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No Credit Check Loans for Business
One of the most critical steps in building a successful business is successfully financing it. However, the sad fact is that about 30 percent of Americans have average or poor credit. Moreover, even more entrepreneurs and small businesses lack the credit history to qualify for the credit they need from traditional lenders.
However, if you’ve got bad credit or no credit and you’re stressed out about qualifying for a loan, you do not have to panic. There are many loan programs you can qualify for without any credit check at all. Let’s take a look at some of the best small business loans with no credit check that you may be eligible for right now.
Helpful Business Links
Divvy Business Credit Card: Fast and flexible business credit when you need it.
Divvy Business Credit Builder: A program to help businesses build their credit.
Swipesum: Find the cheapest credit card processing solution that is best for your business.
Toptal: Hire ex-Google, Apple, and SpaceX freelancers online.
99designs: Create graphic design contests with top talent from around the world.
Carbon Easy: Grow your business by carbon offsetting with Paying Green®.
No Credit Check Loans for Business
If you are thinking “can I get a business loan with poor credit?”, then you have come to the right place. Below we list some of the most popular no credit check startup business loans available.
How to get a small business loan with no credit:
Needing fast and flexible business funding? Check out Divvy.
PayPal Merchant Capital Loans
If your business already uses PayPal for sales and paying expenses, then you should definitely consider PayPal working capital loans as your lending source.
PayPal allows eligible businesses to take out loans totaling up to $120,000 to finance key business expenses, such as your accounts payable or your payroll for salaried employees. PayPal receives repayment on the loan by deducting a percentage of your future sales revenue that is paid through their service.
There is no credit check for these loans, either. The catch here is that you have to have a PayPal Business or Premier account that has been activated for at least three months, and you must generate annual sales of over $15,000 or $20,000 annually (for the Business or Premier Account, respectively).
Lendio is an online loan aggregator that brings thousands of lenders into a marketplace where entrepreneurs and businesses can search for loans. You can obtain short-term loans, merchant cash advances, and lines of credit; you can also finance your equipment using Lendio as well.
Qualified businesses can obtain loans between $5,000 and $200,000 on the platform, and there is no credit check. Between the low barriers to credit and the lack of a credit check, this is definitely a great site to find a wide range of different lending products.
However, the various fees that lenders charge can be a bit pricy, and it often takes more time to obtain a loan on Lendio than it would if you were using a traditional lender.
A decade ago, Square was just an innovative point of sale system. Since that humble beginning, it has grown into a lending powerhouse as well.
Square currently offers its signature Flex Loan, which provides businesses funding from $500 up to $100,000. The cost of the loan can vary between 10 to 16 percent of the overall loan amount, with repayment coming from a percentage of your company’s credit card sales.
However, much like the PayPal working capital loan, you have to have a square account and use their POS system to be eligible for this service. Additionally, the loan also must be paid off within 18 months as well.
OnDeck Capital is another place to shop for no credit check business loans. Founded in 2007, this seasoned online platform offers lines of credit up to $100,000 and short-term loans to businesses as high as $500,000 to qualified borrowers.
OnDeck’s web platform is simple to use, and it is easier to qualify for OnDeck Capital loan products than many other lending platforms. Additionally, small businesses can receive those loans much faster, too; funds are often deposited into a business account within a day or two.
However, relative to many other lending sources, OnDeck can be a bit on the expensive side.
Another business loan you can get with no credit check is through the invoice factoring program at Bluevine. With invoice factoring, a company essentially sells its invoices or accounts receivable, to a third party at a discount.
This allows the company to turn those unpaid invoices into working capital to fund its essential business activities. Businesses can receive up to a whopping $5 million through Bluevine’s programs, with relatively competitive rates, too.
The platform does run a soft credit check during a borrower’s application process, but this soft credit pull doesn’t affect your overall credit score. However, the repayment time horizon is relatively short, and these loans are not available in every state.
Fundbox is a financial service provider that provides business lines of credit to industries in need of funds to bridge cash flow gaps. They provide quick access to cash because once approved for a loan, you will receive your funds the next business day. They also provide flexible repayment terms, such as not charging a fee if a loan is paid in full on time.
Aside from all of the advantages this lender offers, it also provides invoice financing with no hard credit check until you know your credit limit and fees. Fundbox is one of the few alternative lending companies that provide favorable loan terms while not conducting hard credit checks.
Although Fundbox does not conduct credit checks, it does have terms that must be met before it will help you finance your business. One of them is that you must provide two months of invoicing history as well as proof of annual revenue of $100,000 or more.
Their terms include invoice collateral ranging from $1,000 to $100,000, depending on the amount borrowed. The rates start at 4.66 percent, with a typical value of 10.1 percent, but they can go as high as 79.8 percent – clearly higher than what other lenders and traditional banking institutions offer. Yet still on the negative side, its line of credit is repaid in 12 or 24 equal weekly installments, with fees determined by Fundbox and depending on your business.
In general, Funbox is a good financing option for business owners with bad credit since borrowers can use their invoices as collateral. However, the fees and terms of the offered line of credit are uncomfortably high.
First American Merchant (Merchant Cash Advance)
First American Merchant’s merchant cash advance financing option is an alternative way to obtain funding for your business. The advantage of this option is that you will not be required to use your credit scores to obtain financing. However, First American Merchant offers two financing options: one that requires a credit check and one that does not, so, confirm with them before signing up for financing.
First American Merchant, like other lenders that offer no credit check loans, has some terms that must be met before financing is offered. One of the most notable is that the company does not provide financing for businesses that do not have an existing advance. Furthermore, the amount a borrower can obtain is limited, and this must be understood before the application process begins. Amounts of 1.5 times the monthly volume can be obtained based on the business’s three-month statements.
Eligibility for the credit isn’t all that easy. Businesses that want to be approved for a loan must have been in operation for at least six months. Furthermore, these businesses must have at least $10,000 in gross monthly deposits as well as three instances of insufficient funds on the company account each month.
Aside from the business, the applicant, who could be the owner of the business, would be investigated. In order to be eligible for financing, the applicant must be free of any criminal charges and meet a number of other requirements.
The rates and fees are uncomfortably high given the lender’s stringent requirements for borrowers. The factor rates on advances, which typically range between 6% and 50%, make this financing option prohibitively expensive for the majority of first-time borrowers, especially given that it can balloon to a colossal repayment amount if the borrowed amount is large. If you choose the no-credit-check option, you will most likely receive a 45 percent advance.
The repayment terms for the Merchant Cash Advance financing option offered by First American Merchant are also unfavorable. They offer a short-term lending option with an expiration period of three to six months. The amount to be repaid on a weekly or daily basis is determined by the nature of the business, the amount borrowed, and other factors.
In general, the Merchant Cash Advance financing option through the First American Merchant, like the previous financing option, has terms that aren’t comfortable for no credit check loans.
Parting Thoughts: You Can Skip the Credit Check
Don’t let poor or bad credit hold your company back. If traditional banks won’t open their doors to you, the innovative lenders discussed here offer loan products that do not require a hard credit check, so you may be able to find the working capital you need to build a successful company. So, do a little bit of research, and find a business loan with no credit check that is a good fit for you.
Thanks for reading: No credit check loans for business.
You may also be interested in Clearco Business Loans.