Processing business loans with no credit was almost unheard of in the past. You had to apply with your bank, provide both business and personal financial details, and even in some cases, that of your spouse and still have the bank run a credit check on you.
If the credit check showed the business had poor or insufficient credit, the lender would decline to finance the business.
However, as a business, it’s still possible to get loans with no credit checks for your small business by using the right online credit brokers.
Why Do Lenders Carry Out Credit Checks?
Credit checks help lenders review your credit and debt history as well as the repaying history. Failing to pay your lender on time or completely reflects on your credit report reducing the chances of getting approved for financing by lenders.
Having a good credit is therefore important for your business if you hope to get financing from traditional business lenders.
Whether you have a bad or good credit, there are instances you will want to get a loan without having your credit pulled by your lender during the process.
And it’s possible to get business loans with no credit checks from your bank.
Getting a Business Loan with No Credit
There are several ways that you can get a business loan with no credit. Here’s how:
Get the Right Lender
Some lenders don’t carry out credit checks on your account or business but are able to approve your financing.
Such lenders evaluate the cash flow in your business and are able to approve your financing for an amount they are comfortable with.
Type of Loan
Several types of loans won’t require any credit checks. One such type of loan is an asset-based loan.
If your company is seeking working capital and you have assets such as machinery, accounts receivable or inventory, you can use them to get a loan.
Small businesses that need loans with no credit can use unpaid invoices to get loans. Since the invoice is from another company, the lender won’t have to pull a credit on your business and will use the unpaid invoice as collateral.
Benefits of Loans with No Credit Check
As a small business, staying in business means getting loans to ensure operational costs are met.
It can be frustrating to keep getting turned down by banks or lenders due to your credit score and might be interested in new ways of borrowing money.
There are online tools such as https://oinkmoney.com/blog/using-a-consolidation-loan-to-reduce-your-outgoings-and-debt/ that can help your business get a loan with no credit check.
All you need to do is to indicate the amount you’d like to borrow and the repayment period.
Get Loans with No Credit
When you need money for your business, there’s a high chance that you don’t want to wait for days and are wondering where to get to.
Whether your business has poor or insufficient credit, there is no need to be stressed on getting financing while there are ways of getting loans with no credit checks.