Many business loan lenders consider both personal credit scores and business credit scores when determining eligibility, among other factors like annual business revenue and years in business. While business credit reports are public information, some borrowers may prefer not to have their personal credit checked during the application process, whether it's because they worry that a lower score will disqualify them for funding or because they don't want the hard pull to result in a temporarily lower credit score.
Below, CNBC Select rounded up four of the best small business loans that don't require a credit check or consider applicants with low credit scores. We looked at loan amounts, repayment periods, fees, Better Business Bureau ratings and business requirements to apply. Some lenders may still ask for your credit history, but they may not use it to determine your eligibility. (Read more about ourmethodologybelow.)
Best no credit check business loans
- Best for microloans: Kiva
- Best for low credit scores: Credibly
- Best for PayPal Business users: PayPal Working Capital Loan
- Best for Square users: Square Loans
Best for microloans
Kiva
Types of loans
Peer-to-peer crowdfunded loan
Better Business Bureau (BBB) rating
N/A
Loan amounts
$1,000 to $15,000
Terms
Up to 3 years
Minimum credit score needed
No minimum credit score required
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)
Terms apply.
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
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.
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Best for low credit scores
Credibly
Types of loans
Long-term loans, working capital loans, business line of credit and merchant cash advance
Better Business Bureau (BBB) rating
A+
Loan amounts
$5,000 to $400,000
Terms
3–15 months
Minimum credit score needed
500+
Minimum requirements
Must have been in business for at least six months and have average monthly revenue of at least $15,000
Terms apply.
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 $400,000
- 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
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.
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Best for PayPal Business users
PayPal Working Capital Loan
Types of loans
Working capital business loan
Better Business Bureau (BBB) rating
A
Loan amounts
$1,000 to $250,000
Terms
None specified; borrowers pay a portion of their sales until the loan is paid off
Minimum credit score needed
No credit check required
Minimum requirements
Must have a PayPal account since approval is based on your business's PayPal account activity
Terms apply.
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
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.
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Best for Square users
Square Loans
Types of loans
Small business loan
Better Business Bureau (BBB) rating
N/A
Loan amounts
$300 to $250,000
Terms
A percentage of sales is automatically deducted until the balance is paid off; full loan payment is required within 18 months
Minimum credit score needed
None
Minimum requirements
Must be a Square seller
See our methodology, terms apply.
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
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.
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More on our picks for best no credit check business loans
Kiva
Kiva is a peer-based lending platform that offers crowdfunded small business loans. After you apply, the lender gives you 15 days to invite your friends and family to participate in lending money to your business. After that initial 15-day period, Kiva opens up your "campaign" to their network of other lenders to help you raise money. The result should be a microloan that entrepreneurs can use for business expenses.
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 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
Credibly lets borrowers apply for anywhere from $5,000 to $400,000. This lender does consider the overall health of your business when approving applications in addition to the low credit score requirement of at least 500. Keep in mind that to qualify, your business will also need to earn at least $15,000 per month in average revenue.
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 $400,000
Loan terms
3–15 months
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PayPal
With a PayPal Working Capital Loan, borrowers must either repay at least 5% or 10% of their total loan amount plus the fixed fee every 90 days. They'll make these repayments until the loan is completely paid off. While these payments are automatically deducted from your business's PayPal account as a portion of your sales, you can still make additional payments as needed. There are no prepayment penalties for paying off your balance early. Funds are automatically deposited into your PayPal account once your application has been approved and you agree to the lender's terms and conditions.
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
Square loans are available to small businesses that process payments through Square. Loan amounts range from $300 to $250,000, and they come with a flat fee, as opposed to ongoing interest payments. There are no late fees or any other additional fees you'll be required to pay.
Eligible borrowers
Must be a Square seller
Loan amounts
$300 to $250,000
Loan terms
Full repayment is required within 18 months
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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.
Bottom line
When shopping around for a small business loan, having a higher credit score will qualify you for more favorable rates and terms. But if you have a low credit score and prefer to shop with lenders that don't run credit checks, you still have options.
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Why trust CNBC Select?
AtCNBC 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. Seeour methodologyfor more information on how we choose the best no credit check business loan lenders.
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 theprime 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.