Published By Faith Stewart at October 17th, 2018
Is it even possible to get small business startup loans, no credit check required?
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.
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. Whether you need small startup business loans or something larger, there are a number of possibilities.
Who are the key players in the small business startup loans no credit check game?
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.
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.
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.
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.
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.
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.
Remember interest rates and credit scores change frequently, so check with the credit provider directly for the most current terms.
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 by working on fundability. Then, 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.
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.