• Home
  • Blog
  • How to Get a Credit Based Loan with No Cashflow or Collateral!

How to Get a Credit Based Loan with No Cashflow or Collateral!

Reviewed by Ty Crandall

November 14, 2023
credit based loan Credit Suite

Do you need business funding but lack the cash flow and collateral that most lenders require? In other words, you need a credit based loan. But, is that even a thing?

Are Credit Based Loans a Real Thing?

Information in regards to credit based funding for your business. Honestly, no. Still, bear with me. When we talk about credit based funding, we are talking about funding for your business that is based on credit only.

In contrast, most traditional loans are what is called “full-doc” financing. Meaning, while creditors may take business credit or personal credit into account, other factors weigh heavily on the decision.

For example, potential borrowers are required to hand over financial statements, tax returns, check stubs, and more. As a result, the process can be much longer and more complicated.

Check out our Credit Suite Credit Line Hybrid, where you can get up to $150,000 to help your business thrive.

Credit Based “Loan” Options

Yet, if the idea is that any credit is, at its core, a loan, then there are credit based loan options available. Now, these funding options do not necessarily take personal credit into account, though some may. The point is, they are “no-doc” financing options. You do not have to provide documents like:

  • check stubs
  • financial statements
  • tax returns
  • or and other documents

Some examples of credit based loan options include:

The Credit Line Hybrid

A credit line hybrid is a form of unsecured funding. Also, our credit line hybrid has an even better interest rate than a secured loan. The best part is, it’s a credit card stacking program, and many of the cards report to the business credit reporting agencies. As a result, you can build business credit and fund your business at the same time.

For approval, you need a good credit score or a guarantor with good credit. Consequently, the minimum personal credit score is a FICO of 700. Yet, you will not have to supply any financials, and you can get a loan of up to $150,000. It’s important to note, some of the cards in the program may report on your personal credit.

Check out our Credit Suite Credit Line Hybrid, where you can get up to $150,000 to help your business thrive.

Business Credit Cards

Business credit cards are universal-type credit cards, like MasterCard. In fact, they can be used pretty much anywhere. Even better, some of these cards have rewards programs as well. However, It’s important to review rewards programs thoroughly. Unfortunately, some may not be relative or attainable for your specific business.

Currently, business credit cards are the main source of credit-only based business funding. Generally, you will need to have at least 14 accounts reporting to the business CRAs. Additionally, they may require a minimum time in business or minimum number of employees. Here are a few examples, but there are many business credit card options out there.

Alpine Bank Visa Platinum Rewards

Alpine features:

  • No annual fee
  • One point per dollar spent
  • Decent APR, comparatively
  • Low spend amount to earn bonus

Amazon Prime Store Card

Of course, Amazon is such a versatile marketplace that this card can be useful for most any business. It features:

  • 5% cashback on Amazon purchases
  • No annual fee

Sadly, limits seem to be low. Also, there are reviews of this card on the Amazon website. Certainly take the time to check them before applying.

Bank of Hope Business Rewards Visa® Credit Card

Bank of Hope card Features include:

  • No annual fee
  • Triple points on gas
  • Double points on travel and dining
  • One point per dollar on all other purchases
  • Easy to meet minimum spend for bonus points for most

Chase Bank Ink Business Cash®

Chase Bank Ink Business Cash top features include:

  • Fairly decent interest rates
  • No annual fee
  • 5% cash back on the first $25,000 you spend on certain business products, i.e. office

CitiBank Costco Anywhere Visa® Business Card

First, you must be a Costco member to get his card. It offers:

  • 4% cash back on eligible gasoline purchases, including buying gas at Costco limited the first $7,000 per year
  • After that, get 1% cash back
  • 3% cash back on restaurant and eligible travel purchases
  • Earn 2% cashback on all other purchases from Costco and Costco.com
  • 1% cash back on everything else
  • There is no annual fee
Check out our Credit Suite Credit Line Hybrid, where you can get up to $150,000 to help your business thrive.

A Credit Based Loan Can Help You Get Funding Without Cashflow or Collateral!

Fortunately, credit based funding is a legitimate way to fund your business needs without the need for collateral or meeting cashflow requirements. As noted, the most common source of this type of funding is business credit cards, or programs like the Credit Suite Credit Line Hybrid. As you can see, there are plenty of possibilities. The trick is, you just have to find the one that will work best for your business.

About the author 

Faith Stewart

Faith has a BBA with a major in Accounting, and a combined 20 years of experience in the fields of finance and account.

Before switching to writing, she spent 10 years working in various areas of small business and personal finance and accounting, including working as a public auditor at BKD, LLP, Financial Director at Central Arkansas Development Council, and Commercial Credit Analyst at Farmer's Bank and Trust.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Stay In The Loop

Subscribe to our weekly newsletter that delivers the most actionable, tactical, and timely business financing tips you actually want and need for Free
*Plus get instant access to the 3-part Fundability™ training - a systems that helps your business become more Fundable and makes you look great to credit issuers and lenders