No Credit Check Business Loans

Compare the business finance types available where no credit check is required. These are often ideal for business with a poor credit scores or start-ups with at least 3 months of trading history.

Merchant Cash Advance

Apply in minutes and see funds in as little 48 hours

Merchant Cash Advance

Apply in minutes and see funds in as little 48 hours

Why do businesses typically want a no credit check business loan?

Avoids the possibility of having a negative impact on credit score

When lenders conduct a hard credit check to confirm your eligibility for a loan, your credit score is negatively impacted. A single hard credit check may not be a big deal, but going through multiple hard credit checks in a short timeframe can be damaging to your long-term ability to secure finance for your business. Therefore, no credit check business loans can avoid this risk when applying to numerous lenders.

Avoids the possibility of being disapproved due to an average or poor credit score

It’s quite common for business owners to have an average or even poor personal credit score. This makes it difficult to get approval for business loans, as for many companies credit scores are a core part of their eligibility criteria. No credit check business loans are a way to avoid being rejected based on your credit score but instead be measured on more recent and performance-related data.

Enables startups with no credit history to get quick financing

Startups and new businesses often lack a credit history, making it difficult for them to qualify for traditional business loans. Unfortunately, credit scores don’t start off as good by default. Evidence of being financially responsible is required — you’re guilty until proven innocent. The same goes for personal credit scores, which can cause problems for young entrepreneurs straight out of school or university. A business loan with no credit check can give these businesses a chance to access financing.

What is a credit check?

A credit check quantifies the past and present financial behaviours of an individual or business. They’re historically the most important aspect of how much companies can borrow and at what cost.

Despite their inherent limitations, credit checks aren’t solely to protect lenders. Credit checks have played a big role in safeguarding borrowers from making poor financial decisions and entering unaffordable commitments. As seen in the 2008 subprime mortgage crisis, there’s a systemic risk involved when borrowers over-leverage on a large scale. Credit vetting is important for everyone.

Soft checks

A soft credit check is a less intrusive and less thorough review of your credit report. This ‘soft pull’ might be conducted by landlords or business lenders for pre-approval offers. Ultimately, the soft check can be performed without your consent because it does not affect your credit score.

Individuals themselves can do a soft check to monitor their financial health. Due to them not being specifically linked to an application for new credit, they’re not visible to lenders nor do they have any negative impact on your credit report.

Hard checks

A hard credit check, often described as a hard inquiry, is when a full credit report check takes place. Hard checks can stay on your report for a few years (it varies), and because they typically occur during a financing product application, they can negatively impact your credit score. Sometimes it’s only temporary, but sometimes the damage can be long-term if several hard checks take place in a short timeframe. 

Rightly or wrongly, this indicates to lenders that you’re in financial trouble or attempting to take on too much debt. Some credit score systems can recognise many hard inquiries for a mortgage as being understandable, and the impact on the credit score is minimised, but business loans do not typically benefit from this same consolidation. 

Why does a business need a credit score?

A credit score is designed to indicate the creditworthiness of a business. It’s not only lenders but also potential business partners and suppliers who may be checking your company’s credit score to gauge your risk level and reputation. A good credit score can improve the terms of a loan, such as reducing APR, and result in payment terms with suppliers.

Is it possible to get a business loan with bad credit?

It is still possible to gain business financing without a good credit score or credit check. Traditional lending options like bank loans will be a no-go, but some alternative finance methods like merchant cash advances, invoice factoring and asset financing are alternatives to consider. 

Types of No Credit Check Business Loans

Merchant Cash Advance

One of the most popular financing arrangements for businesses with a poor credit score is via a merchant cash advance (MCA). This is where a lump sum is paid to a business in return for repaying the lender a percentage of future card sales. The total cost of the MCA is set upfront using a factor rate and no monthly interest is charged. 

Merchant cash advances are one of the best options for no credit check financing because both the repayment structure and the approval criteria are based on card sales. The lender is repaid daily and automatically. Plus, it’s possible to link your merchant account during the application via Open Banking so underwriting decisions can be made in minutes or hours without the need for uploading statements, business plans etc

Does your business qualify?

There are often two minimum requirements for merchant cash advances:

  1. A minimum trading period which can start at just 3 months
  2. Minimum monthly card revenue which can be as low as £1,500

Most lenders will offer larger advances to those with a longer trade history and/or high card revenue.

MCAs are ideal for businesses that want to tie their repayments to their card revenue. 

Many MCA lenders do not require a credit check. For example, YouLend offers MCA loans from £3,000 – £10M with no credit check and just 3 months trading history. Other cash advance lenders such as Capify and 365 Finance, still perform a credit check.

How a Merchant Cash Advance Works

  • Step 1: Find a provider where you meet the minimum trading history and minimum card revenue requirements. If there are multiple that fit, choose a provider that integrates with your existing payment processor and has strong customer support.
  • Step 2: Apply for the advance through Open Banking which will provide details about your credit card sales. 
  • Step 3: Assess the offer. If the factor rate appears high or you’re rejected, consider applying with an alternative MCA provider.
  • Step 4: Accept the offer and funds are typically deposited in 24-48 hours. 
  • Step 5: Check your merchant account statement to ensure the daily repayments are going through, and at the pre-agreed percentage.
  • Step 6: The advance may be repaid sooner or later than you anticipated, but your total cost will remain the same because of the pre-agreed factor rate. Many providers offer an option for renewal.

Invoice Factoring

Businesses can receive immediate cash for their outstanding invoices without having to wait for customers to settle them. This means selling the invoices at a discount to a factoring company, which then takes on the responsibility for collecting the payments. Generally, you may receive around 80% of the total invoice value upfront.

While it provides cash flow benefits, it may negatively impact your relationship with customers. To avoid this, invoice financing arrangements can be made where you stay in control of collection, which in turn lets you keep a higher percentage of the invoice value too. This is ideal in situations like 2022, where three in five businesses were owed money from late payments.

Asset financing

Asset financing is a way to borrow money against business assets, such as vehicles and real estate. This can reduce your perceived risk, and therefore get a better APR than an unsecured loan. Due to the collateral offered, lenders are less concerned with your credit score. This doesn’t exclude new businesses without large assets either, as the equipment you’re about to purchase with the financing money can be used as collateral. However, you are sometimes limited in how you use the funds in this instance. 

Short-term business finance

Short-term loans are designed for fast cash and to be repaid within a year. These can be seen as the business equivalent of payday loans, where there are low credit requirements but costs are very high. However, some alternative lenders use business performance and cash flow as a measure of risk, which helps attain a more affordable APR. 

Business Credit Cards

Business credit cards do require a credit check, but they can often be less stringent than some other traditional financing options. These cards provide immediate access to funds and a lot of flexibility in how you spend and repay it. However, credit cards are often expensive, particularly for those with poor credit scores.


Can business loans affect my business credit score?

Yes. When applying for a business loan, a credit check is often done with a Credit reference agency. When submitting various applications in a short timeframe, it’s a signal that the business may be in distress, which in turn impacts your credit score.

Are credit checks required for Merchant Cash Advances?

Not always. Depending on the provider you use, an MCA may not require a credit check because they use alternative methods of risk assessment, such as business sales and cash flow data. This means they’re a good option for those with poor credit scores.

What does a business credit check show?

A hard credit check can show how prompt you have been with previous repayments, your current levels of outstanding debt, and how you use credit. It’s not just the credit score that appears, but legal claims against a company, business financials, trade references, and even a risk assessment on the industry you operate in.

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Merchant Cash Advance

Apply in minutes and see funds in as little 48 hours