Can you get a no credit check business loan?
Apply for business funding options from OnDeck with just a soft credit check — no hard inquiries.
Can I get a business loan without a credit check?
Getting a small business loan without a credit inquiry is rare. Most business lenders will perform some type of credit check when evaluating a small business owner’s creditworthiness. Depending on the lender and your business, the lender may check your personal credit score, your business credit score or both. They do this to help determine things like approval, interest rate and loan amount.
However, it is possible to find lenders who put less of an emphasis on your credit score. Certain lenders will perform a soft credit pull, and focus more on other factors such as time in business and annual revenue to determine approval for business funding.
OnDeck offers business financing with no hard credit checks.
OnDeck Line of Credit
A revolving credit line you can draw from 24/7 to receive funds within seconds.*
- Credit limits from $6K - $100K
- Flexible repayment terms of 12, 18 or 24 months
- Great for ongoing cash flow needs
OnDeck Term Loan
A one-time lump sum of cash with an eventual option to apply for more.
- Loan amounts from $5K - $250K
- Repayment terms up to 24 months
- Great for one-time investments in your business
Are we a match? Check our minimum requirements.**
1 Year
in business
625
personal FICO® score
$100K
business annual revenue
Business
checking account
Types of no credit check business loans.
There are a few business financing options available that either don’t require a credit check or may have lower credit requirements. Here are a few of the more common funding options available to entrepreneurs.
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Invoice factoring.
Invoice factoring is a funding option that allows you to sell your unpaid invoices for a percentage of their value. This allows you to access the funds you’re owed now, instead of waiting for the invoices to be paid. Most invoice factoring companies don’t check your credit score. This is because it isn’t really a type of business loan. Instead, you’re selling the future revenue from your accounts receivable in exchange for money in your bank account now.
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Merchant cash advance.
Also called a payment processing loan, merchant cash advances are similar to invoice factoring. With a merchant cash advance, you’ll receive a lump sum of money upfront in exchange for a portion of your future credit card sales. There’s no set repayment schedule since it’s based on a percentage of your sales.
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Equipment financing.
Equipment financing allows a business to purchase the hardware it needs to operate — whether its heavy machinery or the latest technology. In many cases, the equipment itself may be used as collateral for the loan. This means that the lender may put less of an emphasis on things like a credit check — though a personal guarantee may be required.
Pros and cons of business loans with no credit check.
Pros
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More access to credit. No credit check business loans may help borrowers who have a poor or limited credit history. It can make it easier for them to secure funding.
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Credit building opportunities. If the lender reports to the business credit bureaus, these types of loans can help you build or rebuild your business credit history with consistent on-time payments.
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Fast application and approval. Many no credit check business loans are offered by online lenders. Unlike traditional lenders, these financial institutions often have easy online loan application processes and can get you the funds you need fast.
Cons
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High interest rates. Borrowers with low credit scores will often face higher interest rates. This can increase the overall cost of borrowing and put additional financial strain on your business.
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Lenders may not report to the credit bureaus. Some lenders don’t report to the business credit bureaus. This means that even good repayment habits won’t appear on your business credit report and won’t help you build your business credit history. Be sure to research your lenders before making a decision.
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May require collateral. Some bad credit business loans with no credit check may require collateral as a condition for approval. This means you’ll have to offer a valuable asset that the lender can seize and sell if you fail to repay the loan according to the loan agreement. Others, however, do not require collateral.
Alternatives to no credit check business loans.
If you have less-than-perfect credit, a no credit check loan is one potential way to secure business funding. But there are other alternatives to consider too. While these financing options are not technically loans, they can help you secure the working capital you need.
Additionally, if your business financing needs aren’t urgent, you may want to consider waiting to apply for financing until your credit score has improved. A good credit score can make it easier to secure funding with more favorable terms and lower interest rates.
Small Business Grants
Small business grants are typically given by the government to qualifying small businesses or nonprofits. Grants provide a sum of money to a business and do not have to be repaid. Because they are essentially free money, small business grants can be difficult to obtain.
Crowdfunding
Crowdfunding is another way of raising money for your business. It can be a good way for new businesses to acquire startup capital. It involves soliciting smaller amounts of money from a group of supporters on an online platform. This could be in exchange for some type of early access or a premium membership.
Friends and Family
If you’re in need of extra funds for your business, turning to friends and family can be an alternative to borrowing. Your support system will often give you better terms and may be more flexible with how you repay. You can offer to make them a partner in the business in exchange for their help. Also, be sure to outline a clear repayment plan to avoid putting strain on your relationship.
No Credit Check Business Loans FAQs
Yes, it is possible to get approved for a business loan with less-than-perfect personal credit. However, it may be difficult. Many lenders will check the personal credit of the business owner, especially if the business lacks credit history. Your personal credit score can affect your business’s ability to access capital, including things like loan approvals, terms, interest rates and the need for collateral or a personal guarantee.
If your business has a good credit score and substantial credit history, it could help you secure funding without the need to rely too heavily on your personal score. Other options include offering collateral to secure the loan, considering a bad credit business loan, or looking into cash flow-based lending.
To get a business loan with no credit, consider financing types that lend to startups and new businesses. Some options include microloans, peer-to-peer lending and crowdfunding platforms. You should be aware that many lenders have minimum requirements for the number of years that a business is operational, making it challenging for new businesses. Additionally, until you’re in business, you won’t have an opportunity to build business credit. This can make it difficult to get approved for a loan.
Keep in mind, there are steps you can take to improve your likelihood of securing a loan. You can prepare a solid business plan that outlines your goals and demonstrate how the funding will help you reach them. You can also look for alternative lenders who may have more flexible requirements. Some of these lenders focus on the overall potential of your business rather than just your credit history.
Most Small Business Administration (SBA) loans require a personal and business credit check. Your credit is a reflection of your financial history, showcasing your ability to manage debt and your business or personal finances.
Alternative lenders, such as online lenders, may have less strict requirements than traditional lenders offering SBA loans. They may look at other factors to gain insight into the financial health of your business. Building a good business credit score can also help, as it takes some of the weight off your personal credit score.
Some lenders may offer loans using only an Employer Identification Number (EIN), which can be a big help to business owners who don’t want to rely on their personal credit score. However, these may be difficult to find as most small business lenders will require a personal credit check. Keep in mind that the lender may put less of an emphasis on your personal credit if your business demonstrates a good credit history.
The eligibility requirements for business financing vary from lender to lender. When applying for a traditional business loan through a bank or credit union, there may be stringent requirements you need to meet. Online lenders that offer short-term loans for business and business lines of credit may have less strict requirements.
A business credit score is a measure of the financial health and creditworthiness of your business. Lenders, suppliers, and even potential investors use this score to assess the risk of doing business with you. A strong credit score can open doors to better financing terms, such as lower interest rates, larger credit limits, and improved payment terms.
Building a strong business credit history isn’t complicated. You’ll first want to make sure your business is established as a legal entity and obtain an EIN. You can then open up tradelines with vendors or apply for financing from a lender who reports to the business credit bureaus. Once you’ve established your business’s credit profile, you can focus on building a strong credit history. Be sure to make on-time payments, and if you use a line of credit or business credit card, keep an eye on your credit utilization ratio. You should also be aware that things like your business’s size, age and industry can affect your score as these factors often influence risk.
A microloan is a loan option that offers businesses funding in smaller amounts, typically under $50,000. They can be a good option for borrowers with a limited credit history. Because they don’t offer as much funding as a traditional loan, they are often easier to qualify for. Microloans are offered by many alternative lenders. Keep in mind that while they may have more lenient credit score requirements, there will still likely be a required minimum credit score.