No-doc and low doc loans are incredibly popular today. No-doc business loans are in high demand because they don’t require as much paperwork as a traditional loan. Of course, some paperwork is still required but it’s typically far less extensive than with standard business loans. In most cases, alternative documents can be used to support a loan application. For instance, bank statements can be used to show proof of income rather than work payslips. With a standard loan, this wouldn’t be sufficient for most lenders.
So, what options do you have when searching for no-doc business loans?
A Short-Term No-Doc Business Loan
Like a low doc loan, a short-term no-doc business loan can be an excellent option to consider. A short-term business loan is a loan that can range from a few months to a few years. You’ll often find these short-term loans are unsecured which means you don’t have to put forward any collateral. You will, however, need to show proof in the form of monthly business revenue.
Fortunately, if you have a fairly good credit score, you shouldn’t have too much trouble.
A No-Doc Business Line of Credit
Every business falls back on lines of credit as cash flow can become an issue. Fortunately, you can look to a no-doc business line of credit. It is a flexible finance option that lets you withdraw money when you need to. For example, you have a credit limit of $12,500. You withdraw $2,000, so you’ll only pay back (with interest) that amount. An unsecured line of credit will require fewer documents but a secured line of credit may increase your limit. Like low doc loans, the no-doc loan must work for your business.
The Advantages of a No-Doc Business Loan
A no-doc business loan can be a great choice to consider, especially when your borrowing options are limited. For example, the application process tends to be quicker with a no-doc loan than with a traditional loan. It’s a huge advantage as it means you get quick access to funds. Another advantage of a no-do business loan is that most lenders would likely accept your application, even with poor credit. Not many traditional lenders would do so.
Extensive Documentation Is Not Required
No-doc business loans are unique in a sense because you would not be required to show extensive documentation during the application process. For example, you would need to show proof of business income and some recent tax returns (along with a few other documents). Of course, lending criteria differ for each lender but typically the process is pretty straightforward. It’s similar to the low doc loan process too.
Do What’s Right for Your Business
A line of credit is a lifeline for businesses around the world, regardless of size or industry. Loans are typically a necessity as they give you a viable way to finance your business throughout the year. A no-doc business loan does require paperwork to verify income but alternative paperwork is often allowed by lenders. Why not find out more at www.lowdocloansco.com.au?