While most lenders have specific annual income requirements, there are ways you can get a business loan even if your business doesn't have any money. In fact, some lenders offer borrowers undocumented business loans. With this type of loan, you are not expected to present proof of business income. When applying for a business loan without documentation, lenders often require only basic information, such as identification documents and proof of income or income. Applicants can also sign an asset security agreement that allows the lender to use a guarantee as security for the repayment of the loan if the borrower defaults on their payments.
This reduces the risk of lending money, allowing lenders to offer undocumented loans at lower interest rates. Some commercial lenders offer loans to borrowers with no income. It is possible that the money earned with these loans can be used to finance your startup. However, these types of loans are always more expensive than government plans, and the lender will usually require collateral (such as your home) to cover the value of the loan in case of default.
Some lenders have few documents, rather than no documents. They require you to submit an online application and PDF files with some key documents. You may also need to give them access to specific business accounts for verification. You may only need to fill out paper forms or fax documents to your lender if you are approved for a loan without proof of income or bank statement.
This doesn't mean that you won't be filling out any paperwork. Take, for example, a traditional commercial bank loan, which can be expensive and involve a relatively slow administration process. Unsecured loans for startups carry greater risk for the lender because new businesses tend to be inherently volatile, with no years of successful business history to demonstrate the success of the loans. An unsecured business loan provides a flexible source of funding for businesses that lack assets or don't want to secure them with a loan. Even if you were turned down elsewhere, you may still be able to get funding for your new business.
Create a free account to grow your business with personalized information and explore small business products. Yes, you'll need a personal credit score at least when you apply for a business loan, even if your company doesn't have an attributed credit score. If you have just created a limited liability company and want to apply for financing, you will need to have an excellent personal credit rating, an impressive business plan and extensive guarantees to be able to apply for a business loan for the first time from a bank. New businesses or aspiring business owners may find this barrier to approval frustrating, but there are still funding options available for cash-strapped businesses.
Whether you're taking the first steps or if you've been operating for a while and want to grow, a startup loan can help you achieve your business goals. Unsecured business loans offer greater flexibility for small and growing businesses that want to access finance without offering an asset, such as property or collateral, as security for the loan. Some lenders will specify that you can't use a personal loan for business purposes, such as setting up a new company. Undocumented business loans may be an ideal solution for some borrowers because they offer fast processing times and lower qualification requirements.
They are suitable for all types of publicly traded companies or in the private sector and have been introduced to help limited liability companies grow. We work to streamline this process, helping you do the hard work for you and find the best loan product for your company. If you're looking for funding for startups, you'll need to find lenders that specialize in working with startups and businesses that don't open their doors, since most undocumented loan providers require at least three months of business experience to meet the requirements. Government-backed startup loans can be used to start a new business or to grow an existing business that has been operating for less than 36 months.
