Small Business Startup Loans With No Credit Check

Last updated June 6, 2025

Do startup loans with no credit check exist? Yes,

that don’t require a credit check are available. But they don’t come in the form of traditional loans and they do come with tradeoffs—namely higher rates and fees and shorter terms.

It’s also important to note that while several lenders explicitly advertise that they don’t perform a hard credit check or that they’re open to working with applicants with low or “bad” credit scores, no business owner is ever guaranteed to qualify for a loan—so don’t be fooled by any lender advertising this way. There will always be an application process that will involve, at the very least, the lender reviewing your business financials.

No cost to you

Your credit score won't be impacted

Compare multiple lenders with one application

Can You Get a Startup Business Loan With Bad Credit?

If you have bad credit, searching for a business loan may feel futile. It’s even harder if you’re a startup just trying to get off the ground.

Startup business loans

and no credit check financing are available, but they tend to come with higher interest rates, additional lender fees and shorter terms than typical business loans. Some business lenders are willing to do only a soft credit pull (meaning it won’t affect your credit score), but very few lenders are willing to lend to startups with fewer than six months in business.

How to Know If You Have Bad Credit

If you’re afraid you have “bad credit,” make sure you understand the FICO score ranges before deciding that no lender would want to work with you. You may be underestimating your credit score or your loan options.

Lenders will typically consider your personal credit in the following tiers:

700 or above: If you have a credit score of 700 or higher, then you meet the minimum credit requirement for nearly any type of business funding out there—even the most difficult to attain, like bank loans and SBA loans.
650 to 700: If your credit score falls in this range, then you’re still in pretty good shape. In fact, after you get a bit of business history under your belt, if your business is in good financial standing, you may still be able to qualify for an SBA loan.
600 to 650: When your credit score starts to fall into this range, your options become a bit limited. That said, with a score like this and after a few months in business, you could still qualify for a medium-term loan from an alternative lender.
550 to 600: With a credit score in this range, you’ll definitely be limited in your loan options. If you establish some business history and you have financial stats to show for it, however, then you could still qualify for certain types of short-term business loans or secured funding.
Below 550: You will be hard pressed to find funding options with a credit score this low, but there are steps you can take to improve your personal credit score and to build your business credit score.

Startup Business Loans: No Credit Check or Bad Credit Options

If you have a new business and don’t yet have a strong credit score, here are options to consider for your business financing needs.

Invoice Financing

In general,

invoice financing

can be a good option for business owners with bad credit, particularly business-to-business companies that process a substantial amount of invoices.

Invoice financing companies advance you a certain portion of your outstanding invoices, assuming they will eventually be settled. The financing company retains a portion of your unsettled invoices and charges a fee for each week the invoices remain unpaid. Once the invoices are settled, the financing company returns the retained amount, minus the lender fees.

Because borrowers use invoices as collateral, lenders don’t rely as much on their personal or business credit scores.

Equipment Financing

An equipment loan grants you a sum of money to purchase necessary business equipment, machinery, or even software. You pay the loan off, with interest, over a set term.

Similar to invoice financing, the collateral for an equipment loan is the equipment itself. This allows lenders to be more flexible on their qualification requirements, such as credit score and time in business, since they have the security of a physical asset should you

default on your loan

Microloans

Regardless of your credit score, if you’re a startup, you may qualify for a

microloan

. Many microlenders are nonprofits that want to help traditionally marginalized groups and strengthen struggling communities. As such, microlenders may not require you to demonstrate creditworthiness.

Merchant Cash Advances

A merchant cash advance, which affords you a lump sum in exchange for a portion of your future sales (plus a fee), may be the most enticing option on the surface because it can be one of the easiest financing options to qualify for.

Be aware, though, that a merchant cash advance is almost always the most expensive route to go, and many bad actors operate in this space to take advantage of businesses in desperate financial situations.

Business Credit Cards

Many people overlook business credit cards as a viable

business funding

option. But business credit cards for bad credit are available, although most are secured by a cash deposit.

On the upside, these can help you build business credit as you grow your company, so in the future you can qualify for an unsecured business credit card. The downside: You’ll need to put down a cash deposit to secure the card, which may range anywhere from a couple hundred to a few thousand dollars. Additionally, paying off the card won’t improve your personal credit score.

Alternative Startup Funding With No Credit Check

New business ventures are essentially the riskiest bet there is for lenders. After all, you have no business history to prove your business can run smoothly, and no business credit score to prove you’re financially responsible. How can a lender know that you’ll eventually pay off your debt?There are some alternative forms of financing that can offer small business

startup loans with no collateral

or credit check, or that might be options for business owners with bad credit.

Crowdfunding

Crowdfunding has become a popular option for entrepreneurs looking to launch a new product or service. It lets you tap into the collective efforts of friends, family members, customers, and individual investors to raise the capital you need to start your business.

Platforms like Indiegogo, Kickstarter, and GoFundMe make it easy for you to host an online campaign and reach potential backers through email and social media. Plus, there’s the added benefit of validating and refining your business concept through feedback from the masses.

Small Business Grants

Small business grants

are an extremely attractive source of funding because, unlike small business loans, you don’t need to worry about paying them back.

Federal, state, and local governments offer a wide range of grants to help small businesses start and develop. The catch is that they are typically reserved for specific industries and causes that have been identified by the government, such as scientific or medical research or conservation efforts. Many large corporations also offer grants as part of their “do good” efforts.

Friends and Family

If your family and friends believe in you and your business and are willing to invest in the future of your company, they might be a great resource.

But proceed cautiously. If you accept money from your friends or family, you inherently put them at risk. Make sure that they are fully aware of the risks and have a strong understanding of what you plan to do with their loan or donation.

Fundera Can Help

We’re here to take some of the work of finding a business loan off your plate. We partner with a number of online lenders who are open to working with startups, even those with lower personal credit scores.

Answer a few questions—with no impact to your credit score and free of obligation—to see which business loans you qualify for.

Let’s get you funded!