Obtaining capital in this tight money market is easier said than done these days. As more and more banks go belly up, lenders are increasingly making it more difficult to obtain capital. I will show you how it is possible, even in this market, to obtain unsecured business funds without having to show business bank statements, tax returns, balance sheets, profit and loss statements, etc. Although you won't need any financial documentation, you may need a simple business plan.

Make sure when you are working with a lender that you pay absolutely zero upfront fees or application fees. Applying for business capital should not have to cost you anything up front. Most lenders should charge their fees from the back end proceeds of the line of credit).

Keep in mind that most unsecured business loans will come with a higher price tag than one that is secured and is full doc bank statements, business tax returns, etc.). Reason is pretty simple; funding unsecured, no financial business loans poses a higher risk to the lender.

As long as the costs are reasonable and only paid when the loan actually funds or is approved, then a no documentation business loan is the way to go!

Additionally, these loans should not come with any kind of pre-payment penalty.

You should be free to pay the loan off whenever you want without having to pay any kind of penalty. If a loan has a pre-payment penalty then you should not waste your time applying and find another lender.

There are simply too many lending choices out there to get stuck with any kind of pre-payment penalty.

No documentation business loans and lines of credit rely heavily on credit, assets and years of experience. For $100,000 business lines of credit, most lender guidelines call for a minimum 680 credit score (most business lenders use the Experian credit score), 2 years in business and home ownership. Although these loans are indeed unsecured, most lender statistics favor those who own homes and will lend capital more readily if you do own a home.

Once you are approved, you will receive a book of checks. You can access funds by using these checks any time for any purpose. Best part is that you only pay interest on the outstanding balance - not the entire loan amount.

You are only required to pay monthly payments of interest and a small amount of principal helping to keep the payment affordable. Some business lines credit only require you to pay only the interest for the first three to five years. This period is known as the draw period. During this time you can access your credit line and write out checks. Once this period has passed, the loan usually converts to a 5-year to 7-year term loan, during which principal and interest payments are due.

Since this type of financing is largely credit based, the interest rates are usually very competitive. Rates are usually just a few percentage points over the WSJ Prime rate anywhere from Prime + 1% - 2.5%, making this an inexpensive way to borrow business capital.

What happens if you have less than 2 years in business and/or don't own a home? You will find a difficult time obtaining $100,000. Shoot for $15,000 - $50,000. There are many SBA (Small Business Administration) loans available for startups and require little or no assets.

A good insider trick to send several applications at the same time, this way you can be approved with multiple lenders before the loans show up on your credit report. Using this technique virtually assures you of obtaining $100,000 up to $500,000.00.