When a business is in need of funding, there are many options out there. However, most lenders require a good credit score to ensure the loan will be paid back on time. Fortunately, there are some lenders that offer no credit check small business loans. The following options, from credit lines to ACH loans, allow business owners to fund their companies without risking their personal credit.
There are a few different types of no credit check business loans available, but it’s important to understand the limitations and terms of each. The loans generally come with higher interest rates, but they do provide an option for those with bad credit to get funding for their businesses. They are also typically short-term, so they may be difficult to pay off quickly.
One of the most popular no credit check options is the business line of credit, which can be used just like a regular business credit card. The lender will base the amount of money that is made available on your bank account and other factors, such as how much you’ve used the credit line. The lender will then monitor your activity and determine whether to increase or decrease the available funds, similar to a credit card.
Another type of no credit check small business loan is the invoice factoring, which focuses on your accounts receivable and your clients’ payment history rather than your personal credit. This is an especially good option for ecommerce businesses that depend on regular sales to meet payroll and other expenses. However, the requirements for this type of financing are more strict than other types and vary by provider.
The final type of no credit check small business loan is a crowdfunding platform, which allows you to raise money for your business from interested investors. This is a good option for new and established businesses alike, and it can help you grow your business. There are a few different platforms, but Kickstarter and Indiegogo are the most popular.
Although there are some no credit check small business loans, most lenders will still look at your personal and business financials when determining if you should receive the funding. To improve your chances of being approved, you can work on building your business credit and establishing a strong cash flow.
Depending on your situation, you might be able to secure other forms of business funding, including grants. The federal government offers a few grant programs, and there are likely similar programs available at the state and local level as well. Check the Small Business Administration and your state department of commerce websites for more information. You can also try to get a merchant cash advance, which is an alternative to traditional loans and can be easier to obtain than you might think. There are several providers, including Lendio and National Business Capital, though it’s not clear on their website if they conduct credit checks or not. They do have high revenue requirements, so they might not be a fit for everyone. no credit check small business loans