You probably don’t think about a business low doc loan when searching for an unsecured line of credit, but it’s a valuable option to consider. An unsecured no-doc business line of credit is simply a line of credit that doesn’t require any income documents to support the application. Banks and other lenders offer unsecured business lines of credit specifically for those with few income documents and self-employed individuals.
So, what fast and easy sources do you have available when searching for a no-doc unsecured business line of credit?
Understanding an Unsecured Business Line of Credit
While there are many forms of credit, they all have the same purpose – to extend money to a business. Your business has access to those funds which can be used for any business-related expense. Of course, every line of credit has a limit and should be treated as a loan. While that might sound strange, there is perfect reasoning behind it.
Any item or service paid by that line of credit must be repaid by you (to the lender) at a later date. That’s why you should approach it as a loan. A low doc loan can be a valuable line of credit for many businesses and should be greatly considered.
A No-doc Revenue-Based Business Line of Credit
This line of credit focuses on your business revenue. For instance, if you had an annual turnover of $20,000 that would be used as your credit limit. No-doc revenue-based business lines of credit are fantastic because they give you a simpler way to access funds when you need to. Like a low doc loan, no-doc lines of credit don’t require extensive income checks before approval is given.
Let’s say you need $2,500 to upgrade business equipment. You could use your no-doc revenue-based business line of credit and create a 12-month repayment schedule. You would then make the weekly or monthly repayments for the duration of the loan. It’s quite a simple process and works the same as low doc loans.
A No-doc Business Credit Card
Similar to low doc loans, a business credit card gives you access to funds. You have a specified line of credit that can be used as a cash advance or to make business purchases. Of course, like a traditional credit card, the minimum payment must be paid each month. A no-doc business credit card requires virtually zero income verification documents. Instead, you would need to sign a self-verification income form to state what you’d normally earn. Apart from this, there is very little else to worry about.
Low Doc Loans or No-documentation Line of Credit
Lines of credit come in many forms, including a no-doc or low doc loan. While you mightn’t think these are best for business purposes, they can be. There are unsecured no-doc business loans available. They are essentially another line of credit and work similarly to traditional loans. Low or no-doc loans can be a great line of credit to consider when you need substantial funds.
Get the Best Line of Credit for Your Business
Businesses need lines of credit because that is how most survive when finances are tight. It doesn’t mean the business is going bust but rather there is limited cash flow at the moment. Getting access to no-doc unsecured business lines of credit can be crucial and a lot easier than you think. You have traditional no-doc business loans, revenue-based lines of credit and no-doc credit cards to consider. Low doc loans and no-doc lines of credit can be useful for businesses across the nation.