The recent economic atmosphere has made lenders much more cautious when it comes to assessing the risk of lending funds to businesses. This has made it harder for small business owners with poor credit or no credit history to obtain the financing they need to grow their business. However, there are still financing options available, such as invoice factoring and ACH loans, that don’t rely on the borrower’s personal or business credit score. In order to find the best funding option, it is important to understand all of your options and what each lender requires.
Private Lenders
Many small business owners think that the only way to get a loan is through a traditional bank or other type of financial institution, but there are also alternative lenders out there that offer loans without the need for a credit check. It is important to research each lender and determine what types of loans they offer as well as their fees and interest rates.
Some private lenders will waive the need for a credit check altogether, while others may only perform a soft inquiry on your consumer credit report. This will not affect your credit scores, but it is important to keep in mind that these types of lenders typically have higher interest rates and fees.
Another way to get a loan without a credit check is to use a co-signer. A co-signer is someone that agrees to be partially responsible for a loan, if the primary borrower is unable to make the payments for any reason. This is a great option for those who are looking to avoid a credit check, but it is important to note that the primary borrower will be held responsible for the entire debt in the event of default.
Even though there are some options for those with bad credit or no credit, it is important to work on improving your personal and business credit scores in order to qualify for a traditional loan in the future. By working on your credit, you can increase your chances of getting the best business loan with the most competitive terms.
If you are interested in finding out more about the financing options that are available to you, contact a Funding Specialist at National Funding. They will walk you through all of your options and help you determine the best financing solution for your business. They will take into account your credit score, as well as other factors such as your industry experience and revenue to ensure you receive the proper amount of capital you need for growth. They will also help you develop a plan to build and maintain your credit score so that you can be approved for more funding in the future. Then, you can focus on growing your business! For more information, visit our funding solutions page. You can also schedule a free consultation with a Funding Specialist today!.. small business loans with no credit check