Getting financing for your small business may seem impossible if you have poor credit. Standard business loans from banks and other lenders require a credit check to determine whether or not you qualify, but there are options for people with bad credit. These alternative business loan products often have higher fees, and they can be difficult to manage if you’re not careful about how you use them.
Can I Get a Working Capital Loan With No Credit Check?
A working capital loan is a short-term loan that provides cash to cover your day-to-day operations. It’s intended to help your business cover payroll, taxes, inventory, and other expenses that are necessary for running your business. You can apply for a working capital loan online with minimal paperwork. While most lenders will check your credit, there are a few lenders that offer working capital loans to people with bad credit. However, these loans are typically more expensive than traditional business loans because they carry a higher interest rate.
What Are the Benefits of a Working Capital Loan?
Many small businesses need a working capital loan to support their daily operations. The funds from a working capital loan can be used to pay employee salaries, purchase supplies, pay for rent, and more. Working capital loans are available from most traditional and alternative lenders, but they usually come with high interest rates. A working capital loan can be a good option for people with bad credit because it allows them to finance their business without having to worry about their credit score.
Can I Get a Guaranteed Startup Business Loan with No Credit Check?
A guaranteed business loan is a type of loan that’s backed by the government. This means that if you are unable to repay your debt, the government will take over repayment of the loan. This type of loan is often paired with a secured loan, which requires you to submit collateral that’s valued at the same amount as or more than your debt. Most guaranteed business loans require a FICO score of at least 560.
How to Get a Business Loan with No Credit Check
A business loan no credit check is possible, but it’s not easy to find. Most traditional business lenders will perform a credit check as part of the application process. Some lenders will waive this requirement, and others will only perform a soft inquiry that doesn’t impact your credit score. You can also find business loans with no credit checks through alternative lending marketplaces, such as Lendio and National Business Capital. These alternative lending sources can connect you with lenders that provide a line of credit, merchant cash advance, or invoice factoring, three types of business loans that don’t require a credit check.
While personal loans can be a great way to build your credit, business financing is better for building your company’s credit. However, not all commercial lenders and funding sources report to the commercial credit bureaus, so it’s important to research the companies you’re interested in before applying for any type of loan. business loans no credit check