No-Doc Business Loans: Is One Right for Your Business?
No-doc business loans may reduce paperwork and speed up approval, but you’ll likely pay more in interest and fees.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. 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.
Updated · 3 min read
Written by
Senior Writer & Content Strategist 
Edited by
Managing Editor 
Co-written by
Lead Writer & Content Strategist 
Most business loans require at least some paperwork to apply. Although true “no-doc business loans” don't exist, there are some options that require far less documentation than traditional small-business loans.
What is a no-doc business loan?
A no-doc or low-documentation business loan is one that requires minimal documentation, such as business bank statements, to apply. These loans can help if you can’t qualify for traditional funding or need fast access to cash. However, they tend to come with higher interest rates and shorter repayment terms than business bank loans or SBA loans.
How much do you need?
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.
How do no-doc business loans work?
Traditional lenders typically rely on detailed paperwork to help them assess your business’s ability to repay a loan. For example, you might be asked to hand over three years’ worth of tax returns, balance sheets, income statements, a business plan and more.
In contrast, lenders that require little paperwork rely more on other factors, like collateral or your incoming invoices.
Because they’re not taking a deep dive into your finances, many lenders charge higher interest rates and require frequent payments to offset the risk.
Nearly no-doc business loan options
Here’s a breakdown of the types of financing that tend to require minimal paperwork:
| No-doc loan options | Best for | How it works | Key drawbacks |
|---|---|---|---|
| One-time cash needs. | Lump-sum loan repaid over a short period of time, typically 3 to 24 months. | High rates, short terms and frequent payments can stifle cash flow. | |
| Ongoing access to working capital. | Use funds as needed and only pay interest on what you borrow. | Short repayment terms and potential for extra fees, like draw or inactivity fees. | |
| Business-to-business (B2B) companies with unpaid invoices. | Sell unpaid invoices for cash, minus fees. | Fees can add up quickly if your customers take a long time to pay their invoices. | |
| B2B companies who want control over unpaid invoices. | Unpaid invoices serve as collateral for a cash advance which you repay as you collect payment from customers. | Fees can add up quickly if your customers take a long time to pay, or if they don’t pay at all. | |
| Businesses with lots of credit/debit card sales and few financing options to turn to. | Cash advance that’s repaid using a percentage of future card sales. | Extremely expensive. APRs can reach triple digits. |
Unsecured short-term business loans
Unsecured short-term business loans don't require physical collateral, like equipment or property. Compared with secured, longer-term loans, these loans tend to require less documentation and fund faster.
Many short-term lenders ask for very little paperwork. 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.
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 24 months, for instance, and interest rates can range as high as 99% (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.
Business line of credit
Many online business lines of credit require very few documents. 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 $250000 with repayment terms of 3 or 24 months.
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 two business days.
Invoice factoring
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.
Invoice financing
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.
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
Merchant cash advances (MCAs), sometimes referred to as business cash advances or business payday loans, provide upfront funding that you repay with a portion of your credit or debit card sales, plus a fee. You may be able to qualify with just a few months of your business’s credit card statements.
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.
» MORE: Bad credit business loans
Lenders that offer no-doc business loans
Online, alternative lenders are typically the ones that require minimal paperwork to apply for a loan. Here are some lenders to consider when comparing your no-doc business loan options.
| Product | Max loan amount | Min. credit score | |
|---|---|---|---|
 AltLINE - Invoice factoring Nerdwallet Rating with Fundera by NerdWallet | $5,000,000 | 300 | with Fundera by NerdWallet |
 Bluevine - Line of credit Nerdwallet Rating with Fundera by NerdWallet | $200,000 | 625 | with Fundera by NerdWallet |
 Fundbox - Line of credit Nerdwallet Rating with Fundera by NerdWallet | $250,000 | 600 | with Fundera by NerdWallet |
 Giggle Finance - Merchant cash advance with Fundera by NerdWallet | $15,000 | 300 | with Fundera by NerdWallet |
 Backd - Line of credit Nerdwallet Rating with Fundera by NerdWallet | $750,000 | 650 | with Fundera by NerdWallet |
 Kapitus - Term loan Nerdwallet Rating with Fundera by NerdWallet | $750,000 | 625 | with Fundera by NerdWallet |
 OnDeck - Online term loan Nerdwallet Rating with Fundera by NerdWallet | $400,000 | 625 | with Fundera by NerdWallet |
 FundThrough - Invoice factoring | $10,000,000 | 300 |
Pros and cons of no-doc business loans
| Pros | Cons |
|---|---|
| ✅ Simple application. Compared with more traditional types of financing, you don’t need to spend much time preparing paperwork to apply for a no-doc business loan. You can apply for one of these products easily online, and in many cases, the process only takes minutes. | ❌ Higher interest rates. Because you don’t provide as much paperwork with a low-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. |
| ✅ 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. |
How to get a no-doc business loan
To get a business loan with minimal documentation, you’ll likely be limited to working with alternative or online lenders. The application process will, in many ways, follow the typical process of applying for a small-business loan.
Alternatives to no-doc business loans
- If you’re a startup with few or no business financial documents, 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 may be able to get. 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, 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.
Frequently asked questions
Is there such a thing as a no-doc business loan?
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, expect 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?
The application details you need to provide will vary based on your lender and loan type. 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.
Can you get a business loan without tax returns?
Many online and alternative lenders offer no- or low-doc business loans that require only a few bits of information and minimal documentation. These lenders typically don’t require business tax returns to extend a business loan.
If you’re a startup currently without business tax returns but you’re open to providing more documentation than the low-doc options require, explore our list of business loans for startups.
Freelance writer Brian O'Connor contributed to this article.
