Starting a small business can be an exciting journey. But often, securing the funding you need can be a real challenge, particularly when you’re starting out and don’t have many assets.
Fortunately, there are options available for obtaining small business loans with no credit check. In this article, we’ll cover everything you need to know about getting a small business loan without a credit check.
What is a no credit check business loan?
No credit check loans are a type of business loan that are generally provided by online lenders rather than traditional banks. These loans differ from many other options, as the lender does not need to check your credit score when reviewing your application.
They can be a help to smaller business owners who don’t have a strong credit history or assets available to use as security for a loan. But finding lenders who are happy to provide you with funds without a credit check can be tricky, and take a lot of time to research.
Be warned that some no credit check loans can be more expensive than other options, due to higher interest rates or longer repayment terms.
Why consider a small business loan with no credit check?
There are several scenarios where a no credit check business loan could be the perfect option for you.
- If you have a poor credit score, or do not want a search statistic on your personal credit report.
- If you want a business loan without having to provide a personal guarantee.
- If you want to keep your business finances totally separate from your personal finances.
Whilst they can be a big help in expanding your business, it can often be difficult to find lenders who will provide financing without first wanting to check the credit score of your business or your own credit score.
Steps to obtaining small business loans with no credit check
Prepare a strong business plan
A well-prepared business plan that demonstrates your business’s potential and profit margins can be a big help in persuading lenders to provide you with the funds you need. By including accurate financial projections, market analysis and a detailed plan for how you’ll use the funds, you’ll be more likely to get approved.
Know your finances
Providing comprehensive financial records, including bank statements, balance sheets and cash flow statements is essential. This information will help lenders assess your business’s financial health and your ability to repay your loan in future.
Build business contacts
If you have built up relationships with suppliers, customers or other business partners, seek their references or endorsements prior to your application. This can help enhance your credibility and increase the chance of you receiving funding.
Research different loan providers
There are plenty of different loan providers online. Each will likely have different interest rates and terms of repayment, so you must identify the provider that will be a good match for the goals of your business.
Get started with funding from Funding Triangle
If you’re currently searching for a business loan, Funding Triangle can help. We provide loans from £10,000 to £500,000 with interest starting at 4.8%.
You can apply today and get a personalised quote without it affecting your credit score. Receive a same-day decision and get the funds you require within 24-48 hours.
