Getting financing in some form is essential to running a business. But if you have bad credit, it can be hard to qualify for the loans and other types of funding you need to grow your business. Fortunately, there are lenders that specialize in offering no credit check loans for business to help you get the money you need even if you have bad personal or business credit.
No credit check loans for business are rare, but they do exist. They usually come with high interest rates and short terms, so you should only take out one of these loans if it is truly necessary. However, if you have no other options and you need to get cash quickly, a no-credit check loan may be the best option for you.
Some types of business financing do not require a credit check, including invoice factoring loans and merchant cash advances. In addition, some lenders that offer business loans to small businesses with bad credit provide no-credit check options for borrowers in certain FICO credit score tiers.
There are also some lenders that offer unsecured small business loans with no credit checks, but they will often perform a soft pull of the borrower’s credit. You should ask each lender whether they will pull your credit, and if so, why, before you apply for a loan.
While there are some no-credit-check business loans, you will generally have a much wider range of financing options if you do not have bad credit. Lenders that perform a full credit check typically have a more rigorous application process, and will often be hesitant to lend to newer or less established businesses. If you have bad credit, you should focus on improving your business’s financial profile before applying for any loans that require a credit check.
Another way to get cash without a credit check is to apply for a grant or other type of public funding. This type of funding is usually available to people in certain demographic groups, such as minorities or those who work in low income areas, and can be a great way to get cash fast for your business. There are also online crowdfunding platforms such as Kickstarter and Indiegogo that allow individuals to lend small amounts of money to other small businesses. Another option is Kiva, which offers loans for up to $25 with no interest and no credit checks. But keep in mind that these types of loans are generally not very large, and are unlikely to be a sufficient amount of funding for most businesses. Other options include business credit cards, payment processor loans and merchant cash advances. All of these types of business financing have their own benefits and drawbacks, so it is important to do your research before deciding which one is right for you.