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- No credit check business loans are typically offered in the form of merchant cash advances, invoice factoring and loans from payment processors.
- Options for business loans with no credit check are limited and often come with higher interest rates.
- Predatory lenders thrive in this space, so proceed carefully and cautiously when comparing your loan options.
- Finding a lender that reports to credit bureaus can help build your business credit.
If you have a thin or rocky credit history, you may be able to get a small-business loan with no credit check. Although most lenders will check your credit as part of the application process, some may waive this requirement, and others will perform only a soft inquiry, which doesn’t affect your credit score. These no credit check business loans, however, are typically expensive — with high interest rates and fees and short terms.
Did you know...
Credit inquiries only stay on your credit report for two years at most, and they don’t have a significant impact on your score after a few months. Learn more about hard credit inquiries.
Generally, there are a few types of business loans that may not require credit checks:
- Invoice factoring is a method of small-business financing that involves selling unpaid customer invoices to a factoring company, which then takes over collecting payment from your clients. Invoice factoring is not technically a loan, and approval is typically based on the creditworthiness of your customers.
- Payment processor loans are a type of merchant financing that’s offered by payment processor companies, usually exclusively to its customers. Repayment is collected automatically from those seller accounts and approvals are typically based on sales numbers.
- Merchant cash advances (MCAs) are cash advances that are repaid through a percentage of daily sales, usually deducted automatically. In some cases, they may not require personal credit checks. However, MCAs — which you may also see referred to as business payday loans — are one of the most expensive forms of small-business financing, often carrying triple-digit APRs.
🤓 Nerdy Tip
Some predatory lenders promise “no credit check” or “instant approval” to try to take advantage of borrowers who are having trouble qualifying for a small-business loan. Don’t be fooled — no loan is ever automatically guaranteed.Although no credit check business loans are few and far between, alternative lenders can be more flexible with their credit requirements and offer quick access to capital. These loans can help you build business credit; however, they are often structured as merchant cash advances and carry high interest rates, so be sure you understand the true cost of borrowing before signing an agreement. Our business loan calculator can help.
Here are some no credit check business loan options to consider:
| Product | Max loan amount | Min. credit score | Learn more |
|---|---|---|---|
 Giggle Finance Merchant Cash Advance Apply now with Fundera by NerdWallet | $5,000 | 300 | Apply now with Fundera by NerdWallet |
 PayPal Working Capital Loan | $300,000 | 300 | |
 Square - Business loans | $350,000 | 300 | |
 FundThrough - Invoice Factoring | $10,000,000 | 300 | |
 AltLINE - Invoice Factoring NerdWallet Rating | $5,000,000 | 300 | |
 Kiva U.S. | $15,000 | 300 |
Giggle
Best for self-employed professionals
- Same-day funding available.
- Maximum loan amount of $5,000.
Nerdy Take: Giggle Finance’s qualification requirements are some of the lowest in the merchant cash advance market. If your business has been open for at least three months and brings in at least $36,000 a year in revenue, then Giggle may be able to offer you up to $5,000 in funding with no credit check. Its small maximum funding amount, however, may be best suited for freelancers, contractors and self-employed individuals.
Instead of assessing your credit report, Giggle reviews your bank statements to determine your eligibility and borrowing power. It’s often possible to receive financing from Giggle within the same day of application. As is typical with MCA companies, Giggle charges interest based on factor rates (not APRs) and does not publish those on its website. You’ll want to be very clear on your total payments, inclusive of fees, before signing an agreement and accepting an advance.
PayPal Working Capital
Best for PayPal users
- Must be a PayPal Premier or Business account holder for at least 90 days.
- Amounts between $1,000 and $300,000 depending on borrowing history and account type.
- Fixed fee.
Nerdy Take: The PayPal Working Capital product doesn’t require a credit check; instead, it considers your PayPal account history. You must process at least $20,000 in annual PayPal sales if you have a Premier account and at least $15,000 if you have a PayPal Business account.
This no credit check business financing option offers flexible payments, and funds can arrive in minutes. Rather than a more traditional APR, you’ll pay a fixed fee based on your funding amount, selected repayment percentage and your business's PayPal account history. Like a typical merchant cash advance, you dedicate a portion of your sales to automatically repay the advance and fees.
Square Loan
Best for Square sellers
- Loan amounts between $100 and $350,000.
- Applying doesn’t impact personal credit.
- Fixed fee.
Nerdy Take: Similar to PayPal, Square offers financing to business owners who sell on its platform. To qualify for a Square Loan, you’ll ideally process $10,000 or more per year through the platform.
Square also evaluates applications based on payment frequency, customer mix and payment disputes, among other factors. You repay the money automatically with a percentage of your daily credit card sales through Square. The fixed fee you pay varies based on your funding amount and processing volume.
Once you’re approved, you can receive funds in one to three business days or instantly if you have a Square checking account.
FundThrough
Best for invoice factoring
- Fees between 2.75% and 8.25% depending on net terms.
- Must have an outstanding invoice of at least $100,000 in accounts receivable or invoices to one customer.
- Funding available as quickly as the next day.
Nerdy Take: If you have a shaky credit history and capital tied up in unpaid invoices, FundThrough may be able to provide the financing you need. FundThrough offers invoice factoring for business-to-business companies that have outstanding invoices that are less than 90 days old.
FundThrough advances your business capital and collects payment from your customer — in exchange for a fee that varies based on the net terms of your invoice. FundThrough does not require a credit check; instead, it evaluates your application based on the value of your invoices as well as your banking history and tax history. It's one of several lenders that require little to no documentation to apply.
AltLINE
Best for startups
- Advance up to 90% of your unpaid invoices, up to $5 million per month.
- Factor rates starting at 0.8%.
- Personal guarantees required for owners of 10% or more of the business.
Nerdy Take: AltLINE is an invoice factoring company operating as a division of The Southern Bank. This lender has no credit score minimum, no minimum revenue requirement and no time in business requirement, making AltLINE a great option for startups with less-than-stellar credit.
Unlike most factoring companies, AltLINE is its own bank, which means it can lend directly to your business instead of acting as a middleman as well as offer lower prices and faster funding.
Kiva U.S.
Best for microloans
- Interest-free loans up to $15,000.
- Funding amount and speed relies on your ability to fundraise on the platform.
- Prove creditworthiness by recruiting friends and family to kickstart loan.
Nerdy Take: Kiva U.S. is a nonprofit microlending platform that helps small businesses raise capital through crowdfunding. Its lending model is unique not only for using crowdsourcing as a means to fund loans but also for what the organization refers to as its “social underwriting process.” This involves a two-week period in which prospective borrowers prove their creditworthiness by gathering financial support from friends and family to kickstart their loan. If the borrower successfully recruits the required number of lenders during this period, then the loan is listed on Kiva’s platform and opened up to the wider lending community to get funded.
For business owners requiring only a small loan and for those who are especially savvy with social networking and fundraising, Kiva may be an excellent fit.
Pros
Making payments on time may build your business and/or personal credit profile.
Potential access to funding even with bad credit.
May be easier to borrow in the future if you pay back the loan on time.
Cons
May pay additional fees.
No credit check business loans often come with high interest rates, which may outweigh the benefits of the loan.
Not all lenders report on-time payments to credit bureaus — meaning getting a loan won’t necessarily help you build credit.
If you can wait to get business financing until your credit score has grown, you’ll likely be able to receive more competitive interest rates and repayment terms. However, there are options you can consider that don’t necessarily require a good credit score, such as:
Small-business grants
Business grants are available from federal and state agencies as well as private companies. You don’t typically need good credit to qualify for a business grant, and certain grants are available specifically for startups.
Depending on the company offering the funding, you may have to meet other criteria. Small Business Innovation Research grants from the federal government, for example, are available only to companies that perform research and development for technology innovation and scientific research.
It can take time and effort to find and apply for a small-business grant, but if you can secure one, you’ll have access to free financing.
Nontraditional lenders
An alternative, or nontraditional lender, is technically any lender that’s not a bank or credit union. Many nontraditional lenders, such as nonprofit lenders, online lenders or community development financial institutions (CDFIs), offer safe and fair options that don’t require stellar credit.
For example, Accion Opportunity Fund is a nonprofit small-business lender with a minimum credit score requirement of
600
, but may work with lower scores on a case-by-case basis. Similarly, Fora Financial offers short-term business loans and has one of the lowest minimum credit score requirements among online lenders: 570
.Crowdfunding
Crowdfunding can be a good option for startups and other businesses to raise money through the power of the internet and social media. You set up a campaign using a crowdfunding platform and provide information about your business and funding goals.
Once your campaign is published, you market your business to friends, family and anyone else that you think might donate to help your company. In exchange for donations, you might offer a perk, such as exclusive access to products or discounts on purchases.
Friends and family
If you have individuals in your network who have the means to provide capital, you might reach out to them for your funding needs. Borrowing money from friends or family can be tricky, however, so you’ll want to set up a clear financial agreement upfront.
You’ll need to specify whether the financing is a donation or loan or whether you’re receiving funds in exchange for equity. No matter which option you choose, your agreement should detail any stipulations regarding the money to prevent strain on your relationship with friends or family.
Frequently Asked Questions
Yes, it is possible to get a business loan with a 500 credit score; however, you may have higher rates and fees as a consequence.
If you have no personal credit history, but have built an established and reputable business, you may be able to get a line of credit through an online lender or a traditional lender like a bank, especially if you are able to secure the line of credit with deposits or other collateral.
Merchant cash advances, payment processor loans and invoice factoring are examples of business funding that may not require credit checks.
Jacqueline DeMarco contributed to an earlier version of this article.