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Michelle Lambright Black, Founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert and personal finance writer with nearly two decades of experience in the credit industry. She’s an expert on credit reporting, credit scoring, identity theft, and the intersection of credit and financing. You can connect with Michelle on Twitter (@MichelleLBlack) and Instagram (@CreditWriter).
Lindsay VanSomeren is a personal finance writer based out of Kirkland, Washington. Her work has appeared on Business Insider, Credit Karma, LendingTree, and more.
Michelle Lambright Black, Founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert and personal finance writer with nearly two decades of experience in the credit industry. She’s an expert on credit reporting, credit scoring, identity theft, and the intersection of credit and financing. You can connect with Michelle on Twitter (@MichelleLBlack) and Instagram (@CreditWriter).
Lindsay VanSomeren is a personal finance writer based out of Kirkland, Washington. Her work has appeared on Business Insider, Credit Karma, LendingTree, and more.
Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Lead Editor, Mortgages & Loans
Reviewed
Updated: Apr 23, 2024, 7:38pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Securing financing for your business can be a struggle, especially if you have limited credit. Small business owners with poor personal credit may be left wondering whether it’s possible to get a business loan with no credit check.
While most business loans require credit checks, there are some lenders that don’t review your personal or business credit reports. Compare the best business loans with no credit check below.
Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the loans methodology for the ratings below.
16 lenders researched
16 data points evaluated
5 cateogires scored
FEATURED PARTNER OFFER
OnDeck
4.8
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
We picked OnDeck for its variety of business lending products and same-day funding. OnDeck offers a term loan from $5,000 to $250,000 with repayments terms of up to 24 months. You can also access a credit limit of $6,000 to $100,000 through its line of credit with a 12-month repayment term that resets after each withdrawal.
Pros & Cons
Term loans from $5,000 to $250,000
Lines of credit from $6,000 to $100,000
Same-day funding
Low minimum credit score requirement
$100,000 minimum annual revenue requirement
Must have been operating for at least one year
Does not lend to businesses in North Dakota
Details
Eligibility
Minimum credit score: 625
Time in business: One year
Minimum revenue: $100,000 per year
Turnaround time
You can apply and receive a decision from OnDeck on the same day.
Best Business Loans With No Credit Check of April 2024
BEST FOR INVOICE FACTORING
FundThrough
4.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
From participating partners via businessloans.com’s website.
$500 to $10 million
Fees start at 2.75%
None
Editor’s Take
We picked FundThrough because it offers invoice factoring without a credit check. Loans can extend up to $10 million, and the lender offers funding speeds that reportedly are 97% faster than other invoice factoring companies. Factoring rates range from 2.5% to 5%, and there are no additional financing fees. That said, borrowers may encounter additional fees for early invoice payments and same-day funding.
Pros & Cons
Funding speeds 97% faster than competitors
Offers next-day funding
No financing fees
Fees apply for early invoice payments
Invoices must be less than 90 days old to qualify
Same-day funding requires an additional fee
Lender Details
Eligibility
FundThrough reviews the applicant’s business bank account and accounting software to evaluate cash flow instead of requiring a credit check. This information also informs the funding limit a borrower qualifies for. Invoices must be less than 90 days old to be eligible.
Turnaround time
FundThrough offers next-day funding. However, borrowers can pay an additional fee for same-day funding.
BEST FOR SQUARE SELLERS
Square Loans
4.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
From participating partners via businessloans.com’s website.
$300 to $250,000
None; charges one-time fixed fee
None
Editor’s Take
We picked Square Loans because it offers $300 to $250,000 exclusively to eligible Square sellers. While you must be an eligible seller, the application process is simple, and lending decisions require no credit check.
There are no interest rates, but borrowers are charged a fixed fee based on the loan amount. That said, Square Loans doesn’t publish its fees online. Loans are repaid out of the business’s daily sales; the balance must be repaid within 18 months of disbursement.
Pros & Cons
Personal guarantee not required
No late fees or other additional fees
Application process is reportedly streamlined
Maximum borrowing amounts are low
Does not publish fixed fees
Daily payments reduce ongoing cash flow
Lender Details
Eligibility
Businesses must have processed at least $10,000 with Square over the last year to be eligible. Eligibility is also based on other business factors, including the company’s account history, payment processing volume and payment frequency.
Turnaround time
Square Loans offers funding as soon as the next business day.
BEST FOR PAYPAL USERS
PayPal Working Capital Loan
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
From participating partners via businessloans.com’s website.
$1,000 to $200,000
None; charges one-time fixed fee
None
Editor’s Take
We picked PayPal Working Capital Business Loans because they’re exclusively available to eligible PayPal users, which streamlines the online application and approval process. Loan amounts go up to $150,000 for first-time borrowers and from $1,000 to $200,000 for subsequent loans.
Pros & Cons
Single fixed fee determined by several factors
Automatic repayments based on daily sales
No payment due on days without sales
Borrowers must use PayPal to accept customer payments
Does not disclose fees online
Repayment begins 72 hours after funding
Lender Details
Eligibility
Applicants must have a PayPal business or premier account for at least 90 days. The business must process at least $20,000 in annual PayPal sales with a premier account or $15,000 with a business account. Any existing PayPal Working Capital loans must be paid off.
Turnaround time
PayPal reports that its working capital loans are funded within minutes of approval.
BEST FOR CROWDFUNDING
Kiva
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
From participating partners via businessloans.com’s website.
Up to $15,000
0%
None
Editor’s Take
We picked Kiva because it’s a microlender that offers a unique crowdfunding platform for a wide variety of prospective borrowers. It uses your personal network and its own network of 1.6 million investor-lenders to crowdfund loans up to $15,000 with repayment terms as long as 36 months.
Pros & Cons
No minimum credit score requirement
Does not require cash flow documents
Requires no collateral
Maximum loan amounts of $15,000
All loans are crowdfunded
Long funding times
Lender Details
Eligibility
Because Kiva uses a crowdfunding method, it’s able to offer less stringent qualification requirements. Although Kiva loans don’t require a minimum credit score, cash flow documents or collateral, borrowers are vetted or endorsed by either a local Field Partner, Trustee or members of the community.
Turnaround time
After you submit your application, a Kiva representative will get back to you within 10 to 15 business days. Kiva suggests that “submitting a great photo and business story will help your application make it through the review process more quickly.”
Once you’re approved for fundraising, you have 15 days to raise funds from your own network, and then 30 days to publicly fundraise with Kiva’s network of lenders.
Summary: Best No Credit Check Business Loans of 2024
Pay attention to a lender’s eligibility criteria. Knowing each lender’s requirements is essential when you’re making a list of potential business loans for your company. You’ll want to avoid loans that feature a minimum credit score requirement if you’re hoping to secure financing without a credit check.
Make note of all costs. It’s important to tally up the cost of interest, origination fees and any other fees that you might have to pay when you take out a business loan. Because no-credit-check loan options tend to be more expensive, calculating the cost of financing upfront is essential. You should understand both your monthly payment and the overall loan cost when deciding whether a business loan is right for you.
Get preapproved. Some lenders allow you to prequalify for a business loan—often with only a soft credit inquiry that won’t hurt your credit score. If a lender you’re interested in has a preapproval process, you can enter some basic business information to get a loan and interest rate estimate if you’re eligible for financing.
Methodology
We reviewed lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders that require no credit checks based on the weighting assigned to each category:
Loan cost: 35%
Loan details: 25%
Customer experience: 20%
Eligibility and accessibility: 10%
Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
A business loan with no credit check comes from a lender who doesn’t check your credit report—either your personal credit, your business credit, or both. Finding a lender that doesn’t consider your credit can be tough, but it is possible.
To find one of these loans, you may need to spend more time researching lenders and your loan options. Lenders that offer alternative funding options, such as merchant cash advances or invoice factoring, may be your best option for a business loan with no credit check.
Nonetheless, these alternatives can be more expensive and difficult to understand, making them risky for many business owners. If you decide to accept one of these loans, be sure to fully understand the costs associated with it.
Types of Business Loans That Don’t Require Credit Checks
If you want to avoid a credit check, you may need to look beyond standard business loans and consider alternative business financing solutions. This could include financing like:
As with any type of financing, there are benefits and drawbacks you should go over if you’re thinking about applying for a business loan with no credit check.
Pros
Cons
Potentially access business funding even with bad credit
Loans may feature higher interest rates and fees that could strain your budget
Loans you pay on time may help you build better credit (business and personal)
Not all loans have the potential to help you establish good credit
Can You Get a Business Loan With No Credit Check?
Whether you have bad credit or no credit, you might be intrigued by the idea of applying for a business loan that doesn’t require a credit check. However, trying to find a lender that offers this type of business loan can be difficult.
There are business loans for borrowers with bad credit, and perhaps some financing options with no credit check. However, it’s important to proceed with caution and check the cost of such options and the lender’s reputation.
Business lenders that don’t rely as heavily on credit for approval often charge high interest rates and excessive fees in exchange for the flexible approval criteria.
Starting a business is an exciting endeavor but can also be financially challenging, especially if you don’t have a credit history. Traditional banks may not be an option, but alternative funding sources exist. Lenders where you can get a business loan with no credit check include:
Online lenders. There are online platforms that provide accessible and relatively quick business loans without requiring a credit check. They typically have a straightforward application process and flexible terms.
Microlenders. These are nonprofit organizations offering small loans to startup businesses and entrepreneurs. They generally have more lenient credit requirements and offer business planning and training support.
Crowdfunding platforms. Crowdfunding platforms are online fundraising sites where you can raise money for your business from a large number of people, often in exchange for rewards or equity.
Merchant cash advance companies. These firms provide a lump sum of cash in exchange for a portion of future sales. They typically don’t require a credit check, making them an option for businesses with poor or no credit.
How To Get a Business Loan With No Credit Check
It can be difficult to get a business loan without a credit check, but there are ways to receive one. Consider these methods to get funding without a credit check:
Alternative financing options
Your current bank may offer financing with no credit check
A payment processor that offers business loans based on sales history
Crowdfunding or other non-debt fundraising
Personal savings or a loan from family and friends
Alternatives to No-credit-check Business Loans
If you can’t qualify for a traditional business loan due to your credit and you don’t want to pursue no-credit-check options, consider alternative solutions.
Friends and Family
Some small business owners borrow money from loved ones, especially during the startup phase. However, if you have access to such an opportunity, it’s crucial to make sure that everyone understands the financial arrangements upfront.
Determine whether the funds from your loved one are a gift, investment or loan. You may also discuss what would happen if you can’t pay back a business loan as fast as anticipated. It’s better to make sure everyone is on the same page in the beginning so there are no unpleasant surprises later, possibly resulting in damaged relationships.
Crowdfunding
Crowdfunding is a popular approach to raising business funds, but also one that requires a lot of effort and sometimes a little luck to succeed. Two of the most common types of business crowdfunding campaigns are:
Rewards-based crowdfunding.This type of crowdfunding model offers incentives to individuals who donate funds toward your business’ campaign. For example, donors might receive a special product or service in exchange for their contributions.
Equity-based crowdfunding.With this crowdfunding option, you offer contributors a small piece of your business when they make an investment in your company. There are no credit checks and your business takes on no debt with this approach to raising capital.
If you want to raise money for your business through crowdfunding, you’ll need to use an online platform to manage the process. With equity crowdfunding, the funding portal you use must be a registered broker-dealer with the U.S. Securities and Exchange Commission (SEC). You should also expect to pay fees to the crowdfunding platform you use. These fees will come out of any contributions or investments that your company receives.
Small Business Grants
A small business grant is a type of business funding that requires no credit check or repayment. You may be able to find and apply for grants issued by the federal government, state and local governments, corporations and other organizations.
Of course, this attractive business funding solution tends to come with a lot of competition. You’ll need to find a way to stand out from other applicants if you hope to win grant funds to support your business goals.
Frequently Asked Questions (FAQs)
Do SBA loans require a credit check?
U.S Small Business Administration (SBA) loans can be an attractive and affordable source of business capital. However, the qualification standards for SBA loans can be strict, including the minimum credit criteria.
Some SBA lenders may require a minimum FICO score of 680 and a minimum FICO Small Business Scoring Service (SBSS) score of 160 to qualify for certain SBA loans. FICO SBSS scores are based on a hybrid of information found on your personal and business credit reports.
Do business loans require credit checks?
Most lenders perform a credit check when you apply for a business loan. In some cases, the credit check process might include a review of both personal and business credit reports and scores. Some lenders, like those on our list, require no credit checks.
Reviewing credit information helps lenders predict the risk that an applicant will default on a credit obligation in the near future, such as the next 24 months. If your credit risk is high, the lender might deny your application or charge you a higher interest rate to offset the added possibility of repayment problems.
Can I get a business loan with a 500 credit score?
Obtaining a business loan with a 500 credit score is possible, but it might limit your options. Online lenders, microlenders and merchant cash advance companies often have more relaxed credit requirements than traditional financial institutions. However, these loans may come with higher interest rates or strict terms.
Can I get a business loan without using my credit score?
If you want business financing that doesn’t require a personal credit check, you’ll need to search for business loans that do not require a personal guarantee. This can be a challenge since many lenders view small businesses as an extension of their owners.
You may also need to build good business credit to qualify for certain loan options without using your personal credit score.
Are no credit check loans a bad idea?
No credit check loans can be a bad idea, but it depends on the lender and the terms and conditions of the loan. Before accepting a loan, be sure to fully understand how the loan will be repaid and any costs associated with it. No credit check loans are often very costly and may be limited to smaller amounts of funding.
Do no credit check loans affect your credit score?
Your credit score won’t be affected when you apply for a business loan if the lender doesn’t perform a hard credit inquiry. However, if you default on that loan, a lender or a debt collector can still report your late payment to the credit bureaus if you’ve signed a personal guarantee for the loan. This can cause significant damage to your credit score.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Michelle Lambright Black, Founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert and personal finance writer with nearly two decades of experience in the credit industry. She’s an expert on credit reporting, credit scoring, identity theft, and the intersection of credit and financing. You can connect with Michelle on Twitter (@MichelleLBlack) and Instagram (@CreditWriter).
Lindsay VanSomeren is a personal finance writer based out of Kirkland, Washington. Her work has appeared on Business Insider, Credit Karma, LendingTree, and more.
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