Many small business owners are looking for funding options without having their personal or business credit pulled. Those lenders that offer business loans no credit check will usually look at other factors, such as capacity, capital, character and conditions.
Fortunately, there are several business lending options available for those with poor credit. Some of these include Kiva, Square, PayPal and FundThrough.
Kiva
Kiva is a non-profit crowdfunded microloan platform. It offers small business loans with 0% interest and no loan fees. Its vetting process is based on social capital and doesn’t depend on your credit score or how long you’ve been in business. Instead, it works with local “Field Partners,” who scan applications and assist applicants.
These Field Partners can be schools, NGOs, or other social enterprises. They are charged with vetting applicants in person, distributing funds, and collecting loan repayments. In addition, they may work with borrowers to negotiate a revised repayment schedule in the event of default.
After a few months, Smith started to feel a connection with the people she was lending to. She found stories about Armenian bakers and Moroccan bricklayers and felt like she was making a difference in the world. However, one day she noticed something strange about her Kiva account. It was harder to find key information, such as estimated interest rates. She combed through blog posts and tax filings but could not figure out what was going on.
Square
Square is a point-of-sale business management and payment processing service that also offers financing and other services. It has a number of products, including Square Capital, a small business loan that is tied to sales and a savings account with 0.5% APY. In addition to its POS software, hardware and payments products, Square offers other small business tools like email and SMS marketing, team management and customer loyalty programs.
Unlike traditional lenders, Square’s loans aren’t subject to credit checks. However, the company’s lending practices are controversial and it has been accused of harassing borrowers. Moreover, it has been accused of abruptly terminating and freezing accounts without explanation.
Despite its controversial reputation, Square has many benefits for small businesses, including low fees and competitive interest rates. In addition, it is one of the few business loan options that don’t require a credit check. However, if your business has a poor credit score, it may be better to seek alternative lenders that don’t use hard inquiries and tarnish your credit report. These lenders typically have higher interest rates and fees.
PayPal
While the majority of lenders require a credit check, there are lenders that do not. These lenders offer alternative financing for small businesses, such as invoice financing or a line of credit, and do not run your personal or business credit. These lenders may also offer lower rates than traditional business loans. For example, Fundbox offers lines of credit based on invoice collateral starting at $1,000 – $100,000 at interest rates as low as 4.66%.
Another option is to apply for a small business loan with no credit check through Kiva or an alternative crowdfunding platform. These platforms have a variety of investors who can lend funds to your business. However, these platforms have specific requirements, such as minimum annual revenue or sales.
Another type of small business loan that does not run a credit check is PayPal Working Capital. This type of financing is offered to PayPal Business account holders who have at least $15,000 in annual sales. The lender will take a percentage of the business’s sales each month as repayment. The maximum loan amount is one-third of annual sales, and you can receive funding within minutes.
FundThrough
There are a number of lenders that offer business loans with no credit check. These lenders may be able to provide funding for businesses that don’t qualify for traditional lending, but they typically charge higher interest rates and fees. They may also have lower borrowing limits and shorter repayment terms than other types of financing.
FundThrough is an online invoice financing company that works with small businesses. The company specializes in providing working capital to companies that are experiencing cash flow problems. Its AI makes assessments about each invoice and can advance up to 90 percent of the amount owed. The company can then collect the payment from the customer.
The company is based in Toronto, Canada, and has a global presence. Its customers include large multinational corporations and mid-sized businesses. Its funding model is a variation of invoice factoring, which is a form of asset-based lending that allows you to borrow against your outstanding receivables. It recently acquired BlueVine’s invoice-factoring business, expanding its footprint in the US and accelerating its focus on embedded finance.
Fast Capital 360
Getting the money your business needs to achieve growth isn’t always easy. Some lenders charge high interest rates, fees, and short terms. Others perform a hard credit check that can damage your credit score. But if you have a good credit score, you may qualify for a small business loan that doesn’t require a check.
Fast Capital 360 offers a variety of small business loans. They also offer Merchant Cash Advances, which allow you to borrow against your future profits. These funds are typically repaid within a few months, and the company provides a starting factor rate of 1.10. They also offer equipment financing, which allows you to purchase or lease commercial equipment.
To apply for a small business loan, you will need to provide information about your company, including the amount needed and the time in business. They will then match you with a lender that best fits your needs. Their online application process is quick and simple, and the lender will contact you within hours. The company also offers flexible repayment options, such as weekly or biweekly payments.small business loans no credit check