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Finding a small business loan with no credit check can be a daunting task, and the landscape is full of predatory lenders. Learn about the most reputable no credit check loan recommendations.
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Shannon VissersShannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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No-credit-check business loans can be a useful financing option for businesses that need a loan but want to avoid a credit check. Maybe you have poor credit, or maybe you have good credit but want to avoid inquiries. No matter your reasoning, it is possible to find small business loans with no credit check.
However, there are downsides to business loans that don’t require a credit check — including high fees and a short amount of time to pay off your loan.
Read on to learn about business loans with no credit check, including your best options, the caveats of this type of loan, and other financing options for businesses with bad credit.
Can You Get A Small Business Loan Without A Credit Check?
Finding a business loan with no credit check can be a daunting task, but it’s not impossible. While you can find no credit check business loans offered by various alternative lenders, your options will be limited. Traditional business lenders that offer low-interest options like SBA loans will always perform a credit check before approving a loan.
The Best No Credit Check Small Business Loans
The following are some of our favorite small business loans with no credit check. These no credit check business lenders do not perform a hard credit pull or even a soft credit pull. We also selected lenders that are highly rated by Merchant Maverick.
Merchants can’t apply for offers; they can only receive them
Why We Chose Square Loans For Square Merchants
Does your business use Square POS to sell? You might be eligible for Square Loans (previously Square Capital) financing. These short-term loans are similar to merchant cash advances, as the Square loan is repaid automatically as a percentage of your daily credit card sales.
This loan is so easy to access that you don't even need to apply for it---Square will reach out to you with an offer if you are eligible.
Square Loans Rates & Fees
Square Loans small business loans range from $100 – $350,000 and have no set term but a maximum of 18 months to repay in full. Factor rates range from approximately x1.10 – x1.16, which is pretty competitive for this type of financing.
Square Loans Eligibility Requirements
Square does not run your credit when determining your eligibility for a loan; instead, the company considers the health of your Square account, including whether you have a good mix of new and returning customers and you process at least $10,000/year with Square.
You can’t apply for a Square loan, but you can check your Square seller dashboard for loan offers. Square continually checks merchants’ eligibility for loans, so the longer you sell with Square, the higher the likelihood that the company will eventually extend you an offer.
Doesn’t report to credit bureaus to help you build credit
Not available to startups
Why Revenued Works Well For Revenue-Based Funding
Revenued offers a business card for businesses with bad credit but strong revenue. With this card, you can instantly access revenue-based funding up to $750,000 from your Revenued Flex Line.
Revenued is unique in that it doesn't require any kind of credit check at all. However, your business must be in operation for at least 1 year and you must have $20,000+ monthly cash flow to qualify.
Revenued Eligibility Requirements
Revenued requires that applicants have at least $20,000+ monthly cash flow. You also need a business that has been in operation for at least1 year.
Other underwriting requirements may apply.
Revenued Rates & Fees
Revenued does not charge an annual or monthly fee.
If you use funds from your Flex Line, you can expect to repay the advance with a factor rate. Rates range from 1.1 – 1.5.
Only available to Shopify sellers in certain states
No way to apply; Shopify will reach out to qualified candidates
Why We Chose Shopify Capital For Shopify Merchants
Through Shopify Capital, eligible businesses that sell using Shopify eCommerce and/or Shopify POS can take out a cash advance or loan up to $2 million, depending on your sales volume and your business's risk profile.
With a wide range of loan amounts and relaxed borrower requirements, Shopify Capital is perfect for Shopify merchants at any stage of growth, especially if you have bad credit and can't qualify for other types of loans.
Shopify Capital Rates & Fees
A Shopify Capital loan is repaid as a percentage of your daily sales. With a Shopify cash advance, there is no set term for repayment as long as you pay your daily remittance amount (which is deducted from your Shopify account automatically).
Your Shopify Capital factor rate will be 1.11 or 1.13.
Shopify Capital Eligibility Requirements
There is no credit check or requirements as to revenue or time in business. You do need to have been selling with Shopify for at least 3 months and demonstrate consistent sales.
You can’t apply for Shopify Capital financing, however. Shopify monitors its users’ accounts and then extends offers to those it deems eligible for financing.
Shopify Capital Is Best For Businesses That:
Run a Shopify Store with strong, consistent sales
Need a fast, easy loan for marketing, inventory, payroll, etc.
Why We Chose PayPal Working Capital For PayPal Sellers
Many businesses use PayPal to accept payments on their website or in person, using a POS such as PayPal Zettle. If this describes your business, you may be able to apply for a PayPal Working Capital short-term loan.
Ideal for PayPal sellers, these no credit check business loans have a quick and simple application, and best of all, this is a same-day business loan: approved loans can get funded within minutes of applying.
PayPal Working Capital Rates & Fees
PayPal Working Capital Loans are repaid using a fixed fee structure, as a percentage of your daily PayPal sales, with a maximum term of 18 months.
PayPal will loan you a maximum of 35% of your annual PayPal sales, capped at $200,000 (first-time borrowers) or $300,000 (repeat borrowers). Factor rates span a wide range, from approximately x1.01 – x1.58.
PayPal Working Capital Eligibility Requirements
To qualify, you need to have a PayPal Business or Premier account for 90 days or more and process at least $15,000/year (Business accounts) or $20,000 year (Premier accounts) in PayPal sales.
Applying for a PayPal Working Capital loan does not require a credit check. Similar to a Square Capital loan, PayPal will primarily consider your PayPal sales volume and account standing.
PayPal Working Capital Is Best For Businesses That:
Have a PayPal Business or Premier account
Process at least $15,000/year (Business accounts) or $20,000 year (Premier accounts) using PayPal
B2B businesses that need to resolve cash flow issues as a result of unpaid invoices will enjoy with altLINE has to offer. This factoring company allows businesses to sell their unpaid invoices and receive as much as 90% of the value of the invoices upfront.
altLINE doesn't rely on your credit score for approval but instead looks at the creditworthiness of your customers. With no time in business requirements, this is a great option for startup businesses that don't meet the requirements of traditional lenders. Through this service, businesses can receive up to $5 million per month.
altLINE Rates & Fees
altLINE provides $30,000 – $5 million to eligible businesses. The advance rate is 75% to 90%, and discount rates are 0.5% – 5% (upper limit includes late fees). Expedited funding tacks on an additional 1% fee.
altLINE Eligibility Requirements
To be eligible for altLINE invoice factoring, you must operate a B2B business. You must also have at least $15,000/monthin invoices.
A one-year contract is required, although you can choose which invoices you factor with altLINE. However, altLINE is required to be your exclusive invoice factor during this contract term.
You must also not have filed for bankruptcy within the last 12 months, not have multiple bankruptcies on your credit report, and no felonies. Additionally, invoices can’t have terms longer than 90 days. Some industries including construction, healthcare, and transportation are ineligible for funding through altLINE.
altLINE Is Best For Businesses That:
Are B2B businesses
Want to get access to capital using unpaid invoices
Through Kiva crowdfunded business microloans, you can take out a no-interest small business microloan. Kiva works well for startups that aren't ready for business loans yet but could benefit from a small amount of capital and are already good at social media.
Kiva does not require a credit check. Instead, you just need to demonstrate your social capital by collecting some donations from your personal networks online.
Kiva U.S. Rates & Fees
Kiva loans do not have any interest or other fees. You simply need to make your loan payment every month for a period of 6 – 36 months, depending on your loan terms.
Kiva U.S. Eligibility Requirements
Kiva does not have any credit score, business revenue, or time-in-business requirements. You do need to be at least 18 years old and have no active foreclosures, liens, or bankruptcies.
You’ll also need to rally between 5 and 35 friends, family members, and colleagues to lend a small amount of money to your fund before your campaign goes live to the public.
Kiva Is Best For Businesses That:
Need a small amount of capital to start or maintain a business
Are comfortable soliciting loan backers from their personal networks online
Are good at social media and/or have experience with crowdfunding
Business Loan & Funding Products Review Methodology
We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
Weighted Rating Breakdown
Rates & Fees 20%
Services 20%
Eligibility Requirements 20%
Application 15%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%
When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.
Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating
Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.
May help you build credit (if lender reports payments to credit bureau)
Startups may be eligible
No ding to your credit score
Cons
May have high revenue requirements
May require blanket lien and/or personal guarantee
Not all lenders report to credit bureaus
Usually comes with high interest rates & fees
Usually has short repayment schedule
May have low max borrowing amount
May have other special requirements (such as using a specific processing service)
Before applying for no credit check business loans, be aware that these loans tend to have high interest rates, short repayment terms, and harsh collateral requirements — such as having to sign a blanket lien and/or a personal guarantee.
Remember, your goal is to find an affordable loan that gives the best return on investment, so you can launch or build your business without taking on unnecessary debt.
Hard VS Soft Credit Inquiries
It’s important to know the difference between hard and soft credit checks when applying for loans. While none of the six lenders discussed in this post require a soft or a hard credit inquiry, most small business lenders do both a soft and a hard credit inquiry at different points in the loan approval process.
Soft Credit Inquiries
A soft credit inquiry — or soft credit pull — does not affect your credit. Soft credit pulls are used to verify your identity and give lenders an overall picture of your creditworthiness.
A soft credit check is usually performed during theprequalification stage to ensure you meet the lender’s basic requirements. From this check, the lender can see your credit score, but the inquiry won’t ding your score or show up on your credit report.
Hard Credit Inquiries
A hard credit inquiry — or hard credit pull — will affect your credit. It will also show up on your credit report. This credit pull gives lenders a more specific, detailed view of your credit history. Lenders can use this information to determine your loan approval, interest rates and/or fees, and if collateral or a cosigner is required. A hard credit pull is usually only performed during underwriting after you accept a loan offer.
Because a hard inquiry is typically only performed during the final underwriting stage before funding, you can apply and be pre-approved for multiple online loans without ever incurring a hard credit check. Usually, online lenders will make it clear that applying will not affect your credit score, meaning they only do a soft credit pull.
Impact On Your Credit Report
You don’t need to avoid applying to loans that require soft credit checks because you’re afraid of it hurting your credit score or showing up on your credit report. Even if you shop around and are pre-approved for multiple loans, you will typically only have one hard credit check during the final approval stage for whichever loan offer you accept. Just make sure that the lender specifies that they won’t do a hard pull on your credit when you apply.
Alternatives To Small Business Loans With No Credit Check
You may not be able to get a loan — for example, if you don’t meet lenders’ qualifications because of time-in-business, business revenue, or other requirements. Other than business loans, here are a few financing options for businesses that have bad credit or don’t want to add a hard pull to their credit report.
Crowdfunding
With a business crowdfunding campaign, you can fund your startup by pitching to investors online. How it works is business owners (often startups) offer investors a perk or incentive for investing. In many cases, equity is provided in exchange for an investment. For other businesses, offering some kind of reward — such as a free or reduced-price upcoming product — is enough to entice investors.
One of the best things about crowdfunding is that requirements are much different from traditional business loans. Most crowdfunding platforms do not require a set time in business, a personal or business credit score, or even an annual business revenue to launch a campaign.
Equipment Financing
With equipment financing, you can receive the money you need to purchase long-term equipment, from heavy machinery to company vehicles, even if you have bad credit. Usually, equipment financing companies do require a credit check, but often you can still qualify for an equipment loan with bad credit. Since the lender can repossess the equipment if you default, your credit score is not as large of a factor as it is in a traditional business loan.
You might also be able to get an equipment lease with bad credit or no hard credit check at all. Learn about the differences between equipment leases vs. equipment loans.
Business Grants
A business grant is like a loan that you do not have to pay back. Even better, business grants usually do not have any credit score, time in business, or revenue requirements. Though competition for these funds can be pretty stiff, it’s definitely worth looking into to see if there are any grants you may be eligible for.
Business grants may be offered by government agencies, private companies, business associations, and other organizations. The best place to start looking is usually within your local business community since most small business grants are regional. There are also business grants for different business owner demographics, such as business grants for women.
The Bottom Line On No Credit Check Loans For Business
It’s important to note that the better your credit is, the more loan options will become available to you. If bad credit is what’s holding you back from applying for a traditional business loan, the first thing you should do is try improving your credit score.
Once you can at least get your credit score to the 500s, you might graduate from no-credit-check loans and qualify for a “bad credit” business loan, even as a startup. Explore our picks for the best small business loans for startups with bad credit.
FAQs: Best No Credit Check Business Loans
Do banks offer no credit check business loans?
Banks have pretty strict borrower requirements for business loans, usually requiring a credit score of at least 700 and two years in business. It’s not possible to get a business loan through a bank without a credit check.
How do I check my credit score?
Use a free credit score site, such as Credit Karma or WalletHub. You will have to sign up and enter your personal information, including your full legal name and SSN, but the process should be quick, easy, and free.
Can you get a business loan with no credit?
Yes, some alternative lenders, such as Upstart, will extend you a loan even if you don’t have sufficient credit to generate a credit score. These lenders will typically look at other aspects of your business health or income, rather than your credit history.
Can I get a business loan with a bad credit score?
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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