Disclaimer: Information in the business line of credit articles is provided for general information only, does not constitute financial advice, and does not necessarily describe Biz2Credit commercial financing products. In fact, information in the business line of credit articles often covers financial products that Biz2Credit does not currently offer.

Article Summary:

• Finding business loans with no credit check is rare, but not impossible.
• To access these financing options, expect high rates and potential fees.
• Alternative financing options are available for businesses with low or no credit.

Whether you’ve just launched a startup or want to grow your existing business, you might need a loan to keep your business moving. But if you haven’t established any business credit or your personal credit score is on the lower end, you’ll have a difficult time getting business financing. New businesses typically don’t have the history, annual revenue, or credit to qualify for a traditional business loan. Established companies may not have a sufficient credit history and may fail to meet other underwriting criteria. If you’re in that situation, you can look into various business loans with no credit check.

5 Business Loans with No Credit Check

You can get a business loan with no credit but expect higher interest rates. Lenders want the assurance that you can pay back your loan. One way they do that is by looking at your FICO credit score and overall creditworthiness. So if you have poor credit or no credit history, you’ll have higher rates due to the added risk. Here are some no credit business loans to look into.

1. Various Online Lenders

Various online lenders offer business loans with no credit check. Some cater to freelancers and independent contractors while others focus on entrepreneurs. Typically, merchants can access term loans with shorter repayment terms and access a lump sum. While this can fill any funding gaps, you’re likely going to have high interest rates.

Depending on the lender, there may be no credit requirements at all while others may let you check your eligibility without a hard credit inquiry. To boost your chances of getting business funding with no credit check, you can get a secured business loan. The collateral used to secure the loan gives you more options as it reduces the risk for the lender.

Some lenders provide small business personal loans as well but often require a credit check. Merchants with low credit scores may have a tough time qualifying.

2. Invoice Financing

If your business relies on invoicing your customer base, your repayment terms might be Net 30 or Net 60 or longer. While you wait for your customers or clients to pay the amount due on the invoice, your cash flow can hit a slump and things might be tight.

Through invoice financing, you can use the unpaid invoices you’ve sent as collateral to access cash now. In essence, you get a cash advance from the invoice financing provider in exchange for paying several fees. Loan amounts are generally a percentage of your invoice amounts and are available relatively quickly.

If you’re looking for business funding with no credit check, this can be a solid option. Your invoices secure the loan and many lenders focus more on the customers’ credit than yours.

3. Invoice Factoring

Another option is invoice factoring, which takes your outstanding invoices and sells them to an invoice factoring company.

Similar to invoice financing, you’ll receive a percentage of the invoice amount. From there, the invoice factoring company will accept the payment from customers or clients directly. After taking a fee, the company will then send you the rest.

4. Payment Processor Loan

One of the simplest ways to access business loans with no credit check is through your payment processor. If you use a payment processor such as Stripe or PayPal, you may be eligible for a payment processor loan.

For example, the PayPal Working Capital loan has no credit check. Your eligibility depends on your account history and sales volume and you must pay a fee.

5. Microloans

Microloans can be easier to qualify for if you don’t have a good credit score. As the name suggests, these loans are a much smaller amount than other traditional bank loans. For example, microloans could be between a couple of thousand dollars up to $50,000.

The Small Business Administration (SBA) partners with various lenders to offer microloans of up to $50,000. The credit requirements for these SBA loans depend on the lending partners, so you may be able to get a business loan with no credit.

Other lenders make microloans for specific communities. For example, Grameen America offers business loans with no credit check of up to $2,500 to women entrepreneurs in underserved communities. Additionally, there are Community Development Financial Institutions (CDFI) that can provide microloans and other lending options to nonprofit entities and may have flexible credit requirements.

5 Alternatives to No Credit Business Loans

Depending on your business needs and structure, business loans with no credit check might not be a viable option. That doesn’t mean there aren’t other ways to get funds. Some alternative lenders will work with business owners with poor credit or only do a soft credit pull. Check out these five financing options to see what might be the right fit for your business.

1. Business Credit Card

Sometimes you need short-term assistance to help you get through the business day to day. A business credit card can help bridge any gaps and may help you build your business credit. If you have a business bank account, see if you qualify for a credit card with the same financial institution.

You can also look into the Nav Prime Card which has no personal credit check or personal guarantee. There’s also the BILL Divvy Card powered by Visa which only does a soft credit pull, which doesn’t impact your credit score.

2. Business Line of Credit

A business line of credit provides you with a specific amount to draw from and use. It offers flexibility as you can borrow what you need up to the limit. As you repay the business line of credit, more available credit is accessible to you. The interest you pay is on the amount you draw.

If you’re looking for a business line of credit with no credit check, it may be challenging to find. However, there may be options that work with businesses with bad credit and have a lower minimum credit score requirement.

3. Small Business Grants

Small business grants can help you get the capital you need without the burden of repayment. Since you don’t have to repay grants, they’re often competitive and have limited availability. But it’s worth a shot if you’re looking into different funding options. To look for small business grants, you can look into:

• Small business grants in your state
• gov
• Corporations
• Foundations

4. Crowdfunding

Business loans with no credit check can be tough to come by. One way to infuse your business with cash is to crowdfund through websites like Kickstarter, GoFundMe, or Fundable. This strategy is best for small business owners with an extensive network with initial support.

5. Merchant Cash Advances (MCA)

If you have bad credit and are looking for financing options, a merchant cash advance (MCA) is something to look into. Through a merchant cash advance, businesses can receive funds upfront. You repay this type of financing by committing to give the provider a portion of your future debit and credit card transactions.

Final Thoughts

If you want to get a business loan with no credit it can be difficult, to say the least. That’s why as a business owner, it’s best to improve your personal credit score and start to establish your business credit score by getting a DUNS number and having payments reported to the appropriate credit bureaus.

While you’re doing that, there are business loans with no credit check on the market. Before taking on funding, look at the APRs, the repayment terms, and weigh the pros and cons of each option. Most importantly, assess the urgency of the situation and understand how it’ll impact your bottom line today and in the future.

Frequently Asked Questions (FAQs)

What is the Application Process Like for Business Loans with No Credit Check?

If you’re looking for business loan options without a credit check, the lender may look at bank statements, your business plan, time in business, revenue, and other factors.

What Types of Business Loans Are Available with Bad Credit?

Business lenders have different requirements but can work with borrowers with bad credit. Some options include short-term loans, accounts receivable financing, and equipment financing.

How Long Does It Take To Build Business Credit On EIN?

It can take a while to build business credit, up to several years. Start by getting a business credit card and DUNS number and make on-time payments. Traditional lenders may look at both your personal and business credit if applying for a loan.

What Is The Easiest Business Credit Card To Get Approved For?

You’ll have the best shot at getting approved for a secured business credit card. Providing collateral can significantly improve your chances of approval.

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