Can you get a no credit check business loan?
OnDeck does not offer business loans without a credit check, but you can get approved with only a soft credit check.
Can I get a business loan without a credit check?
Getting a small business loan without a credit check 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 either your personal credit score or your business credit score. 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 check, and focus more on other factors such as time in business and annual revenue to determine approval for business funding.
What’s the difference between a hard credit check and a soft credit check?
Many small business lenders perform a hard credit check (also known as a hard credit inquiry or hard credit pull) when you apply for funding. Whether you’re applying for an online business loan, business credit card or business line of credit, the lender may perform a hard credit check. A hard credit check lets lenders see your credit history. These types of credit checks can appear on your credit report and may slightly lower your score. The impact is usually minor, but they can stay on your credit report for up to two years. Too many hard inquiries in a short period of time can be damaging to your credit, as they can indicate that you’re taking on too much debt too quickly.
On the other hand, a soft credit inquiry (also known as a soft credit check or soft credit pull) is less detailed than a hard credit inquiry. It only provides lenders with a basic overview of your personal credit score and report. Soft credit pulls can only be seen by you on your credit report, and they won’t have an impact on your score.
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
- 12-month repayment term
- 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
What credit score do you need to get a business loan?
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.
Are we a match? Check our minimum requirements.**
1 Year
in business
625
personal FICO® score
$100K
business annual revenue
Business
checking account
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Learn more about no credit check small business loans.
Yes, there are alternative options available to small business owners that don’t require a credit check.
Invoice factoring. Invoice factoring is a type of financing 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.
Merchant cash advance. Also called business cash advances, merchant cash advances are similar to invoice factoring. With a merchant cash advance, you’ll receive a lump sum of money up front 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.
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.
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, they can be difficult to obtain.
A poor credit score can make it more difficult — but not impossible — for a borrower to obtain a small business loan. Alternative lenders, such as online lenders, often have less strict requirements than other financial institutions such as banks and credit unions. These bad credit business loan options may have higher interest rates and less favorable terms. However, if you’re in need of working capital to fund growth or cover business needs, they can be a great option.
Different lenders will have different eligibility requirements, but here are a few examples of requirements you may need to meet.
Minimum credit score requirements. Many lenders, whether they perform a hard or soft credit check, will have a minimum credit score the business owner needs to meet to be approved. Keep in mind that this could be a requirement whether they check the business or personal credit score.
Time in business. Lenders may require your business to have been operating for a certain amount of time before they will extend credit. If you’re launching a new business you may want to look into a startup business loan or another business funding option like crowdfunding.
Minimum annual revenue. To approve a loan, some lenders may require that your business earn a certain amount of annual revenue.
Business bank account. Lenders may require you to have a business bank account to be approved for a business loan.
Collateral. Certain lenders may require you to provide collateral to secure a business loan. This is especially true for things like equipment financing.
Personal guarantee. Lenders may require you to make a personal guarantee. This is a legal promise that you will repay the extended credit, even if the business isn’t able to cover it.
Small business lenders and other credit providers check your credit score as a part of evaluating your loan application. Your credit is a reflection of your financial history, showcasing your ability to manage debt and your business or personal finances. A good credit score indicates a history of timely payments and good credit management which can help you more easily secure financing.
Lenders will look at your credit as one of the factors that determine whether you’re approved, how much you’re approved for, and what your loan terms will be. Stronger credit can help you get lower interest rates and more favorable terms.
Alternative lenders, such as online lenders, may have less strict requirements than traditional lenders. 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.