Advertiser Disclosure

💳 Save money on credit card processing with one of our top 5 picks for 2022

6 Small Business Loans That Don’t Require A Credit Check

Finding a small business loan with no credit check can be a daunting task, but it’s not impossible. Learn about our top no credit check loan recommendations.

    Shannon Vissers
  • UPDATED

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
No credit check business loans

You need extra capital for your business, and a small business loan seems like the logical next step. But how do you get a loan when you want to avoid a credit check? The answer lies in no credit check business loans.

Maybe your credit score is low, and you don’t think you’ll qualify for a loan or other financing. On the flip side, you may have a great credit score, and you don’t want to tarnish your report with inquiries from lenders. No matter your reasoning, there are plenty of business loans with no credit check and even some same-day business loans with no credit check.

Read on to learn about the best no credit check business loans.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
American Express Working Capital Terms

Read More

Best for AMEX business card holders.
Best for AMEX business card holders.

Visit Site

Read More

Square Capital

Read More

Best for merchants who sell with Square.
Best for merchants who sell with Square.

Visit Site

Read More

PayPal Working Capital

Read More

Best for merchants who sell with PayPal.
Best for merchants who sell with PayPal.

Visit Site

Read More

Kiva U.S.

Read More

Best for crowdfunding a microloan.
Best for crowdfunding a microloan.

Visit Site

Read More

Benetrends

Read More

Best for using a 401(k) to start a business.
Best for using a 401(k) to start a business.

Visit Site

Read More

Show More Options
Shopify Capital

Read More

Best for merchants who sell with Shopify.
Best for merchants who sell with Shopify.

Apply Now

Read More

Show Fewer Options

Read more below to learn why we chose these options.

The Best 6 No Credit Check Small Business Loans

The best no credit check business loans are:

None of these no credit check business loans perform a soft or hard credit pull. The lenders are also highly rated (4.5 stars) by Merchant Maverick.

1. American Express Working Capital Terms

American Express Working Capital Terms



Visit Site

Read our Review

Pros

  • No origination fee
  • Fast funding (one to two days)
  • Good borrowing rates
  • Good customer service

Cons

  • Only available to AMEX business cardholders
  • Can only be used to pay vendors

American Express offers several different types of business financing, one of which is American Express Working Capital Terms, which can be used to pay vendors. To apply for Working Capital Terms, you need to be an AMEX business cardholder.

Your business also needs to make $200,000 a year and have been in business for 24 months. American Express will not run a new credit check when you sign up for a working capital loan; instead, the company uses the information it has on file about you as an AMEX customer.

AMEX Working Capital Loans are a special type of loan used to pay a business’s vendors. As the loan recipient, you will not receive any of the loan proceeds directly; instead, the funds are sent directly to your vendors. This type of financing can be a good solution if you are struggling with cash flow to pay vendors and/or your vendor does not accept credit cards. Just be aware that even though AMEX will not run your credit when you apply, getting approved for an AMEX business card requires good credit (at least at the time when you apply for the credit card).

These short-term loans range from $500 to $150,000 per loan, with a term length of 30, 60, or 90 days. Fixed fees range from 0.6% to 5.25%, and you do not repay the loan in installments; instead, the full amount is automatically deducted from your bank account at the end of your term.

Get Started With American Express Working Capital Terms

Read our in-depth review

Jump back to comparison chart

2. Square Capital

Square Capital



Visit Site

Read our Review

Pros

  • Good borrowing rates
  • Relaxed borrower requirements
  • Fast and convenient
  • No collateral required for loans under $75,000

Cons

  • Only available to Square sellers
  • Merchants can’t apply for offers; they can only receive them

Does your business use Square POS to sell? You might be eligible for a Square Capital loan. These short-term loans are similar to merchant cash advances, as your Square loan is repaid automatically as a percentage of your daily credit card sales. 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 a year with Square.

Square Capital small business loans range from $300 to $250,000 and have no set term but a maximum of 18 months to repay in full. Factor rates range from approximately 1.10-1.16, which is pretty competitive for this type of financing.

You can’t apply for a Square Capital 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 is that the company will eventually extend you an offer.

Get Started With Square Capital

Read our in-depth review

Jump back to comparison chart

3. PayPal Working Capital

PayPal Working Capital



Visit Site

Read our Review

Pros

  • Simple application process
  • Relaxed borrower requirements
  • Same day funding—approved loans funded in minutes
  • No personal guarantee

Cons

  • Only available to PayPal sellers
  • The borrowing rate can be high

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. To qualify, you need to have a PayPal Business or Premier account for 90 days or more and process at least $15,000 in annual PayPal sales if you have a Business PayPal account (or $20,000 with a Premier account).

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. Also similar to Square, 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 $125K for your first two loans and $200K for loans after that. Factor rates span a wide range, from approximately 1.01-1.58. These no credit check business loans have a quick and simple application, and best of all, this is a same-day no credit check business loan: approved loans can get funded within minutes of applying.

Get Started With PayPal Working Capital

Read our in-depth review

Jump back to comparison chart

4. Kiva U.S.

Kiva U.S.



Visit Site

Read our Review

Pros

  • No interest
  • Long repayment term
  • Monthly repayments
  • Suitable for startups

Cons

  • Low borrowing amounts
  • Must solicit lenders from personal network

Through Kiva crowdfunded business loans, you can take out a no-interest microloan, which you then repay over six to 36 months.

Kiva does not require a credit check. Instead, once your application is approved, you will enter a 15-day private funding period. During this time, you’ll need to rally between five and 25 friends, family members, and colleagues to donate to your fund. After you reach your lender target, your campaign will go live to the public, and you can interact with potential investors to try and crowdfund your loan within 30 days. When all money has been raised, you’ll receive your loan through PayPal within one week.

Note that the maximum amount you can borrow is based on the age of your business. For business ideas, you can only borrow $1,000. For businesses up to three months old, you can raise up to $5,000. If your business is in operation and bringing in revenue, you can receive the maximum amount of $15,000.

Get Started With Kiva U.S.

Read our in-depth review

Jump back to comparison chart

5. Benetrends

Benetrends



Visit Site

Read our Review

Pros

  • Startup-friendly
  • Business loan alternative
  • No upfront taxes or early withdrawal penalties
  • Includes legal compliance

Cons

  • Risky if you don’t have any additional retirement savings
  • Requires setup fee and ongoing monthly fees

When it comes to ROBS (Rollovers as Business Startups) providers, you won’t find a more experienced one than Benetrends. Benetrends created the Rainmaker Plan, and it was the pioneer of ROBS, which allows you to roll over your 401(k) or IRA retirement account to fund a business without paying any tax penalties. Since 1983, Benetrends has secured funding for over 17,000 business owners and is a popular choice for franchise financing in particular.

To qualify for the Benetrends Rainmaker Plan and start using your retirement account funds to finance your business, you must have an eligible retirement account with at least $50,000.

Benetrends charges a setup fee of $4,995 to start your customized ROBS plan. After this, a monthly maintenance fee of $139 is required. With Benetrends, you’ll receive audit protection, compliance, and a team of certified in-house professionals to help create and maintain your plan.

Get Started With Benetrends

Read our in-depth review

Jump back to comparison chart

6. Shopify Capital

Shopify Capital



Apply Now

Read our Review

Pros

  • High borrowing amounts
  • Competitive rates
  • Relaxed borrower requirements
  • No repayment deadline for cash advances

Cons

  • Only available to Shopify sellers in certain states
  • No way to apply; Shopify will reach out to qualified candidates

Through Shopify Capital, eligible businesses that sell using Shopify eCommerce and/or Shopify POS can take out a cash advance or loan ranging anywhere from $200 to $2,000,000, depending on your sales volume and your business’s risk profile. There is no credit check or requirements as to revenue or time in business.

In terms of loan structure, a Shopify Capital loan is repaid as a percentage of your daily sales, with 12 months to repay the sum in total. 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 either be 1.1 or 1.13.

You can’t apply for Shopify Capital financing. Shopify monitors its users’ accounts and then extends offers to those eligible for financing.

Get Started With Shopify Capital

Read our in-depth review

Jump back to comparison chart

Alternatives To Small Business Loans With No Credit Check

Other than no credit check 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 For Startups

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 Bad Credit

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; to learn about the differences between these two types of equipment financing, read Equipment Financing: Lease VS Loan.

Invoice Factoring With Minimal Credit Score Requirements

If your business has a lot of outstanding invoices, you may want to consider selling those unpaid invoices to a third party that will collect on them, a practice called invoice factoring. Your personal credit score matters very little to a factoring company since the factor is banking on your customers’ creditworthiness, not your own.

Some invoice factoring companies do your business’s check credit, while others will only check the credit of your customers whose invoices you are selling. Even among the ones that do run your credit, you can often qualify with a bad credit score in the 500s. Invoice financing is a similar option that also has minimal or nonexistent credit score requirements, depending on the lender. To learn more about the differences between the two, read Differences Between Invoice Financing & Invoice Factoring..

Business Grants: No Credit Score, Time In Business, Or Revenue Requirements

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. Read this article to get started: Small Business Grants: Get Free Money Through These 8 Grant Resources.

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 the prequalification 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.

HardCredit 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

So 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 to submit to 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.

How To Know If You Have Good Or Bad Credit

The main way to know if you have good or bad credit is to check your FICO score. You can do this using a free credit score site like WalletHub or Credit Karma.

FICO Credit Score Tiers

Generally speaking, your FICO credit score is good if it’s 700 or higher. But that doesn’t mean that you can never qualify for a loan if you fall within a lower credit tier. Let’s take a look at the different FICO credit score tiers.

700 or More

A FICO score in the 700s or above is considered “Good.” You should not have any problem qualifying for any type of business loan if your score exceeds 700. A score of 800 or above is considered “Excellent” and can open up even more financing options for your business—for example, larger loan amounts or longer repayment terms.

650 to 700

If your score ranges from 650 to 700, you have “Fair” credit and should still be able to qualify for some financing types, including SBA loans, as long as your other business credentials are strong (for example, you have sufficient time-in-business history). A downside is that some lenders might charge you higher interest and other fees if your score falls within this range.

620 to 650

At this “Fair” credit tier, fewer loan options will be available to your business. However, some alternative lenders might still approve you for a loan, provided that your business has strong monthly revenues. If you have at least a couple of years in business, you might qualify for a SBA 7(a) loan with a 640 FICO–and for some SBA loans, you just need a score of 620.

500 to 550

Any score in the 500s is pretty bad and it’s especially bad if it’s in the low 500s–this credit tier is considered “Very Poor.” Nevertheless, there are some alternative online lenders that will approve loans to businesses with a 550 FICO, or even as low as 500.

What If You Aren't Eligible For A No Credit Check Small Business Loan?

It may be the case that you are unable to get a no credit check loan — for example, if you don’t meet the qualifications for the above lenders because of time-in-business, business revenue, or other requirements. Still, you do have some options:

FAQs About No Credit Check Small Business Loans

How can I get a business loan with no credit check?

Minimum requirements to qualify for a no credit check loan will vary depending on the specific lender. Most lenders will require strong business financials and a reasonable amount of time in business.

Where can I get a no credit check business loan?

Some online lenders offer financing options regardless of credit score. These lenders may not consider credit as a factor at all, focusing more on the performance of your business and the amount of revenue coming in.

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. Banks do not offer any no credit check business loans.

What is the easiest business loan to get with no credit check?

If you already have a relationship with an organization that offers business loans, such as Square or American Express, the organization might be the easiest loan to get because they already have a strong understanding of your financials.

Are there drawbacks to getting a no credit check business loan?

No credit check business loans tend to have high interest, low maximum borrowing amounts, and short-term lengths. They might also have additional stipulations, such as requiring you to be a user of their payment processing service.

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 score?

Yes, some alternative lenders 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?

Yes, some lenders specialize in business loans for bad credit, and certain lenders do not check your credit at all.

Can You Get A Small Business Loan Without A Credit Check?

While getting a small business loan with no credit check is possible, it’s important to remember that your options will be limited. Traditional business lenders that offer low-interest loans will always perform a credit check before approving a loan.

Finding a business loan with no credit check can be a daunting task, but it’s not impossible. Before applying for these loans, be aware of the higher costs, additional requirements, and other special considerations. 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.

Want more business financing options? Read our article on the best business credit cards for bad credit or explore alternative financing for small businesses.

In Summary: The Best 6 No Credit Check Small Business Loans

  1. American Express Working Capital Terms: Best for AMEX business card holders.
  2. Square Capital: Best for merchants who sell with Square.
  3. PayPal Working Capital: Best for merchants who sell with PayPal.
  4. Kiva U.S.: Best for crowdfunding a microloan.
  5. Benetrends: Best for using a 401(k) to start a business.
  6. Shopify Capital: Best for merchants who sell with Shopify.
Shannon Vissers

Shannon Vissers

Expert Analyst & Reviewer at Merchant Maverick
The former editor-in-chief of SteelOrbis, Shannon has been researching and writing about small business software and financing since 2015. Her shopping and retail expertise has been cited in numerous publications, including Reader's Digest, MSN, Yahoo Finance, and GOBankingRates . She has also published articles for LIVESTRONG.COM, eHow, Life'd, and other websites. Shannon attended San Diego State University, graduating in 2005 with a BA in English.
Shannon Vissers
View Shannon Vissers's professional experience on LinkedIn.

We Want Your Feedback!

Help us to improve by providing some feedback on your experience today.

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.

Our Experts Recommend OnDeck 🏆 Easier borrower qualifications that help you build business credit. Fast turnaround: as little as 1-2 days. Multiple types of financing and lower costs with a fast and easy application process. Apply Now Get funded quickly

Sign up for the Maverick Newsletter

  • Please select topics of interest

  • We occasionally send out emails with special offers.
  • Hidden
  • This field is for validation purposes and should be left unchanged.