Today, more financial institutions are offering Non-Conforming loan options as a result of a slowing traditional mortgage market. Non-Conforming loans are also available to growing number of small business owners whose record keeping may present a documentation problem.

A Non-Conforming loan is made when the borrower does not meet conventional loan eligibility requirements. For example, a growing form of non-conforming loan is the "Low-Doc" loan, which allows the borrower to simply state their income without providing tax returns or other supporting evidence. This option has grown in part to service the business growth needs of business owners who have filed tax returns showing low or no profit but are actually doing well enough to repay a business loan or business owners who operate in a largely cash business.

This loan type may also work well for:

• Entrepreneurs who have developed poor credit histories (in the process of self-funding their business) but can now support a business loan; and
• Small business persons who have kept incomplete records of their business activities.

Non-Conforming loans have a higher interest rate because they are riskier for the lending institution to undertake. Often, the lender will require some form of collateral in order to reduce the lending risk.

However, now that banks and other lending institutions have begun to compete in the Non-Conforming loan market there are very competitive rates available. If you are a business owner who fits the profile for a Non-Conforming loan, recognize that your business is valuable and seek out a variety of offers for funding by using a broker to help make your selection.