America's Top Small Business Funding Partner
Business Funding No Credit Check
You don’t need perfect credit to get a business loan. Get the money you need – fast!
Business owners with bad or poor credit seeking quick working capital, do have business financing options. These no credit check business loans involve no lengthy and rigorous personal or business credit check. Besides, the application process for loans without a credit check is really simple and short, ensuring fast access to unsecured working capital. Thus, small business loans with no personal credit check turn out as the best alternative funding choice for bad credit business borrowers that are turned down by banks, credit unions, and other financial institutions. Although many merchant finance lenders claim to provide absolutely no credit check for small business loans, they still do a credit check without telling you.
If you're looking for a small business loan with no credit check, there are a few options available to you. First, you can try working with a small business lender that doesn't use traditional credit scores when evaluating loan applications. Instead, these lenders may focus on factors like your business's revenue and ability to repay the loan. Fast Business Funds has no credit check loan products available for businesses as well as small business loans that only require a soft credit inquiry, or what some call a soft credit pull.
Things to Know About How Lenders Use Credit Scores
A credit score is a number that lenders use to decide if you are likely to repay a loan. The higher your personal credit score, the less risk for them, and so they will be more likely to lend you money. High-risk borrowers with low credit scores may have more difficulty getting loans from banks and other financial institutions. Your FICO credit score is one of the most commonly used types of scores. It ranges from 300 to 850, where 850 is the highest possible score.
A person's credit history influences their FICO score in several ways: length of time as an established account holder, number of accounts overdue or in collections, percentage of total available credit currently being utilized as well as new items like outstanding balances on installment loans (such as mortgage or auto) compared with total available balance on those accounts.
Trying to get Business Financing from a Bank with Bad Credit is Almost Impossible
Banks Will Check Small Business Owners' Credit History when Applying for a Traditional Business Loan
Bad credit can be a problem for some of us. The first step to rebuilding your credit is to work with your creditors and pay off what you owe. For example, if you have a $2,000 balance on one credit card, it would take over two years and more than $1,000 in interest charges to pay it off. Credit card companies are concerned with getting their money back so they will charge high-interest rates to make up for the loss of time that they have already given you. In addition, don't apply for any new loans or bank accounts until your old debts are paid off because this just adds more debt and hurts your credit score even more.
Another way that bad credit can hurt someone is by limiting the number of jobs that he or she can qualify for because employers want applicants who have a good reputation and will not risk their business by hiring someone who may not be able to perform at the level necessary for them. Without realizing it, bad credit could keep an individual from getting a job offer or could prevent him/her from being accepted into a college or graduate school which would limit his/her potential career choices down the road when he/she finally does get caught up financially.
Traditional business loans, business credit cards & bank lines of credit will factor in credit scores, credit history, business credit score, bank account status, and current deposits if you want small business financing from a bank. A Business owner is going to need good credit, a business account, solid personal credit history and it will require a credit check to get a business loan or equipment financing from most banks.
Small Business Loans That Do Not Need A Credit Check
Some Business Lenders have Products that don't Heavily Consider Your Personal Credit Score
Another option is to seek out a business loan provider that offers unsecured working capital loans with no credit checks. These types of loans don't require collateral, so your personal credit score won't be a factor in the loan decision. Instead, these lenders will focus on your business's overall financial health even if you have no business credit scores. Fast Business Funds also has these products available for business owners. Finally, you may be able to find a small business lender that offers merchant cash advance financing. This type of financing is based on your future sales, so there's no need for a personal credit check.
MCA loans are also available from Fast Business Funds. If you're not sure where to start your search for small business funding with no credit check, consider talking to a lender that has the full product set, instead of contacting a bank that only provides A-paper collateralized loans for high credit score members.. Fast Business Funds can help you identify the best financing options for your business. Business funding no credit check is just a phone call away.
Small business term loans, unsecured small business loans, small business lines of credit, and merchant cash advance loans are all viable options for small businesses looking for funding with no personal credit check required. Each option has its own benefits and drawbacks, so be sure to speak with a Loan Specialist before deciding which one is right for your business.
With Some Small Business Loans, Cash Flow Is King
There Are Loan Options Without a Hard Credit Pull
Cash deposits can be thought of as the lifeblood of your company. It is a measurement of the money that comes into, and out of, a business. This can help you understand if your business is in trouble or not financially. It's a better indicator than a personal credit report.
Cash flow needs to be monitored constantly to make sure it's in line with what you want it to do for the business. Cash flow can also be important when trying to determine how much debt a company has on hand. The cash balance could indicate how quickly debt will need to be repaid or if more may need to be taken on for operations to keep going smoothly.
The best way for a company that operates under a cash-basis accounting system is by making payments at different times during the year rather than all at once during one month, which could lead them into trouble with more creditors wanting their payments sooner rather than later due to lack of funds available from customers purchases and other sources like loans from other sources or investments from stockholders who have invested capital such as outside investors and venture capitalists who are putting up money for equity stakes in hopes that these companies will grow and make them rich off their investments (Rochester Business Journal).
Unsecured Working Capital Loans
An unsecured small business loan does not require collateral, making it a good option for businesses that do not have the assets to put up as collateral. However, because there is no collateral securing the loan, unsecured small business loans tend to have shorter terms than secured loans.
Small Business Term Loans
A small business term loan is a lump sum of money that is typically repaid over a period of time with interest. These loans can be used for a variety of purposes, such as working capital, inventory, equipment, or expansion. One of the main benefits of a term loan is that it can be used for almost anything your business needs.
Small Business Lines of Credit
A small business line of credit is similar to a credit card in that you are approved for a certain amount of money that you can borrow as needed. Lines of credit typically have lower interest rates than credit cards, making them a better option than maxing out your personal credit. Your payment is based on the amount you draw. You can pay it down & reuse it as needed. You will need at least a 650 credit score to acquire a good, low-interest business line of credit. However, even if you don't have great credit there are some smaller business credit lines available with as low as a 550 credit score.
Merchant Cash Advance
Merchant Cash Advances are a type of financing that is based on your future sales. This means that there is no personal credit check required. MCA loans are also available from Fast Business Funds. The amount you can borrow is based on a percentage of your monthly credit card sales, so if your sales fluctuate, your payments will as well. One of the benefits of Merchant Cash Advances is that you can use the money however you see fit, and 100% of the interest you pay on the loan is tax deductible as a business expense.
Goliath National vs. Alternative Lenders
Should Business Owners Apply for a Small Business Loan Approval with the Bank or Work With Alternative Business Lenders?
There are a variety of ways to try to obtain business financing. Business owners that are exploring their loan options can consider bank-style credit check loans, business credit cards or a credit line from a traditional bank.
These small business loans are "credit check" business loans that will require reviewing your credit report, a minimum credit score in the 700 range and a decent amount of cash in your bank account. All of these factors will determine whether you get approved for your business loan & at what interest rate. Keep in mind that it may take months to get your business loan from a bank. They don't just ask for a personal guarantee either. They will require a lien attached to the business collateral & maybe even your house & personal belongings. Yikes!
Small business owners typically will not get approved for a business loan, equipment financing, or credit lines from a bank with bad credit, even if the business owner currently has a business bank account, a business credit card, and previously had personal loans with them. As far as most banks are concerned anything below a 700 credit score is bad credit. In other words, good credit wins, and a poor credit report walks. It's all about credit checks & your credit scores. There's no such thing as a 'bad credit' business loan at the bank or credit union. You don't have to worry about loan payments or interest rates - because you're going to get flat-out denied in about 30 seconds unless you have stellar credit.
On the Other Hand, there's Alternative Small Business Financing...
Alternative small business lenders offer maximum flexibility compared to credit check business loans from the bank.
Sometimes referred to as online lenders, private business lenders like Fast Business Funds can do some pretty amazing things as far as business loans are concerned. Of course, that's assuming business loans can be amazing to someone ;-)
Let's start with the credit check situation. Most of these small business loan products are primarily based on your business bank statements. In other words, they care more about your deposits and business checking account balances than they do about your credit score.
Fast Business Funds can get business owners approved for a business loan even if you have truly bad credit, like a 500 credit score. Now that's not to say that alternative business loan products are only for people with bad credit. That certainly is NOT the case. If you need a small business loan, but the stars don't align at the bank to qualify for one of their credit check loans, then business owners need an alternative option to get working capital. That's where Fast Business Funds shines. We can truly get almost any business owner a business loan. Many of the products don't require any credit check at all either. The worst-case scenario as it pertains to credit checks - is the product requires a soft credit check. What the heck is a soft credit check? Well, that just means the underwriters will ping Experian to get your fico score. So there's no hard pull that will ding your score for 3-5 points. That being said, there's nothing to worry about because even if you have a crappy fico score you're still likely to get your loan approval. You can even get approved for a loan with no credit if the revenue is solid.
Getting Approved for a Business Loan is Easy
The only thing underwriters are worried about is your ability to make the payment without stressing the business. They look for good monthly-ending balances, good annual revenue, few negative days or NSF's & consistent deposits. If that looks good you should get approved for your business loan regardless of your credit score.
The best part is that there's no lien on your business or your house. They just ask for a personal guarantee (which just means you can't take the money & vanish). Whether there's no credit score check, or they do a soft pull to get the credit score, they still base the approval primarily on the business checking account statements. That doesn't mean that alternative online lenders can only provide a bad credit business loan. It just means cash is king. They'll look past credit score issues if you have good monthly and/ or annual revenue. Business owners with good credit will not only qualify for multiple financing options, but you'll get the best case scenario with payment options, the longest terms & best interest rates.
Why Do They Call Alternative Lenders "Online Lenders"
The answer to that question: It's the simple process.
You can contact us online. Fill out your application electronically, then email your application & bank statements over to us in about five minutes. There's no hassle whatsoever. Then upon approval, we wire the funds directly into your business checking account. That entire process happens in less than 24 hours in most cases. Compare that to the credit check business loans from a bank... You'll need to make an appointment, gather oodles of paperwork, drive down to the bank, fill out more paperwork, wait for them to do a hard credit pull to get your credit score, then get ready to pucker up & beg for an approval. Then in 2-3 months they'll let you know if you are getting a business loan.
Ready to Get a Business Loan That Doesn't Require a Credit Check ?
So there you have it! There are several financing options available in the world of alternative business financing Fast Business Funds is the place for small businesses looking for a business loan with no personal credit check. Be sure to speak with a Loan Specialist to find out which option is best for your business.
No matter what type of small business loan you're looking for, Fast Business Funds can help regardless of what your credit score may be. We have a wide variety of products available, so we can match you with the perfect one for your needs, even if you have what the bank would consider bad credit. And because we know that time is of the essence, we can get you funded in as little as 24 hours or less.