Best Business Loans Without Tax Returns

If your business has no tax returns (because it is new, you fell behind, or what you filed does not reflect your real sales), the options that work best are the ones that review your business bank statements and deposits instead of your returns: revenue-based financing, merchant cash advances, equipment financing and invoice factoring. Merchant Fund Express, our recommended funder, tops the list because it looks at sales and deposits, not just credit. Banks and SBA loans almost always want returns, but they usually cost less if you can wait and file.

Below you will find the ranked list, who each option fits best, a comparison table, the documents you can use in place of a return, and the mistakes that cause the most declines.

The best options without tax returns, ranked

How we chose. We do not use ratings or scores. We compare every option on the same criteria: speed, minimum time in business, minimum credit, whether it accepts ITIN or no-SSN owners, required documents, amounts and collateral. We only publish facts about other companies that we verified on their official site; if we could not confirm it, it is not here. Read how we rank business funding options.

1. Merchant Fund Express (recommended funder). This is the option we recommend when your business sells every month but your tax paperwork is not ready. Its review centers on your sales and deposits, not just your score: amounts from $5,000 to $5,000,000, credit from FICO 500, and decisions that often come back in 2 to 4 hours. Collateral is not required in most cases, and applying is free with no impact to your credit. Ask which documents they need for your specific situation.
2. Revenue-based financing or merchant cash advance. You repay with a percentage of future sales or with fixed daily or weekly payments. It is fast and built on your bank statements, but it usually costs more than a bank loan. Use it for something that brings in revenue soon, not to cover months of losses.
3. Equipment financing. If you need a van, an oven or a lift, the equipment itself backs the deal. Many equipment funders weigh the value of the equipment and your deposits more heavily than your returns, though they often ask for returns on large amounts.
4. Invoice factoring. You sell unpaid invoices for cash today. What matters most is that your customer pays reliably, not your tax history. It works for contractors, carriers and suppliers who get paid in 30, 60 or 90 days.
5. SBA microloan through a microlender. The SBA Microloan program goes up to $50,000 and is run by community nonprofits. Each microlender sets its own requirements, and some work with new businesses that have not filed their first return yet if you bring a plan and financial statements. It is slower, but it usually costs less.
6. Bank loan or SBA 7(a), after you file. This is the cheapest long-term route for owners who qualify. You will almost always be asked for business and personal returns. If you are a couple of months away from getting current, waiting is often worth it.

Side-by-side comparison

No row is a promise of approval. Every funder makes its own decision, and the table above shows general criteria so you know which door to knock on first.

What to bring if you have no tax returns

Missing returns does not leave you empty-handed. Funders want proof that the business exists, sells and can repay. Get these ready:

• Business bank statements for the last 3 to 6 months, complete PDFs downloaded from your bank, not screenshots.
• Processor reports from Square, Clover, Stripe or whoever runs your card sales, showing monthly volume.
• Internal financials: a year-to-date profit and loss statement, even one built in QuickBooks or by your bookkeeper.
• Business identity documents: EIN, LLC or DBA registration, and county or state licenses.
• Invoices and contracts if you bill other companies, for factoring or to show booked work.
• Proof you are catching up: if you have already hired a preparer or filed an extension, say so. It shows you are organized.

Transfers between your own accounts, personal loans and money from family usually do not count as sales. Our guide to approval by bank deposits vs. credit score explains how funders read your statements.

Why lenders ask for returns, and when catching up is worth it

Banks and SBA lenders use returns to measure the real profit of the business and your ability to repay over several years. Without them, the answer is usually no, even with good credit. Revenue-based funders look at your last few months of deposits instead. Their review is faster, but the money usually costs more and is repaid over a shorter term.

Use this decision rule:

• If you need the money in days for something that produces sales soon (seasonal inventory, a new contract, a repair that has you shut down), a deposit-based option makes sense.
• If you can wait a month or two and want a larger amount over several years, get your returns filed and apply to a bank or for an SBA loan. If you qualify, an SBA loan usually costs less.
• If you reported much less income than you deposit, talk to your accountant first. That gap shows up in any serious review and can cause bigger problems than a decline.

Through your online account at IRS.gov you can pull transcripts of past returns, and businesses can request a business transcript. Many funders ask for permission to verify transcripts directly, so what you hand over must match what the IRS has. More detail in business funding with no tax returns.

Common situations: which option fits yours

New business, less than a year old

Your first business return may not be due yet. Show your months of deposits, your registration and a simple plan. If sales already land in a business account, a deposit-based option or a microloan can work. If there are no sales yet, no revenue-based option has anything to measure.

You are one or two years behind

This is more common than you think, especially after a rough year. Find a trusted preparer, file what is missing, and in the meantime use a deposit-based option only if the need is urgent and productive.

You are a sole proprietor

Your business income goes on your personal return (Schedule C). If you did not file it, the effect is the same as having no business return. Running all sales through a dedicated business account helps a lot, because your deposits become your track record.

You take a lot of cash

Cash you never deposit does not exist to any funder. Deposit your full sales regularly for several months before you apply, and keep your point-of-sale reports.

Mistakes that trigger declines (and how to avoid them)

• Inventing or editing documents. A return you never filed or an altered bank statement gets caught, and it can close doors with many funders at once.
• Mixing personal and business accounts. If sales land in your personal account next to your paycheck and household bills, nobody can measure the business.
• Applying in ten places on the same day. A burst of applications can trigger credit inquiries and overlapping offers. Compare two or three options calmly.
• Taking the maximum you are offered. Ask for what a specific goal needs. A daily or weekly payment that is too high will choke your cash flow.
• Skipping your accountant. Before you sign, ask how the funding affects this year's taxes.
• Negative balance days. Frequent overdrafts on your statements hurt more than a missing return. If you can, wait for a couple of clean months.

How to apply, step by step

1. Define the use and the amount, for example seasonal inventory or one specific repair.
2. Download complete bank statements for the last several months.
3. Gather your ID, EIN and registration. If you do not have an EIN yet, it is free from the IRS; see our EIN guide.
4. Apply first where deposits are reviewed. You can apply with Merchant Fund Express; it is free and does not affect your credit.
5. Compare the offer with what you could get if you wait and file. Ask about total cost, payment frequency and any upfront fees.
6. Schedule your catch-up with the IRS even after you are funded. Next time you will have more options, and cheaper ones. Leer en español.