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Looking for business loans with no credit check? Most lenders will perform credit checks to assess creditworthiness, however, how your credit is weighted on the application will vary based on the type of lender.
Certain lenders, like fintech lenders, put less emphasis on credit scores, choosing instead to focus on other aspects of your business health like time in operation, annual revenue, or cash flow.
| “Many traditional lenders will look at your personal or business credit score to determine factors such as approval, loan amount, and interest rates. But if you’re concerned about how a credit check might impact your approval chances or your credit score itself, then there are other options out there,” said Credibly Founder Ryan Rosett. |
Key takeaways:
- Limited credit check options are available: While most traditional lenders give more weight to your credit scores, there are financing alternatives that will take a more holistic approach.
- Types of financing without hard credit checks/pulls: Typically, invoice factoring, merchant cash advances, and asset-based financing applications are underwritten with only a soft credit pull.
- Low credit score financing options: Business line of credit, equipment financing, SBA loans like SBA 7(a) and 504/CDC loans.
- You may qualify for more options with an alternative lender like Credibly
Can you get a business loan with no credit check?
While it’s true that most business lenders review personal and/or business credit scores as part of their application process, there are alternative financing options that may not require a hard credit check. This is true for certain types of businesses or under specific conditions.
These alternatives are particularly relevant for businesses that have a limited operational history, or those with modest revenue streams.
Most loan and other financing products require credit checks. However, some financing options don’t rely on having a good credit score to get approved
Types of financing you could qualify for without a hard credit check:
- Invoice factoring: Technically this is not a loan–it’s a way to get immediate cash by selling your unpaid invoices to a factoring company. Approval often hinges on the creditworthiness of your customers rather than your own business credit, making it a great option if you work with reliable clients.
- Merchant cash advances (MCAs): With MCAs, you receive an upfront sum that is satisfied by remitting a specified percentage of your daily or weekly sales. This option suits businesses with consistent sales but should be approached carefully due to potential expense.
- Asset-based financing: This type of financing, like inventory financing, uses the assets as collateral. This lets your lender take a bigger risk. The key, however, is the assets, such as real estate, inventory, or equipment.
| Learn more about your financing options: |
The pros and cons of alternative financing with no hard credit check
Weigh the advantages and potential downsides of applying for a business loan with no hard credit check.
Pros
- Quick access without impacting credit: You can get financing without triggering a credit inquiry. This is helpful if you’re protecting your score from multiple hard pulls.
- Approval with poor or no credit: Even if your credit history isn’t stellar, these loans and alternative options can provide the capital you need.
- Fast applications: Many no-pull credit loans feature streamlined, fast application processes that get you results quickly.
Cons
- Short repayment terms: Alternative financing may have aggressive repayment schedules, such as daily or weekly payments, which can strain your cash flow.
- Lack of credit reporting: Not all lenders report on-time payments to credit bureaus, so the loan may not help build your credit as you hope.
Business financing options with low credit score requirements
If poor credit is why you’re considering a business loan with no hard credit check, you may have more options available to you than you realize; there are financing opportunities available with low credit score requirements.
Business line of credit
A business line of credit can be a flexible funding solution for those with lower credit scores. This type of revolving loan allows you to draw funds as needed, up to your credit limit, with the limit replenishing as you repay what you’ve borrowed.
A business line of credit tends to have a higher approval rate and more relaxed credit score requirements compared to traditional business term loans, making it accessible to a broader range of business owners.
Equipment financing
Equipment financing is another practical option for businesses with a lower credit score. Because equipment financing is secured by the equipment itself, this financing option poses less risk to the lender, making approval easier even if your personal credit score typically falls in the 600 to 650 range.
SBA loans
Each SBA-approved lender may have its own credit criteria, but here’s an overview to guide your search.
SBA 7(a) loans
The 7(a) loan program is the SBA’s most popular option, suitable for various business needs like working capital, inventory, and real estate purchases. Loan amounts can reach up to $5 million. Repayment periods range from 5 to 25 years, depending on how the funds are utilized.
To qualify for a 7(a) loan of up to $350,000, you typically need a credit score of 650 or higher. These thresholds can change based on market and credit conditions.
CDC/504 loans
The SBA 504/CDC loan is designed to finance large-scale projects like commercial real estate or equipment purchases, with funding up to $5.5 million. For this loan, a credit score of 680 and 10% down to purchase the asset you’re considering are both usually required.
However, cash flow is critical—lenders prioritize your ability to generate and project enough income to repay the loan.
When applying for any SBA loan, remember that eligibility involves more than just your credit score. Lenders will assess your business’s financial health, revenue, and cash flow projections. Strengthening these areas can help improve your chances of approval, even if your credit score is lower than ideal.
Financing with Credibly and our low credit score requirements
Credibly offers flexible financing solutions designed to support businesses even if your credit score isn’t perfect. Here’s a quick look at what makes our offerings stand out.
Merchant cash advances
For business owners needing quick access to capital, our merchant cash advances require:
- A minimum credit score of 550
- Financing up to $600,000
- Factor rates starting as low as 1.11
- 6+ months of operational history
- $15,000+ in monthly revenue and $20,000 income in the most recent month
Business line of credit
For more flexible capital access, a revolving business line of credit can be a strategic choice.
- Minimum credit score of 675
- Funding up to $300,000
- Terms ranging from 3 to 24 months
- Flexible repayment options (weekly or monthly)
