Several small business lenders consider your personal and business credit score to define your eligibility, in addition to other factors such as your duration in the business and annual business revenue.
There are borrowers who don’t want their personal credit to be checked during the application process. This can be due to their worry that a low credit score can disqualify them from the funding.
To address this issue, this article is drafted to make you aware of small business lenders who won’t check your credit score and will accept your application with the same. Although few lenders would ask for your credit history, that won’t be a deciding factor in securing a loan.
Kiva
Kiva lends money through crowdfunding to small business owners. They don’t look for a minimum credit score, which makes it easier for the ones who cannot make it with a high credit score. You must be a resident of the U.S. to be eligible to operate the business.
The maximum funding offered by these small business lenders is $15,000, which makes them best suited for businesses with low start-up costs. One of the significant advantages of Kiva is that it offers a 0% interest rate as it is non-profit, making it an easy option for small business owners.
Square loans
Square loan lets the borrowers repay their balance loan amount automatically by deducting a small number of daily sales made from their Square account. An important requirement for being eligible to get these loans is to use Square for payments, after which you don’t need an eligibility review.
These small business lenders consider numerous factors other than your credit score to decide eligibility, such as account history, payment frequency, processing volume, and more. This loan lets the borrower apply for as less as $100, making it appealing for those who don’t require a thousand dollars for their business.
Credibly
The minimum business credit score required to get a business loan for small businesses is as low as 500. This is accessible for borrowers who worry that their loan may not be approved or will be rejected if they don’t meet the traditional lender’s credit check requirement.
But like any other credit, applying with a low business credit score could mean you are subject to high interest rates. These small business lenders who approve the borrower will get the funding within 24 hours. This can become appealing if you are in need of cash.
PayPal
PayPal offers a unique repayment structure for working capital loans. It automatically deducts a certain amount of your sales from the PayPal account you use for repayment till the time balance amount is paid off. You must hold a PayPal Premier account to at least 90 days to be a borrower in the loan.
Your eligibility to get a loan from these small business lenders depends on your sales history. Therefore, a credit check is not required. Borrowers who come on a regular basis qualify for high funding up to $250,000, as compared to first-time borrowers who get up to $150,000.
Quick way to get a loan
Like every other loan, a business loan needs to be applied to small business lenders, who will review the information before they decide to give you the money. The approval process will take a few days, but some lenders will complete it in 48 hours.
If you are looking for a loan that needs to be approved urgently, you should avoid crowdfunded loan options. This is because raising the required funds will take some time. Moreover, making sure that all the application documents are submitted on time with correct information will help you have a smooth flow.
Duration of business
The number of years you need to be in business depends on your small business lenders. Many want your company to be six months old to be granted a loan. Usually, the longer you have been in business, the higher your chances of getting loan approval.
Along with your business duration, your monthly revenue is also a factor that influences small business lenders‘ decision. Since every lender has their own requirement, you would have to double-check with your desired lender before applying for the loan.
Conclusion
Small business owners can secure a loan without a credit check, especially through non-traditional lenders like Kiva, Square, Credibly, and PayPal. These lenders focus on factors like sales history, business duration, and revenue, rather than credit scores, making them accessible to entrepreneurs with low or no credit.
While some may offer fast approvals and flexible repayment options, it’s essential to consider each lender’s specific requirements and terms.
By understanding your business’s needs and financial situation, you can find the right lender to support your growth without jeopardizing your personal credit.
