Business besties, let’s talk pros & cons 👏🏾💯 comment FUNDING below for the invite to my Free Business Plans & Funding class this Thursday!
“No Doc” loans are just another way to categorize business loans and products that require less collateral and personal credit history than other traditional products!
In EVERY loan you apply for you’ll have to give some form of documentation lol! Don’t believe every reel on IG. Now with “no doc” you may not need to give two years of tax returns, collateral and have the best personal credit so that makes them more accessible than other products.
Here’s some pros:
- faster processing especially if you need cash now
- not heavily based on credit more focus on business income and sales in the last few months
- shorter payment periods which may be beneficial depending on your needs
Now let’s talk about the CONS because I need y’all to understand allll aspects!
- HIGHHHH interest rates!
- the shorter payment periods mean your loan payment is high! (For reference, I got a “No Doc” loan in 2021 for $250k and my payments were $10ka month. Now I could afford that but not every business can.)
- limited access to capital especially if you need more than $100k
Now depending on your needs a No Doc loan could be the way to go but your other options are:
- credit Unions
-CDFIs
- your local Minority Business Development Agency chapter
- the SBA
- business credit cards
Make sure y’all come to my free funding class this Thursday at 7est where we will talk about this more in detail! & don’t forget to add on your prep kit! See you there 👏🏾
