Best No Credit Check Business Loans of 2024
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Best for microloans
Kiva
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Types of loans
Peer-to-peer crowdfunded loan
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
No minimum credit score required
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Minimum requirements
You must be 18, live in the U.S., use this loan for business purposes, not currently in foreclosure, bankruptcy or have any liens, and have a small number of your friends and family willing to make a loan to you (Nevada and North Dakota residents are not ineligible)
Pros
- Ability to borrow with no interest
- Loans are geared toward borrowers who are unbanked and have trouble qualifying for financial products
- Ability to market your product to 1.6 million lenders on Kiva
Cons
- You need to prove your creditworthiness by inviting friends and family to lend to you
- It can take a while to receive your loan since investors need to raise money
- No BBB rating
Who’s this for? Kiva lends money to small business owners through crowdfunding. Kiva doesn’t have a minimum credit score requirement, making it a more accessible option to those who may not qualify for loans that require higher credit scores. The maximum amount of funding it offers is $15,000, making it best suited for businesses with low start-up costs.
Standout benefits: Kiva microloans come at 0% interest since Kiva is a non-profit, making it an affordable option for small business owners.
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Best for low credit scores
Credibly
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Types of loans
Long-term loans, working capital loans, business line of credit and merchant cash advance
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
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Minimum requirements
Must have been in business for at least six months and have average monthly revenue of at least $15,000
Pros
- Offers multiple options for small business financing
- Can get approved within four hours
- Low minimum credit score requirement
- Provides loan amounts of up to $600,000
- Funds deposited as soon as the same business day
- Considers overall business health as an approval criteria
Cons
- Requires an average monthly revenue of at least $15,000
Who’s this for? Credibly requires a credit check for its small business loans, but the minimum credit score required is low at just 500. This makes it a more accessible option for borrowers who may be worried that they won’t get approved through a lender with traditional credit check requirements. But as with any other form of credit, applying with a lower credit score could mean you’re subject to higher interest rates.
Standout benefits: According to Credibly’s website, approved borrowers can get funding in as little as 24 hours. This makes it even more appealing if you need cash for your business in a pinch.
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Best for PayPal Business users
PayPal Working Capital Loan
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Types of loans
Working capital business loan
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
None specified; borrowers pay a portion of their sales until the loan is paid off
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Minimum credit score needed
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Minimum requirements
Must have a PayPal account since approval is based on your business’s PayPal account activity
Pros
- Charges a single fixed fee
- Borrowers can choose a higher or lower repayment percentage; choosing a higher repayment percentage can lower the fee you’re charged
- Repayments are automatically deducted from your PayPal account
- No early repayment fee
Cons
- Must have a PayPal business account with account activity to be considered
- Repayment percentage cannot be changed once you receive the loan
Who’s this for? PayPal offers a working capital loan that follows a unique repayment structure. PayPal automatically deducts a portion of your sales from your PayPal account to use as repayment until the balance is completely paid off. Eligibility is based on your business’s PayPal sales history, so a credit check isn’t required.
Standout benefits: Repeat borrowers can qualify for more funding (up to $250,000) compared to first-time borrowers, who can only receive up to $150,000.
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Best for Square users
Square Loans
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Types of loans
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
A percentage of sales is automatically deducted until the balance is paid off; full loan payment is required within 18 months
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Minimum credit score needed
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Minimum requirements
Pros
- Loan repayments are automatic and are deducted as a percentage of your daily sales
- Charges a flat fee
- No late fees
- Applying doesn’t affect your credit score
Cons
- Must be a Square seller to be eligible
Who’s this for? Square loans allow borrowers to repay their loan balance automatically by deducting a small portion of daily sales made through their Square account. The main requirement to be eligible for one of these loans is to use Square to process payments — you don’t need to request an eligibility review. Square considers a variety of factors other than your credit score to determine eligibility, including account history, processing volume, payment frequency and more.
Standout benefits: Square lets borrowers apply for as little as $100, making this lender appealing to those who don’t need thousands of dollars to fund their business.
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More on our picks for best no credit check business loans
Kiva
According to Kiva’s website, lenders are not explicitly informed of your business credit report and this information is not publicly shown on your Kiva loan profile.
Eligible borrowers
Must be at least 18 years old, living and operating a business in the U.S. and use the funds for business purposes only (Nevada and North Dakota residents are not eligible)
Loan amounts
Up to $15,000
Loan terms
Up to 3 years
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Credibly
Eligible borrowers
Must be located in the U.S., have a credit score of 500+ and must earn at least an average of $15,000 per month through the business
Loan amounts
$5,000 to $600,000
Loan terms
3–24 months
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PayPal
To be eligible for this loan, you must have a PayPal Premier or Business account for 90 days or more and process at least $20,000 in annual PayPal sales if you have a Premier account or at least $15,000 in annual PayPal sales if you have a Business PayPal account.
Eligible borrowers
Must have a PayPal business or Premier account for at least 90 days
Loan amounts
$1,000 to $150,000 (up to $250,000 for repeat borrowers)
Loan terms
Payments are made until the loan is completely paid off
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Square
Eligible borrowers
Must be a Square seller
Loan amounts
$100 to $350,000
Loan terms
Full repayment is required within 18 months; at a minimum, you must pay 1/8 of your original loan balance every 60 days
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What is the quickest way to get a business loan?
Like most other loans, a business loan requires you to apply to a lender that will review your information before deciding to give you the money. The approval process can sometimes take a few days but some lenders can wrap it up within 48 hours or even the same business day.
If you need a loan in a pinch, you may want to avoid crowdfunded loan options since it can take a while to raise the funding you need.
Additionally, ensuring that all of your application materials are submitted with complete and accurate information can help you avoid any processing delays.
How many years do you have to be in business to get a loan?
The short answer is it depends on the lender.
Many lenders require you to be in business for at least six months to be considered for a loan. Generally, the longer you’ve been in business, the more likely you may be to get approved for a loan.
In addition to how long you’ve been in business, your monthly revenue is another factor that will influence a lender’s decision. Each lender has their own set of requirements so you’ll want to double-check with each of your desired lenders before applying.
FAQs
Can you get a business loan if your personal credit is bad?
It is positive to get a business loan if your personal credit is bad. Some lenders either consider low credit scores or use other criteria to approve applicants.
What is the minimum credit score for a business loan?
Specific requirements vary by lender. but oftentimes, lenders require at least a good credit score (670 and above) for a business loan.
Can you get a business loan with no revenue?
It’s possible to get a business loan with no or low revenue, but the lender may require your business to meet other requirements or put up more collateral.
How do you get money to start a business?
There are a handful of ways to secure funding to get your business off the ground. A loan may not be the best option in this case since many lenders will want to see that you’re already producing revenue and you’ll need cash flow to pay back the loan. However, you can consider grants and crowdfunding as alternative measures. If you’re able to, you may even consider bootstrapping your business using personal savings.
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Why trust CNBC Select?
Our methodology
To determine which no credit check small business loans offer the best financing terms, CNBC Select analyzed a dozen U.S. loans offered by both online and brick-and-mortar lenders. We narrowed down our rankings by only considering traditional loans, including term loans, equipment loans, commercial real estate loans, microloans and franchise loans. For this roundup, we didn’t evaluate business lines of credit, invoice factoring/financing, merchant cash advances since they either have a long application process (like SBA loans) or act differently than a traditional term loan, which gives you a lump sum that you pay back over a fixed period.
We compared each small business loan on a range of features, including:
- Minimum and maximum loan amounts
- Length of term
- Eligibility criteria
- Application requirements
- Streamlined application process
- Fund disbursement
- Customer support
- Better Business Bureau rating
- Customer reviews, when available
The rates and fee structures for small business loans are subject to change without notice, and they often fluctuate in accordance with the prime rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee that the interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness.
To take out a small business loan, most lenders will conduct a hard credit inquiry and request a full application, which could require both personal and business proof of income, identity verification, proof of address and more. You’ll likely also need to put up collateral, which can include business equipment, real estate or personal assets.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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