4 best business loan lenders that won't check your credit score (2024)

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

  • 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

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.

Specific requirements vary by lender. but oftentimes, lenders require at least a good credit score (670 and above) for a business loan.

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.

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.

4 best business loan lenders that won't check your credit score (2024)

FAQs

Which type of loan does not require a credit check? ›

Payday loans are a type of unsecured loan where lenders don't typically check credit. These loans tend to be small, usually a $500 loan amount or less (although some lenders might offer more), but come with strict repayment terms.

Can I get a business loan with a 500 credit score? ›

Yes. Some lenders welcome business owners with credit scores as low as 500. These loans focus less on your credit score and more on the strength of your business and your ability to repay the loan. Most business loans for bad credit will have high interest rates and fees.

What is the easiest SBA loan to get approved for? ›

SBA Express loans, part of the SBA's 7(a) loan program, offer the easiest application process and the fastest approval times among all SBA loans. These loans, with payoff periods as long as 25 years, are designed for purposes such as refinancing debt, buying equipment, or improving real estate.

Can I get a business loan with a 480 credit score? ›

Bad credit business loans are often available to business owners with personal credit scores that are considered bad to fair (FICO scores of 300 to 669). Some options like SBA loans offer low-cost capital.

What is the easiest loan to get approved for? ›

What is the easiest loan to get approved for? The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.

What loans don t require verification? ›

Best Loans With No Income Verification or Low Income Required
LenderMinimum Annual Income RequiredLoan Amounts
UpgradeNo verification$1,000–$50,000
Universal CreditNo verification$1,000–$50,000
Best EggNo verification$2,000–$50,000
Upstart$12,000$1,000–$50,000
1 more row

What is the minimum credit score for SBA loan? ›

SBA-qualified lenders usually set their own criteria when assessing your eligibility. Most lenders will require a minimum FICO score of 620 or higher for their SBA Loans.

Can I get an SBA loan with bad credit? ›

Some lenders have more lenient approval processes, but you typically need to have at least a 640 credit score to be eligible. If you've been in business for many years or your poor credit is due to extenuating circumstances, the lender may be more willing to approve you for an SBA 7(a) loan.

What credit score is needed for a 200k business loan? ›

The key steps and eligibility requirements to qualify for a business loan: Strong Credit History: Aim for a credit score above 680. Ensure no major financial red flags, such as bankruptcies or large unresolved debts. Consistent Revenue Stream: Demonstrate a steady inflow of income, ensuring you can manage repayments.

What disqualifies you from getting an SBA loan? ›

The most common reasons SBA loans are denied are poor credit, too much existing debt, or insufficient collateral. Other reasons include: Prior bankruptcy. Negative taxable income.

What is an express SBA loan? ›

An SBA Express loan is a working capital loan of $500,000 designed for small businesses. It is part of the 7(a) loan program. But unlike other loans offered through the 7(a) program, Express loans are faster business loans that can be processed within 36 hours and potentially funded within a few weeks.

Can you be denied for a SBA loan? ›

The bottom line. Many businesses can't qualify for an SBA loan, but that doesn't mean there aren't other options available. Once you review why your application was rejected, you can choose to apply again or explore alternatives.

Can I get a business loan if my personal credit is bad? ›

It is possible to get a small business loan even if you have bad credit. This is because your credit score doesn't matter as much as the overall financial health of your business. Many lenders require a minimum credit score of 500, at least six months in business, and more than $30,000 in annual revenue.

What is the minimum credit score to start a business? ›

Minimum credit score by business loan type
Term loanWhile banks and credit unions typically require a score of 670 or above, online lenders may only require a score of 500
SBA loanLenders offering SBA loans require credit scores between 620 and 680
4 more rows
Oct 13, 2023

What are the 5 C's of credit for business loans? ›

When you apply for a business loan, consider the 5 Cs that lenders look for: Capacity, Capital, Collateral, Conditions and Character. The most important is capacity, which is your ability to repay the loan.

Is it possible to borrow money without a credit check? ›

Yes, it's possible. 'No credit check' loans don't exist, but bad credit loans do. They're designed for people with low credit scores, meaning you may be more likely to get approved. Lenders usually offer lower amounts and higher interest rates on bad credit loans.

Do all personal loans require credit check? ›

Personal loans can be used to consolidate debt, fund large expenses, or cover emergencies when cash is tight. No-credit-check loans are a category of personal loans that allow you to apply and be approved without a lender looking at your credit reports or scores.

Does not require a credit check, federal or private? ›

Most federal loans don't require a credit check, but private loans typically do require a credit inquiry, and having good credit can help you land a competitive interest rate.

Which type of loan does not require you to have a credit check before loaning you money for education? ›

The interest rate on federal student loans is fixed and usually lower than that on private loans—and much lower than that on a credit card! You don't need a credit check or a cosigner to get most federal student loans.

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