The 4 Best Small Business Loans With No Credit Check

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loans with no credit check

It’s nearly impossible to find a business lender that doesn’t check your credit. But if you have a tarnished credit history or don’t want to lower your credit score with multiple credit checks when loan-shopping, it might be in your best interest to find a lender that doesn’t do a credit check. (You should note, however, that most lenders do a “soft pull” on your credit during the pre-qualification stage and only do a hard credit check – the kind that lowers your score a tad – during the final stages of awarding the loan).

While it’s not possible to find a traditional business lender that won’t look at your credit history, individuals with poor credit might consider some alternative types of business financing. Invoice factoring, microloans, and short-term loans are just a few types of business financing that don’t always require a credit check. Read on to learn about the best small business loans with no credit check.

1. Kiva U.S. kiva logo

  • P2P microloans
  • No interest, no fees
  • Max. borrowing amount: $10,000
  • Term length: 6-36 months
  • Repayment schedule: Monthly or once at the end of loan term

Kiva U.S. (see our review) offers peer-to-peer microloans with no credit check. This is a good service to apply for if you need a small loan and have a compelling backstory that might make people want to lend to you. You do have to pay all the money back, but you will not be charged any interest or other fees. Kiva is 100% free; all you have to do to get your loan to go public on Kiva is complete a thorough business profile (with photos, social media links, etc.), lend $25 to another business on Kiva, and recruit a few lenders from your own personal contacts (typically five). Oh, and did I mention there’s no credit check?!

Learn more about Kiva


2. PayPal Working CapitalPayPal review

  • Short-term loans
  • Max. borrowing amount: $97K (on your first loan)
  • Term length: Max. 18 months
  • Factor rate: Approx. x1.01 – x1.58
  • Repayment schedule: Daily deduction from a percentage of your PayPal sales

If you use PayPal for your business, then PayPal Working Capital (see our review) is a fast and easy loan you can get with no credit check – their borrowing rates are not bad, either. PayPal does not check your credit score or credit history, though you do have to have a PayPal Premier or Business account that’s at least three months old and be processing at least $15K/year on a Business account or $20K/year on a Premier account. These short-term loans have a one-time fixed fee, similar to a merchant cash advance.

Learn more about PayPal Working Capital

3. Square Capital

  • Short-term loans
  • Max. borrowing amount: $100K
  • Term length: Max. 18 months
  • Factor rate: x1.10 – x1.16
  • Repayment schedule: Daily deduction from a percentage of your Square sales

Square Capital (see our review) is a lot like PayPal Working Capital, but for businesses that use Square: there is no credit check and your loan is repaid via a daily percentage of your credit card sales processed with Square. The capital is fast, easy, and relatively inexpensive. However, you don’t “apply” for this loan in the traditional sense – if you qualify, Square will reach out to you with an offer. Square looks to lend to growing businesses with new and returning customers, and with revenues of at least $10K/year.

Get started with Square

4. Kickstarter  kickstarter

  • Crowdfunding for creative projects
  • Funding is all-or-nothing
  • Must provide rewards to backers upon project completion
  • 5% Kickstarter fee for successful funding campaigns

Okay, so this one isn’t technically a loan. Rather, it’s rewards-based crowdfunding for creative projects. This means you don’t have to repay your backers with money, but you do have to provide whatever “reward” you promised in your Kickstarter (see our review) campaign. This is all-or-nothing funding, which means if you don’t reach your pledge goal, you get nothing. Less than half of Kickstarter projects are successfully funded, but when it comes to how much you can raise, the sky’s the limit. As with most other crowdfunding options, Kickstarter doesn’t run your credit.

Learn more about Kickstarter


Final Thoughts

Alternative lending opens up some viable financing options for business owners who would rather keep their credit history under wraps. One benefit of these no-credit-check financing options is that you can use more than one at a time. For example, if you sell in-person with Square and online using PayPal, you can get a loan from both processors, and maybe even have a Kiva or Kickstarter campaign on the side.

To see a few more financing options for new businesses with poor credit, check out another blog post I wrote recently – Don’t Let Bad Credit Stop You From Getting a Startup Loan.

Shannon Vissers

Shannon Vissers

Shannon is a freelance writer and editor based in San Diego, CA. Shannon has a three-year-old daughter named Izzy. Shannon likes to unwind by watching trashy reality television and reading literary fiction during the commercial breaks.
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