No Documentation, Low Documentation Loans

You might think that major tech titans and monopoly corporations would generate the vast majority of our country’s GDP, but surprisingly, small businesses have produced around 43-50% of GDP in the U.S. since the late 1990s.

Most of those small businesses have been under increased economic pressure and stress over the past several years, and the latest uncertainty over tariffs has only made the situation even more complex.

Businesses that are struggling to secure funding to meet their goals might turn to major lenders, but they’ll need to provide substantial documentation and evidence to get a loan.

Typically, a traditional lender will ask a business to provide substantial evidence in the form of bank account statements, profit and loss statements, proof of cash flow, and more to help them judge your ability to repay a potential loan. Alternative lenders, on the other hand, can use other factors to make the decision to approve your loan. These factors could include potential collateral, proof of incoming invoices, or proof of weekly payments or high interest payments received by your business.

Virtually any business loan you seek out will require some form of paperwork, but there are options that are suited for businesses with low documentation. These loans are called “no-doc” loans and require very minimal evidence to apply for the loan. In most cases, the lender only requires bank statements or minimal evidence to apply.

That said, these minimal documentation loans do generally cost more in the long run, since the interest rates will be higher and the repayment terms will be shorter than a traditional business loan.

Unsecured short-term business loans won’t require any physical collateral. They’ll only ask for minimal documentation that proves who you are, what your business is, and demonstrates your ability to pay. These loans are best for businesses that are confident in their ability to pay back the loan quickly, since the high interest rates will make it difficult to pay off over a longer period of time.

Another option is to consider using a business line of credit. Lines of credit usually offer flexible funding without the extensive documentation traditional loans require.

Online alternative lenders can also offer an option for businesses that need low-doc, no-doc business funding.

Do Low or No-Doc Home Loans Exist?

Another situation where you’ll need documentation to obtain a loan is when you’re seeking out a home loan. Traditional lenders are going to want to see substantial evidence that you’ll be able to provide hefty, stable payments on your mortgage for years to come.

Here at Non-QM Home Loans, we offer no-documentation mortgages where you can produce proof of your ability to pay that isn’t reliant on past W2s, tax returns, or multiple years of consistent paychecks. If you’re self-employed, operating a new business, or utilizing investment income, then it can be difficult to get approved for a traditional loan.

Connect with our agents now by calling our team at (800) 413-0240 or by using our interactive menu to determine your options.