7 Small Business Loans You Can Get Without a Credit Check

Updated Feb 14, 2023.

Adequate financing is essential for the success or growth of any business. One of the ways businesses get financing is through business loans.

You may need to get a business loan to start or expand your business, launch a new product or offering, handle unforeseen dips, costly renovations, and machinery, or pay your employees and suppliers. Irrespective of your reason for needing extra capital, your business credit will determine how easy or difficult it will be for you to secure your business loan.

Many business owners do not have the required credit score needed to qualify them for many business loans. Some owners do not want a credit check because of fears that it could damage their existing credit score.

Finding business loans without a credit card that fits your needs is difficult. If you have bad credit or you are looking for funding for a startup, business loans with no credit check are generally inaccessible.

The bulk of business lenders require a credit check. There are very few lenders willing to issue loans to startups under three months of operations. However, there are a few business loans that can provide you access to the funding you need without a credit card.

In this article, you will learn about 7 of the best small business loans you can get without a credit check.

Let’s get started.

Best No Credit Check Business Loans

1. Fundbox

Offers No Credit Check Loans Through Invoice Financing and Zero Penalty Fees

Fundbox Offers No Credit Check Loans Through Invoice Financing and Zero Penalty Fees

Fundbox is a lending institution currently relied upon by over 320,000 businesses worldwide, dedicated to providing small businesses loans with no credit checks.

To help small businesses thrive, it offers flexible and highly favorable loaning options through invoice financing, requiring only your unpaid invoices to be used as collateral in place of your credit score.

Credit Limit

Your credit limit stands between $1,000 and $100,000 based on data analyzed from your accounting software. You may also be limited on the number of funds you can withdraw at a time.

Eligibility Requirement

Fundbox requires that you have accounting software linked with its invoice financing application. Your accounting data is required to be at least two months old. This is scanned and analyzed to create a credit limit. It also requires that you have over $100,000 in annual revenue.


Your APR is set to 4.66% of the cost of invoices you wish to clear through the financing option.

Repayment Plans

For your repayment plans, you choose between 12 to 24 weeks with no penalties for late payment and all remaining fees waived when you pay earlier than planned.

Fees are also flat when you finance your invoices with Fundbox, meaning you have more scalable repayment options and know exactly what you pay before drawing funds.

2. PayPal Working Capital Loan

Lending Options Dedicated to PayPal Users with Fixed Pricing

PayPal Working Capital Loan is a Lending Options Dedicated to PayPal Users with Fixed Pricing

The PayPal Working Capital Loan is a lending option available to individuals with a huge financial accounting history with PayPal. This popular payment processor offers quick disbursement of fees, flexible payment options, and loan activities that do not affect your credit score.

Credit Limit

Your credit limit depends on your PayPal account history, with borrowers allowed to take a maximum of 35% of total PayPal annual revenue. For the first two loan disbursements, however, you are also limited to a cumulative maximum of $120,000.

Eligibility Requirement

To be approved for a PayPal Working Capital loan, you are required to have a PayPal Business or Premier account for at least 3 months. PayPal Business account holders are required to process at least $15,000 annually while PayPal Premier account holders need to process at least $20,000 to qualify.


PayPal charges a fixed fee determined and made known to you before applying for loans. There are no periodic interest rates or penalty fees for late payment.

Repayment Plans

The repayment amount is a percentage of your PayPal daily revenue (10% – 30%), with no charges made any day there is no revenue generated. There is also a 90-day repayment limit required to be fulfilled, with this set to 5% or 10% of the total loan amount.

3. First American Merchant

Best No Credit Check Lending Option for Direct Loans

First American Merchant is the Best No Credit Check Lending Option for Direct Loans

First American Merchant (FAM) is another lending solution dedicated to small businesses considered to be high-risk ventures. This lender also offers Merchant Cash Advance (MCA) loans.

The Merchant Cash Advance (MCA) loan solution from FAM comes as a separate version requiring a credit check. Care is advised while navigating through the application process.

Credit Limit

Credit limits are dependent on a 3-month history of your bank statement, with the maximum amount set at 150% of your total monthly volume.

Eligibility Requirement

To qualify for a loan, you are required to have a 6-month minimum history of business existence, at least $10,000 of monthly volume, and a maximum of two transactions hindered by “insufficient funds”.

FAM also runs a background check on you to verify your identity, absence from criminal charges or felonies, and a lot of other information.


A factor rate determines the fees you pay, with this set between 6% and 50%.

Repayment Plans

Repayment periods generally span three to six months depending on the terms you agree to. Payments are made either daily or weekly, with payment amounts depending on the loan size and your business type, among other elements.

4. Business Credit Cards

Great for Businesses with Bad Credit Scores

Business credit cards are good solutions to your business funding needs. Although a majority of business credit card issuers consider your personal and business credit scores, there are a few that offer credit cards to businesses with bad credit.

Some of these include the Capital One Secured MasterCard, the Capital One Spark Classic for Business, the Wells Fargo Business Secured Credit Card, and the BBVA Compass Business Secured Credit Card, among others.

Credit Limit

These types of business credit cards for bad credit offer credit lines between $500 to $25,000 or even more. This depends on how much you deposit into an account opened with the banking institution.

Eligibility Requirement

To qualify for a credit card with bad credit, you are typically required to pay a minimum deposit into a traditional account opened with the banking institution.


Depending on the credit card issuer, there are generally no annual fees charged on these cards, and APR rates are usually waived for the first 12 months. You also get welcome offers, rewards, and other perks from using the cards.

Repayment Plans

This greatly depends on the credit card issuer. Nonetheless, repayments are generally processed monthly, over multiple months or annually.

5. American Express Business Loans

Presents You with Multiple Levels of Collateral-Free Loans

American Express Business Loans Presents with Multiple Levels of Collateral Free Loans

American Express offers collateral-free loans to card members pre-approved by it.

Credit Limit

The credit limit varies between $3,500 and $75,000, depending on accounting data from your records provided to the bank.

Eligibility Requirement

To be eligible, you are required to have a membership with any one of its business credit cards. These cards number up to 15, so you have a lot of options to choose from. You also need to be deemed pre-qualified by American Express.


Annual fees are charged based on the card you use, with this fee varying between $0 to $595 for its platinum card with a lot of rewards and benefits. You also pay an APR between 6.98% to 19.97%.

Repayment Plans

You choose between 6-month, 12, 24, and 36-month repayment plans.

6. Bluevine

Invoice Financing Options with Very High Credit Limit

Bluevine is an Invoice Financing Options with Very High Credit Limit

Bluevine’s no credit check business loans come in the form of invoice financing. This invoice financing solution best fits corporate businesses and, although a soft credit check is run, your loan activities do not affect your credit score.

Credit Limit

With loans coming as 85% to 90% of drawn invoices, you have the option of borrowing as high as $5 million.

Eligibility Requirement

Eligibility requirements and processes differ for loans below and above $250,000.


Fees range between weekly charges of 0.25% to 1.1% while the APR ranges from 15% to 68% of drawn invoices.

Repayment Plans

Bluevine’s invoice financing option typically requires repayment within 90 days, with repayment depending on how and when your customers settle invoices sent to them.

7. Indiegogo

No Credit Check Business Loans Through Crowdfunding

Indiegogo is the No Credit Check Business Loans Through Crowdfunding

Indiegogo is a crowdfunding platform that technically is not a lending solution but a trusted medium for raising funds for your business. This platform has helped over 650 businesses raise the funding goals they set for their businesses.

Credit Limit

There are no limits to the amount of money you get crowdfunded with as you are free to set any funding goal.

Eligibility Requirement

Generally, you are required to set the use of the money, either for profit or nonprofit, or product or service-based business, among others. You also submit a written pitch, a 1-3-minute video pitch, your strategy, and what your backers get for their investment in your business. This is all about your marketing techniques.


You pay 5% of the amount generated to Indiegogo, then an additional 3% + $0.30 fee.

Repayment Plans

Although there are no repayment requirements except providing your backers with what is promised, you choose between two crowdfunding options. You either get the available funds or refund contributors if goals are not met.

How to Know if You Have Bad Credit

Traditional lending institutions make use of your FICO score, a credit score determined by the Fair Isaac Corporation, to determine whether you are up for eligibility and the extent to which your credit limit is set. You easily get your FICO scores from websites like Experian, Equifax, or MyFico.

  • 700 to 850: A FICO score of over 700, even for startups, is termed excellent and puts you at a beneficial spot with most, if not all lending institutions and programs.
  • 650 to 700: A FICO score between 650 to 700 allows you to take up loans with relative ease, however, this is usually bolstered by other factors like your business financial history.
  • 620 to 650: This range typically limits you to mid-term loans with some financial institutions, with beneficial business financial activities having to help you.
  • 500 to 550: A FICO score within this range puts you in a bad position with lending institutions as you do not expect to qualify for loans. Nonetheless, certain financial lending institutions dedicate services to these types of individuals or businesses and additionally help with building credit scores through short-term or secured funding loan options.

With these, you understand where a credit score puts you at with lending institutions and know when to become wary about your loan activities.

In addition to these FICO scores, however, there are a few indications of bad credit. These include rejected credit cards, requirements for deposits into utility accounts, high APRs, and account closure by lending institutions, among a lot of others.

A bad credit score means you need to engage in credit-building activities to remedy the situation. High credit scores put you in the situation you need to be in to grow your business through very favorable lending options and even receive rewards along the way.

Small Business Loans with No Credit Check FAQ

Can I Get A Business Loan with A 500 Credit Score?

Yes, you can get a business loan with a 500 credit score depending on the lender. Your credit score will determine your ability to apply for a business loan. Lenders will take into consideration several factors when assessing applicants including credit ratings which are a good pointer of a borrower’s fiscal accountability.

A FICO score of 300 to 620 is commonly referred to as u0022poor credit.u0022 Traditional lenders frequently deny small firm loans due to the relatively low FICO score.

However, you can still get a business loan from a different lender even if your credit score is low if the lender puts more emphasis on where your organization is headed in the future rather than what has previously affected your credit score.

Do SBA Loans Require A Credit Check?

You do not need a credit check to get a Small Business Administration (SBA) loan but some lenders use your credit score to determine if you are qualified for the loan.

Typically, you need to have a credit score above 650 to get an SBA loan. The lender you want to get a loan from will evaluate your credit reliability based on some factors and will decide if you are certified for the loan from the lender.

Generally, it can be tough to get an SBA loan if you have a score below 650, and that is just a minimum. A lot of SBA lenders will want to see a score between 700 to 800. SBA loans can be really cumbersome or have soft conditions as a requirement to get the loan.

What Is the Easiest SBA Loan to Get?

SBA microloans are the easiest to get. They give out up to $50,000 to help small firms and to widen their business operation. This is the best loan for entrepreneurs that can not get the other types of SBA loans because of their high credit score requirement.

Each lender has its way of giving out money to people and also sets requirements for credit score. They also ask for some kind of collateral and also a guarantor for the firm owner. Micro-loans can be used for various purposes to assist small businesses to grow. You use it when you need not more than $50,000 to expand, fix, rebuild, upgrade or develop.

Are SBA Loans Hard to Get?

SBA loans have low-interest rates, have a long repayment structure, and give people the right amount they need. The problem with SBA loans is that the struggle for these loans is tough.

Getting an SBA loan can be really hard. Before applying for a loan, you have to understand how it works. You should know the condition of getting the loan and how well you are a good candidate for the loan. This can help you increase the tendency of getting a loan.

What Businesses Are Not Eligible for SBA Loans?

Some businesses do not qualify for SBA loans such as companies that engage in illicit activities that go against the rules in the area in which they function. Manufacturing, servicing, or marketing of lawful products for use in association with illegal activities, like distributing illegal substances or owning a motel that allows illicit prostitution, are examples of these operations.

Government-owned businesses are not eligible for SBA loans. The government funds the business just as they fund SBA loans. So it is not possible for them to apply. Also, dealers of rare coins are not allowed to collect SBA loans. These coins are not fixed or sure. The business has to do with speculating.

Can I Use A SBA Loan to Start A Business?

Yes, you can start up a business with SBA loans. Loans are available for startups but they are not the easiest to get. Because startups have histories of failure, startup loans might require very hard conditions to get approved.

This means some banks and loan financing companies can choose not to have anything to do with startup business unless they are funded well and they have good credit scores.

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Martin Luenendonk

Editor at FounderJar

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.