When businesses are just starting out they need extra capital for everything from emergencies to hiring new staff. You probably think, “no problem, I’ll just apply for a loan, right?”
Due to a lack of collateral and little or bad credit scores, startups have a difficult time borrowing money. Luckily, there are options to pursue that do not require a credit inquiry. Though options may be limited, you can apply for a loan that is based on your business performance, instead of your credit score.
Options for Small Business Startup Loans No Credit Check
Some of the best types of financing to seek are:
Lines Of Credit
A line of credit is a type of flexible financing, which is a revolving form of credit that can be used to cover business-related costs, such as buying inventory or office supplies. It works like a credit card, but, instead, of swiping a card, you draw upon the account when needed. The bonuses of lines of credits are that you can make multiple withdrawals and you only take what you need. As you pay back what you owe, your credit line increases. Those these loans often require a credit check, it is only a soft inquiry. This is when an entity does a brief background check on your credit, but it does not impact your credit score.
Apply for equipment financing to buy more equipment or update existing pieces. This type of financing requires a down payment of between 10% and 20% of the total equipment cost. Once the down payment is received, the lender loan you the rest of the money, which you pay back in monthly installments. Additionally, this type of financing does not require collateral like traditional term loans.
Merchant Cash Advance
A merchant cash advance has no restrictions on what you can buy with the money, and it does not require good credit or collateral. Another plus is that you can receive funds within a day or two. This type of financing is perfect for businesses that have many monthly transactions that are paid for with future credit card sales. When you apply for merchant loans, there are no lengthy applications. Most importantly, your credit is not a major determining factor. Many lenders will approve merchant loans for those with poor credit scores, which are scores that fall between 500 and 579, and some won’t even if ask for your score.
The Final Thoughts on No Credit Check Financing
When you want a flexible way to get the funding that you need to get your business more established, then go after small business startup loans no credit checks, like a merchant cash advance.
Advance repayments are based on future transactions, so you can feel at ease knowing that you will only have to submit a payment based on how well your business did that week or month when pay back is due.
When You Want to Apply
When you are ready, apply to First American Merchant (FAM). It prides itself on offering funding options to merchants of all sizes and from a variety of industries. To apply to FAM, you only need to submit two to three months of sales and revenue history. In many cases, if you are approved, you get funding within three business days. to coverGet Started Now