What are Business Loans with No Credit?
Credit is a funny thing. Whether you grew up with a limited understanding of it or mishandled it while you were younger, a bad credit score can hurt you in the long-run. Many business owners have experienced loan rejection by a financial institution. Typically, it’s because of their credit scores and it is not a great feeling. But if it makes you feel any better, only a quarter of businesses that apply for a bank loan are accepted. That means 75% of businesses who have applied have felt the way you are feeling. Business loan rejections can happen for a variety of reasons. Often times it is due to their business history or the credit score of the applicant. If rejected for a loan due to a poor credit score, you wonder, do business loans with no credit exist?
If you are asking this question, you are in luck because the answer is yes! But you need to be prepared for the fact that even though these loans exists, not every company offers business loans with no credit. Even though many loans will not be available to you, there are still many options open to you. They may not necessarily be called “business loans with no credit” because that would be frowned upon by the federal government but they do exist. This type of funding will often use the words advance, capital funding, etc.
Funding providers who offer business loans with no credit check will often look at some or all of the following things:
- Your monthly sales revenue
- Assets and liabilities
- Health of your business
- Amount of down payment
- Business plan
- Collateral you plan to put down or have to put down
- History of your business
What type of options do I have for business loans with no credit check?
- Revenue –Based Loans
- This type of loan is based on your bank deposits and is great if the amount you need is equal to 10% or less than your annual gross deposits. If you need the cash fast another benefit is that you can have access to the funding in just 7 business days. This is much faster than a traditional business loan. The loan will be paid back daily through an ACH payment through your business’ bank account.
- Merchant Cash Advance
- When you need cash fast, we are talking in just 3 days; this is the option for you. With no credit check, no collateral, and a quick application, many businesses choose this route. This is a great choice when your business does a lot of transactions through credit cards. All merchant cash advance providers are different, but ateBusiness Funding, our requirements are simple. We accept businesses that have been operating for at least six months. And then we look for companies who do at least $10,000 a month in revenue. If you meet these minimum requirements you have a 95% chance of being accepted with us.
There are many funding providers out there. It is all about finding the one that meets your business’ needs. You never want to put yourself or your business in a position that will ultimately hurt it. Before you ever apply for a funding source, do your research and weigh the pros and cons before committing to anything. It is also important to look at building your credit so that you do not have to look for business loans with no credit. Improving the health of your credit is a great way to start opening up more funding options in the future.
Ready to Get Started with a Merchant Cash Advance?
Contact eBusiness Funding now at 305-985-6593 or complete the contact form on this page now. We are here for you to answer all of your funding questions.