Your credit history doesn’t have to be perfect in order for you to qualify for a business loan. If the loan is “guaranteed,” the costs and interest rates associated with it may be prohibitively costly for small businesses that don’t need to run a credit check. However. Do not look at your credit record until you have used all of the small business loan preapproval options.

These companies may be helpful if you have a low credit rating.

A credit check is not required for small business funding

When it comes to company loans, some non-traditional online lenders don’t perform credit checks. The convenience of online loans comes at a cost; when compared to traditional bank loan products, the interest rates and expenses may be greater.

A few well-known financial institutions are listed below.

The money comes from PayPal

If you have a PayPal account, you’re eligible for a Working Capital loan without any credit check. PayPal Premier or Business accounts that have been active for at least 90 days are required to participate.

Paying back a loan can be done over time, and the money can be yours in only a few seconds. When you apply for a loan from PayPal, fees are depending on the loan amount, payback percentage, and history of your company’s PayPal account. A portion of your income is used to pay back the loan.


If your company is incorporated or limited liability, Acfa-Cashflow will not conduct a hard credit check. Once you accept a loan offer, the lender will do a full credit check on general partnerships and sole proprietorships. Customers of Acfa-Cashflow can apply for business credit lines.

Paying cash up front has its advantages and disadvantages

Loans without a credit check have both positive and negative aspects.


  • Loans for those with poor credit are still available.
  • If you pay your invoices on time, you may be able to boost your company’s credit rating.
  • If you pay back this loan on time, you may have an easier time obtaining another one in the future.


  • On no-credit-check loans, the interest rate may be greater.
  • Additional charges may be incurred if necessary.
  • If you have to pay a lot of interest on the loan, it may not be worth it.

How can you get a business loan without putting up any security or undergoing any credit checks?

To make matters worse, getting a small business loan with negative credit is a real challenge. You should avoid lenders who promise “guaranteed” beginning business loans at any cost. Credible business lenders will almost certainly want to see your credit history before they approve you for a startup loan.

In order to assess whether or not to provide you a loan, lenders run a credit check on you. You can get better terms and lower interest rates if you have a strong personal credit score (FICO of at least 690). Borrowing money for your business can be difficult if you have low credit and your company has no history.

Some lenders may run a “soft” credit check on you when you apply for a loan. Not conducting a credit check is not the same as not conducting a credit check. Lenders can use soft pulls to see if you’re a good candidate without harming your credit score. There is no need for you to reapply elsewhere with a lower score after your application has been rejected.

Lenders utilize the “five C’s of credit,” which include capacity, capital, character, collateral, and conditions, to analyze potential borrowers. If a lender does not check your credit score, they are more likely to look at other variables, such as your ability to pay back the loan.

What additional possibilities are there to small businesses in terms of obtaining capital?

If you are unable to obtain a company loan due to a low credit score, you may want to look into the following options:

  • Getting a loan from a family member or a friend.
  • Crowdsourcing is a great way to raise money for your company’s projects.
  • Small business loans and grants
  • Putting your own money into the success of your business.

Cathy Pamela Turner

Personal Finance Writer at ACFA Cashflow

Cathy Pamela Turner has extensive expertise in banking, finance as well as accounting. A large portion of her experience was spent within commercial banks, where she worked in the roles of an underwriter credit Risk Policy Manager director of credit risk, chief credit executive, and many more. Throughout her banking career Cathy not only reviewed different kinds of commercial and personal loans, but also created and monitored policies about the origination of these loans and how they were controlled.