Low doc business loans were created to offer borrowers a quick and fast solution to financial problems. Unexpected expenses usually render your profit from growing and actually put you into more debt instead.
Getting access to funds that will resolve your situation without the need for financial statements, additional documents, or the perfect credit score can be difficult. Low doc business loans may not be your run-of-the-mill type of loan, but because of that they come with competitive rates and flexible terms.
Low Doc Business Loans – Easier to Get
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Online application
Applying for low doc business loans is simple because you can either fill out an online form or call the lender and talk it out over the phone. This will save you heaps of time it normally takes in going to a bank, waiting in line for hours to talk to someone who then points you to another teller and so on.
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Approved within a day
The whole application process only takes a few minutes, and you can receive your loan in 24 to 48 hours. This may be different between lenders depending on the time of day you filled out the online form. It will also take a little bit longer if you filled out the application over the weekend.
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Fewer documents
A start-up business or a freelancer won’t have all the standard papers that are usually required when applying for a business loan. Financial statements, company history or tax return papers are hard to get when you’re just starting a business for the first time. Having to prove a steady income when you’re just starting out is almost impossible to do. This is when you need to look for low doc business loans.
When Can You Apply?
#1 If you have a bad or non-existent credit history
A bad credit history will basically make you ineligible for getting a conventional loan. This scenario also rings true if you don’t have any type of credit history at all.
As long as your credit score is lower than 700, banks will be reluctant to give you a loan. A missed payment, a default or any previous financial problems will lower your score even more, limiting your chances of getting funding for your business.
#2 If the cash flow that passes through your business is limited
When you’re just getting started with your business, finding your target clients or selling your products to the right customers will take some time and effort. Meanwhile, since you’re just starting up, you won’t have a consistent cash flow you would expect if you were already up and running.
Banks will deny your application based on the fact that they can’t be sure if you’ll have the financial means to repay the loan or not. Still, low doc business loan lenders are willing to skip this impediment and give you a chance because that’s what they’re there for.
#3 If you can’t offer all the financial statements required
Let’s say you’re working on your own and when you’re starting to look for a loan, this could be the toughest thing to do. Banks will first check your work history and your past and current employers, and unfortunately, working for yourself is not usually met with kind eyes.
In addition, if you’ve worked for many different companies in the past, obtaining the multiple tax returns and income statements can be a hassle that you won’t be able to shake off.
How Much Can I Receive?
Low doc business loans can get up to $3 million, so if you’re in need of $50,000 or more, this type of loan is up for the challenge.
But beware of the possibility of a slightly larger interest rate, potential costs and extra fees that might occur with this type of loan.
Low doc business loans are the perfect solution because they’ll save your company when nobody else will!