Small Business Startup Loans With No Credit Check: The 2021 Guide

Where to Get No Credit Check Business Loans

Whether you’ve already been made aware of your credit by a business loan denial, or you’re just starting in on your search for small business loans and already know your credit isn’t quite excellent, you might be asking yourself, ”Where can I find a small business startup loan with no credit check requirement?”

To be sure, finding small business startup loans with no credit check requirement is going to be tough: Most business lenders will require a credit check. And very few lenders are willing to lend to startups with under three months in business. As a result, startup business loans and no credit check are generally unavailable.

Don’t worry, though—we’re here to help. There are options available. Here’s a list of your top options as a startup looking for no credit check financing:

  1. Fundbox
  2. PayPal Working Capital
  3. American Express Business Loans
  4. Crowdfunding
  5. Small Business Grants
  6. Microloans
  7. Friends and Family
  8. Business Credit Cards

Here’s your guide to all the no credit check startup loan options, along with some more accessible, affordable alternatives.

See All Your Loan Options

The Best Startup Business Loans with No Credit Check

While few, there are options for startup loans with no credit check. If you run a new business and don’t have a strong credit score yet, here’s what to consider.

1. Fundbox

There are a few alternative lenders, like Fundbox, that offer invoice financing with no hard credit pull until you know your credit limit and fees.

Fundbox offers lines of credit based on invoice collateral from $1,000 – $100,000 at rates starting at 4.66% of your draw amount. Because Fundbox offers startup financing without the need for a hard credit check, their financing options can be very accessible for small business owners.

However, because invoice financing generally requires outstanding invoices to finance, invoice financing wouldn’t be an option if you’re just starting up with no orders to fulfill yet. You’ll need at least 3 months of business history along with an outstanding invoice under your belt in order for this lender to be an option.

2. PayPal Working Capital

If you process payments through PayPal, you might be eligible for a PayPal Working Capital loan.

A PayPal loan could be a good option because your eligibility for financing largely depends on the number of PayPal sales and transactions you bring in—not necessarily your credit score.

With PayPal Working Capital, you can apply to borrow an amount that’s up to 30% of your last 12 months of PayPal sales—capped at $97,000 for your first PayPal business loan and at $125,000 for subsequent loans. To pay the loan back, you allow PayPal to take a fixed percentage out of your PayPal account.

Best yet if you’re looking for a no credit check startup loan? PayPal Working Capital doesn’t require a credit check or credit history to qualify.

See Your Loan Options

3. American Express Business Loans

If you’re card member with American Express, you might be eligible for collateral-free financing of up to $50,000. Rates are fixed on American Express business loans, at 6.98% to 19.97%, with terms ranging between 6, 12, 24, or 36 months.

American Express also offers their financing options with no hard credit pull. If you meet their eligibility requirements, American Express will pre-approve you for funds.

While American Express Business Loans are good options for startup business owners who don’t want a credit check, you’ll have to be a card member and will need to be pre-qualified by Amex.

Alternative Sources for Finding Small Business Startup Funding with No Credit Check

Invoice financing PayPal working capital, or Amex Business Loans are good, more traditional lending options if they work for your circumstances.

But even if your business is brand new, you can still find alternative sources of small business funding with no credit check.

All in all, when a lender decides whether or not to lend to your business, they’re evaluating the risk that your business will have to default on any loan they end up extending you. If you’ve got no business history to prove that your business can run smoothly and no credit score to prove you’re financially responsible, how can a lender know that you’ll eventually pay off your debt to them?

While, of course, every small business owner deserves the benefit of the doubt, it’s not necessarily a feasible reality when it comes to traditional business financing. As result, you’ll have to seek alternative forms of financing if you want to find small business startup loans with no collateral or credit check.

How to Find Startup Business Loans With Bad Credit

If you’re worried about dinging your credit, there are some lenders that just do a soft credit pull—meaning it won’t affect your credit score.

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 might be underestimating your credit score or your loan options.

Lenders will typically consider your personal credit in the following tiers. Let’s see which tier your credit falls in and what this means for your business loan options:

  • 700 or Above: For starters, if you’ve got a credit score of 700 or higher, then you meet the minimum credit requirement for most any kind of business funding out there—even the most difficult, like SBA loans or bank loans.
  • 650 to 700: If your credit score falls somewhere in between 650 or 700, 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 shape, you might still be able to qualify for an SBA loan with a credit score in this range.
  • 620 to 650: When your credit score starts to fall into the 620 to 650 range, that’s when your options become a bit limited. That said, with a score like this and after a few months of business, you could still qualify for a medium-term loan from an alternative lender.
  • 500 to 550: With a credit score that falls somewhere in between 500 and 550, then you’ll definitely have a bit of trouble qualifying for a loan. That said, though your credit score won’t help you in qualifying, that doesn’t mean you don’t have options. Especially if you get a bit of business history under your belt, and you have some business financial stats to show for it, then you could still for certain types of short-term or secured funding.

5 Types of Small Business Startup Loans With No Credit Checks

Now, you may have found that you might be eligible for a startup business loan that will require a credit check, in which case, we suggest you consider looking into this option, especially if it’s an option that won’t require a hard credit check and won’t ding your credit score.

Either way, if you’re looking for business loans with no credit check, or if you have bad credit or no credit history, there are plenty of financing options for you to consider.

Let’s take a look at the top 5 small business startup loans, no credit check required.

4. Crowdfunding

In recent years, 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.

Crowdfunding platforms like IndiegogoKickstarter, 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.

There are a few types of crowdfunding to consider when you’re planning a campaign for your business.


    Donation-based crowdfunding is when there is no incentive for the backers—this is typically reserved for nonprofits, disaster relief, community projects, or medical bills/funeral expenses.


    Rewards-based crowdfunding offers backers a reward for contributing to your business—typically in the form of a product or service that your company offers, or a special gift or experience to thank you.


    Equity-based or securities crowdfunding allows backers to become part-owners of your company by trading capital for equity shares. This means that they receive a financial return on their investment in your company.

5. Small Business Grants

Small business grants are awesome because, unlike small business loans, you don’t need to worry about paying them back.

You just need to qualify—which can be hard to do.

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.

6. Microloans and Nonprofits

If you’re a minority small business owner or come from a disadvantaged background, you might qualify for a microloan or assistance from a nonprofit.

Generally speaking, these options won’t require you to demonstrate creditworthiness, so a credit history that’s limited or rocky won’t necessarily hold you back from securing a microloan or funding from a nonprofit.

These lenders aren’t out for their financial benefit—they want to help traditionally marginalized groups and strengthen struggling communities.

7. Friends and Family

When all else fails, you can always go to the Bank of Mom and Dad.

In all seriousness, if your family and friends believe in you and your businesses and are willing to invest in the future of the company, they might be a great resource.

But be careful. 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.

8. Business Credit Cards

If the real issue is that you have poor credit or no credit history, and you’re afraid you won’t be eligible for a more traditional small business startup loan, you might want to look into getting a business credit card.

Many people will overlook business credit cards as a viable business funding option, especially if your credit score is challenged. However, business credit cards are ideal for businesses that are just starting up, because business credit card issuers will use an applicant’s personal credit score—rather than a business’s credentials—as the main decider for their approval.

So, while this might sound daunting for a new business owner who’s specifically looking for a small business start up loan with no credit check, business credit cards are actually much more accessible than you’d imagine.

Let’s take a look at your top options.

    The Capital One Spark Classic for Business

    One of the very best business credit cards out there for business owners with less-than-stellar credit—the Capital One Spark Classic—is actually available to business owners who have personal credit scores as low as 550.

    But the Spark Classic doesn’t just rest on its accessibility—it also offers some pretty stellar perks.

    First and foremost, this card will offer your business an unsecured revolving line of credit from which you can withdraw capital as needed. The Spark Classic is actually one of the only business credit cards out there that offers unsecured credit to business owners with fair credit.

    And it doesn’t stop there either—for every dollar you spend with the Spark Classic, you’ll earn an unlimited 1% cash back. Not to mention, unlike many business credit cards meant for building credit, the Spark Classic won’t come with any extraneous fees like an annual fee or a foreign transaction fee.

    All in all, if you’re open to having your credit checked, and it sits above 550, the Spark Classic is one of the absolute best options you have for funding your startup small business.

    The Capital One Secured MasterCard

    If you don’t qualify for the Spark Classic—and none of the other no credit check startup business loans sound like options you want to pursue—then your next step is building your credit so that you can secure a small business startup loan that requires a credit check.

    What’s the most efficient, straightforward way to build credit?

    A secured credit card.

    This financial product functions much like your average, everyday, unsecured credit card, barring one crucial detail—with a secured credit card, you have to secure your credit limit with a security deposit.

    With most secured credit cards, you’ll need to put down a refundable security deposit of at least 90%—if not all—of your credit limit’s worth. This deposit will secure your funds and mitigate the risk a card issuer takes on by extending you a credit card.

    As a result, business owners with rocky credit history—or even no credit history at all—will have a much easier time qualifying for a secured credit card than for an unsecured credit card.

    We know what you’re probably thinking—why tie my cash up in a security deposit for a secured credit card when I can just use a straightforward debit card? Well, it’s a totally fair question—the concept of a secured credit card can sometimes be a bit counterintuitive.

    That said, you won’t be able to build your credit history with your debit card, so the initial confusion that a secured credit card might carry will be totally worth it. Think of the doors you’ll open up for your business funding future—if you spend responsibly with a secured card and build your credit score, you’ll be able to access startup funding that does require a credit check.

    So, now that we’ve made the secured credit card’s case, you’re probably wondering what kinds of secured credit cards are available to a business owner like you. Well, though you’ll have many options to sift through, we suggest you start your search with the Capital One Secured MasterCard—one of the most flexible secured credit cards on the market.

    With the Secured MasterCard, you’ll be able to enjoy peek flexibility while building your credit history. While most other secured cards will require you to put down at least 90% of your credit limit’s worth, the Secured MasterCard allows the flexibility of putting down a refundable security deposit of as little as 25% of your credit limit’s worth, depending on your creditworthiness.

    Additionally, if you’re unable to provide your security deposit in one lump sum, you’ll be able to pay it down in installments, so long as you have it paid down within 80 days.

    Sounds pretty great, right? Well, on top of it all, the Secured MasterCard won’t charge you an annual fee or any other hidden fees, so you’ll be able to access this unparalleled flexibility for free.

    If you’re out of options for funding your startup small business, turn to the Capital One Secured MasterCard to help you build your credit and graduate beyond your limited options for small business startup loans with no credit check.

The Bottom Line on Small Business Startup Loans with No Credit Check

So, do small business startup loans with no credit checks exist? Not in the traditional sense.

But with a little bit of creativity, you can come up with the capital you need to start your business.

And even if you can’t quite draw up a small business startup loan with no credit check, by spending responsibly with a secured credit card, your road to accessing small business startup funding will be smooth, even if this funding does require a credit check.

Vice President and Founding Editor at Fundera

Meredith Wood

Meredith Wood is the founding editor of the Fundera Ledger and a vice president at Fundera. She launched the Fundera Ledger in 2014 and has specialized in financial advice for small business owners for almost a decade. Meredith is frequently sought out for her expertise in small business lending. She is a monthly columnist for AllBusiness, and her advice has appeared in the SBA, SCORE, Yahoo, Amex OPEN Forum, Fox Business, American Banker, Small Business Trends, MyCorporation, Small Biz Daily, StartupNation, and more. Email:
Read Full Author Bio