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.)

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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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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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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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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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 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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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 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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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 disbursem*nt
• 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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