
What do you need for a no-doc business loan?For a no-doc business loan, you’ll likely need to provide basic information about you, your business and your finances. Some lenders may ask for bank statements, for example, while others may have you connect your financial accounts to their online system. Ultimately, the application details you need will vary based on your lender and loan type.
About the author:Brian O’Connor is a freelance writer, specializing in finance, business strategy and digital marketing. He's held various staff positions at Morgan Stanley, Foreign Affairs magazine and Student Loan Hero.
Randa Kriss is a lead writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured in The Washington Post, The Associated Press, MarketWatch and Nasdaq, among other publications. She has also hosted a webinar as part of the SBA's 2024 National Small Business Week Virtual Summit. Randa is passionate about helping small-business owners make educated financial decisions, especially when it comes to affordable funding. She is based in Chicago.
On a similar note.Best Small-Business Loans
How to Apply for and Get a Business Loan in 6 Steps
Small-Business Grants: Where to Find Free Funding
Although some lenders offer business loans for startups, you may need alternative solutions to finance a new business.
Federal and state agencies, as well as private companies, offer small-business grants. Here's a list of resources.
NerdWallet Home Page Finance Smarter Credit Cards Financial Planning Financial News Small BusinessDownload the app
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
NerdUp by NerdWallet credit card: NerdWallet is not a bank. Bank services provided by Evolve Bank & Trust, member FDIC. The NerdUp by NerdWallet Credit Card is issued by Evolve Bank & Trust pursuant to a license from MasterCard International Inc.
Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
NerdWallet Compare, Inc. NMLS ID# 1617539
California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812
Insurance Services offered through NerdWallet Insurance Services, Inc. (CA resident license no.OK92033) Insurance Licenses
NerdWallet ™ | 55 Hawthorne St. - 10th Floor, San Francisco, CA 94105
