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Miracles Really Do Happen: How to Score Small Business Loans, No Credit Check

October 13, 2018
Small Business Loans Credit Suite

And Other Small Business Funding Secrets

Many believe that the only way to fund a business, new or established, is with traditional small business loans. The problem is, these types of loans always require a credit check. That’s isn’t a problem for some, but for many it can cause problems. Either the credit check will lower their credit to a critical level due to the fact it isn’t already great, or it will reveal a credit score that will knock them out of the loan. This isn’t the problem if you know how to get small business loans, no credit check. 

Not only that, but there are other funding secrets that a lot of business owners do not know. Such miracles as invoice factoring, merchant cash advances, retirement loans, and even crowdfunding can help you reach your business goals without a credit check.

Learn bank rating secrets with Credit Suite's free, sure-fire guide.

Keep your business protected with our professional business credit monitoring.

Why Hide from the Credit Check Villain? Small Biz Loans, No Credit Check Credit Suite

The only people who have to hide from a credit check are those with no credit or bad credit. Here’s the thing. It can happen to the best of us. Having bad credit doesn’t make you a villain yourself. Things happen, and in truth no credit is just as damaging as poor credit.

New business owners may want to avoid a credit check because they simply haven’t had time to build business credit yet. Established business owners may not have realized the perils of not working to build business credit.

Thus, they find themselves in a conundrum of needing funding but at the same time, needing to avoid a credit check.

Sometimes business owners do not realize their credit is in trouble until it is too late. Even if they are in the process of rebuilding after it crumbles, it takes financing to get the ball rolling again.

Sometimes the damsel in distress just needs a rescue before you peek under the veil.

The Other Side of the Story

Is a credit check really such a bad thing? Are creditors bad guys that wield their evil credit checks like a sword, hacking down all small businesses who dare to come their way? Not exactly. Creditors run credit checks as a risk mitigation tool.

They need to know if the business they are lending money too is going to pay them back, a credit check is a key piece to answering that question. That being the case, you may wonder how on earth any creditor could offer small business loans, no credit check.

They simply have to go another route. If you imagine that the credit check is the wall built around the creditor’s castle to keep those that would default on their loan out, then those that do not run a credit check just have to build their wall of out other materials. 

These may include tax returns, financial statements, proof of income, and potentially higher interest rates and stricter repayment terms.

Learn bank rating secrets with Credit Suite's free, sure-fire guide.

Keep your business protected with our professional business credit monitoring.

Who Are These Heroes?

Who are these small business lending heroes that find way to offer no credit check business loans? They go by The League of Alternative Lenders. Okay, so no, they don’t have an official cool sounding name. Alternative lenders are what you are looking for however, if you are looking to avoid a credit check.  

They consist of micro lenders, crowdfunding sites, invoice factoring companies, and merchant cash advance agencies to name a few. They exist to support small business owners that may not be eligible for traditional loans for whatever reason.

Alternative Financing  

What do you need to know about of these types of financing? Are they really a miracle? In the sense that there used to be no option other than traditional lending, yes, they are a miracle. They are not a perfect solution however.

Often alternative financing options come at a steep price. Especially alternative loans. The interest rates are usually higher and repayment terms are typically hard to meet. If it is all you can get however, it is sometimes worth it.

Some alternative funding options aren’t the type that have to be repaid. Crowdfunding and grants are two examples. If you are self-financing, then you only have to pay back yourself. If you are borrowing from friends and family, the terms may be much easier to manage.


An in Depth Look at No Credit Check Financing Options


These are small loans that come from individuals rather than business lenders.  That is, with the exception of those back by the Small Business Administration.

Invoice Factoring

When you take out loans against current invoices it is called invoice factoring. Basically, you are selling your invoices for a discount, and the buyer then collects at full value. You get your cash right away, and they make a profit.


This is a really good option for those with an innovative business idea just starting out. You post your idea, and people can donate money for a piece of the action. Each platform works a little differently, but most require you to offer backers some sort of reward for their donation.


This may include your own savings, borrowing from family and friends, or borrowing from a retirement fund.

A lot of people do not realize this, but angel investors can fall into this category.  Even a mom or dad can be an angel investor!

Merchant Cash Advance

Similar to invoice factoring, this is a loan against future credit card transactions. Generally, you repay from a percentage of daily credit card sales.

You Need a Hero: Where to Find Small Business Loans No Credit Check

Imagine your business as the damsel in distress. You need a hero to rescue you from your financial woes. You know the evil villain bad credit has done its dirty work however, and you feel that no one will come to pull you out of the muddy mire.

What’s a girl to do? Here are some brave heroes that are not afraid of a little mud. They may ask for a little more than a kiss in return, but they are almost sure to get you to safety.


Square is a small, square device that attaches to an iPad or iPhone. It allows you to take credit card payments right on your mobile device. You can get a merchant cash advance as a square user for up to $100,000. The maximum term length is 18 months, and you repay daily from a percent of your Square sales. There is no credit check.

Learn bank rating secrets with Credit Suite's free, sure-fire guide.

Keep your business protected with our professional business credit monitoring.

PayPal Working Capital

This is a loan, though it is very similar to a cash advance. To be eligible, you must have a Premier PayPal Business Account that is at least three months old, or process at least $20,000 per year on a premier account or $15,000 per year on a regular business account.

These loans have a one-time fixed fee, and they do not require a credit check. 


Kiva offers peer-to-peer micro loans. It is free to use Kiva. All you do is sign up, then provide a complete business profile which includes pictures and social media links. You really want to doll it up because this is what they look at to determine whether they will fund the loan.

You also have to lend $25 to another business on Kiva. After that, just wait and see. It is a loan that you actually have to pay back, but it is one of those small business loans, no credit check.


This is not a loan, but rather a crowdfunding site. You post your great business idea, and then wait to see if you get any investors. They can donate any amount. It may be $5, $500, or anything in between or beyond.

You have to set a funding goal, and with Kickstarter, if you do not reach that goal you do not get the funds. It is all or nothing. There is no payback as these are investors, not lenders. However, you do have to offer some sort of incentive, or reward, for those offering investment.

Kickstarter charges a 5% fee for a successfully funded campaign.


This is a popular crowdfunding site similar to Kickstarter, but they are much more flexible. You can choose whether you go all or nothing, or if you take whatever you can get. There is a 5% platform fee, or other, more flexible payment options are available.

Credit Cards

Of course, credit cards are going to check your credit. However, you can work it where they pull your personal credit score, rather than your business credit score, if you need it to work that way. This is probably the least favorable option for funding a business, but if you have no business credit, it is a viable option.


Don’t overlook the possibility of small business grants. Not every business is eligible, but if you are a minority, a female, or a veteran, you may be able to find funding in the form of a grant. Certain low-income areas also have small business grants available. There is no credit check because this is not a loan. You do not have to pay it back.

HUD and the USDA are good sources for information on grants.

Retirement Funds 

If you or your spouse has a retirement fund, you may be able to borrow from it. The terms of the loan will vary by account, but typically the interest is low, and you pay back yourself. It’s a win-win.

Bad Credit Doesn’t Have to Mean the End

Small business loans no credit check are few and far between. In fact, true business loans without a credit check are virtually non-existent. You are going to have to put up major collateral, factor invoices, use credit cards, or see what you can find in the way of micro loans or crowdfunding,

The point is, never say never. There are ways to fund a new business and keep an existing business going without a credit check. In the meantime, keep working on building and improving business credit so that you don’t have to worry about that evil villain in the future.

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.

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