No Doc Business Line of Credit: What It Is and Where to Get One

Q: What is a ‘no doc’ business line of credit?

A ‘no doc’ business line of credit is an alternative loan product that businesses may get with little or no financial documentation. It can provide businesses with a revolving line of credit and generally carries higher finance charges than traditional business loans.

Q: How can I get a ‘no doc’ business line of credit without personal credit?

Many ‘no doc’ business lines of credit don’t require a certain credit score. Others are open to those with poor credit. Some lenders look at other factors to determine eligibility — things like business revenue and time in business.

Q: Is it hard to get a business line of credit?

No, it can be easy to get a business line of credit from a nonbank private lender. Nonbank private lenders may offer ‘no doc’ business lines of credit to applicants with bad personal credit scores. Getting a business line of credit from banks might be harder than getting a BLOC from a nonbank lender. That’s because depository institutions may have higher underwriting standards than alternative private lenders.

Q: How do I get a ‘no doc’ line of credit for my business?

Find a lender that fits your needs. Most applications take just minutes to apply, and funds might be available as soon as the same day.

No Doc Business Line of Credit: What It Is and Where to Get One

Susan GuilloryUpdated March 14, 2023

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

If you’ve ever applied for business financing and been denied, it's frustrating. What's your next move?Perhaps you were denied because your business hasn’t been operational for the lender’s required period of time. Or, maybe you needed money fast and didn’t have time to gather the required statements, tax returns, and other financial documents.Whatever the reason, you may still need additional financing for your business.One resource is a type of financing called a "no doc" business line of credit (aka "no doc" BLOC).

What Is a No Doc Business Line of Credit?

Some specialized lenders offer unsecured business lending that requires zero documentation or fewer application requirements than conventional loans. Usually, "no doc" business lines of credit don’t require collateral. Lack of collateral can sometimes hold some business owners back from being approved for financing from traditional lenders.An unsecured business line of credit could help certain business owners get financing fast — even if you don’t currently qualify for other business lending options.

Secured vs. Unsecured Lines of Credit

Unsecured lines of credit, unlike secured lines, do not require collateral to guarantee the funds. An unsecured business line of credit for startups can help entrepreneurs get financing without pledging collateral.Collateral for a secured BLOC may take the form of a business asset — like real estate or equipment. With secured financing, lenders can seize assets to cover what’s owed if a borrower defaults and fails to pay the lender in full.If you’re not sure how to secure a business line of credit or loan, but you don’t own any assets a lender would consider valuable, a ‘no doc’ BLOC may be one option. A BLOC is typically unsecured, meaning you generally won’t have to pledge collateral on a business line of credit.

Types of No Doc Business Lines of Credit

There are a few versions of the "no doc" BLOC. Some lenders offer lines of credit you can draw from when you need cash, while others offer you a fixed sum all at once.Unlike many other small business loans, some of these "no doc" financial products don’t require any documentation. You fill out an application online. Others ask you simply to state your income or demonstrate your gross sales. Depending on the lender, you may or may not need to provide bank statements or profit and loss reports.Examples of short-term "no doc" business lines of credits or short-term business financing might include:

You may also consider "low doc" loans. A low-doc business loan generally requires less paperwork (i.e., bank statements or merchant statements) during the application process.

Pros and Cons of No Doc BLOCs

When it comes to unsecured business lines of credit, ‘no doc’ options have benefits and drawbacks you might want to weigh:

Pros	Cons
You can apply without compiling detailed documentation of your company’s finances	Lack of documentation means higher risk for lenders of these alternative small business loan options
Qualifying can be easier than qualifying for SBA loans	Can include higher interest rates and fees than traditional financing

Lenders Offering No Doc Business Lines of Credit

There are a handful of online lenders who specialize in “no doc” business lines of credit. Here’s a sampling of lenders who offer this sort of financing.

AdvancePoint Capital

AdvancePoint Capital offers several types of financing for small businesses, including unsecured business lines of credit. The one-page application takes just minutes to fill out, and requires minimal financial paperwork (they require only bank statements, and focus on gross sales). Some applicants may qualify for interest rates starting at 6.99%. You can be approved typically within a few hours and draw funds the next day.

Amount: up to $250,000
Terms: up to 12 months
Credit score: from poor to excellent

Sunwise Capital

Another lender is Sunwise Capital. Applicants can get approved for a business line of credit within minutes and get access to funds within 24 to 48 hours. Some applicants may qualify for interest rates as low as 4.8%. While Sunwise Capital’s "no doc" BLOC comes with some specific requirements, there are other financing options — if your credit isn’t great.

Amount: up to $250,000
Terms: 12 months
Credit score: 600+ personal FICO® Score

Fundbox

Fundbox also offers "no doc" business lines of credit. Rather than asking you to submit bank statements or financial records, you will connect your accounting software or bank account as part of the application process so the company can confirm your revenue and determine eligibility. Your business must have at least $100,000 in annual revenue and 6 months in business. Funds are available, if approved, the next business day.

Amount: up to $150,000
Terms: 12 or 24 weeks on basic account plan
Credit score: 600+ personal FICO Score

OnDeck

Another potential lender is OnDeck. You can fill out the short application online or over the phone. Applicants can get BLOC funds deposited into their account as soon as the same day of approval. The average rate for lines of credit is 48.9% APR. Averages are based on loans originated in the half-year ending March 31, 2022.

Amount: $6,000 to $100,000
Terms: 12 months
Credit score: 625+ personal FICO Score

Are No Doc Business Lines of Credit a Good Idea?

The question remains: are "no doc" BLOCs a wise financial decision?There are less costly financing options out there — as long as you qualify in terms of annual revenue, credit score, or time in business. If you have the luxury of waiting a few weeks (or even months) to be approved and then receive your funds, you may pay a lot less in interest and fees with a more conventional business loan or line of credit.Some business owners, however, need cash now or don’t have other financing options. In that case, some business owners may opt to research a "no doc" business line of credit. Having adequate funding is critical to running a successful small business, but it’s key to know what sort of lending you’re dealing with.The amount you pay in interest will generally be higher with no doc options than with traditional loans. You might even find a business credit card with a low (or no) introductory APR that could cover the purchases you need.Or you could wait to get funding, focus on building your credit so that you can try to qualify for more competitive rates later, and seek out more affordable financing options.

The Takeaway

No business owner wants to be caught without having the capital they need to run day-to-day operations or even to take advantage of emerging opportunities for growth. But taking out a line of credit from one of these sources has some downsides to consider.Lantern by SoFi can help you find fast funding for your business. Just fill out one simple form to see an offer from a lender in Lantern’s network.Check your rate today and see if you prequalify.

Frequently Asked Questions

What is a ‘no doc’ business line of credit?

How can I get a ‘no doc’ business line of credit without personal credit?

Is it hard to get a business line of credit?

How do I get a ‘no doc’ line of credit for my business?

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About the Author

Susan Guillory

Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.

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