New businesses and those struggling often continue to build their credit or have credit scores that have taken beatings.
Bad credit or a lack of credit can make it impossible to borrow money from banks. Traditional lenders do not want to take risks on businesses that may not pay back the money they borrowed. However, all hope is not lost. As a business, you just have to be willing to consider alternative options, like applying for no credit check financing from a third-party lender.
Read on to find out how to find a no credit check financing lender and other details that will help your business succeed and thrive.
Understanding No Credit Check Financing
No credit check financing is a type of borrowing in which the lender does not run what is known as a “hard credit inquiry.” Traditional lenders run hard inquiries, which not only determine your credit history but shows up on your credit score.
Know All the Risks
Whenever a lender takes a chance on a merchant with less-than-perfect credit, there are strings attached. To make up for that risk, expect to pay higher fees on the money you borrow. Also, there is a good chance that your window to pay back funds is shorter than other types of financing.
Factors Other Than Credit Viewed
Also, know that lenders may screen you for eligibility in other ways. For instance, they may back financing without a credit pull, if you have assets that you can put up as collateral. In some situations, showing you have a large amount of valuable equipment or you have bills showing that you are owed a specific amount of money may be enough.
Your ability to maintain gainful employment and your education also may help you borrow the money you need. Lenders who see you have strong skills that make you marketable for employment, as well as sticking with the same jobs for a number of years, can work to your advantage.
Tips for Finding a No Credit Check Financing Lender
To ensure you find a reliable lender, check online reviews and Better Business Bureau (BBB) profiles. Other important factors to consider before moving forward with a lender:
- Interest charged
- The term of the loan
- Whether you can pay early without penalty
When It’s Time to Apply for Financing
Bad credit should not stand between your business and its ability to improve, like offering more to its customers. First American Merchant (FAM) is a lender that believes that every business should have access to financing despite their credit scores.
To meet business needs, FAM offers multiple types of loans and programs that do not require good credit scores and do not force merchants to pay high-interest rates, submit extensive paperwork, or sign long-term contracts that make it impossible to get ahead. Also, we work with high-risk businesses, as well as many from a variety of industries.
FAM works to approve small businesses with its no credit check financing, which approves eligible merchants for up to $250,000 that can be transferred to bank accounts in as little as a day.
Do not let bad credit stand in your way. Allow FAM’s flexible funding options to help you take your business to the next level while helping you improve your credit score for the future. Additionally, FAM offers merchant cash advances, an ACH program, high-risk business funding, and consumer financing. Apply online today using our simple application process. We cannot promise an approval, but we can guarantee an easy process.Get Started Now