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It can be hard for businesses to find funding, and the problem is particularly difficult if you have less-than-perfect credit. Most business loans look at your personal credit reports as well as your business credit reports, so a poor credit history can hurt your chances of qualifying for a loan.
However, there are some options that don’t require credit checks, making them more accessible—depending on your particular business situation. These are the best business loans with no credit check based on rates, loan amounts, repayment terms, and eligibility requirements, among other factors.
Best Business Loans With No Credit Check
- Best for Square Users: Square Capital
- Best for PayPal Users: PayPal Working Capital
- Best for Crowdfunding: Kiva Loan
- Best for Shopify Users: Shopify Capital
- Best for Invoice Factoring: FundThrough
About a million new businesses open per year. But to open or expand a business, you need financing. In a 2022 survey, business owners reported that financing is one of their biggest challenges, with 75% saying they had difficulties obtaining capital.
Best for Square Users : Square Capital
No personal guarantee required
No late fees
Longer repayment term
Only available to Square users
Existing sales required
Payments required every 60 days
If you use Square Capital to accept payments for your business, you may be eligible for a loan of up to $250,000. And you can have up to 18 months to repay it—longer than most companies offer.
Instead of looking at your credit, Square Capital looks at your sales. If you’re approved for a loan, you’ll repay it as a percentage of your daily sales; if you don’t make a sale on a particular day, you don’t have to make a payment. However, a payment equal to 1/18 of the loan amount is required every 60 days.
Square Capital’s loans are only available to existing Square users with current sales. You cannot apply on your own. Square Capital automatically reviews your account on an ongoing basis, and if you're eligible, it will post a notification on your dashboard that you’re eligible for a loan.
In general, Square requires businesses to have $10,000 or more in processing volume.
Square also looks at your frequency of payments; if you regularly process new payments and have no history of failed debits, those are signs that your business is healthy, and you are more likely to qualify for a loan.
Square Capital does review your credit for a history of recent declined loan applications, but approval is based primarily on your business operations.
Before taking out a loan, explore other business financing options. You may be eligible for grants to launch or expand your business from the federal government, your state, or local nonprofit organizations. You can find business grants at CareerOneStop and Grants.gov.
Best for PayPal Users : PayPal Working Capital
- Cost: Percentage of sales
- Loan Amounts: $1,000 to $250,000 (up to $150,000 for first-time borrowers)
- Loan Terms: 12 months or more
No credit check required
Quick loan funding
Repaid through sales
Must have an existing PayPal account
Must meet minimum annual sales to qualify
Not available everywhere
PayPal users can use PayPal Working Capital to get up to $250,000 for their business. Rather than interest, PayPal charges a percentage of your sales; it’s one fixed fee that stays the same for the duration of your repayment. The fee ranges from 5% to 10% of the total loan amount every 90 days, and you can make payments for 12 months or more. There is no credit check, and if approved, PayPal will fund your loan within minutes.
You must have an existing PayPal Business or Premier account and meet minimum sales requirements to qualify for a loan; PayPal Working Capital is available in most states.
You must have a PayPal Premier or Business account to qualify for a loan. With a Premier account, you must have at least $20,000 in annual sales. If you have a Business account, you must have at least $15,000 in annual sales.
First-time borrowers have a lower loan maximum; they can only borrow up to $150,000.
PayPal Working Capital is not available in North Dakota, South Dakota, Virginia, Puerto Rico, American Samoa, Guam, Virgin Islands, or Northern Mariana Islands.
Best for Crowdfunding : Kiva Loan
No sales necessary
Long repayment terms
No minimum credit score requirements
Requires the support of friends, family, and other contributors
Longer time to process and disburse funds
Only accepts PayPal for payments
Kiva is unique among lenders that offer business loans without credit checks. It doesn’t charge any interest or fees, and you don’t have to make any sales. Instead, Kiva is a nonprofit organization that gives small business owners and entrepreneurs a hand up with loans with 0% annual percentage rates (APRs).
Through Kiva you can borrow up to $15,000, and you can have up to 36 months to repay the loan. You can borrow from Kiva if you’re an established business or are simply in the idea phase.
There’s no minimum credit score, but Kiva’s loan process is lengthy. To qualify for a loan, you need to get contributions from friends, family members, and business vendors to show that your business has market support. These contributions aren’t donations; if your business doesn’t qualify for the loan, the contributors get their money back. If the loan is approved and funded, they get their money back when you repay the loan.
Depending on how quickly you raise money in the initial phase, the loan process could take more than 45 days.
- You must be at least 18.
- You cannot currently be in bankruptcy.
- You cannot have any violent or criminal convictions in the past five years.
- Your business cannot be related to CBD, hemp, tobacco, pawn shops, multi-level marketing, or adult entertainment.
- You cannot use loan funds to refinance debt or invest,
Best for Shopify Users : Shopify Capital
No personal credit checks
High loan amounts available
Quick loan funding
Must have existing Shopify account
Loans are invitation-only
Unclear repayment terms
Shopify users can qualify for loans with no personal credit checks and receive their money in as little as two days. And unlike other lenders, which typically cap loans at $250,000 or less, Shopify Capital offers loans as high as $2 million. Rather than paying interest, you make payments from a percentage of daily sales
Shopify’s loans are limited to existing users, and you cannot apply for a loan. Instead, the loans are invitation-only. If you're eligible, you’ll receive a notification through your dashboard or via email.
Because the loans are only available through invitation, information about the loan repayment terms and fees is not publicly available.
Shopify Capital is available in the U.S., Canada, Australia, and the United Kingdom. Users have to sell on Shopify for at least 90 days and demonstrate consistent sales. There is no application process. Instead, Shopify Capital will send invitations to eligible members inviting them to apply for a loan.
Best for Invoice Factoring : FundThrough
Quick fund disbursement
No limits on funding
No credit checks
High invoicing requirements
Fee can be substantial
For many business owners, invoicing is a significant pain point. If you have clients that are on net 30, 60, or 90 terms, you could spend a lot of time waiting on payments when you need access to cash.
FundThrough is an alternative to a traditional business loan that provides short-term financing. It is an invoice-factoring company, meaning you sell your invoices to the company and FundThrough pays you the amount you’re owed right away—minus its fees. The company then works with your clients to collect the amount owed according to the invoice’s terms.
There’s no maximum limit on how much money you can get through FundThrough, and there are no credit checks. However, minimum eligibility requirements are strict, requiring at least $100,000 in outstanding invoices. And the fees can be costly, cutting into your profits.
|Invoice Net Terms||FundThrough Fee|
|1–30 Days||2.75% of each invoice amount|
|31–45 Days||3.75% of each invoice amount|
|46–60 Days||5.5% of each invoice amount|
|61+ Days||8.25% of each invoice amount|
To qualify for FundThrough, you must have at least $100,000 in outstanding invoices, and you must invoice other businesses or government agencies. You cannot have any explicit liens on receivables, and your business cannot be in construction or real estate.
If you need to borrow money to launch or grow your business but have poor credit, some business lenders offer financing options. Some of the best business loans with no credit checks require an existing relationship with a company, like Square, PayPal, or Shopify.
Kiva is a different kind of lender, offering loans at 0% interest. And for those who have plenty of money in accounts receivables, FundThrough can be a useful alternative to business loans.
Compare the Best Business Loans With No Credit Check
|Name||Cost||Loan Amounts||Loan Terms|
Best for Square Users
|Flat fee||$300–$250,000||18 months|
|PayPal Working Capital
Best for PayPal Users
|Percentage of sales||$1,000–$250,000||12 months or more|
Best for Crowdfunding
|0% APR||$1,000–$15,000||6–36 months|
Best for Shopify Users
|Not disclosed||$200–$2 million||Not disclosed|
Best for Invoice Factoring
|2.75%–8.25% of invoice amount||Unlimited||N/A|
Guide to Choosing the Best Business Loans With No Credit Check
How to Get a Business Loan With No Credit Check
With a traditional business loan, lenders look at the following factors:
- Your personal credit
- Your business’s credit
- Your years in business
- Your revenue and cash flow
- Your business plan
If you have less-than-perfect credit, or if your business is just starting, qualifying for a loan can be a difficult task.
No credit check loans can make it easier to get the financing you need. Most look at your existing sales or invoices to determine your eligibility for a loan, so they tend to be best for businesses that are already operational.
To build business credit, you should register for a Dun & Bradstreet D-U-N-S number. You can register online for free.
Pros and Cons of No Credit Check Business Loans
- No credit check: If you have poor credit or no credit history, you won’t qualify for most business loans. But no credit check business loans allow you to get the money you need despite your credit score.
- No collateral: Some business loans for new businesses require collateral, such as your equipment, inventory, or even your accounts receivables. But with no credit check options from lenders like Kiva, you don’t need any collateral, so there’s no risk of losing your property.
- Quick loan funding: Without a credit check, most lenders disburse funds within a day or two; some will issue the loan the same day you’re approved.
- Higher rates and fees: Business loans available without credit checks (which may take a percentage of your sales as repayment) can be more expensive than other financing options.
- Short repayment terms: The repayment terms for these loans tend to be shorter than standard business loans. Traditional business loans can usually be repaid over several years, so they may give you a much more affordable monthly payment.
- Limited eligibility: Eligibility for no credit check business loans is typically limited to those that meet sales or profit requirements, such as $15,000 in annual sales. For new businesses or startups, those requirements may prevent them from qualifying for a loan. In some cases you’ll need an existing relationship with a commerce platform or payment processor, like Square, Shopify, or PayPal.
Alternatives to Business Loans With No Credit Check
Before turning to business loans that don’t require credit checks, explore other options:
- Loans with credit checks: Don’t let a poor credit score or limited credit history prevent you from pursuing your business goals. Lenders that issue SBA loans may approve your application; the SBA states on its website that “even those with bad credit may qualify for startup funding.”
- Small business grants: Depending on your location and the type of business you have, you may be eligible for grants from your state, city, or a local nonprofit organization.
- Crowdfunding: If you have an idea for a business or product, you can use platforms like Kickstarter or an alternative to raise funds and build buzz around your project.
- Personal loans: Several personal loan lenders cater to those with less-than-perfect credit. You can take out a personal loan to finance your business idea, and repay it over time. Just keep in mind that your personal credit is at risk if you fall behind on your payments.
Not all personal loans can be used for business expenses. Review the lender’s terms and usage restrictions before signing a loan agreement.
Frequently Asked Questions
Can You Get a Business Loan With No Credit Check?
With most business loans, a credit check is necessary. If your business doesn’t have an established credit history, loan eligibility is based on your personal credit score.
However, there are some loans available with no credit checks, such as sales-based loans, which determine your eligibility based on your annual sales. See our picks above for the best options.
What Types of Business Loans Don’t Require Credit Checks?
The majority of business loans require credit checks, with two notable exceptions:
- Invoice factoring: Invoice factoring is based on your current outstanding invoices. Invoice financing functions like an advance; the lender gives you the money you’re owed before the invoice due date, minus fees.
- Sales-based loans: Sales-based loans are based on your current sales and profits. These loans are usually available through payment processors, such as Square or PayPal.
Do SBA Loans Require a Credit Check?
The SBA doesn’t issue loans itself. Instead, the SBA guarantees the loans, and they’re issued by banks and other financial institutions. Lenders can set their own eligibility requirements. Some lenders will approve borrowers with poor credit or limited credit histories, but all SBA loans require credit checks. See the best SBA lenders for more information.
Can You Get a Startup Loan With Bad Credit?
If you are launching a business and don’t have sales yet, getting a loan with poor credit can be very difficult. While there are some lenders that will work with you, they generally require collateral or charge extremely high APRs. You will also have to personally guarantee the loan, so you’ll be on the hook for the loan’s repayment even if your business fails. Browse our picks for the best business loans for bad credit for some good options.
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews. To rate business loans, we collected hundreds of data points for over a dozen accounts, including loan amounts, interest rates, fees, and account requirements, to ensure that our reviews help users make informed decisions about their banking needs.
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