When you have immediate needs for your LLC business, no-doc loans offer a faster way to obtain funding than more traditional bank loans. Whether you’re looking for a business line of credit, equipment financing or a short-term loan, a number of lenders can help you meet your business goals with little to no paperwork and fast turnaround times.
Check out these lenders that offer no- or low-doc business loans for LLCs, including types of loans, loan amounts and loan terms.
| Lender | Types of loans | Loan amounts | Loan terms | |
|---|---|---|---|---|
Lendio | LOC, MCA, term loans, invoice financing | $1K to $5M+ | 3 months to 10 years | |
BusinessLoans.com | LOC, MCA, term loans | $5K to $3M | 3 months to 10 years | |
American Express® Business Line of Credit | LOC | $2k to $250k | 6, 12, 18 or 24 months | |
FundThrough | Invoice factoring and financing | $500 to $5M | 1 to 61+ days | |
Fundible | Equipment loans, LOC, invoice factoring | Up to $6M | 5 months to 10 years | |
Bluevine | LOC | $5K to $250K | 6 or 12 months | |
OnDeck | LOC, Short-term loans | $5K to $250K | 3 to 24 months | |
National Business Capital | LOC, equipment financing | $100K to $10M | 6 to 120 months | |
Credibly | MCA, working capital | $5K to $400K | 3 to 15 months | |
LoanBuilder | Short-term loans | $5K to $150K | 17 to 52 weeks | |
Backd | Working capital | $10K to $2M | 6 to 16 months | |
Clarify Capital | LOC, Invoice factoring, equipment financing | Up to $5M | Not specified |
Business lenders consider a number of factors before granting loan approval, possibly including the structure of your business. However, operating as an LLC shouldn’t hinder your chance of getting a no-doc business loan as long as you meet other requirements.
“Obtaining no-doc or low-doc loans for Limited Liability Companies (LLCs) can indeed be a challenging process,” says Jon Morgan, CEO and editor-in-chief of Venture Smarter, a business consulting firm that specializes in helping startups and small businesses scale and grow.
“The primary reason for this is the nature of these loans,” Morgan continues. “They are designed to require less documentation than traditional loans, which can be particularly beneficial for businesses that have complex income structures or those that value privacy.”
“However, this lack of documentation can make it difficult for lenders to assess the risk associated with the loan. As a result, lenders often perceive these loans as higher risk. Despite these challenges, it’s not impossible for an LLC to secure a no-doc or low-doc loan. It just requires a strong business credit history and a solid relationship with the lender.”
Most traditional business loans require extensive documentation during the underwriting process. This documentation may include bank and financial statements, tax returns, business proposals and more. A no-doc business loan, on the other hand, requires almost no paperwork. No-doc lending refers more to specific types of business loans.
“Merchant cash advances (MCAs), lines of credit (LOCs) and some short-term business loans are more likely to be no- or low-doc,” explains Michael Baynes, co-founder and CEO of Clarify Capital. “These types of loans often focus more on recent business performance and cash flow rather than historical financial health. Long-term loans, most real estate loans and SBA loans generally will not be no-doc or low-doc due to their stringent risk assessments and requirements for detailed financial documentation.”
The online loan application process allows some lenders to connect directly to your business bank accounts, which can eliminate the need for piles of paperwork. In turn, this cuts down on the approval process timeline, making funding much quicker than with traditional business loans. However, this convenience usually means higher interest rates and fees due to the increased risk to lenders.
Consider the risks along with the rewards before jumping in:
Follow these five steps to apply for a business loan for your LLC.
The exact requirements to qualify for a no-doc loan for your LLC may vary based on lender and loan purpose, but here are basic criteria you’ll likely need to meet.
It’s always a smart move to explore all your options when searching for the best business loan for your needs. Particularly for newer businesses, you may need to consider these alternatives to no-doc loans.
For LLCs looking for faster funding options, no-doc business loans can be an efficient way to achieve that goal. Some common no- or low-doc loan types include business lines of credit, MCAs, invoice financing or factoring, equipment financing and short-term business loans.
No-doc loans are usually more expensive than traditional business loans, including higher interest rates and fees. However, the streamlined application process and fast funding can help LLCs meet immediate financial needs and jump on new business opportunities with minimum fuss.
Minimum credit score requirements can vary significantly by lender, with 670 or above giving you the best chance for loan approval. However, some no-doc lenders accept lower scores, and loan types such as invoice factoring or MCAs may not consider your credit score at all.
As long as you meet other requirements to qualify — such as time in business and revenue requirements — you can probably still get a no-doc loan with bad credit. But, you may pay higher rates and fees due to the added risk for the lender.
Most banks that offer traditional business loans don’t offer no-doc loans. For the most part, you’ll have to look to alternative lenders and loan types to find no-doc business loans.
Lines of credit can be either secured or unsecured, depending on the lender and the financial circumstances of your business. Secured LOCs usually use business assets — such as equipment or real estate — as collateral for the loan. If you can’t repay it, the lender can seize your assets to offset the loss.
Unsecured credit lines are not backed by an asset, so they are riskier for the lender. If you default on your payments, there’s no asset for the lender to fall back on. Because of the added risk for lenders, unsecured LOCs can be more difficult to qualify for and typically have higher rates and fees.
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