Can You Get Business Loans Without Bank Statements?

Lending expert talking to client about business loans without bank statements

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Key Takeaway Table

Key PointDescription
Can you get business loans without bank statements?Yes, you can. Some loans require extensive documentation for loan approval, but some require much less. If you don’t have suitable bank statements or other financial documents, you can still get a loan approved by some lenders.
Why documentation is required for some loansSeeking documentation is a lender’s way to ensure that the borrower has the capability to pay back their loan. They’re looking for evidence of regular income, and they’re checking your general spending conduct.
Full doc vs. low doc vs. no doc loansull doc loans are more suited to established businesses. These loans require extensive documentation, like bank statements, tax returns, and more. Meanwhile, low doc and no doc loans are more suited for startups or businesses that have been through a challenging time. These loans require less or no documentation and instead rely on security and guarantees to secure the loan.
Benefits of low and no doc loansThe application process is quicker and simpler since you don’t need to produce many documents. Since there’s no need for documents, startups and those with unconventional income streams can successfully get approved.
Types of no-doc business loansIf you don’t have bank statements, you can apply for bank lending, equipment finance, and invoice finance using your financials, and you can access private lending.

Loans can help start, maintain, and expand businesses. However, not all business owners have the documents needed to get approved. Is it possible to get business loans without docs like bank statements? Yes, it is. It’s possible to get loans with little or no documentation. If you don’t have suitable docs, you can still secure the funds you need for your business.

Why Documentation is Required for Some Loans

Documentation is a lender’s way to ensure that a borrower can repay their loans. Lenders look at documents like bank statements, proof of income, tax returns, business plans, and other financial statements to assess if a borrower can make repayments. 

However, documentation is not the only way a lender can assess a borrower’s capability to service a loan. Some lenders offer loans that require low or no docs. Instead, they require property security or a guarantee from the business and its director.

Full Doc vs. Low Doc vs. No Doc Business Loans

Many lenders offer full doc, low doc, and no doc loans. These loans are beneficial to different types of businesses and their circumstances. Here are some of their key differences:

Full Doc Business Loans Low Doc Business Loans No Doc Business Loans
Extensive documentation, including financial statements, tax returns, bank statements, and other proof of income and assets.
Limited documentation compared to full doc loans. Typically requires income declaration, may include business activity statements, and others.
Minimal to no documentation required. Lenders may ask for evidence of property ownership and proof you’re up to date with any current loans.
Suited for well-established businesses with a stable financial history.
Suited for businesses with irregular income or those who aren’t up to date with their current tax return.
Geared towards startups, businesses with limited financial history, or those with difficulty providing documentation.
Typically involves a thorough approval process, which may take longer.
Non-bank loan applications are typically faster than bank applications.
Quick approval process due to minimal documentation requirements.
Generally lower interest rates since full doc loans are considered lower risk by lenders.
Interest rates may be higher than full doc loans due to the less detailed credit assessment.
Higher interest rates due to increased risk for the lender.
Loan amounts are typically higher, and loan terms are longer.
Loan-to-value ratios (LVRs) may be lower, loan amounts and terms are normally not restricted compared to full doc loans.
LVRs offered are lower, and terms are usually short, like 6 months to 3 years.

Benefits of Low Doc and No Doc Loans

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Simple Application Process

The process is more streamlined since you don't need to prepare and compile financial documents.

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Faster Approval

Lenders can approve loans quickly because they don't need to verify and assess documents.

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Accessibility

Low and no doc loans are accessible to businesses that struggle to meet the document requirements of full-doc traditional loans.

Business Loans You Can Get Without Bank Statements

Property Loans

Some lenders offer low or no documentation property loans. You can get first or second mortgages without business bank account statements. 

Invoice Financing

If you have already provided products and services to a client but have yet to receive payment, you can go for invoice financing. There’s no need for bank statements as it’s not part of the lenders’ assessment criteria.  Lenders will seek financials, aged payables and receivables, and an understanding of your tax position. Some lenders will assess your application with a link to your accounting software.

Equipment Financing

Equipment financing is a type of loan that is used to purchase equipment for your business. The equipment itself serves as security, so you can get approved with low-doc applications or full-doc applications that rely on financials and not bank statements.

Get Business Loans With Low or No Docs

Need a business loan but missing a few requirements? You can still get the right loan without bank statements or other financial documents. Get approved within the same day, and get the funds you need to make your business grow. Contact us to find out more.

More To Explore

Learn more about business financing!

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