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Can You Get a Business Loan With No Credit Check?

Online lenders may offer business loans with no credit check, but this financing will likely be expensive.
By Jacqueline DeMarco, Tina Orem
Last updated on January 2, 2024
Edited byChristine Aebischer

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⏰ Estimated read time: 8 minutes

If you have a thin or rocky credit history, you may be able to get a business loan with no credit check. Although most lenders will check your credit as part of the application process, some may waive this requirement, and others will perform only a soft inquiry, which doesn’t affect your credit score.
These no credit check business loans, however, are typically expensive — with high interest rates and fees and short terms. You should also be careful because some predatory lenders promise “no credit check” or “guaranteed approval” to try to take advantage of borrowers who are having trouble qualifying for a small-business loan.
Generally, there are a few types of business loans that don’t require credit checks, including invoice factoring, payment processor loans and merchant cash advances. Compare the following options for business loans with no credit check and learn how to choose the right funding for your needs.

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Best business loans with no credit check

Although no credit check business loans are few and far between, alternative online lenders can be more flexible with their credit requirements and offer quick access to capital. But these loans are often structured as merchant cash advances and carry high interest rates, so be sure you understand the true cost of borrowing before signing an agreement. Our business loan calculator can help.
Here are a few loan options to consider:

PayPal Working Capital

Best for PayPal users.
The PayPal Working Capital loan doesn’t require a credit check; instead, it considers your PayPal account history. You need to have a PayPal Premier or Business account for at least 90 days to qualify.
You also must process at least $20,000 in annual PayPal sales if you have a Premier account and at least $15,000 if you have a Business PayPal account.
The loan offers flexible payments, and funding can arrive in minutes. Rather than a more traditional annual percentage rate (APR), you’ll pay a fixed fee based on your loan amount, selected repayment percentage and your business's PayPal account history. Like a typical merchant cash advance, you dedicate a portion of your sales to automatically repay the loan and fee.

Square loans

Best for Square sellers.
Similar to PayPal, Square offers loans to business owners who sell on its platform. To qualify, you must process payments through Square — and ideally $10,000 or more per year.
Square also evaluates applications based on payment frequency, customer mix and payment disputes, among other factors. Applying for a Square loan does not affect your credit score.
These loans are available in amounts ranging from $300 to $250,000. You repay the loan automatically with a percentage of your daily credit card sales through Square. The fixed fee you pay varies based on your loan size and processing volume.
Once you’re approved, you can receive funds in one to three business days or instantly if you have a Square checking account.

FundThrough

Best for invoice factoring.
If you have a shaky credit history and capital tied up in unpaid invoices, FundThrough may be able to provide the financing you need. FundThrough offers invoice factoring for business-to-business companies that have outstanding invoices that are less than 90 days old.
FundThrough advances your business capital and collects payment from your customer — in exchange for a fee that varies based on the net terms of your invoice. To qualify, you should have an outstanding invoice of at least $100,000 in accounts receivable or invoices to one customer. FundThrough does not require a credit check; instead, it evaluates your application based on the value of your invoices as well as your banking history and tax history.
After you’ve submitted your invoices and received approval, capital can be available as quickly as the next day.

AltLINE

Best for startups.
AltLINE is an invoice factoring company operating as a division of The Southern Bank. They will advance up to 90% of your unpaid invoices up to $10 million, with factor rates starting at 0.5%. AltLine has no credit score minimum, no minimum revenue requirement and no time in business requirement, making them a great option for startups with less-than-stellar credit.
Unlike most factoring companies, AltLINE is its own bank, which means they can lend directly to your business instead of acting as a middleman. This can also allow them to offer lower prices and faster funding.

Pros and cons of business loans with no credit check

Pros
Cons
  • May pay additional fees.
  • Potential access to funding even with bad credit.
  • No credit check business loans often come with high interest rates, which may outweigh the benefits of the loan.
  • May be easier to borrow in the future if you pay back the loan on time.
  • Not all lenders report on-time payments to credit bureaus — meaning getting a loan won’t help you build credit.
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NerdWallet rating

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NerdWallet rating

5.0/5.0  

NerdWallet rating

4.5/5.0  

Max loan amount

$250,000

Max loan amount

$250,000

Max loan amount

$500,000

Min. credit score

625

Min. credit score

625

Min. credit score

660

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with Fundera by NerdWallet

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Can you get guaranteed startup business loans with no credit check?

Getting a startup business loan can be difficult — but even more so if your credit is bad, which by industry standards typically means a score between 300 and 629 (on a scale of 300 to 850) . Many things can affect your credit score, including length of credit history, your mix of credit account types and delinquencies or bankruptcies.
Some lenders offer startup business loans for borrowers with bad credit, but they’ll likely check your credit history — performing a soft pull, for example — in some way. Like other bad credit loans, these options typically come with high interest rates and short terms.
Certain lenders may promise “guaranteed” startup business loans, but you should tread lightly around these offers. Credible business lenders are unlikely to promise guaranteed approval and instead will evaluate your loan application (including your credit score) before making a decision.

🤓 Nerdy Tip

If you’re concerned about how a hard credit inquiry may affect your credit score, know that inquiries only stay on your credit report for two years at most, and don’t have a significant impact on your score after a few months. Learn more about hard credit inquiries.

Alternatives to no credit check business loans

If you can wait to get business financing until your credit score has grown, you’ll likely be able to receive more competitive interest rates and repayment terms. However, there are options you can consider that don’t necessarily require a good credit score, such as:

Small-business grants

Business grants are available from federal and state agencies as well as private companies. You don’t typically need good credit to qualify for a business grant, and certain grants are available specifically for startups.
Depending on the company offering the funding, you may have to meet other criteria. Small Business Innovation Research grants from the federal government, for example, are available only to companies that perform research and development for technology innovation and scientific research.
It can take time and effort to find and apply for a small-business grant, but if you can secure one, you’ll have access to free financing.

Nontraditional lenders

An alternative, or nontraditional lender, is technically any lender that’s not a bank or credit union. Many nontraditional lenders, such as nonprofit lenders, online lenders or community development financial institutions (CDFIs), offer safe and fair options that don’t require stellar credit. For example, Accion Opportunity Fund is a nonprofit small-business lender with a minimum credit score requirement of
570
, but may work with lower scores on a case-by-case basis. Similarly, OnDeck is an online lender that offers term loans and lines of credit and requires a minimum credit score of
625
.

Crowdfunding

Crowdfunding can be a good option for startups and other businesses to raise money through the power of the internet and social media. You set up a campaign using a crowdfunding platform and provide information about your business and funding goals.
Once your campaign is published, you market your business to friends, family and anyone else that you think might donate to help your company. In exchange for donations, you might offer a perk, such as exclusive access to products or discounts on purchases.
On the other hand, you can offer equity crowdfunding, in which you sell partial ownership in your company in exchange for funds.

Friends and family

If you have individuals in your network who have the means to provide capital, you might reach out to them for your funding needs. Borrowing money from friends or family can be tricky, however, so you’ll want to set up a clear financial agreement upfront.
You’ll need to specify whether the financing is a donation or loan or whether you’re receiving funds in exchange for equity. No matter which option you choose, your agreement should detail any stipulations regarding the money to prevent strain on your relationship with friends or family.

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