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Even if you have a weak or spotty credit history, you may be able to get a business loan without a credit check. Most lenders will check your credit score as part of the application process, but some will waive this requirement, while others will only perform soft inquiries that won't affect your credit score.
We start with a quick survey to better understand your business's unique needs.
Once we have found your personalized match, our team will be happy to discuss the further process.
Best business loans without credit check
Here are some loan options to consider.
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You must have had a PayPal Premier or Business account for at least 90 days.
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Amounts ranging from $1,000 to $250,000, depending on borrowing history and account type.
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Fixed price.
This no credit check business loan offers flexible payments and funds arrive in minutes. Instead of a traditional annual percentage rate (APR), you pay a fixed fee based on the loan amount, the repayment percentage you choose, and your business's PayPal account history. Similar to cash advances from general merchants, a portion of the proceeds will be used to automatically repay loans and fees.
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Loan amounts range from $300 to $250,000.
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There is no personal guarantee, and applying for one will not affect your personal credit.
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Fixed price.
Square also evaluates applications based on factors such as payment frequency, customer mix, and payment disputes. Automatically repay your loan with a percentage of your daily credit card sales through Square. The fixed fees you pay vary depending on the size of your loan and processing volume.
Once approved, you should receive your funds within 1-3 business days. If you have a Square checking account, you can receive your funds instantly.
Perfect for invoice factoring
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Fees range from 2.75% to 8.25% depending on net terms.
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You must have at least $100,000 in unpaid invoices as accounts receivable or invoices to one customer.
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Financing available as early as the next day.
If your credit history is spotty and your capital is tied up in unpaid bills, FundThrough may be able to provide you with the financing you need. FundThrough offers invoice factoring for B2B companies that have unpaid invoices within 90 days of issuance.
FundThrough advances business funds and collects payments from customers in exchange for fees that vary depending on the net terms of the invoice. FundThrough does not require a credit check. Instead, we evaluate applications based on invoice amounts, banking history, and tax history.
Perfect for startups.
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Advance up to 90% of unpaid invoices up to $10 million.
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Factoring rates start from 0.5%.
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A personal guarantee is mandatory for owners of 10% or more of the business.
Unlike most factoring companies, AltLINE is its own bank, so it can lend directly to your business instead of acting as an intermediary. This also allows us to offer lower prices and faster financing.
Advantages and disadvantages of business loans without examination
Making on-time payments can help build your business and personal credit history.
Possibility of obtaining financing even with bad credit.
If you repay the loan on time, it may be easier to borrow in the future.
No credit check business loans often have high interest rates, which can outweigh the benefits of the loan.
Not all financial institutions report on-time payments to the credit bureaus. In other words, getting a loan doesn't necessarily help you build credit.
Types of business loans that do not require an examination
In general, there are several types of business loans that do not require a credit check.
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invoice factoring This is a small business financing method where unpaid invoices from customers are sold to a factoring company, which then takes over the collection of payments from the customers. Invoice factoring is not technically a loan, and approval is usually based on the customer's creditworthiness.
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payment processor loan is a type of merchant financing offered by payment processing companies, usually only to their customers. Repayments are automatically collected from these merchant accounts, and approvals are typically based on sales volume.
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Seller's cash advance (MCA) A cash advance is a cash advance that is repaid by a percentage of your daily sales, usually automatically deducted. A personal credit check is usually not required. However, MCAs are one of the most expensive forms of small business financing, often with triple-digit APRs.
Can I get a guaranteed startup business loan without a credit check?
Some financial institutions may promise you a “guaranteed” start-up business loan, but these offers should be carefully avoided. Reputable business lenders are unlikely to promise guaranteed approval, and instead will evaluate your loan application (including your credit score) before making a decision.
🤓 Otaku Tips
If you're concerned about how a hard credit inquiry will affect your credit score, remember that inquiries only stay on your credit report for a maximum of two years, and they don't have a significant impact on your score after a few months. Please know that there is no. Click here to learn more about hard credit inquiries.
Alternatives to business loans with no credit check
Small business subsidies
Business grants are available from federal and state agencies and private businesses. Generally, you don't need to have good credit to qualify for a business grant. Certain grants are available specifically for startups.
Depending on the company offering the funding, you may need to meet other criteria. For example, small business innovation and research grants from the federal government are available only to companies that conduct research and development for technological innovation or scientific research.
non-traditional lenders
570
, but on a case-by-case basis, a lower score may also work. Similarly, OnDeck is an online lender that offers term loans and lines of credit and requires a minimum credit score.
625
.
crowdfunding
Once your campaign is live, promote your business to friends, family, and anyone else who might be willing to donate to help your company. In exchange for your donation, we may offer benefits such as exclusive access to products or discounts on purchases.
friends and family
If you have individuals in your network who have the means to provide capital, you can also contact them about your financial needs. However, borrowing money from friends and family can be difficult, so you should make clear financial agreements in advance.
You must specify whether the funding is a donation, a loan, or if you are receiving funds in exchange for stock. Whichever option you choose, your contract should spell out financial provisions to avoid straining your relationships with friends and family.
FAQ
Yes, it is possible to get a business loan with a 500 credit score. However, this may result in higher fees and charges.
If you have no personal credit history but have built an established and reputable business, you may be able to obtain a line of credit through an online lender or a traditional lender such as a bank, especially if you are able to secure a line of credit. there is. If you have a deposit or other collateral.
Merchant cash advances, payment processor loans, and invoice factoring loans are examples of loans that don't require a credit check.
