When considering whether to approve a business loan, lenders usually look at both personal and business credit scores. If you have bad credit— or just don't want a hard credit inquiry that could lower your score — there are lenders who don't require a credit check.
CNBC Select has named the best options, with special consideration toward rates, loan amount limits, repayment terms, fees and other criteria. For more on how we made this list, read our methodology
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
3.09% with a daily balance of $5,000,000 or below; 3.90% with a daily balance above $5,000,000
$100 to open account
2.85%
None
Best business loans with no credit check
Best for bad credit: Credibly
Who's this for? Credibly requires a credit check for small business loans, but you only need a 500 FICO Score (considered bad credit) to get approved. That makes it a strong option for borrowers worried about approval.
Standout benefits: Need cash fast? Credibly applicants can receive approval within four hours and funding in one business day.
Offers many types of loans including long-term loans, working capital loans, business line of credit and merchant cash advance
- Approval within four hours
- Low minimum credit score
- Loan amounts of up to $600,000
- Funds deposited as soon as the same business day
- Considers overall business health for approval
- Requires average monthly revenue of at least $15,000
Best for microloans: Kiva
Who's this for? Kiva's crowdfunding platform helps small businesses secure zero-interest microloans, with no minimum credit score requirement. The maximum you can borrow is $15,000, so it's best suited for businesses with low start-up costs.
Standout benefits: Kiva loans come with no fees and an optional six-month grace period. Users have 15 days to invite friends and family to participate, then Kiva opens the campaign to its network of other lenders.
Loans are geared toward borrowers, especially business owners, who are unbanked and have trouble qualifying for financial products.
- 0% interest and no fees
- No minimum time in business or annual revenue required
- No credit score requirement
- Can reach community of 1.6 million Kiva lenders
- Low lending limit
- Personal guarantee required
- Borrowers need to crowdfund from their network
Best for PayPal Business users: PayPal Working Capital Loans
Who's this for? PayPal's unique repayment structure makes it a winner for business owners who are tight on funds: The peer-to-peer payment platform automatically deducts a portion of your PayPal Business account sales until your balance is paid off. Eligibility is based on your sales history, so a credit check isn't required.
Standout benefits: Funds are automatically deposited into your PayPal account once you're approved, sometimes within minutes. While first-time borrowers are maxed at $200,000, repeat borrowers can qualify for loans of up to $300,000.
PayPal Working Capital Loan
Types of loans
Working capital business loan
Loan amounts
$1,000–$200,000 (up to $300,000 for repeat borrowers)
Terms
Borrowers must repay 5% or 10% of their total plus the fixed fee every 90 days until the loan is repaid.
Minimum credit score needed
No credit check required
Minimum requirements
Must have a PayPal Business or Premier account for 90 days and process at least $15,000 in annual PayPal sales ($20,000 for a Premier account)
Availability
Not available for businesses registered in North Dakota, South Dakota or Virginia.
Terms apply.
Pros
- Borrowers are charged a single fixed fee
- Payments are automatically deducted from your PayPal account
- Funding often disbursed within minutes of approval
Cons
- Must have a PayPal Business account
- Minimum repayment required every 90 days.
- Not available in all states
Best for Square users: Square Loans
Who's this for? Like PayPal, Square takes a small portion of your sales until your balance is paid, with loans available for as little as $100 or as much as $350,000. And because it can look at your account history, weekly sales, processing volume and payment frequency, it doesn't use your credit score when considering approval.
Standout benefits: Borrowers pay a flat fee, so there's no interest, processing fees, or prepayment penalties.
We like that there's no credit check or personal guarantee requirement, as well as how quickly Square can deliver funding. But Square Loans are invitation-only and the upfront fee can higher than the interest on a traditional business loan. Also, if your daily sales don't cover the minimum payment, Square may debit the remaining balance from your linked bank account. That can be burdensome for businesses with small margins.
- Charges a flat upfront fee rather than interest
- No credit check or personal guarantee requirement
- Same-day funding available if you have a Square Checking account
- Must be invited to apply
- Factor rate can be higher than APY on traditional business loan
- if daily sales don’t cover minimum due, the remainder may be debited from linked bank account
How fast can I get a business loan?
The approval process for a business loan can take a few days, though some lenders can fund within 48 hours or even the same business day.
If you need financing quickly, you may want to avoid crowdfunded loans, which can take much longer to fund.
Ensuring that all of your application materials are complete and accurate can help you avoid delays.
Types of business loans you can get without a credit check
Without a credit check, your business may still be eligible for several types of non-traditional funding.
- Merchant-cash advance (MCA): A lump-sum funding option that is repaid automatically through a fixed percentage of your daily or weekly sales until the advance is fully paid back.
- Revenue-based financing: Similar to an MCA, except that payments fluctuate with your sales totals. If you're having a bad month, you'll be able to pay less.
- Invoice factoring/financing: Your unpaid invoices are sold to a third party (factoring) or used as collateral (financing) to get immediate cash, typically 70% to 90% of their value.
- Asset-based loans: Rather than using a credit score or historical profitability to establish creditworthiness, you can use inventory, equipment, or accounts receivable as collateral.
Pros and cons of no-credit-check business loans
Consider these benefits and drawbacks before applying.
- Can get approval with bad credit
- May be able to repay the loan with a portion of future sales
- You may only be able to borrow small amounts of money
- Merchant cash advances may come with higher interest rate equivalents
- Crowdfunding can take longer to generate funding
How to get a business loan
Applying for any loan means presenting documentation confirming your identity and credit history. For a business loan, you'll be asked for both personal and business information, including:
- Your name and address
- Your tax ID, typically your employer identification number (EIN) or Social Security number
- The name of your business, its address and phone number
- The industry type and company structure
- How many years it's been in business
- The number of employees
- Annual revenue
- Estimated monthly expenditures
During the application process, you'll need to explain what the loan is for and provide a variety of documentation. Common requirements include:
- Business and personal tax returns going back at least two years
- Up to a year's worth of bank statements
- Profit and loss statement
- Licenses, incorporation paperwork and other company documentation.
The lender will use this information to underwrite your business and make a decision about approving your loan request. If you're approved, you'll review and sign a loan agreement. Depending on the loan type, the funds may be disbursed as a lump sum or as a line of credit.
| Loan type | Term length |
|---|---|
| Short-term loan | 3 to 18 months |
| Business term loans | 3 to 10 years |
| Business line of credit | Several months to 5 years |
| Equipment loans | 2 to 10 years |
| SBA loans | Up to 10 years for working capital/equipment, up to 25 years for real estate |
Alternatives to business loans
If you've been rejected for a business loan, there are several alternatives.
Bootstrapping: One of the simplest ways to fund your business is with your personal savings, a strategy known as bootstrapping. There's no credit check involved and you won't accrue more debt, although you're putting your personal finances at risk.
Crowdfunding: If you can't get a large sum from one lender, crowdfunding lets you raise small amounts of money from a large pool of investors. There are different types of crowdfunding, so research which approach is best for you.
A business credit card: Unlike a loan, a business credit card is a revolving line of credit, so you'll only use money as needed, rather than applying for a large lump sum. You'll still need to get approved, but the credit requirements are usually more flexible.
FAQs
What credit score do I need to get a business loan?
Most traditional banks want a FICO Score in the mid-to-high 600s to approve a business loan, although online lenders may approve a borrower in the low 600s. You may be able ot get financed with a score in the 500s, but you will probably need a co-signer, collateral or pursue an equipment loan or merchant cash advance.
How many years do you have to be in business to get a loan?
Many lenders require a company to be in business for at least six months to be considered for a loan, though some offer more flexibility. In general, the longer you've been in business, the more likely you are to get approved.
Can you get a business loan with no revenue?
Lenders typically require a solid revenue history before approving a loan. Even if you're approved without one, you'll likely have to pay a higher interest rate or put up collateral.
If your business doesn't generate revenue yet, consider a crowdfunded loan, which just requires small amounts of money from several lenders.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every small business loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of small business products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine which lenders were the best, CNBC Select analyzed 10 U.S. companies offering best business loans with no credit check or flexible credit requirements
We narrowed our rankings by only considering traditional loans, including term loans, equipment loans, commercial real estate loans, microloans and franchise loans.
We compared each lender on a range of features, including:
- Minimum and maximum loan amounts
- Length of term
- Rates and fees
- Eligibility criteria
- Application requirements
- Application process
- Fund disbursement
- Customer support
- Better Business Bureau rating
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
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