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5 Popular No Credit Check Business Loans

5 Popular No Credit Check Business Loans
Lauren Ward

Lauren Ward

Updated December 15, 2021
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Here’s the conundrum. Building a business often requires financing. But it can be hard to get approved with a credit score that’s low or that simply hasn’t been established yet. As one solution to this problem, some lenders offer no credit check business loans to give you the boost you need. But each lender has its own requirements, which may include things like minimum revenue, time in business, and collateral. Here are five small business loans with no credit check, plus some alternative financing options to consider. (The first four were found by Googling “small business loans with no credit check” and the fifth caters to small businesses and truly offers no credit check loans.)

Can You Get a Small Business Loan With Bad Credit?

When evaluating applications, lenders often consider both a business's credit score and the personal credit score of the owner. If either of these is low in your case, it can hurt your chances of getting approved for a loan or can result in higher rates if you are approved.Bank business loans usually require a minimum personal credit score of 670. Online lenders that offer bad credit business loans have a lower threshold, often as low as 580. Building business credit can help you qualify for better terms and larger loan amounts. As you get financing, taking these steps can help you work toward a better credit score:
  • Make debt payments on time. 
  • Keeping credit utilization low by avoiding maxed out credit lines.
  • Growing revenue to offset existing debt.

What Are the Types of Loans Available With No Credit Check?

If you’re looking for a loan with no credit check or with lower than usual credit requirements, below are some popular options you may want to check out. As with any type of financing, however, it’s important to compare rates and terms and vet any lender you’re thinking about working with.

PayPal Working Capital

PayPal Working Capital skips the credit check. Not only is credit not considered, you also don’t have to worry about an inquiry added to your credit report. In order to qualify, however, you do need consistent sales through PayPal. Payments are automatically deducted from your sales, and you get to set the rate at which they’re deducted. The minimum repayment term is 5% to 10% of sales every 90 days. Rather than accruing ongoing interest, you’re instead charged a transparent flat fee so you know exactly how much the financing will cost you. Loan amounts are based on revenue through your PayPal account. There’s no application or personal guarantee, and if approved, you’ll receive funding within minutes

American Express Business Loan

The business loan program from American Express offers a streamlined application process for pre-approved American Express Business Card members. So while there’s a soft credit check involved and considered as part of the process, it’s an easier application than starting a cold relationship with a bank you’ve never worked with before. Here’s how it works.You can apply if you’ve already had a business credit card with American Express for at least one year. While your credit won’t be impacted by applying, American Express does state that creditworthiness is part of the evaluation process.Loans start from $3,500 and go up to $75,000. The repayment term could be between six months and 36 months, with rates ranging from 6.98% to 19.97% APR.

FundBox

FundBox offers a business line of credit. There is a credit check involved, but the minimum personal credit score is just 600. The business must be at least six months old and have at least $100,000 in annual revenue.FundBox’s application process is unique and places a greater emphasis on revenue than is typical. When you apply, you’ll link your business bank account as well as your accounting software for FundBox to review. A decision is typically made within minutes. Then you’re ready to make withdrawals from your line of credit as your business needs the funds. You’ll see the fee you’re going to be charged before you make the withdrawal. Then the repayment plan starts either over a 12-week period or a 24-week period. 

Bluevine

Bluevine offers a low credit score option in the form of invoice factoring. You only need a minimum score of 530 in order to apply. Invoice factoring differs from a traditional business loan in that it provides you with an upfront payment of your uncollected invoices from customers. You receive 85% to 90% of the invoice amount upfront. Once the customer pays the invoice, Bluevine gives you the remaining balance, minus their lender fee. In order to qualify, your business needs to be at least three months old and have a minimum of $10,000 in monthly revenue. You can either connect your bank account directly when applying or submit the last three months of bank statements. Bluevine’s factoring lines can go as high as $5 million with approvals made in 24 hours or less. 

Square Capital

Square Capital offers no credit check business loans for companies that use Square for their daily card sales. Approval is based on those card sales, with loan amounts starting as low as $300 and maxing out at $250,000. Instead of interest, borrowers pay a flat fee. Payments are made as a percentage of your daily card sales so you’re not overextended during slower periods. A minimum payment must be met every 60 days.Square Capital also boasts near-instant approval decisions and no impact to your credit score. There’s no personal guarantee attached to the loan. 

Pros and Cons of Small Business Loans With No Credit Checks

Any kind of funding involves both benefits and disadvantages.

Other Sources of Funding for Small Businesses

There are plenty of small business loan alternatives that may work in place of a no credit business loan.

No Credit Check Personal Loans

No credit check personal loans can typically be used for almost anything, including businesses. You don’t need to worry about standard requirements, such as time in business or revenue, making these solid options for newer businesses. 

Payroll Loans

Payroll loans are designed to specifically fund employee paychecks in the event of a short-term cash flow issue. Approval and funding times are usually fast to cover last minute gaps in capital.

Equipment Financing

Equipment financing can help you get funding in place for machinery as well as things like office equipment. The actual assets are used as collateral, although you may also need to offer a personal guarantee. 

Merchant Cash Advances 

A merchant cash advance is based on future sales through your POS system. You can borrow a lump sum, then pay back the loan using a percentage of your daily sales. 

Looking to Fund Your Business?

Choices are a good thing, but they can also be overwhelming. Use Lantern by SoFi to get multiple loan offers with just one application. It’s quick and easy, and it helps you make sure you’re getting the best rate and terms possible.

The Takeaway

Not having a great credit score doesn’t necessarily have to hold you back from getting a loan for your small business. No credit check loans may be a viable way for you to get the funds you need, though they may come with higher interest rates and fees than loans that do rely on your credit score. And other types of funding may be available to you as well. Ready to take your small business financing into your own hands? Get started with Lantern Credit today. 
Photo credit: iStock/designer491Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit (https://www.consumer.ftc.gov/topics/credit-and-loans)The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.SOLC1021196

Frequently Asked Questions

Can you get a business loan if you have no credit?
Do small business loans require a credit check?

About the Author

Lauren Ward

Lauren Ward

Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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