A poor credit score doesn’t necessarily disqualify you from securing business financing. While many traditional lenders rely heavily on credit scores, you can still qualify for loans and other funding options that don’t check your personal or business credit, including invoice factoring, ACH lending, and business lines of credit. Whether you’re trying to improve your credit or avoid unnecessary dings on your credit report, these alternatives are worth exploring.
Depending on your situation and requirements, some of these alternatives may require a credit check, while others will waive it or do a soft inquiry, which won’t affect your credit. These products tend to be expensive, however, so be sure to compare fees and rates before applying.
Some of the best small business loans with no credit check are offered by alternative and online lenders. These companies are willing to take more risks, and you can often find better terms than you’ll get with a traditional bank loan. These lenders can offer fast financing and flexible repayment plans, but you should expect to pay higher interest rates and fees.
If you have a rocky credit history, it’s important to work on improving your score before seeking a new loan or line of credit. You can also consider other financing options that don’t rely on credit, such as crowdfunding or venture capital. While these aren’t the only ways to secure funding for your business, they can help you get started.
Traditional banks typically only lend to established businesses, as they want to reduce their risk of default. This makes it more difficult for younger or startup businesses to meet their lending standards. Alternative and online lenders, such as Fundbox, Kabbage, and LoanBuilder, are more flexible when it comes to loan eligibility. You can often find a lender that matches your specific needs, but you should be prepared to provide detailed financial documents as part of the application process.
Some online lenders, such as Lendio and National Business Capital, will do a credit check on your personal or business credit before making a loan. Both of these lenders offer a variety of loan products, but both are best for small business owners who need fast approval and minimal documentation. Both lenders are more likely to approve borrowers with good credit ratings, so you should aim for a high credit score if you’re interested in these providers.
Other alternative online lenders like BlueVine Capital, a company that offers both invoice factoring and term loans, will do a credit check on your business credit. Unlike other lenders on this list, you can apply with BlueVine without having to supply bank statements, tax returns, balance sheets, or other documentation. BlueVine also has an easy-to-use online portal that works with popular accounting software, such as QuickBooks and FreshBooks.
In addition to checking your business credit, these lenders will look at your sales volume and other factors when determining your loan eligibility. Some lenders will also look at your business’s current cash flow, a key indicator of your ability to repay the loan. small business loans with no credit check