No document — or no-doc — business loans can be a good choice for small businesses owners that need short-term working capital fast. By connecting to your accounting software and bank accounts no-doc lenders can often fund a business loan by the next business day.
But for larger loans, say, over $100,000, even no-doc lenders might ask for some kind of paperwork. You may also find that no-doc lenders tend to charge higher rates and fees than traditional banks. If costs are your main concern, consider a bank first.
However, if you have a strong credit score and a solid history of repaying loans on time and in full, you could qualify for a competitive rate from a non-traditional lender.
6 low- or no-doc business loan providers
There are only a few no-doc business lenders, so we’ve also included lenders with low document requirements.
Online lender Merchant Growth specializes in helping businesses across a range of industries like ecommerce, restaurants, automotive, retail, salons and spas, and manufacturing. It offers various types of loans, including ecommerce financing that can be used for just about anything you need for your business. You can also choose from merchant cash advances, flexible financing repayment plans, and fixed loans that are similar to traditional business loans.
Pros
Financing available for traditional and e-commerce businesses with the potential for high loan amounts.
Cons
Your business must have a minimum monthly income of $10,000 to qualify and have existed for longer than 6 months.
APR Range
12.99% – 39.99%
Loan Amount
$5,000 – $800,000
Loan Term
6 – 24 months
Fees
No application fees.
Turnaround Time
24 hours
Loans Offered
Unsecured Term, Line of Credit, Merchant Cash Advance
Journey Capital offers fast business loans ranging from $5,000 to $300,000 with terms between 6 and 18 months. Types of financing include secured term loans, lines of credit and merchant cash advances. Both fixed and flexible repayment terms are available.
Pros
Receive financing in as little as 24 hours, and no collateral is needed to qualify.
Cons
Not open to bad credit borrowers or businesses that are less than 6 months old.
Loans Canada provides a single, streamlined application process that matches business owners with a list of possible lenders. Loan types vary with amounts ranging from $2,000 to $350,000, and terms of up to 5 years. Interest rates vary based on your credit score, how long you've been in business and other factors.
Pros
Makes it easy to narrow down your options. Options available for self-employed business owners and a wide variety of credit scores.
Cons
Not great for small loans of less than $2,000. Must have monthly revenues of at least $4,166 per month.
2M7 offers cash advances based on a percentage of your monthly sales. It's a good option for businesses without a long operational history or that have trouble being approved for conventional business loans. 2M7 only does a soft credit check during the approval process, so an inquiry won't show up on your credit report. You'll repay the cash advance with a set percentage of each sale you make until it's been fully paid back.
Pros
You can borrow up to 125% of your average monthly sales and receive funds in as little as a few hours.
Cons
A merchant cash advance won't help you build your credit and may come with a high factor rate.
APR Range
Varies
Loan Amount
$10,000 - $250,000
Loan Term
3 - 6 months
Fees
There is a one-time “factor rate” fee that’s between 1.18 and 1.48 and is multiplied by the amount of your cash advance to determine the total amount that must be paid back. This is the only fee you’re charged for your cash advance.
Turnaround Time
A few hours up to two business days, depending on how accurate and complete your application is
Loans Offered
Merchant Cash Advance
Serviced Provinces/Territories
Canada-wide, excluding Quebec
Minimum Revenue
$15,000
Min. Credit Score
550
Minimum Time in Business
90 days
APR Range
Varies
Loan Amount
$10,000 - $250,000
Loan Term
3 - 6 months
SharpShooter Funding Business Loan
SharpShooter Funding offers loans for small business in amounts from $500 to $500,000 with terms ranging from 6 months to 5 years. Offers unsecured term loans, merchant cash advances and invoice factoring to meet a variety of business needs. Businesses need to have been in business for at least 6 months with a monthly revenue of at least $10,000.
Pros
Offers large loan amounts with long terms and no collateral required.
Cons
Has strict eligibility criteria and high annual revenue requirements.
Offers lines of credit, merchant cash advances, secured business loans and term loans for Canadian businesses. All types of credit are acceptable as long as businesses don't have any open bankruptcies. Weekly, biweekly and monthly repayment schedules are available for secured business loans. Plus, there are no early repayment fees for term loans.
Pros
Credit score requirements are flexible, and multiple financing options available with flexible repayment plans. There's no early repayment fee for term loans.
Cons
Must have total revenues of at least $100,000 over the past 12 months plus a good to excellent credit score (around 610 or above).
APR Range
9.99%
Loan Amount
From 9.99%
Loan Term
3 - 24 months
Turnaround Time
Approval in 24 hours
Minimum Revenue
You’ll need to make $5,000 in credit/debit sales each month to get a merchant cash advance and $100,000 in annual revenue for a business loan
Minimum Time in Business
6 months
APR Range
9.99%
Loan Amount
From 9.99%
Loan Term
3 - 24 months
Compare no-doc business loans by the numbers
Compare features of no-doc and low-doc business lenders side by side.
Lender
APRs
Loan amounts
Turnaround
Loan terms
Merchant Growth
12.99% – 39.99%
$5,000 – $800,000
24 hours
6 – 24 months
2M7
varies
$10,000 - $250,000
A few hours up to two business days, depending on how accurate and complete your application is
3 - 6 months
Journey Capital
8% – 29%
$5,000 - $300,000
in as little as 24 hours
4 - 24 months
Loans Canada
6.99% - 46.96%
$500 - $500,000
48 Hours
3 - 60 months
SharpShooter Funding
5.49% - 22.79%
$1,000 - $300,000
48-72 hours
12 - 60 months
iCapital
Varies
$2,500 – $250,000
Approval in 24 hours
3 - 24 months
What is a no-doc business loan?
A no-doc business loan doesn’t mean you won’t fill out any forms. It means you won’t be required to complete paper forms or fax documents to your lender.
In some cases you can get around document requirements altogether by connecting with your business’s other online accounts.
Some lenders are low doc rather than no doc, only requiring applicants to submit an online application and scanned copies of a few key documents. You might also need to give them electronic access to certain business accounts for verification.
What banks offer no-doc loans?
It’ll be difficult to get a business loan from a bank without providing paperwork. Banks have strict eligibility criteria and at minimum will require your financial statements from the last two years, personal income documents like your T1 and personal net worth documents. If you’re looking for a business loan with minimal documents required, alternative lenders are an option.
How to find low- or no-doc business lender
When comparing no-doc lenders to find the best one for your business needs, ask these 5 important questions:
Is this the right loan for what I’m trying to accomplish? Find the right loan type for your needs. Need new equipment? Look at equipment financing. Need funds to cover a one-time expense? Look into a fixed-term loan.
Can this lender give me all the funding I need? Look for a provider that offers the amount you’re looking for. Taking out too much or too little can put you in a worse financial position.
Are the rates and fees competitive? You can often save more with a lender offering a low APR — a rate that combines interest and fees.
How long will it take to get my money? Applying with a lender that offers quick turnaround times is especially important if you’re trying to cover an urgent expense.
Do I meet the eligibility requirements? You probably don’t want to waste your time applying to lenders you don’t qualify for.
Why are online lenders less likely to require paperwork?
Online lenders don’t require paper forms because their processes usually involve you submitting your information through an online application. They also employ alternative methods to analyzing and verifying your business information. In other words, they’re willing to dig into your financial records themselves.
One way they might do this is by connecting to your company’s bookkeeping software or taking advantage of temporary read-only access to your business accounts. They can also run a hard check on your personal credit score online.
Pros and cons of online no-doc lenders vs. banks
When you’re deciding between a no-doc business lender vs. a traditional loan from a bank, it’s essential to assess your business’s specific circumstances, financial situation and priorities. Here are some pros and cons to consider.
Pros
Quick application process. Most no-doc lenders use AI to scrape your accounts for the information they need, which can lead to a decision within minutes or hours compared to weeks or months with a bank.
Faster funding. A quick decision allows lenders to fund your loan within 24 to 48 hours from approval.
Options for bad credit. Many lenders are willing to work with poor- and fair-credit borrowers.
Cons
Higher interest rates. No-doc business loans are seen as higher risk by many lenders and can come with a higher interest rate than you may find at a traditional bank.
Daily or weekly repayment. Depending on the lender, you may have to pay back your loan weekly or from a percentage of your sales, which can be harder to keep up with and less flexible than a more traditional monthly payment.
May be more expensive. Some no-doc lenders require down payments or charge high underwriting fees.
Are online business loans actually faster?
Yes. Whereas bank applications can take weeks or months, no-doc loans may deliver your money in days or even 24 hours. With online applications, your lender can process information quickly and with a smaller underwriting staff.
No-paperwork business loans are also faster because lenders typically ask for access to your accounting software and bank accounts online. It cuts down on the time it takes to provide documentation and speeds up the underwriting process by giving your lender raw data — rather than answers that need to be verified.
Is it safe to give a lender access to a bank account or accounting software?
It’s generally safe. Many lenders don’t store login credentials in a database and they’re usually not accessible to more employees than absolutely necessary — if at all.
Sharing this kind of sensitive information with any third party does come with risk, however. This is for the simple reason that it gives hackers one potential point of access to your accounts or software. Remember, even the most secure encryption is not impenetrable. It’s advised to change your financial account passwords every few months to keep your information safe.
Alternatives to no-doc business loan providers
You’ll find that most lenders do require some type of paperwork — especially when it comes to business loans. But if you’re looking to compare your options without submitting mountains of paperwork, you do have other options.
Business loan broker. Also sometimes called a connection service, a loan broker allows you to fill out one set of forms that can be completed within minutes and submit your information to several lenders at once. You can apply for free and you’ll get matched with lenders you qualify with.
Bank or credit union. This option may require lots of documentation the first time around. But once your loan officer gets to know your business, they may be able to get your financing within a day or even hours without requiring extra paperwork.
Startup funding. No-doc loan providers tend to require at least three months in business to qualify, so if you’re looking for startup financing, you’ll need to look for lenders who specifically cater to brand new businesses and those that haven’t yet opened their doors.
Narrow down top business lenders by minimum and maximum loan amounts, APR and requirements to find the best for your budget and financial goals. Select Compare for up to four products to see their benefits side by side.
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Bottom line
No-doc loans are a good option for businesses that need money fast to cover emergency expenses. They’re also a convenient way to avoid waiting around for a bank loan to go through.
Make sure to read the fine print — some online lenders can hide fees and repayment conditions that could wind your business up in even more debt. And be sure to compare your options before deciding on one lender.
Frequently asked questions about low- and no-doc business loans
You could, although your options may be limited. Make sure your personal finances are in top shape to get the best deal. You'll likely need to provide your tax Notice of Assessments for the last 2 years to show proof of income. Alternatively, you could consider a personal loan for business use.
Yes, legit business lenders can request scanned documents to verify things like your business ownership or income statements — or even identification. If the document contains personal information such as your Social Insurance Number (SIN), you may want to ask if you can block that part out of the document or revisit the lender's privacy policy to be sure that information won't be shared.
Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full bio
Anna's expertise
Anna has written 61 Finder guides across topics including:
Stacie Hurst is an editor at Finder, specializing in loans, banking, investing and money transfers. She has a Bachelor of Arts in Psychology and Writing, and she has completed FP Canada Institute's Financial Management Course. Before working in the publishing industry, Stacie completed one year of law school in the United States. When not working, she can usually be found watching K-dramas or playing games with her friends and family. See full bio
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