Business Loans With No Credit Check

If you want to start a business and need capital, the most common way to acquire it is to get a loan. If your credit is poor, you might be on the lookout for business loans with no credit check. Unfortunately, this is hardly possible. Any bank, credit union, lending company or even private lender will want to see your credit report and score. This does not mean that poor credit will exclude you from getting a business loan, however you may need substantial collateral and your interest rates will be high. Collateral is usually in the form of a car title or a lien on your mortgage depending on how much you are borrowing.

How much of a loan you will need depends on your costs. If your business has very little overhead you may only need enough for your licenses and advertising costs. For a larger business you may need a loan for a piece of property and building, utilities, employees, supplies and more. So the cost of a business loan can range dramatically depending on what kind of business you are starting and what you need to start it. Writing a business plan, which defines all aspects of your business, is a must. Not only does this help you figure out your financial needs, it defines the goals for your business and how you plan to reach them.

For those who are unable to get a business loan because of poor credit and/or no collateral, the best thing you can do is work to improve your standing. Consumer Credit Counseling is a non-profit organization that works with people to help them get rid of debt and boost their credit score. Then once you have your credit where it needs to be, you can try again for a business loan. The only other affordable option is if you had a friend, family member or other individual who was willing to loan you the money without a credit check.

If you are starting a small business, you may be able to get business loans with no credit check through payday loan companies and title loan companies. Let’s say you are starting a home business and only need a few hundred dollars to get started. One of these companies could grant you a loan in this amount without checking your credit. It is advised to pay these loans back as soon as possible because the interest rates and late fees on them are very costly.