4 business loans you can get without a credit check


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Best business loans without a credit check

Maybe you need a loan to start your business or launch a new product or a new division, or maybe you are facing unforeseen events, such as lower income, expensive repairs and renovations or staffing needs. Whatever your reason for needing the extra capital, there is one thing that will likely determine how easy – or difficult – it is to secure it: your business credit.

Unfortunately, for some business owners, a credit check might be out of the question. Some just don’t want a serious investigation to emerge and subsequently damage their existing credit score, and others know their credit score intimately and know that in some cases it can disqualify them immediately. Whatever the reason, identifying a financing option to meet your needs can be difficult, but it is not impossible. There are a variety of options, including working capital loans through your payment process, merchant cash advances, invoice factoring, and crowdfunding.

PayPal working capital loan (payment process)

PayPal has long been considered a popular payment processor, but it also offers working capital loans or loans that can be used to fund day-to-day operational expenses, for example, payroll, accounts payable, etc. If you use PayPal as a payment method, whether online or in-store, the PayPal Working Capital loan may be an option.


To be eligible for a PayPal working capital loan, you must have had a PayPal Business or Premier account for at least three months. Business account holders must process at least $ 15,000 per year, while Premier account holders must process at least $ 20,000 per year.


Borrowers can take out a loan for up to 35% of their total annual PayPal income, with a limit of $ 120,000 between your first two loans.

Prices and fees

Eligible borrowers will pay a one-time fixed fee determined before accepting the loan. There are no interest payments or additional charges. The fixed costs are on the total of the loan; your PayPal sales history; and the chosen repayment percentage, which is the percentage of each sale deducted and paid for your loan.


Payments are automated and deducted from each PayPal sale, called a “refund percentage”. Although percentage repayment rates can vary depending on the loan amount, borrowers can usually select a repayment rate between 10% and 30% per transaction. If there are no PayPal sales for a specific time period, no payment is made; however, all borrowers must pay 5% or 10% of the total loan amount over a period of 90 days. In addition to the repayment percentage, borrowers can also make manual payments.

First American Merchant (Merchant Cash Advance)

Another way to get a loan without a credit check is to use a merchant cash advance (MCA), and although some funders require a credit score, First American Merchant offers an option for small business owners who don’t. currently have no existing advance. . However, First American Merchant (FAM) offers an MCA with no credit check and an MCA with credit check, so it may be best to contact them by phone to begin the application process.


Limits are based on monthly volume and borrowers can subscribe up to 1.5 times monthly volume based on three months of bank statements.


To be eligible for a merchant cash advance through FAM, you must have been in business for at least six months, have at least $ 10,000 in gross monthly deposits, and have less than three insufficient funds events in your account per month.

In addition, you, or the applicant, should be prepared to undergo a background check during which FAM will verify that you meet their requirements, including the absence of criminal charges or crimes etc.

Prices and fees

All advances are subject to a factor rate, which is generally between 6% and 50%. For example, a loan with a 45% factor rate on an amount of $ 10,000 would result in a final repayment of $ 14,500. Those who choose a no credit check advance will likely be subject to higher fees.


This loan option is considered “short term”, so advances are usually repaid within three to six months, depending on conditions. Repayment is made via daily or weekly ACH payments, although the amount varies by applicant depending on the type of business, amount borrowed, and other undisclosed underwriting factors.

BlueVine (Invoice factoring)

If you are a business and not a sole proprietorship, you might be interested in BlueVine’s invoice factoring product, which has enabled you to take advantage of unpaid invoices. BlueVine does a gentle credit check, so although they “check your credit” this will not be reflected or impact your credit score.


Eligible applicants can borrow up to $ 5 million, although the requirements and application process vary for lines of credit greater than $ 250,000. Therefore, anyone looking to borrow more than this should contact BlueVine directly for additional information.

Additionally, it is helpful to keep in mind that borrowers typically receive 85-90% of the total bill amount taken into account. The rest, less a predetermined fee, becomes available after the invoice is fully paid.

Prices and fees

Rates and fees vary, but generally borrowers can expect an APR of between 15% and 68% as well as a weekly fee of between 0.25% and 1.1%.


In this case, the refund is made on behalf of the customer or the customer to whom the invoice is sent. Once they have paid in full, BlueVine will pay you the remaining invoice amount (subtracted from the original amount originally paid) less any additional charges. In most cases, this type of loan option has a term of 90 days.

Indiegogo (Crowdfunding)

Indiegogo is a popular entrepreneurial crowdfunding platform that has helped over 650 businesses or projects achieve their goals. Although it is a way to access funds without a credit check, crowdfunding is a far cry from traditional loans and in most cases it will take time to get the funds you need. . In other cases, you may not meet the financial goals of your crowdfunding campaign. However, if you are a B2C business and have exhausted all other no credit check options, this may meet your needs.


Technically, there are no limits to your fundraising goals. You set the required amount. The trap ? You need to cultivate a loyal community of “backers” or those who choose to invest in your product. For this reason, it’s considered an active form of fundraising – you can’t just fill out some papers and sit down.


There are few specific eligibility requirements, but generally speaking, your campaign should target one of the following: for-profit business, non-profit organization, products or goods, etc. Assuming your goal is to fund part of your business, chances are you will meet these general requirements.

However, for a successful campaign you will need an introductory video (1 to 3 minutes); a written pitch; a title, short description and accompanying image; and a benefit or perk strategy, or what donors get in return for their donation – usually a rebate, early access to the product, a free product, etc. In other words, you will want to review your business plan and your marketing skills.

Prices and fees

Pre-launch activities on Indiegogo are free, but once you start your crowdfunding campaign, you’ll need to pay 5% of the total earned as a platform fee, then 3% + $ 0.30 third-party credit.


Other than the fees mentioned above, which are deducted directly from your campaign funds, there is no obligation to reimburse.

That said, Indiegogo does offer campaign types: one that lets you keep all funds even if you don’t meet your goals at the end of your campaign, and one that will reimburse investors if you don’t reach your goal.

Finding a traditional loan that doesn’t require a credit check can be difficult, if not nearly impossible. However, today’s modern credit economy has opened the door to alternative loans, some of which do not require a credit check. If you are looking for any of these, you might want to check your payment process first, like PayPal, and then look to other alternatives like merchant cash advances, factoring, or financing. of invoices and crowdfunding.

This article was originally written on November 16, 2018 and updated on April 21, 2021.

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