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Enjoy the Ride: The Secret of Small Business Startup Loans No Credit Check

Published By Faith Stewart at October 17th, 2018

The Tantalizing Secrets of Small Business Startup Loans No Credit Check

Have you ever had to swim against the current?  It is exhausting, to stay the least.  Worse yet, you wear yourself out and seemingly get nowhere.  In fact, you may actually lose ground, which is even more disheartening. If your credit isn’t great, you can find this happening in your business endeavors without small business startup loans, no credit check required.

One step forward and two steps back is never fun.  Whether you are swimming for shore, climbing a mountain, or trying to get a business off its feet, no one wants to move backwards.  Going forward is how life works, and backtracking is not fun for anyone.

Start at the Beginning

Every trip starts at the beginning.  Before you can even think about moving forward, you have to find the starting point.  You cannot get a business up and running until your first lay the groundwork, the foundation if you will.  This is often where startup loans come into play.

It is also where you may discover your first road block. If you are a new business, you are not going to have any business credit.  In lender’s terms, this equates to bad business credit.  No news is not good news.  No news is just as bad as bad news in this case.

You may then discover that, if you have a good personal credit score, it is possible to use it to get the funding you need to start.  You can fund your business on the basis of your person credit merits, and life it great.  The road is smooth, the path is clear, and away you go.

If your personal credit isn’t so great though, you will have another road block jump in the way.  You cannot start a business without funding.  Financing is the most common source of that funding.   You need small business startup loans, no credit check getting in the way.

Pack Your Bag

Okay, so the start of the road is not the true beginning if you think about it.  You cannot set out on a trip without first packing your bag.  In business startup terms, this is the planning phase. This is where you get a killer business plan together that will make any lender want to throw money at you. 

If you write your business plan correctly and find the right lender, you may go from trying to dodge roadblocks to busting them down with a sledge hammer.  Better yet, you may be running them over with a tank.  That is what the right small business startup loans no credit check can do. 

The Secret to Packing an Awesome Business Plan

Much like you can find a million tutorials on how to best pack a bag for a trip, there are a few hacks to writing an awesome business plan.

  • Get someone else to write it.

I know, crazy right?  What I mean is, hire a professional writer.  It is well worth it.  There are a ton of templates out there to help you if this just isn’t in the stars, but if you can swing a professional writer, do it. 

There are many ways to do this.  One of the most popular options is to hire a freelancer through of the many freelancing networks that are exploding onto the scene.

  • Make certain your research is impeccable.

This is another area where hiring an expert can be beneficial.  You are going to have to have budgets, projections, and lots and lots of market research.  A marketing guru and an accountant will do you a lot of good here.  In fact, when it comes to the numbers, you may not have a choice.  Lenders will need to know, if nothing else, that the budgets and projections are solid. 

  • Present it professionally.

This one is simple and for most people, it goes without saying.  Just in case however, you should dress professionally and have a professional demeanor when you present your business plan.  It is not the kind of trip where you throw on your sweats because you are going to be in the car the whole time. 

What Does a Killer Business Plan Include?

Not only should a business plan be well written and have accurate information, it needs to be complete.  All of the pieces of the puzzle must be there regardless of whether you have great credit, or you need small business startup loans, no credit check necessary. These puzzle pieces include:

  1. Executive Summary

This is a broad overview of your company and plan.

  1. Company Description

A detailed description of your company including your goals, mission, and how you operate.

  1. What You are Selling (Products and Services)

You will need to clearly describe what you are selling and how it will benefit your customers.

  1. Market Research

Note any studies or research into your industry and your target market that show the market supports your business.

  1. Plan (Strategy)

This is the actual planning part of the business plan.  Lay it all out.  How do you intend to market your business and make sales?

  1. Company Structure

What is the organizational structure of your business?  Who is involved in your business?  Who are the owners?  Is there a board of directors?  List and identify everyone involved.

  1. Financials

Here is where to tell lenders not only how you will use their money, but also list your other funding sources and how it will all be budgeted.  In addition, you will need to show how you think the financials will looking into the next several years.

Once you have all of this together in a tidy little package, your packing phase is complete and you are ready to set off on the road to your first stop, the lender. 

Do Small Business Startup Loans No Credit Check Really Exist?

The short answer is yes.  The broader picture is a bit less clear.  There are a surprising number of funding options that do not require a credit check.  Not all of them technically qualify as small business startup loans no credit check, however. This is because some of them are not loans at all.  Others, though loans, simply have lower credit score requirements.

Where does that leave you on your journey?  It leaves you with a lot of options actually.  Funding is your first stop, but which funding station you stop at is wide open. In fact, it may take a few tries to piece together the perfect funding plan for your situation.

Who are the key players in the small business startup loans no credit check game?

Kiva

Kiva is a favorite first stop for many reasons.  You know the travel mecca that is always clean, has great food, and never closes?   That’s the Kiva equivalent.  The very best part about Kiva is that it is absolutely free.

 It is definitely a loan, because they money you get has to be repaid.  The interest rate, however, is a big fat 0%.  As impossible as it sounds, it is even more amazing when you factor in the risk associate with offering actual small business startup loans no credit check. 

 The credit check is the way that lenders reduce their risk.  If they are not checking credit, they have to mitigate risk another way.  Most lenders do this by increasing the credit rate, but not at Kiva.

 You know how that awesome travel mecca has at least one drawback?  In my experience it is that there are too many options and temptations to make you spend more than you intended.  Here is that one catch at Kiva.  You have to get at least five of your family and friends on board also.  They have to lend you a portion of the money, then you have to lend $25 to another company on the Kiva platform.

 After that, you submit a thorough business plan and wait.  Pretty soon, you could be well on your way to a 0% interest no credit check small business startup loan.  

Visit them here: https://www.kiva.org/

 Crowdfunding

This is another great option, though there is less guarantee of funding involved.  Crowdfunding works by gathering a ton of informal investors willing to pitch in smaller amounts.  Sometimes it is $500 or $1,000, sometimes it is $20 or even $5. 

 The key is to make your presentation so killer that you get enough investors willing to throw enough in the pot to get you off the ground.  The money doesn’t have to be paid back, but most crowdfunding platforms take a fee. You do need to offer those who support you something in return.  Most often that comes in the form of a free product, but you have some wiggle room in what you offer.

 The most popular crowdfunding platforms are Kickstarter and Indiegogo.

 Kickstarter

Two things you should know about Kickstarter.  First, you have to set a funding goal.  If you do not reach it, you do not get your money.  Second, they charge a 5% fee for a successfully funded campaign.

Indiegogo

There are two main differences between Indiegogo and Kickstarter.  With Indiegogo, you can choose whether you reach your goal before you get your receive funds or you can take them as they come.  There is also a 5% platform fee, but there are other, more flexible payment options if you need them.

 Small Business Administration

You should know the SBA doesn’t offer loans directly.  If you see a sign hanging in the window indicating the lender works with them, you may want to check it out. 

 The Small Business Administration offers some level of guarantee to lenders should the borrower not be able to repay.  This allows lenders to offer loans to borrowers that would not typically qualify otherwise. Loans guaranteed by the SBA are not small business startup loans no credit check, because the lenders do pull a credit score.   However, the necessary score for loan eligibility is typically much lower with these loans, meaning this is a stop definitely worth making.

 Another important note about the SBA is that if your business falls into a certain category, you may be able to get a grant.  They offer grants in several categories, including businesses located in low income areas, and those run by women, minorities, and veterans.

Capital One Spark Classic for Business

 The Capital One Spark Classic for Business card can’t truly fit into our category of small business startup loans, no credit check either, for the same reason.  There is a credit check.  However, a credit score of 580 can still get you a loan, so it is worth mentioning. 

 Approval with such a low credit score doesn’t come without cost of course.  The interest rate is higher than you may like, and the credit limit is low.  Think of it like the gas station that has the detached bathrooms and highest gas prices.   This is where you stop to get just enough to get you to the next, better stop down the road.   It isn’t ideal, but it does the trick just as well.  It can definitely keep you from being stuck on the side of the road.

 The Rest of the Trip

Once you are all packed and fueled up, it is time to start looking ahead to the rest of the trip.  There are many things to consider, and the next fuel stop is at the top of the list.  If you didn’t love the first fuel stop you made, there are some things you can do to make the next one better.

 This is the time to start laying the foundation for your business credit, so that when you need financing again you will not have to worry about finding small business startup loans no credit check.   You will have stellar business credit and your pick of where you want to go for financing.  In fact, they may be standing on the side of the road waving you down trying to get you to use them.

 Establish Business Credit: Laying the Foundation

 The first step to establishing business credit is to incorporate your business.  If you are looking for small business startup loans no credit check, you are likely still in the beginning phases, which will make this step easier. 

 You can also choose to operate under a DBA rather than incorporating, but it still has to be done through the IRS.  Once this is done, you will need to:

  • Obtain an EIN and a DUNS number
  • Get a separate, toll free phone number and a fax number for your business.  List it in the directories under the business name.
  • Set up a separate bank account for your business and run all business activity through that account.

 Build Business Credit: Create a Strong Structure

Once you have a strong foundation, it is time to start building.  The first blocks should include starter vendors such as Quill.com or Uline.  

These vendors will often offer net 30 terms on invoices after you meet some basic requirements, none of which include a credit check.  They will report your on-time payments to the credit agencies, under your business name.  Before you know it, you will be well on your way to a strong business credit score. 

Like a snowball rolling down a hill, even the smallest little bit of good credit is a good start.   The result is the ability to gain more and more until you really never have to worry about finding small business startup loans no credit check ever again.

Enjoy the Ride

Trips are always more enjoyable if you are properly prepared, packed well, and have plenty of gas.  The journey of starting and running a business is no different.  Get the funding you need to get going, work on keeping your tank full, then sit back and enjoy the ride. Learn more here and get started on the road to small business startup loans no credit check.

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