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Get Small Business Loans With No Credit Check: The 2021 Guide

Written by Banks Editorial Team

Updated May 23, 2023​

3 min. read​

small business loans no credit check

When you run a small business, there are times when you need an infusion of cash in a hurry. You might be having a cash flow issue or need money to buy a new piece of equipment. If you have poor credit or no credit, it can be challenging to find a small business loan with no credit check. You need someone to take a chance on you and help rebuild or establish your credit rating. A poor credit rating can block your business from expanding or even meeting everyday obligations. However, some small business loans with no credit check may help you get the funds you need to operate.

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Can You Get a Business Loan With No Credit Check?

Yes, some lenders can provide you with a business loan without a credit check. However, these lenders may need to verify your business’s overall health or require some form of collateral when making the loan. In some cases, the repayment plan centers on your daily credit card sales. You might need to talk to a few prospective lending companies before finding the one you want to work with.

Also, finding the right small business loan with a poor credit rating may depend on how much money you need and the length of time you need to repay the balance and interest. Without a credit check, it might be easier to secure a short-term business loan than a long-term one. This gives you the benefits of the cash you need and the opportunity to establish your credit worthiness in the future, making it easier to secure more resources.

When You Should Look for a No Credit Check Lender

There are two main reasons for looking for a no credit check lender. The first is that you have a lower than average credit rating. This could be because of past accounts in collection or missed payment. It might be because you don’t have any credit at all. If you’ve just started owning a business, you might not have established credit yet. Another reason why your credit score could be low is that your debt is high.

The other reason is that you don’t want additional hard inquiries on your credit report. Each time a lender makes a hard inquiry on your credit, that information appears on your credit report. If you have too many hard inquiries, it can damage your credit. Also, it takes two years of each inquiry to fall off your credit report. Also, lenders can compare your hard inquiries to open accounts to see if you were approved for an account.

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Best Types Of Business Loans With No Credit Check

While most loans require a credit check, there are a few that you can secure for your small business without one. Here are a few of the best type of business loans with no credit check:

  • Term loans: You may also hear this called an installment loan. It breaks the principal and interest payments into set installments. Some lenders don’t require a credit check for this type of loan.
  • Line of credit: A line of credit lets you draw funds when you need them. You’re given a certain dollar amount of credit, and you can draw any amount under the maximum whenever you need it. As you repay the money you’ve taken, the amount available increases back to the maximum amount when you pay it all back.
  • Short-term loans: There are several options of short-term loans that don’t require a credit check, such as a merchant cash loan. These loans look at the overall health of your business instead of your credit score.

The Best Startup Loans With Poor Credit

If you want to start a business, you need to find or have a large amount of capital to begin. In many cases, small business owners look for startup loans. The best startup loans with poor credit are:

  1. Rollover as Business Startup (ROBS) plan: This program allows you to use your retirement funds as startup capital for a small business.
  2. Crowdfunding: Online, you can pitch your business concept to a larger group of people and allow them to invest in your business to create the capital you need to get started.

Where Can You Get a Small-Business Loan With No Credit Check?

When you need a small business loan with no credit check, it can be hard to know where to turn. One of the easiest ways is to apply online to a lender with an extensive network of partners. This way, you can better your chances of finding a small business loan lender, using a single application to save you time.

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How Can You Work on Improving Your Credit Score?

As you search for a small business loan with no credit check, there are ways to improve your credit score so you qualify for more loans in the future. Here are a few tips:

  • Pay down your debt: If you have a few credit accounts with a high balance, pay down that debt to improve your credit score.
  • Deal with accounts in collection: Sometimes, accounts in collections aren’t correct. If this is the case, you need to dispute the claims and get them removed from your credit report. When you owe them money, repaying it can boost your credit score.
  • Make payments on time: Creditors want to know that you’ll repay any money you owe and pay it back on time. Make all of your payments on time to improve your credit rating.

An improved credit score can help you find more loan options with or without a credit check. Most lenders want to check your credit score, but it is possible to secure a small business loan with no credit check. You need to explore your options, and applying once to multiple lenders may be the answer you are looking for.

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