No Doc Business Loans That Can Be Funded In 24 Hours
With the many ways by which businesses can seek funding for interim cash needs for their operations, it is sometimes difficult to know which of these would be best for your requirements. Business loans are offered by banks and traditional lending companies with programs that are best suited for your business needs and financial capability to pay.
It is important to note the differences of each of these easy business finance solutions so you can ensure that you will be benefiting more from availing it instead of the loan pulling your business operations down any deeper.
Businesses that have been in operations for at least six months to two years but are currently experiencing setbacks, especially during this time of a pandemic, may want to consider using the currently available fixed assets of the business or that of the business owner as collateral security for the business loan. At this time when most start-ups and small and medium enterprises are in a lot of financial distress, the fixed assets of the business may be your key to easing up these immediate concerns.
No doc business loans are not offered by banks because of the risks involved. Only private and specialist lenders take the risk of offering this type of business loan. Since you will not have to present the business’s financials and other documentation needed, no doc business loans are secured by tying in the business’s or the business owner’s real property against the loan. Also, the borrower will have to declare the current business income so that the specialist lenders may be able to review and do some credit assessment for the loan amount that you can avail of. Loan grants for no doc business loans are primarily based on the declared business income and the real property assets that would be tied as collateral security to the no doc business loan.
No doc business loans are specific about the type of fixed asset that may be used as collateral security for the loan. Generally, private and specialist lenders have a set of requirements as to whether they will accept the real property collateral or not. First, the property should not be located in a remote place. Second, the real property should be in good condition – subject to the terms and specifications set by the private or specialist lender. And last but not the least, the real property should be easily sellable to the market.
No doc business loans are fairly fast and easy to apply for. Private and specialist lenders have online facilities and readily available loan advisors to discuss your no doc business loan requirements. Interest rates are higher because of the higher risks involved. Terms are usually from six months to a year. It is but “normal” for private and specialist lenders to charge an application fee of 1 to 2 percent of the loan value to cover the cost of processing the application and to cover for their risk as well. If eligible and approved, you will be funded in 24 hours. Pretty quick and easy process, in general.
As with all other business loans, no doc business loans also have their disadvantages. Aside from the higher interest rates, the private and specialist lenders do have the liberty to charge enormous and exorbitant exit fees from the loan or if the no doc business loan is refinanced at any time during its term. This is so because this type of loan is not regulated by the country’s National Consumer Credit Protection Act. Ask questions to your loan advisors so they may be able to clarify provisions of the loan contract if in any case there are vague and confusing terms or fine print concerns that come with your loan application.
For all that it’s worth, no doc business loans can provide you with the interim financing that your business needs to meet its obligations to its internal and external customers. With this easy business finance option that you can get funded within just 24 hours, you will also be able to infuse additional capital if you need to expand and improve your business operations by way of new equipment or hiring new people. Your business will not miss a great opportunity to thrive and stay afloat during these uncertain times. Review the offers you get from the private lenders, check your capacity and ability to pay, and when the loan is granted, make the timely repayments. With this, your no doc business loan should be a good choice for your business needs.
