Your small business has limited or no financial history, and you find yourself needing a business loan. With no tax returns on-hand and limited paperwork, what are your options?

As you might imagine, this is a very common question for entrepreneurs and new small business owners. The good news is that there are options.

Here, we’ll walk you through no-doc business loans, as well as some other alternative options that don’t require tax returns, and what you do need to qualify for them.

First off, can I get a business loan without tax returns?

Yes, you can. Many lenders offer business loans without requiring tax returns, typically referred to as no-doc business loans or low-doc business loans (meaning no or low documentation).

Traditional banks often require extensive documentation and financial history. Online and alternative lenders are making it easier to secure funding with minimal paperwork.

If you’re looking for a no-doc business loan, you’re probably in one of the following categories:

  • Startup without tax history
  • Small business owner with no/fluctuating income
  • Entrepreneur prioritizing fast access to funds (regardless of tax history)

What are no-doc business loans?

A no-doc business loan is a type of financing that doesn’t require traditional financial statements like tax returns, profit and loss statements, or detailed revenue reports.

Instead, lenders evaluate eligibility with more day-to-day items, like bank statements, credit scores, merchant transactions, and invoices (both incoming and outgoing).

How do no-doc loans work?

Unlike traditional business loans, no-doc loans prioritize speed and accessibility. They’re typically offered by online or alternative lenders, and less so from traditional banks.

Instead of tax returns, lenders assess:

  • Business bank statements (typically 3–12 months)
  • Personal or business credit score
  • Merchant processing statements (for businesses with credit card sales)
  • Outstanding invoices (for invoice financing options)

As is the case for any alternative or fast loan options, no-doc business loans typically come with higher interest rates, lower funding amounts, and less favorable repayment terms. 

Personal and business credit scores, the steadiness of your business (revenue and spending), and collateral will typically be the biggest determinants of the terms you qualify for.

No-doc business loan options

As discussed above, no-doc loan options don’t require the same level of paperwork as traditional loans.

Most no-doc lenders still require business bank statements, credit scores, outstanding invoices, and proof of ownership (business info like EIN, entity type) and a voided check.

No-doc loans do not require:

  • Tax returns
  • (Some) Financial statements
  • Business plans
  • Personal collateral

1. Revenue-based financing (Business cash advance / Merchant cash advance)

Outside of specific no-doc loans, you still have a selection of options that won’t require a tax return. A business cash advance, for example, is an advance based on the future sales of your business.

How does it work?

A lender provides a lump sum upfront. For business cash advances, daily or weekly repayments are determined based on your cash flow. With MCAs, repayment is based on a percentage of your daily credit card transactions. Because repayment is based on sales, it’s a good option for business with strong, steady revenue.

Best For Documentation Required
Businesses with high credit card sales (e.g. restaurants, retail)

Entrepreneurs who need fast access to cash

Companies with service-based or seasonal pay out gaps (e.g. construction companies with lags between jobs and payment)

Fleet/ equipment operators with high upfront costs		 Credit card processing statements (last 3-6 months)

Business bank statements

Valid business license

Want to learn more? Read about your options for revenue-based financing.

When you shouldn’t use a business cash advance:

  1. If you have tight profit margins. Repayments come daily/weekly, which can drain cash fast.
  2. If you don’t have a good understanding of factor rates (you might think it’s a 15% loan, but it’s really 40%+ APR in disguise).
  3. If you’re looking for long-term growth capital. Cash advances are for short-term growth, not strategic scaling.

2. Business lines of credit

A business line of credit works like a personal credit card, allowing small businesses to draw funds as needed up to a set limit. Unlike traditional loans, a line of credit is not delivered as a lump sum, but can be accessed as needed at any time (so long as the amount stays within the credit limit).

A business line of credit serves as a great safety net for different types of small businesses.

Best For Documentation Required
Businesses with inconsistent revenue or payment schedules

Seasonal e-commerce and retail

Inventory-heavy businesses
 Bank statements (last 3-12 months)

Business revenue records

Personal or business credit score

When you shouldn’t use a business line of credit:

  1. If your startup is brand new. Lenders typically want 6–12+ months in business.
  2. If you need a lump sum of cash upfront.
  3. If you need money yesterday. LOC approvals can take a few days (unless you work with an established small business loan marketplace or FinTech).

3. Invoice financing & factoring

Invoice factoring allows businesses to get an advance on unpaid invoices.

Lenders front a percentage of the invoice amount, giving small businesses access to immediate capital, instead of having to wait for customers to pay in-full. Repayment happens when the customer pays their invoice.

Best For Documentation Required
Businesses with outstanding invoices

Businesses that need immediate cash flow

Businesses in industries with long payment cycles or slow paying clients		 Outstanding invoices

Business bank statements

Proof of ownership and operation (EIN, licenses, etc.)

When you shouldn’t use invoice factoring:

  1. If you don’t have invoices to factor (i.e. consumer retail, restaurants, etc.)
  2. If you have low-margin invoices. Factoring fees can eat into profits.
  3. If you don’t want clients to know you’re factoring (some lenders notify your customers during the process).

4. Short-term business loans

Short-term small business loans give you access to a lump sum upfront, with fixed repayment over a short period (usually 3 to 24 months, though sometimes up to 36).

Payments are daily, weekly, or monthly, depending on your terms. Like no-doc business loans, short-term loans require little documentation, but come with higher interest rates compared to traditional loans.

Best For Documentation Required
Growing businesses with near-term ROI

Businesses with minor credit issues

Businesses needing fast cash for emergencies or growth

Business owners who have been previously denied by banks		 Business bank statements (last 3-6 months)

Business credit score

Proof of revenue

When you shouldn’t look for a short-term business loan:

  1. If you have tight cash flow. Daily or weekly repayments can get rough fast
  2. If you’re looking for long-term, low-cost funding. You’ll get a better deal with SBA or term loans.
  3. If you don’t have revenue. You likely won’t qualify.

Feature comparison of small business loans that don't require tax returns

Feature No-Doc Loan BCA/ MCA Line of Credit Invoice Factoring Short-Term Loan
Speed ✅ Same day to 72 hours ✅ Same day to 48 hours ⚠️ 2-5 days ✅ 24-48 hours ✅ 1-3 days
Docs Required ✅ None or bank statements only ✅ Minimal (bank statements only) ⚠️ Moderate (Bank statements, ID, sometimes P&L statements) ⚠️ Moderate (Invoices, basic business information) ⚠️ Moderate (Bank statements, ID)
Cost ⚠️ Moderate to High ❌ Very High ✅ Low to Moderate ⚠️ Moderate (varies, typically between 1-5% per invoice) ⚠️ Moderate to high APR
Repayment Style ✅ Fixed daily/ weekly ❌ Daily percentage of revenue ✅ Flexible as needed ✅ No repayments ✅ Fixed daily/ weekly
Credit Requirements ✅ Credit often not required ✅ Low or no personal credit OK ⚠️ 600+ preferred ✅ Based on customer credit ⚠️ 580+
Best Use Case Fast cash with little paperwork Emergency cash flow Managing cash flow, a buffer Waiting on slow-paying invoices Growth projects, inventory

Qualifying for a no-doc business loan

Even without tax returns, lenders still need to evaluate the financial health of your business. So, even if you’re looking for a no-doc or low-doc business loan option, you should still be prepared with:

  • A Strong Credit Score: No-doc lenders often rely heavily on personal or business credit scores.
  • Bank Statements: Demonstrating steady cash flow helps prove repayment ability.
  • Proof of Revenue: Alternative documentation, like merchant account statements or invoices, can replace tax returns.‍
  • Collateral (Optional): Some lenders offer secured no-doc loans if you can provide business assets as collateral, which will help you qualify for more favorable terms.

Explore your options

Not having tax returns shouldn’t stop you from securing the funding your business needs. By exploring alternative financing options like no-doc loans, BCAs, and short-term loans, you can find something that works for you, and works for you now.

If you’re ready to explore your options, Lendio can connect you with lenders offering business loans without tax returns. Get started today!

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Disclaimer:The information provided is for general informational purposes only and should not be construed as financial, tax, or legal advice. Lendio is not a financial institution, lender, or tax advisory firm, and we do not provide tax preparation or professional financial guidance.Our products may help individuals and businesses access financing solutions that can assist with tax-related obligations; however, it is the responsibility of each individual or business to consult with a qualified tax professional or financial advisor to assess their specific tax liabilities and financial needs.Lendio makes no representations, warranties, or guarantees regarding eligibility for financing, tax benefits, or compliance with any tax laws. Loan approvals and terms are subject to lender qualifications, underwriting, and applicable laws. Always seek independent advice before making financial or tax-related decisions.California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans are made through Lendio Partners, LLC, a wholly-owned subsidiary of Lendio, Inc. and a licensed finance lender/broker, California Finance Lenders License No. 60DBO-44694.