Can You Get A Business Loan With No Credit Check? (2023)

Maybe you need a loan to start a new business or launch a new product or division, or perhaps you are dealing with the unexpected, like a dip in revenue, costly repairs and renovations, or staffing needs. Regardless of why you need the extra capital, there’s one thing that will likely govern how easy—or difficult—it is to get funding: your credit.

Getting approved for traditional business loans can be a challenge even for businesses with solid qualifications. Banks and other small business lenders often want businesses to be in operation for at least two years and they prefer to lend to small business owners with good credit.

There are loans that don’t care about your personal credit scores, and that don’t penalize you because you’ve made a few financial mistakes in your past, but you need to understand how these business financing options work and where to find them.

Can You Get A Business Loan With No Credit Check? (1)

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Why Consider No Credit Check Business Financing?

Some lenders check personal credit, some check business credit scores and some check both. Only a few financing sources don’t check credit at all when reviewing business loan applications.

Unfortunately, for some business owners, a credit check could be out of the question. Some simply don’t want a hard inquiry to affect their personal credit scores, and others know their poor credit scores will likely immediately disqualify them.

In other cases, business owners are looking for loans that don’t require personal guarantees. Their goal is to separate their business and personal finances completely.

All are valid reasons for wanting to avoid a credit check. But the reality is that most business lending options do review personal credit. And it’s especially true for startups, or for businesses with few employees or without significant time in business and/or revenues.

Still, there are a variety of options, including working capital loans through your payment processor, merchant cash advances, invoice factoring, and equipment loans that can be much more credit flexible.

Here we’ll focus primarily on business loan options for small business owners with poor credit. These small business loans typically consider other qualifying criteria like annual revenues to approve applicants. We’ll also feature business financing that doesn’t require a personal credit check, and we’ll describe types of financing that don’t require personal guarantees.

Pros and Cons of Getting a Business Loan with No Credit Check

Again, it is not always easy to find small business financing that doesn’t check personal credit and/or require good personal credit scores. But when you do, what are the benefits of these loans…and what are the drawbacks?


  • No impact on personal credit scores
  • Some available to those with bad credit/no credit history
  • Often approved very quickly


  • Tend to have high interest rates/costs
  • Short repayment periods common
  • Some loans require collateral
(Video) Get Up To $100,000 Small Business Loan | NO Credit Check | Same Day Funding

Can I Get A Business Loan With Bad Personal Credit?

Many lenders check credit to determine whether your personal credit scores meet their minimum requirements. Negative items on your personal credit history, such as late payments, collection accounts, or bankruptcies, may lower your scores and put you in the high risk category.

But it’s also important to keep in mind that sometimes business lenders check personal credit primarily to rule out serious problems, like an unfinished bankruptcy or to deter fraud. In those cases, low credit scores may be perfectly acceptable.

How to Know if You Have Good or Bad Credit

If you haven’t checked your credit, it’s a good idea to do so before you begin the application process. Every lender has its own minimum credit score requirements, and each will decide what credit scores qualify as “good credit” or “bad credit.”

Generally, those with scores around 650 and above have more options available. Those with scores in the 500s or lower have fewer options. And, as we will share in a moment, a few loan options don’t check credit at all.

Hard vs. Soft Inquiries and the Impact on Your Credit Score

The obvious benefit to no credit check loans is that you don’t have a hard credit check on your consumer credit reports. Inquiries may slightly lower your credit scores, though the effect is often temporary.

A hard inquiry is one that will affect your credit scores, while soft inquiries don’t. Soft inquiries may be used by some small business lenders to screen applicants while hard inquiries often take place once the business owner decides to apply for financing.

Inquiries typically lower credit scores by a few points (less than 10 points is common) and most credit scoring models don’t count inquiries that are more than a year old.

Types of No Credit Check Business Loans

There are a couple of types of financing that don’t typically check personal credit:

Vendor or Supplier Financing

Here, your vendors or suppliers will offer short-term financing for products you purchase directly from them. Net-30 financing terms give the business 30 days to pay, for example. This type of financing does not typically require good credit and there is often no personal credit check. A business credit check may or may not be required.

As a plus, this financing usually does not require a personal guarantee.

Find Easy Net-30 Vendors Here


Most crowdfunding sites do not require a personal credit check. You can raise money for your business either by offering rewards or equity in your business. Loan-based crowdfunding is also a possibility though a credit check is more likely in that scenario. Personal guarantees are rarely required as well.

Read: Kiva offers 0% no fee loans up to $15000 to businesses in the US.

In addition there are several types of financing that tend to have very flexible credit requirements:

Business Cash Advances

Here your business can get an advance against future revenues, based on historic revenues. Business cash advances (or merchant cash advances) are typically available to businesses with strong cash flow, backed up by business bank account statements. While there may be a performance guarantee, a personal guarantee is rarely required.

Invoice Financing

This type of financing allows businesses that invoice other businesses to get paid faster. Companies offering invoice financing will advance funds from the invoice immediately and in some cases even collect the payment directly from the client. Chances are no personal guarantee is required, and factoring may even be made on a non-recourse basis, which means the business is not liable for uncollectible invoices.


These smaller loans are often made by non-profit lenders (CDFIs) that try to help underserved borrowers. Microlenders are sometimes able to work with borrowers with less than perfect credit. A personal guarantee may be required, so be sure to check.

4 No Credit Check or Low Credit Business Loans

Let’s look at some specific business loan options. The first one listed does not check credit. The other three do check credit, but do not require excellent credit.

(Video) $50,000 Loans NO SSN REQUIRED NO CREDIT check & Bad Credit in 1 day!

PayPal Working Capital

PayPal has long been viewed as a popular payment processor, but it also offers working capital loans that can be used to finance everyday operational expenses, e.g., payroll, accounts payable, etc. If you use PayPal as a form of payment, either online or in store, then the PayPal Working Capital Loan may be an option.


To be eligible for a PayPal Working Capital Loan, you must have a PayPal Business or Premier account for at least three months. Business account holders must process at least $15,000 annually, while Premier account holders must process at least $20,000 annually.


This working capital loan is based on your PayPal account history, so you’ll be able to borrow an amount that fits your business.

Rates & Fees

Eligible borrowers will pay a single, fixed fee that is determined prior to accepting the loan. There are no additional interest payments or fees. The fixed fee is on the loan total; your PayPal sales history; and the selected repayment percentage, which is the percentage of each sale deducted and paid towards your loan.


Payments are automated and deducted from each PayPal sale, referred to as the “repayment percentage.” Though percentage repayment rates can vary based on the amount of the loan amount, typically borrowers can select a repayment rate between 10% and 30% per transaction.

If no PayPal sales occur during a specific time, no payment is made; however, all borrowers are expected to pay either 5% or 10% of the total loan amount over a period of 90 days. In addition to the repayment percentage, borrowers can also make manual payments.

Rapid Finance: Cash Advance

While this merchant cash advance company may check your credit, you still can qualify for business financing with lower credit scores because Rapid Finance also looks at your time in business, revenue, and accounts receivable.


To qualify, you must have accounts receivable. You’ll need to provide your last three credit card processing statements, as well as your last three months of business bank statements when you apply.


With Rapid Finance, you can get a cash advance of $5,000 up to $500,000.

Rates & Fees

Because this is not a loan, you aren’t charged an interest rate. Instead, your receivables are purchased at a discounted price and fees may be charged and deducted from the advance amount.


You’ll make automatic payments based on a percentage of your business’ credit card sales or other revenue receivables.

BlueVine: Line of Credit

BlueVine offers a business line of credit that can help you build your credit over time. BlueVine does run a soft credit inquiry, so though they will “check your credit,” it will not be reflected on or impact your credit score.


To qualify, you’ll need a FICO score of at least 625, 6+ months in business, and $10,000 in monthly revenue.


Eligible applicants can borrow up to $250,000.

Rates and Fees

Rates start at 4.8%. There are no monthly or maintenance fees.


You’ll pay back each draw with fixed monthly or weekly payments over 6 or 12 months.

Kapitus: Short-Term Loan

Another option if your credit scores are low is a short-term loan from Kapitus. The company also offers lines of credit, equipment loans and revenue-based financing.



To qualify, you’ll need to be in business for at least two years, have annual revenues of $250,000 or more, and have a credit score of 625 or higher.


Eligible applicants can borrow from $10,000 to $500,000.

Rates and Fees

Rates vary, depending on the loan product, but as an example, you may see a 1.05 – 1.39 factor rate on some short-term loans.


Kapitus works with you to set up a payment plan that works with your business.

Alternative Financing Options for Bad or No Credit

In case you want even more business funding options, here are others to consider:

Equipment Financing

If you’re specifically looking to purchase equipment, such as heavy machinery or a computer, equipment financing is designed for this purpose, and typically you don’t need high credit scores.

Business Credit Cards

Most small business credit cards check personal credit, and good credit scores are usually required. There are only a few business credit cards for bad credit. They may have higher interest rates, but if you pay your bill on time each month, you can build your credit and hopefully qualify for better options in the future.

Retirement Account Loans

You can borrow against 401(k) retirement accounts without a credit check. Unfortunately you can’t borrow against an IRA. Another option is to roll your retirement funds into a ROBS plan that is used to fund your business. Since you’re putting retirement funds at risk, you want to make sure you have a solid business plan first.

Do SBA Loans Require Credit Checks?

Generally, SBA loans require a personal credit check. Some loans also require a business credit check. However, most SBA loans don’t have a minimum credit score requirement. “Acceptable credit” is required, though, and most lenders who make SBA loans require good or excellent credit scores.

Notably certain SBA loans – SBA Small Loans and Community Advantage Loans – require the lender to check a FICO SBSS credit score and minimum scores of 155 or 140 respectively are required to pass the prescreen.

Find No Credit Check Options That Fit Your Needs

Finding a traditional loan that doesn’t require a credit check can be difficult, if not nearly impossible. However, today’s modern lending economy has opened the door for alternative funding options, some of which do not require a credit check.

If your main goal is to avoid unnecessary credit checks when you apply for small business financing, Nav can help.

Frequently Asked Questions about Business Loans with No Credit Check

  • Are there guaranteed startup business loans with no credit check?

    In short, the answer is no. There are several lending companies who will claim a “guaranteed loan” with no credit check, but this should put you on high alert. Any lender who says you’re guaranteed approval for a loan has a higher chance of being predatory, with high interest rates, fees, early payoff penalties, short repayment terms, and loan options that may make it a bad deal. Make sure your lender is reputable, especially if they claim a guaranteed loan.

    Also, in the world of small business lending, “guaranteed” usually means “backed by the government,” as in Small Business Administration (SBA) loans. SBA loans are guaranteed because if the borrower can’t pay the debt, the lender collects the collateral from the U.S. government. SBA loans tend to have strict qualifications, and a government business loan credit check is a must.

  • What are other options for business funding?

    If small business loans are out of your reach, there are many other business financing options available. A few you may consider include:
    Business line of credit
    Merchant cash advance (MCA)
    Cash flow loans
    Business credit cards
    Invoice financing
    Nav can help you find the right financing for your business. Sign up and see your options today.

  • Can you get a business line of credit without a credit check?

    It is possible to get a business line of credit with no credit check, but it’s very difficult. Credit score, whether it’s your business credit scores or personal scores, are how lenders evaluate your creditworthiness. There may be business lines of credit available that only require a soft credit pull, rather than a hard credit inquiry. This means they won’t negatively impact your credit. But the lender will still probably want to see your credit score one way or another.

  • What are the requirements to get a business line of credit?


    What are the requirements to get a business line of credit?
    Every lender will have different requirements, but in general, to qualify for a business line of credit, lenders will look for:
    – A good to excellent credit score (above 640 at minimum, but your chances are better if it’s above 660)
    – Annual revenue of $25,000 or more
    – At least six months of business history
    – Some form of collateral

    They’ll also ask for documentation and financial statements, including:
    – Business plan
    – Balance sheets
    – Bank statements
    – Profit & loss statements
    – Tax returns
    – Cash flow history
    – Debt and open credit lines, including business credit cards

    Nav can help you find a business line of credit or other financing option to meet your business’s specific needs. You can see what financing options you’re likely to qualify for by signing up for Nav today.

  • Can I get a same day business loan with no credit check?

    You may be able to get a same-day business loan with no credit check if you apply for a business cash advance or similar financing. This type of financing will make the decision based on business revenues rather than credit.

  • What is a soft pull for a business line of credit?

    A soft pull for a business line of credit refers to whether there is a personal credit check that doesn’t affect your personal credit scores. When a lender checks personal credit, it can either create a hard inquiry (hard pull) or soft inquiry (soft pull). Hard inquiries may lower your personal credit scores by a few points, while soft inquiries don’t hurt your credit.

  • What are the credit options for new business startups with no credit?

    It is challenging for new businesses to get business financing due to the fact that new businesses are risky, and there is no income to pay back the loan. Business credit cards (and sometimes SBA loans) are the main two types of loans that may be available to startups, but both require good credit. A new business with no credit may need to turn to personal savings, friends and family, and perhaps crowdfunding.

  • Do micro loans for business require a credit check?

    Most lenders offering microloans check personal credit, but they may be flexible in terms of credit scores if the owner can demonstrate they have overcome past credit problems. Business owners who have recently paid bills late or who have a lot of debt are unlikely to qualify.

Can You Get A Business Loan With No Credit Check? (3)

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This article was originally written on November 16, 2018 and updated on September 30, 2022.

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Do you need a credit check to start a business? ›

Opening a business credit line or business loan typically requires a credit report and score check, including any business credit you've established and often your personal credit. While banks don't usually require a credit check to open a checking account, they often will run a ChexSystems report.

Can I get business loan if I have bad credit? ›

The short answer is yes, it's still possible to access small business loans with bad credit. In truth, you may find it harder to get finance through high street banks and building societies. The good news is that there are plenty of lenders out there who specialise in business loans for bad credit.

Can I get a loan if I have no credit? ›

Yes, it is possible to get a loan with no credit score. But you're likely to be hit with a high interest rate and less-than-favorable terms. Your lack of credit scares lenders.

Do banks do credit checks for business loans? ›

A lender will run a credit search on your business as part of the application process – always check your own business score first so that you're aware of any challenges that might arise or cause the process to take longer.

Can my new business get a loan? ›

Business loans are available through banks, credit unions, online lenders and even microlenders that specialize in smaller loans. However, not every potential lender is going to be a fit for your startup business.

Who is eligible for business loan? ›

Those whose business has been profit making for the previous 2 years. The business should have a Minimal Annual Income (ITR) of Rs. 1.5 lakhs per annum. The applicant should be at least 21 years at the time of applying for the loan, and should be no older than 65 years at the time of loan maturity.

What information is needed for a business credit check? ›

The typical information that makes up a small business credit report includes: Company information including number of employees, sales, ownership, and subsidiaries. Historical data of the business. Business registration details.

What does a business credit check show? ›

A business credit report provides details about the firm, such as ownership information, subsidiary companies, financial information, risk scores and any liabilities or bankruptcies. These reports are occasionally looked at while deciding whether to extend credit to a company.

What is a credit check for a company? ›

A credit check, also known as a credit search, is when a company looks at information from your credit report to understand your financial behaviour. They don't always need your consent to do this, but they must have a legitimate reason (e.g. you applied for a loan with them).

What do you need to do a credit check on a company? ›

The first step in credit checking a company is to obtain a credit report. Business credit reports are similar to a personal credit report in so much as they provide you with a credit score and credit history, as well as the credit bureau's assessment of that company's creditworthiness.


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