Best No Credit Check Business Loans: Getting financing for your business can be a struggle, especially if you have limited credit. Small business owners with poor personal credit may wonder if it is possible to get a business loan without a credit check.
5 Best No Credit Check Business Loans
While most business loans require credit checks, some lenders do not review your personal or business credit reports. Compare the best business loans with no credit check below.
01. FundThrough Business Loans
Best for Invoice Factoring FundThrough Rating: 4.5
- Loan Amounts: From $500 to $10 million
- APR Range: Rates start at 2.75%
- Minimum Credit Score: None
Editor’s Opinion: We chose FundThrough for its invoice factoring services because it provides funding with no credit check required. With loans extending up to $10 million and funding speeds reported to be 97% faster than competitors, it stands out in the market. Factoring rates range from 2.5% to 5%, with no extra financing charges. Note that additional fees may apply for early bill payments and same-day financing.
Pros:
- 97% faster funding speeds compared to competitors
- Next-day financing is available
- No financing fees
Cons:
- Fees for advance bill payments
- Invoices must be less than 90 days old to qualify
- Same-day financing incurs additional fee
Lender Details:
- Eligibility: Evaluates cash flow through the applicant’s business bank account and accounting software, not via a credit check. Invoices must be under 90 days old.
- Response Time: Overnight financing is available; same-day financing requires an additional fee.
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02. Square Sellers Business Loans
Best for Square Sellers Square Loans Rating: 4.5
- Loan Amounts: From $300 to $250,000
- APR Range: None; charges a single flat rate
- Minimum Credit Score: None
Editor’s Opinion: Square Loans is highlighted for offering loans exclusively to eligible Square sellers. The application process is straightforward, and no credit check is required. While the rates are not publicly available, the loans come with a flat fee based on the loan amount and are repaid through daily sales within 18 months.
Pros:
- No personal guarantee is required
- No late fees or additional fees
- Simplified application process
Cons:
- Low maximum loan amounts
- Fixed rates not published
- Daily payments affect cash flow
Lender Details:
- Eligibility: Must have processed at least $10,000 with Square in the last year. Eligibility also considers account history, payment volume, and frequency.
- Response Time: Financing is available as soon as the next business day.
03. PayPal Working Capital Loan
Best for PayPal Users PayPal Working Capital Loan Rating: 3.5
- Loan Amounts: From $1,000 to $200,000
- APR Range: None; charges a single flat rate
- Minimum Credit Score: None
Editor’s Opinion: PayPal Business Working Capital Loans are tailored for eligible PayPal users, making the online application and approval process efficient. First-time borrowers can receive up to $150,000, while subsequent loans range from $1,000 to $200,000. Loans are repaid based on daily sales, and rates are not disclosed online.
Pros:
- Single fixed rate determined by various factors
- Automatic refunds tied to daily sales
- No payment on days without sales
Cons:
- Must use PayPal for customer payments
- Rates are not disclosed online
- Refunds begin 72 hours post-funding
Lender Details:
- Eligibility: Must have a PayPal business or premier account for at least 90 days. Minimum annual PayPal sales of $20,000 with a premier account or $15,000 with a business account required. Existing loans must be paid off.
- Response Time: Funds were reported to be available within minutes of approval.
04. Kiva Business Loans
Best for Crowdfunding Kiva Rating: 3.5
- Loan Amounts: Up to $15,000
- APR Range: 0%
- Minimum Credit Score: None
Editor’s Opinion: Kiva stands out as a microlender with a unique crowdfunding platform. It leverages a network of 1.6 million investor-lenders to offer loans up to $15,000, with repayment terms extending up to 36 months.
Pros:
- No minimum credit score required
- No cash flow documents needed
- No collateral required
Cons:
- The maximum loan amount is $15,000
- Funded via crowdfunding
- Extended financing terms
Lender Details:
- Eligibility: Uses crowdfunding, with less stringent requirements. Borrowers are vetted by local partners or community members.
- Response Time: After submitting your request, a representative will contact you within 10 to 15 business days. Once approved, you have 15 days to raise funds from your network and 30 days for public fundraising.
Read More: Top 06 Best Business Lines Of Credit
05. On Deck Business Loans
On Deck Loan Amounts: From $5,000 to $250,000 APR Range: Varies depending on the loan Minimum Credit Score: 625
Details:
- Eligibility: Minimum credit score of 625, one year in business, and a minimum income of $100,000 per year.
- Response Time: Apply and receive a decision the same day.
Tips for Comparing Business Loans with No Credit Check
1. Understand Eligibility Criteria
- Check Requirements: Focus on lenders that do not require a minimum credit score.
- Evaluate Suitability: Match your business profile with lenders’ requirements to streamline the application process.
2. Calculate All Costs
- Interest and Fees: Consider interest rates, origination fees, and other charges.
- Total Loan Cost: Assess the monthly payments and total repayment amount to ensure affordability.
3. Pre-Approval Options
- Soft Credit Inquiry: Look for lenders that offer pre-approval with a soft credit check, which won’t affect your credit score.
- Estimate Loan Terms: Use pre-approval to get an idea of potential loan amounts and interest rates.
What Are No Credit Check Business Loans?
- Definition: Loans where lenders do not check your personal or business credit report.
- Alternative Financing: These loans often come with higher costs and stricter terms. Common types include merchant cash advances and invoice factoring.
Types of Business Loans Without Credit Checks
- Invoice Factoring
- Equipment Loans
- Merchant Cash Advances
- Business Loans for Payment Processors
Pros and Cons of No Credit Check Business Loans
Advantages
- Access to Financing: Available even with bad credit.
- Credit Building: Timely repayments can help improve credit scores.
Disadvantages
- High Costs: Often come with higher interest rates and fees.
- Credit Impact: Not all loans contribute positively to credit history.
How to Obtain a Business Loan Without a Credit Check
- Research Lenders:
- Online Lenders: Offer fast, flexible options without credit checks.
- Microlenders: Nonprofits with flexible requirements.
- Crowdfunding: Raise funds from many small investors.
- Merchant Cash Advance: Get a lump sum in exchange for a portion of future sales.
- Consider Alternative Financing Options:
- Current Bank: Some banks offer no credit check options based on your banking history.
- Payment Processors: Companies like PayPal and Square offer loans based on sales history.
- Crowdfunding: Raise funds through equity or rewards-based campaigns.
- Personal Savings or Loans: Borrow from friends or family.
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Alternatives to Business Loans Without Credit Checks
Friends and Family
- Clear Agreements: Ensure all parties understand the terms to avoid future conflicts.
Fundraising
- Crowdfunding: Use platforms to raise funds either through rewards or equity-based campaigns.
- Platform Fees: Be aware of commissions charged by crowdfunding platforms.
Small Business Grants
- No Repayment Required: Grants from government or private organizations.
- Highly Competitive: Requires a strong application to stand out.
When seeking a no-credit-check business loan, it’s crucial to understand the eligibility criteria, calculate all associated costs, and explore pre-approval options. Alternative financing methods like crowdfunding, merchant cash advances, and small business grants can also be viable solutions. Always proceed with caution, ensuring that you fully understand the terms and costs involved.
