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Do No Credit Check Small Business Loans Exist?

Reviewed by Ty Crandall

November 5, 2023


No Credit Check Business Loans Credit Suite

Financing in some form is necessary for almost every part of running a small business. This is true from start up to enterprise, and all the steps in between. If you have good credit, the financing options are virtually endless.

But what if you have a bad business credit score, or no business credit score at all? Can you get a small business loan? What if, on top of that, you have bad personal credit too? That is where no credit check business loans can come in handy.

 Does such a thing even exist? Maybe not in the form you imagine. But, it is possible to get a bad credit business loan. It’s definitely possible to get some type of business funding without a credit check. However, it may take some creativity.

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The Best Small Business Loans with No Credit


 Kiva is an alternative lender that offers a peer to peer micro term loan with no interest and no fees. With Kiva’s financing, the maximum borrowing amount is $10,000, and the term length is 6 to 36 months. 

You can repay by month, or in a lump sum at the end of the term. You will have to create a thorough business profile. 

In addition, you will need to loan $25 to another small business. The last requirement is to recruit a certain number of lenders from your own network of friends and family. Typically, that number is 5, but there are exceptions. It’s all free however, and this is an actual no credit check loan.

 With no credit check, Kiva is ideal when it comes to financing for borrowers with poor credit. 


PayPal Working Capital offers business financing with flexible payments, a fixed fee, and no credit check. The reason they can offer no credit check is that they use your PayPal business transactions as the basis for approval, not credit history.  

The amount of your funding and fees are all dependent on the cash flow you take in each year through PayPal.  In addition, your loan is repaid as an automatic deduction of collections through PayPal, so as long as you are collecting money through PayPal, they will get their money.

The maximum loan amount can be up to 30% of annual PayPal sales, and no more than $97,000 for a first loan. The third loan can be up to $125,000. Your small business can get funding in minutes and there is no early payment penalty.

You must have a PayPal Business or Premier account for 3 months or longer to qualify. Payment processing must equal $20,000 in annual PayPal sales if you have a Premier PayPal account.  A regular business PayPal account only requires $15,000 annually to be eligible. 

Invoice Factoring

Invoice factoring is a way for businesses to fund their cash flow by selling their invoices to a third party (a factor, or factoring company) at a discount for financing. Invoice factoring can be provided by independent finance providers, or even by banks.

Since it is mainly based on invoice amount and the reliability of the account debtor to a business seeking invoice factoring, lenders generally will not have any burdensome document requests. 

This also means that a business owner’s credit score does not have to be top-notch to get this form of company cash. It can also be more immediate cash, seeing as the lender only has to look at invoices and the companies in debt.

Contrast this with a merchant cash advance, which is based on past sales.

A business owner will not need to provide collateral, either. Invoice factoring hinges on the companies indebted to the borrower. If the lender is satisfied that they will honor their debt, then the lender will agree to provide cash.

Sellers who work with consumers and not businesses will not have this financing option.

Here’s how it works. When a business offers payment terms to its customers—say, net 30—the business is stuck waiting for an invoice payment. Offering payment terms (credit control) is a good business decision as it can be a deciding factor for customers.

But for the business, it means waiting around to be paid. The business, of course, has its own bills to pay. It’s a customer to a third party. In fact, it’s most likely a customer to several third parties. The business wants to maintain its good relationships with its suppliers.

Also, business credit’s main factor is how well a business pays its bills. So, if the business is waiting to be paid, they could jeopardize their business credit building efforts. This is when invoice factoring can really help. 

Though you will collect less than the full value, you will get the money right away. So it’s a lot like no credit check business loans.

 Merchant Cash Advance 

A merchant cash advance is another great business financing option for an already established business that has regular credit card sales. Basically, this is a business cash advance against expected credit card sales. Repayment is a percentage of daily sales paid for by credit card. 

It’s not technically a loan. It’s a cash advance based on the expected future credit card sales of a business. A small business can apply for an MCA and have an advance deposited into its account fairly quickly. The company can offer Net 30 terms, but not have to wait a month to get paid.

A merchant financing program is ideal for business owners who accept credit cards and are looking for fast and easy business financing. An MCA program is designed to help them get funding, based strictly on cash flow as verifiable per business banks statements. As a result, lenders in general will not ask for any other documents. 

Merchant cash advance providers weigh risk and credit criteria differently from how a banker does. An MCA provider looks at a company’s daily credit card receipts. This is to determine if a business can pay back the funds in a timely manner. In essence a business “sells” a portion of future credit card sales, in exchange for immediate payment.

Rates on a merchant cash advance can be much higher than other financing options. Depending on the company, rates can end up being prohibitively high. As a result, it’s crucial to understand the terms being offered. 

To determine approval, the lender will review 3 months of bank and merchant account statements. Generally, all the lenders are looking for is consistent deposits and if there is a history of non-sufficient funds.

Often, if there are enough regular sales, they do not require a credit check, and the repayment term is usually manageable. 

Get Your Free Business Finance Assessment to Discover your Optimal Path to Improve Fundability™, Build Business Credit, and Get Business Loans

Pros of Small Business Loans With No Credit Check

Easier Access

No credit check small business financing means that bad credit won’t hold you back. You can access the funds you need to run and grow your business regardless of credit history.

Credit Building Opportunity

Once you have access to credit, and handle it responsibly, it’s all uphill from there. As you make consistent, on-time payments, your credit will continue to grow. That will make it easier to get approved for more financing options in the form of business credit cards and loans. 

Bonus points if they report positive payment history to the business credit reporting agencies also. 

Cons of Small Business Loans With No Credit Check 

Higher Interest Rates

Lenders and credit providers that are not checking your credit score have to mitigate risk somehow. Often, they do that with higher interest rates on a term loan. This is the trade off for getting a loan despite bad credit. 

Shorter Terms

This is another way to mitigate risk on a term loan when borrowers have bad credit. Not only are terms usually short, but often repayment is required weekly or sometimes even daily, rather than monthly. 

Possibility of Making Credit Worse

If you aren’t careful to ensure you can afford the rates and terms of these types of financing options, you could end up with worse credit than you started with. That will make it even more difficult to get loans and business credit cards in the future. 

Alternatives to Small Business Loans with No Credit Check

 Credit Line Hybrid

A credit line hybrid allows you to fund your business without putting up collateral, and you only pay back what you use.  It works similarly to a business line of credit. 

There is a credit check and a required minimum personal credit score of 700.  In addition, you can’t have any liens, judgments, bankruptcies or late payments.  It’s also preferred that you have established business credit as well as personal credit. 

 However, if you have bad credit or do not meet the other requirements, you can take on a credit partner that does meet the requirements, including a good personal credit score. 

Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding. 


 These are not technically no credit check business loans, but they are definitely a no credit check funding option.  It may or may not work, but it is definitely worth a shot.  The most popular crowdfunding venues are Kickstarter and Indiegogo. 


 While there are many details to attend to, the basic premise is potential investors can read your profile and invest if interested. There is no credit check, but you do have to set a goal. You do not get your money unless you reach your goal. 


 Most of the ins and outs of the standard crowdfunding sites are the same, except for a few minor details. The biggest differences between Kickstarter and Indiegogo is that with Indiegogo, you can choose to take your money as you go. Also, a flex funding option is available.

 This is a great option for a startup, and crowdfunding itself is an innovative idea. However, if you are an already existing business, or you do not have an attention getting idea, it won’t work. 


These are not technically no credit check business loans either. Grants are available through various sources, most often to minorities or those working to build in low income areas. 

They are available through local venues and other sources. They do not require a credit check because repayment is not necessary. As a result, bad credit is not a deal breaker in most cases. 

 Small Business Administration

 While an SBA loan will almost always require a credit check, it is still worth pursuing one. That is because they may not require the same high personal credit score that other types of loans do. These loans have backing from the federal government.

This means more paperwork, but often less stringent eligibility requirements. They will pull your credit, and bad credit isn’t going to help you any. But, your score may not need to be as strong as it would for traditional loans not backed by the SBA.  

Build Business Credit 

No Credit Check Biz Loans Credit SuiteOnce you establish your business as a separate entity, it is time to start building a strong business credit score. Begin with starter vendors. These are vendors that will offer invoices with net 30 terms, meaning you have 30 days to pay them. 

This is a form of credit, and if they report to the credit agencies, you can easily build up your credit this way.  

Once you establish some credit through a vendor, try applying for a small business credit card. You don’t need anything fancy at first. Even just a small credit limit can be an effective credit-building tool if you handle it properly.  

Do not use the card for things that you cannot afford, but rather carry a small balance and make on-time payments each month. Any amount, no matter how small, can build your credit. The goal is to show that you can handle making payments.  

After this, you can build up to other forms of credit until you have a perpetually good credit score.  This means you can blast off your business beyond the horizon whenever you feel it is time to expand and grow without fear of where the financing will come from. Bad credit will be in the past.

Get Your Free Business Finance Assessment to Discover your Optimal Path to Improve Fundability™, Build Business Credit, and Get Business Loans

Don’t Let a Bad Credit Score Put You Out of Commission 

Having a bad credit score doesn’t have to hold you back forever. You can still build a solid business and get the financing you need to keep it going. No credit check business loans do exist, but they are few and far between. If you have a low credit score, some of the alternative options may work better.

Once you find financing that you can get without a credit check, whether from alternative lenders or some other source, and it serves its purpose, the real work begins. That is when it is time to improve your low credit score so that you do not have to worry about lenders checking your credit history. 

There will be no going down the no credit check path again. You can forget about bad credit loans. You’ll be able to access loans or get approved for business credit cards whenever you need to. 

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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