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Camino Financial
By: camino-financial
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No Doc Business Loans: How They Work

No-doc business loans have become a popular way to secure funding since they are an alternative borrowing option. For entrepreneurs, these loans can make accessing capital much easier and faster than traditional funding.

But how do they work? This post will explain what you need to know about these financing options and identify potential advantages and disadvantages.

What Is a No-Doc Business Loan?

A no-doc or no-documentation business loan–also sometimes called a no-document business loan–is a business loan that requires less documentation than a typical business loan might.

In exchange for this convenience, lenders who offer these loans may expect challenging interest rates and repayment terms.

With a traditional loan, you might have to show lenders you have robust income or assets to qualify. On the other hand, no-doc loans are often attainable with noor minimaldocumentation.

There are also called “low-doc” loans, because they require less documentation than usual.

That said, these loans aren’t perfect.

Some drawbacks are that they:

  • might not cover large amounts
  • can have very short terms
  • tend to be expensive

How do no-doc business loans work?

Lenders will often have an application or form to fill out, and they may run a credit check or ask to see your accounts.

You may only need to provide basic information, like:

  • tax ID
  • social security number
  • a few months of bank statements

In exchange for this simplified process, lenders might charge higher interest rates.

Should I take out a no-doc loan?

It depends on your unique circumstances.

This offer benefits startups that haven’t established themselves or businesses that simply don’t have the documentation to secure a traditional loan.

No-doc business funding can be helpful for businesses that need funding to establish themselves.

On the other hand, they’re not a good idea for businesses with long and positive credit histories, as they could quickly obtain capital elsewhere with lower rates.

Types of No-Doc Business Loans

Short-term lending

Short-term business loans have short repayment periods and can be risky to organizations with unsteady cash flow.

They typically cover only a few months’ worth of expenses. They are often used to cover immediate costs such as:

  • rent
  • payroll
  • inventory

Merchant cash advances

An MCA is like a loan you should pay through future sales. They provide upfront funds to merchants, who pay them off through sales.

Lenders may want to see past bank activity to know that you can expect the sales to cover the costs.

Line of credit

Just as an individual can, a business can use a line of credit for funds. It’s a good idea for companies that need consistent funding.

Invoice financing

Invoice financing is sometimes a viable option for businesses with many unpaid invoices.

This is a type of financing in which you borrow funds using outstanding invoices as collateral. Since each invoice represents potential future funds, invoices can ease lender concerns.

Pros and Cons of No-Doc Business Loans


  • Sometimes quickly attainable
  • Potentially require less paperwork
  • May have a simple application process
  • It may be more achievable with poor credit


  • Can have shorter repayment periods
  • Can have higher interest rates
  • May include high fees
  • Loans may be smaller

Typical No-Doc Business Loan Uses

Some uses might include:

  • Purchasing needed operating supplies
  • Paying workers
  • Purchasing services required to operate
  • Investing in improvements to the business

There are many reasons a business might need to borrow money. There are also many reasons an organization might opt to use a no-doc loan.

They might be up against a time constraint and need to secure funding quickly. They might have poor credit or short credit history and need to secure a loan quickly.

How to Find the Best No-Doc Lender

Though each borrower has unique needs and each lender will have unique requirements, there are some criteria that you can use to gauge whether a lender is the right one for your situation. Here are some things you can look out for:

  • The documentation they require. Usually, people access these loans because they lack certain documents. Because each no-doc lender has different documentation requirements, you need to study other options.
  • How fast they can provide funding. Ensure that a lender you’re considering working with can deliver financing as soon as you need
  • How competitive their loans are. Consider how much interest you’ll be paying and over how much time. Since no-doc loans can be particularly expensive, understand what interest rates and terms you can secure.
  • Additional expenses. Some lenders might charge a service fee or other additional costs.

Where to get a no-doc business loan?

Many lenders operate online and online marketplaces where you can find different no-doc options for small businesses.

Popular online lending options include LendingClub, OnDeck, and Fundbox, each offering different requirements and loan terms specific to their company.

Another route you can take is using crowdfunding platforms like Kickstarter or Crowdfunder, which allow businesses to raise money from individual investors through an online campaign—no docs required!

How to get a no-doc business loan

Research potential lenders

Doing research ahead of time can save you from rejection due to not qualifying for specific lender criteria and help you find the best terms with the most competitive interest rates available.

Collect required documents

Although “no doc” means fewer documents in this case than traditional bank forms require, you may need items such as:

  • proof of identity
  • personal tax return filings for each shareholder with over 25 percent ownership stake in the company
  • business bank statements

Build a strong business plan

You must understand what makes a strategic business plan so that when discussing your venture with potential lenders, they see an opportunity worth investing in;

Have realistic expectations along with patience

It’s important that, before applying for any loan, you research different lenders’ policies and qualifications.

Keep in mind most alternative lenders have higher interest rates than traditional banks.

No-Doc Business Lenders

  • Lendio. Lendio isn’t a lender but offers a marketplace for borrowers to connect with lenders. They offer many lending options and can help those with poor credit secure a no-doc loan.
  • Fundbox. Fundbox is another popular option for no-doc loans. They offer fast funding and don’t charge excessive fees.
  • Kabbage/ American Express Business Line of Credit. American Express offers a quick-to-acquire line of credit that businesses might particularly appreciate if they’re looking for a lot of funding quickly.
  • OnDeck Capital. OnDeck Capital provides no doc loans that might be of particular interest to businesses worried about credit requirements. They offer quick funding and work with low credit scores.

Documents Required for Business Loans

The type of loan you’re seeking and the lender you’re considering working with may determine which documents you need to provide.

That said, some standard documents required for business loans might include the following:

  • bank statements, going back a few months or more
  • your social security number
  • proof that you’ve been in business for a certain amount of time

Online No-Doc Lenders vs. Banks

  • No-doc loans can provide quick funding without the need for extensive paperwork or credit checks.
  • Banks generally require more documentation and may have stricter eligibility requirements than online lenders.

No-doc loans from online lenders often come with higher interest rates and smaller amounts than bank loans. Additionally, online lenders won’t always provide the same customer service as banks.

That said, no-doc loans can be an ideal solution for businesses needing immediate funding without the hassle of traditional paperwork.

Alternatives to Business Loans No Documents

  • Apply with a traditional lender. Obtaining a conventional loan might require you to wait longer or improve your credit score, but a traditional loan may offer superior rates and terms if you can afford to do so.
  • Going without the additional funding. You can also carefully reconsider whether you need the additional funding at all. You may be able to operate without it by cutting costs or budgeting.
  • Liquidating assets. You may have assets available to sell that are nonessential to operating.

No SSN Business Loans

No-doc business loans aren’t for everyone and aren’t ideal in every situation. But, businesses can use no-doc business loans to secure funding quickly.

Many types of no-doc business loans are available, all with unique benefits and drawbacks.

At Camino Financial, we offer small business loans that don’t require a document most lenders ask for: an SSN.

If you don’t have a Social Security Number, don’t worry, you can apply with your ITIN.

Plus, compared to conventional business loan providers, our business loan requirements are less strict, making it easier for many businesses to qualify.

If that sounds like the perfect financing product for you, complete an application today:

Apply For A Business Loan!



Can I get a business loan with just my EIN number?

Some lenders do accept this number in lieu of an SSN. That said, you cannot apply with just an EIN.

Lenders typically require additional documentation and information, such as your business plan, financial statements, and credit history, to determine your eligibility for a loan.

Can I get a business loan with a 500 credit score?

Getting a business loan with a 500 credit score is possible, but it may be difficult. Many lenders prefer to work with borrowers with higher credit scores, which indicates a lower risk of defaulting on the loan.

However, some lenders specialize in working with borrowers with lower credit scores.

Can you get a business loan without filing taxes?

It can be challenging since most lenders require proof of income and tax returns to assess your creditworthiness and ability to repay the loan.

If you are a new business, some lenders may accept bank statements or other financial statements as an alternative to tax returns.

However, if you have been in business for a while, not filing taxes can significantly impact your chances of securing a business loan.


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