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

No Doc Business Line of Credit: What It Is and Where to Get One
Susan Guillory
Susan GuilloryUpdated May 27, 2022
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If you’ve ever applied for business financing and been denied, you may assume there are no other options.Perhaps you were denied because your business hasn’t been in business 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 last resource is a type of financing called a ‘no doc’ business line of credit (aka ‘no doc’ BLOC)—a form of business lending.

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.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:

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 — based on searches of the internet:

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). 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: six to 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. 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. Annual percentage rates of interest start at 35.9%, and the average rate for OnDeck lines of credit is 47.14% APR.
  • Amount: $6,000 to $100,000
  • Terms: 12 months
  • Credit score: 600+ personal FICO Score

Business Advance Funding

Business Advance Funding may be one other option for unsecured business financing, especially if you’re seeking a larger amount of money. It has a fast online application and minimal eligibility requirements—including being in business for at least six months, generating at least $5,000 in monthly revenue, and having no open bankruptcies. Eligible businesses can get short-term alternative loans offered as cash advances rather than a revolving line of credit. Funds can be deposited the next business day.
  • Amount: $5,000 to $500,000
  • Terms: Usually four to 12 months
  • Credit score: bad credit OK

Are ‘No Doc’ Business Lines of Credit a Good Idea?

The question remains: are ‘no doc’ BLOCs a wise financial decision?Here’s the thing: 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 can be a big decision — as withdrawn funds aren’t free money.Lantern by SoFi can help you find fast funding for your business with loans up to $2 million. Just fill out one simple form to see offers from multiple lenders in Lantern’s network.Check your rate today and see if you prequalify.
The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit (https://www.consumer.ftc.gov/topics/credit-and-loans)The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.Third-Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.SOLC20064

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?

About the Author

Susan Guillory

Susan Guillory

Susan Guillory is the president of Egg Marketing, a content marketing firm based in San Diego. She’s written several business books, and has been published on sites including Forbes, AllBusiness, and Cision. She enjoys writing about business and personal credit, financial strategies, loans, and credit cards. Follow her on Twitter @eggmarketing.
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