What are Business Loans with No Credit?

Credit is a funny thing. Whether you grew up with a limited understanding of it or mishandled it while you were younger, a bad credit score can hurt you in the long-run. Many business owners have experienced loan rejection by a financial institution. Typically, it’s because of their credit scores and it is not a great feeling. But if it makes you feel any better, only a quarter of businesses that apply for a bank loan are accepted. That means 75% of businesses who have applied have felt the way you are feeling. Business loan rejections can happen for a variety of reasons. Often times it is due to their business history or the credit score of the applicant. If rejected for a loan due to a poor credit score, you wonder, do business loans with no credit exist?

If you are asking this question, you are in luck because the answer is yes! But you need to be prepared for the fact that even though these loans exists, not every company offers business loans with no credit. Even though many loans will not be available to you, there are still many options open to you. They may not necessarily be called “business loans with no credit” because that would be frowned upon by the federal government but they do exist. This type of funding will often use the words advance, capital funding, etc.

Funding providers who offer business loans with no credit check will often look at some or all of the following things:

• Your monthly sales revenue
• Assets and liabilities
• Health of your business
• Amount of down payment
• Business plan
• Collateral you plan to put down or have to put down
• History of your business

What type of options do I have for business loans with no credit check?

• Revenue –Based Loans
  • This type of loan is based on your bank deposits and is great if the amount you need is equal to 10% or less than your annual gross deposits. If you need the cash fast another benefit is that you can have access to the funding in just 7 business days. This is much faster than a traditional business loan. The loan will be paid back daily through an ACH payment through your business’ bank account.
• Merchant Cash Advance
  • When you need cash fast, we are talking in just 3 days; this is the option for you. With no credit check, no collateral, and a quick application, many businesses choose this route. This is a great choice when your business does a lot of transactions through credit cards. All merchant cash advance providers are different, but ateBusiness Funding, our requirements are simple. We accept businesses that have been operating for at least six months. And then we look for companies who do at least $10,000 a month in revenue. If you meet these minimum requirements you have a 95% chance of being accepted with us.

There are many funding providers out there. It is all about finding the one that meets your business’ needs. You never want to put yourself or your business in a position that will ultimately hurt it. Before you ever apply for a funding source, do your research and weigh the pros and cons before committing to anything. It is also important to look at building your credit so that you do not have to look for business loans with no credit. Improving the health of your credit is a great way to start opening up more funding options in the future.

Ready to Get Started with a Merchant Cash Advance?

Contact eBusiness Funding now at 305-985-6593 or complete the contact form on this page now. We are here for you to answer all of your funding questions.

Do Business Loans with No Credit Check Exist?

Credit is a funny thing when it comes down to it. Many people who are beginning to open their own businesses were not brought up in households that understood credit. The concept of a credit card was an offer given to you in your college dorm mailbox or maybe on the table in the cafeteria. This is where many people ran into problems with credit from the very beginning. I can remember when it seemed that every company was offering a free t-shirt to get students to sign-up for a card. The problem with this method was it led to an increased access to funding. This allowed students to pay for trips and non-essentials. And then the students with the cards had no means to pay them off. This issue is sadly leading to several business owners searching the internet for business loans with no credit check.

If you are one of the thousands of people that is still recovering from the effects of these promotions, don’t worry. We know that you have worked hard to rebuild your credit reputation. We know that rebuilding your credit can’t happen overnight. Even though these practices by credit card companies have been limited, they still exist. Thankfully the internet has led to a higher level of awareness of what credit is. But for many, they are still feeling the effects of poor credit decisions early in their adult lives and it is affecting their businesses.

So how does having poor credit affect your business’ ability to get a loan?

• Almost every single traditional bank is going to pull your credit score when you apply for funding. If they see you are below a certain score they may refuse you the loan. Even companies with good credit are being turned down by financial institutions.
• Even if you have good enough credit that a company is willing to give you a loan, you will often face a much higher interest rate than someone with perfect credit.
• Each lender is going to give you a risk score. If you risk score is below a certain threshold, you will be denied. If your score falls into a certain range, your rate will be affected but you can still qualify. Then it will be up to your business to decide how bad you need the funding and if you are willing to pay the higher fees.

So as you can see, if you are now at the point where you are starting your business, credit becomes a much bigger deal. Even if you are applying for personal loans like a home or auto, you could have problems if your credit is poor. Thankfully for individuals who are struggling with their credit there are options for business loans with no credit check. But they are often going to come with much higher interest rates and/or fees associated with them, due to your risk score. But not always, so don’t worry.

Alternative to Traditional Business Loans

One option for non-traditional business loans with no credit check is a merchant cash advance. This is a great way to get access to business funding quickly. This funding source is not considered a loan but an advance. Unlike a loan, you will be paying a fixed daily percentage of your credit card transactions. Compare this to a traditional loan where you will pay a fixed amount each month.

Many businesses like this option because they do not have to worry about coming up with a set amount each month. They can focus on growing their business. This choice also has an automatic withdrawal so you don’t have to be concerned about forgetting or missing a payment.

Ready To Get Started?

Contact eBusiness Funding now at 305-985-6593 or complete the contact form on this page now.