How to Get a Stated Income Business Line of Credit

Business Guides

Jacques Famy Jr
Review By Todd Millman

A stated income business line of credit is a form of REDUCED documentation loans (not a NO Documentation Line of Credit). Unlike a term loan that provides a lump sum upfront, a line of credit is more flexible in that you have a pool of funds that you can draw on it as you need up to a credit limit. This stated income business lines usually has a principal and interest rate and you are only responsible for paying interest on the current balance once payments are due. Rates and costs due vary depending on credit and qualifications.

How Does Stated Income Business Lines of Credit Work?

What’s different about stated income business credit line is that income is not verified and merely stated. Supporting documentation does not include financial statements and/or documents that relate to income such as tax returns, profit & loss or other certain supporting documentation related to income that are normally required for a traditional business line of credit are not required.

Business bank statements will be required. A stated income business line of credit is a fantastic option for aspiring entrepreneurs looking for cash flow.

Stated Income Business Lines of Credit with No Income Verification Qualifications

Minimum qualifications typically are:

  • Minimum 6 months in business (No Startup Businesses)
  • Credit Approval: Business Owner Personal Credit score above 500 to extend credit
  • $200,000 in annual revenue
  • Most Business types/Industries accepted
  • Business Bank Statements
  • Merchant processing statements (if applicable)
  • No personal collateral required

What is Needed to Apply for a Stated Income Business Line of Credit?

There are only a few documents you may need to apply and be qualified for a stated income business line of credit. These include but are not limited to*:

  • 1 Page Loan Application
  • Business Bank Statements
  • Merchant Processing Statements (if applicable)
  • No Financial Documentation related to income like tax returns or profit & loss statements are required

Stated Income Business Lines of Credit Product Overview

  • Interest Rates: Interest rates or Factor rates (vary depending on credit, time in business)
  • Repayment Terms: Repayment period (6 to 12 months)
  • Fees: Origination Fees 0% to 3%
  • Payments: Monthly, Bi-Weekly, Weekly
  • Credit Profile: Poor to Excellent personal credit accepted
  • Time in Business: Minimum 6 months in business
  • Documentation: Application, 3 months business bank statements. No income verification doc required
  • Processing Time: Fast Funding: Same Day to 48 hour
  • Income Verification: No profit & loss required

Does Personal Credit Matter?

The fact that you are not proving profit/loss with a tax return and just stating your income means that lenders will rely more on your personal credit. Better you credit the greater the likely hood of approval and better terms.

Why Stated Income Business Lines of Credit Are Popular With Small Businesses?

The stated income business line of credit is most popular among startups and small businesses due to following reasons:

  • Instant access to money on demand
  • Provides Emergency Cash Flow
  • No Income documentation required

Most Common Uses of Stated Income Business Lines of Credit

  • Working Capital
  • Cash Flow
  • Purchase Equipment
  • Capital for Expansion
  • Employee Recruitment/Employment Resources
  • Advertising/Customer Acquisition
  • Last Minute Emergencies

The Pros and Cons of Stated Income Business Credit Lines for Small Businesses


  • No Income Documentation (stated income, no adjusted gross income formulas, no tax returns)
  • Most Industries acceptable
  • Lower personal and business credit score standards
  • Lower revenue requirements
  • No assets required
  • No personal collateral required from Business Owner
  • Flexibility for owners desiring a credit line for business to access funds on demand


  • Costs -The costs are more than traditional business financing to cover the additional risk that is involved with the lack of income verification.
  • Rates – The rates will be impacted by the lack of income proof

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4 Alternative Business Financing Options for Small Business Owners

1. Short Term Small Business Loans

Short term business loans are a great alternative when you need money fast and business line of credit is not an option. Terms range from 6 to 24 months and usually no tax return required up to $150,000.

Product Overview

  • Actual loan Amount: $10,000 up to $500,000
  • Rate:  1.11% up to 1.48% of funded amount
  • Terms: 6 to 24 months
  • Payments: Monthly, Bi-Weekly, Weekly and in cases of low daily balance in bank account a Monday-Friday payment.
  • Credit Score: All credit considered
  • Financial Documents: Business Bank Statements. No Financial Documentation related to income like tax returns or profit & loss statements are required

2. Business Cash Advance

Business Cash Advances, also known as a Future Sales Agreement, advances future sales to a business in return for a higher payback. This cost is called a factor rate and not a interest rate because it is a flat cost of money and not simple interest.

Repayment is made with a set percentage of future sales by a fixed ACH either weekly or daily Monday through Friday. Reconciliation can occur once a month to balance amount collected verse total sales against the set monthly percentage. If payments are over set percentage than a refund of difference will be issued upon request.

Payback is flexible based on fluctuating future revenue. This is not a business loan, but an advance off of future sales.

Product Overview

  • Rate:  1.13% up to 1.48%
  • Terms: Length of time of repayment depends on set percentage of future sales and future sales
  • Payment: Bi-Weekly, Weekly or daily Monday-Friday Fixed ACH
  • Credit Standards:  All credit considered.
  • Financial Documents: 1-page application, Business Bank Statements

3.Merchant Cash Advance

A Merchant Cash Advance, also known as a Future Receivables Agreement, is similar to a BCA’s, but the only difference is the repayment method.

Merchant cash advance takes a fixed percentage of future credit card processing at batch of credit cards. This means repayment is attached to the flow of future sales and not a fixed payment.

Working capital is the most popular use of money for this product.

Product Overview

  • Rate:  1.13% up to 1.48%
  • Terms: Flexible, based on future sales
  • Payment:  Set percentage of credit card processing batch
  • Credit Standards: All credit considered
  • Financial Documents: 1-page application, Business Bank Statements, Merchant Processing Statements. No tax return required in most cases.

4. Invoice Financing

Invoice financing companies offer an advance at time of issuance of an invoice for a small fee to the issuer. This accelerates cash flow for the issuer by not having to wait for the invoice to be paid by the client.

Product Overview

  • Rate: No interest rate. Flat fee product
  • Terms: Based on invoice terms
  • Fees: Fees start at 1% of invoice, up to 4% fee based on invoice financing agreement. Service fees also apply.
  • Credit Standards: No credit required from issuer. Credit of client is evaluated.

Facts about Applying For a Stated Income Business Line of Credit

Fact #1: Stated income means you don't have to prove profit or loss with a tax return. It does not mean you don't need to supply business bank statements

Fact #2: There is no such thing as a NO documentation loan or line of credit.

Fact #3: You must supply at least 3 to 4 most recent business bank statements to get business financing

Don't be fooled by those who claim otherwise...

Whether its a stated income business line of credit or any other types of business loans, always check your quotes and offers. Read disclosures and agreements for terms and conditions before making decisions.

Choose AdvancePoint Capital for your Stated Income Business line of credit needs

  • Experience– We have experience with many different industries
  • Trust– Excellent reviews and feedback
  • Loan Specialists – We are experienced business funding specialists
  • Free to Get a Quote - No commitment or upfront fees
  • Products– Our marketplace includes a variety of products including business loans, lines of credit, SBA loans, equipment financing and other alternative funding options

Let’s get started and grow your business now with a stated income business line of credit!

The fast, convenient, and straightforward way for entrepreneurs raise capital and get the money you need to grow your business – now and have success! Get your Quote Today.

Jacques Famy Jr
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Jacques Famy Jr

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