When starting a new business, one of the biggest challenges is securing financing, especially without established revenue. Fortunately, there are banks that offer business credit and lines of credit for newly-formed LLCs, even without requiring proof of income. In this article, we will discuss three banks that offer such no-documentation (no-doc) business lines of credit and provide actionable steps to help you secure funding for your new LLC.
What is a No-Doc Business Line of Credit?
A no-doc (no documentation) business line of credit allows businesses to apply for financing without having to submit extensive financial records, such as tax returns or bank statements. These types of lines are perfect for brand-new LLCs that may not have significant revenues or established credit history yet.
Bank #1: Chase Bank
Chase offers business credit cards with limits of up to $50,000, even for newly-formed LLCs. To maximize your chances of approval and secure the highest credit limit, it is highly recommended that you follow these steps:
Open a Business Checking Account: Before applying for a Chase business credit card, open a business checking account. This helps establish a banking relationship, and it is a step that many applicants overlook.
Apply In-Person: Applicants who apply in person at a Chase branch tend to get better approval outcomes than those who apply online. One client who applied in person received two business credit cards for a total of $100,000 in credit for a new LLC, compared to another client who applied online and received just $36,000.
Key Data Points: Banks typically lend 10-15% of a business's stated sales in a no-doc scenario. For example, if your business has $500,000 in revenue, Chase might offer between $50,000 and $75,000 in credit. The Chase business credit card pulls credit information from Experian, so improving your score with Experian is essential for approval.
Bank #2: Truist Bank
Truist Bank also offers no-doc business lines of credit with attractive terms for new LLCs. Here are some key features of their offerings:
No-Doc Line of Credit Up to $50,000: For businesses that have been around for more than two years, Truist offers a no-doc line of credit up to $50,000. For new LLCs or businesses under two years old, they offer a line of credit up to $25,000.
Credit Cards: Truist provides business credit cards with limits up to $50,000 for both new and established businesses. Truist pulls credit reports from Equifax, so ensuring a good business credit score through Equifax is critical before applying.
Bank #3: KeyBank
KeyBank offers both business credit cards and lines of credit, with a unique advantage:
Soft Pull for Approvals: KeyBank provides business credit cards and lines of credit up to $50,000 with only a soft credit pull, meaning your personal credit score won't be affected by a hard inquiry.
Build Relationships: Establishing a relationship with the local business lending manager or vice president of lending at KeyBank can significantly improve your chances of approval.
Quick Tips to Improve Your Business Credit Score
To increase your chances of securing high-limit business credit, you can take the following actions:
Monitor Personal Credit Utilization: Ensure that your credit utilization is below 25%. This is a key factor in approval decisions. A personal credit utilization chart can help you keep track of your balances relative to your credit limits.
Use the Authorized User Technique: Add trusted family members or colleagues as authorized users on your credit cards. This can help them build their credit profiles and, in turn, improve your business credit application results.
Boost Business Credit: Open a Nav Prime account, which offers two trade lines that will report to your business credit profile, helping to boost your business credit score before you apply for loans.
Finding Local Banks for Business Credit
In addition to large national banks, many regional and local banks offer no-doc business lines of credit. These local financial institutions often provide more flexible terms and easier approval processes. Here are two ways to find such banks:
Backyard Banking: As you drive around your community, keep an eye out for local credit unions and community banks. Contact them directly to inquire about their small business lending options.
SBA Lending Tool: The Small Business Administration (SBA) has a tool that ranks banks based on how much they lend to small businesses. Using this database can help you find banks in your area that are most likely to offer no-doc business credit for new LLCs.
Final Remarks
If you're starting a new LLC and need business credit, there are several options available, even if your business doesn't yet have a track record of revenue. By carefully selecting the right bank, opening business checking accounts, and boosting both your personal and business credit scores, you can improve your chances of approval and secure the funds you need to grow your business.
Whether you choose to work with Chase, Truist, or KeyBank, the most important thing is to be proactive and strategic about building relationships with lenders and improving your credit profile. No-doc business lines of credit are an excellent tool for new LLCs, and with the right approach, you can unlock significant funding to help your business thrive.
Additional Resources
For readers looking to dive deeper into securing no-doc lines of credit for their business, here are two highly recommended resources that can help you take the next steps:
Discover the #1 Technique For Getting No-Doc Lines of Credit Unlock proven strategies that have helped countless entrepreneurs secure no-doc business lines of credit, even for brand-new LLCs. This resource offers practical advice and step-by-step guidance to get access to funding without needing to show proof of income or financials. 👉 Click here to learn more.
How To Get Business Credit Quickly Without Having To Show Any Financials If you’re in a rush to get funding and want to avoid the hassle of submitting financial statements, this workshop reveals how to fast-track your application process and get approved for business credit with minimal documentation. It's designed specifically for entrepreneurs looking to grow their businesses fast. 👉 Find out how you can get quick business credit here.
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