How to Get Working Capital Loans With No Credit Check

Ask anyone in business and they’ll tell you that it takes money to make money. But if you’re a new business owner, it can be tough to get a working capital loan with no credit check. You need working capital to cover day-to-day expenses like payroll and buy equipment and materials while also growing your business. But, maybe your business hasn’t been around long enough to have the type of financial history most conventional lenders like business banks look for when approving startup business loans, business credit cards, or business lines of credit. We’ve heard this from our clients who have promising businesses, but they can get traditional loans and lines of credit from banks. Don’t sweat it – we’ll go over what your options are for accessing the business funding you need, even if you don’t have adequate credit history or have bad credit.

What Disqualifies You From a Business Loan?

You may have been disqualified for a business loan for a number of different reasons. Reasons for disqualification depend on the financial partner you applied with, but there are some common reasons for disqualification across institutions:

• No credit. Unfortunately, without enough credit history a financial institution may deny your business loan application. Many have minimum credit score requirements and time in business requirements you’ll have to meet in order to qualify.
• Bad credit. You may have enough credit history, but perhaps it’s poor or even bad. Unfortunately, most lenders will not extend a business loan to owners with bad credit.
• No collateral. The bank wants to know it can recover its money in the event you don’t make your loan payments. Without collateral, they have little recourse.
• Lack of cash (ironically). Banks favor businesses with consistent cash flow, so if your balance sheet shows a lack of available cash to repay your debts, you’ll be hard pressed to get a loan approval.
• Weak business plan. Traditional banks and lenders want to see a strong business plan before lending you money. This is to ensure you’ll be able to pay them back for your loan. Ensuring your business plan is in tip-top shape before application can help reduce your chances of rejection. Want to keep reading? Click here .