If you are a small business or just starting, you may have limited or even poor credit history that may affect your loan approval with more traditional lenders.
Fortunately, the financial market is evolving, offering a variety of options that prioritize revenue and cash flow over credit scores.
Wondering what the top options are and if they would be the right fit? Check our list of 5 best business loans for small businesses with no credit check.
Let’s dive in!
5 Best Business Loans for Small Businesses With No Credit Check Worth Exploring
Our top picks cover either no credit check options or options that do soft credit checks and look more into your cash flow when approving your loan.
Here are the highlights.
1. Puls Project
Puls Project is a FinTech solution that provides SMEs with cash flow management and loaning options.
In addition, it has multi-banking capabilities to streamline the management, oversight, and operational efficiency of financial activities.
Key Highlights:
1. Loaning Capabilities
💰 Our fund, Montold SME Lending Fund GmbH & Co. KG, registered with BaFin, enables us to issue loans quickly and easily — without time-consuming policies and complex criteria.
Thus, not only do we not require collateral or personal guarantees, but we don’t run credit checks, not even soft ones.
💰 We only require that you have a running business of at least 6 months, a loan agreement, and the personal identification of beneficial owners and directors as per GwG.
💰 We calculate credit limits based on your business's overall financial health, enabling you to ask for additional loans if your cash flow management is in order.
💰 If we approve your loan request, you’ll get quick access to the funds within 48 hours.
💰 Before you apply for a loan, you can get an estimate by setting the amount and the repayment period to see the total cost, interest rate, and monthly interest.
Thus, you can tailor the loan to your needs, making it highly flexible.
💰 The maximum loan amount is €100,000 with a maximum repayment period of 12 months.
💰 Puls Project may not have an extremely high borrowing cap, but you can top up your loan and improve your credit limit via:
- Healthy cash flow management practices and
- Multiple-banking capabilities.
And Puls’s other 2 core features enable you to do just that.
💰 With Puls, you can connect your bank account from over 4,000 banks to centralize and manage all bank accounts in one place for a more convenient oversight.
💰 By viewing all your accounts in one place, you can manage invoice payments efficiently and easily and maintain a clear history of payments.
💰 Puls’s grouping features allow you to categorize and label financial activities and transactions regardless of the number of accounts and companies.
Thus, you can categorize activities based on your criteria and business purposes to track expenses better and optimize spending.
💰 Furthermore, categorizing your transactions allows you to analyze their profitability based on the label, category, counterparty, company, or account.
3. Cash Flow and Liquidity Management Tools
💰 In addition to centralizing your bank accounts, you’ll also get unified account management, enabling you to view and manage all the companies in one place.
This way, you can manage and track balances and spending across all accounts and companies from a centralized dashboard.
💰 Our cash flow management tool enables you to automate expense tracking — you only need to input regular monthly expenses once, and you’ll see them automatically the following month.
💰 We sync all your transaction data multiple times a day, providing you with not only accurate but real-time data to help you make business decisions.
💰 Our real-time monitoring also means that we’ll inform you when we spot a potential cash gap so that you can take proactive measures.
4. Security
We understand that entrusting your sensitive data is a giant step.
That’s why we’ve made sure to safeguard your data with maximum security by choosing our providers carefully.
We rely on Amazon Aurora encrypted DB clusters with AES-256 encryption as well as the Transport Layer Security standard to ensure transit data and information security.
Furthermore, our GDPR-compliant service provider, FinAPI, enables even more data protection.
Pros & Cons
🟢 Provides all-encompassing financial management and loan solutions.
🟢 Has minimal loan requirements and no credit checks.
🟢 Offers a 48-hour access to funds.
🔴 Has a lower borrowing cap, but you can increase the amount by safely connecting another bank account.
2. Paypal Working Capital
PayPal Working Capital may be a good solution if you have a PayPal Premier or Business account for 90 days or more.
It provides payment processor loans based on the sales data from your PayPal account.
Thus, it doesn’t require a credit check but considers your PayPal account history.
Key Highlights
✨ You can apply for $1,000 and up to $200,000. You can ask for $300,000 if you are a repeat borrower.
✨ You choose a share of your sales to deduct as payments automatically.
✨ There is only one fixed fee, and it depends on:
- Your loan amount,
- Selected repayment percentage and
- Your business's PayPal account history.
✨ To be eligible for the loan, you must process at least $20,000 in annual PayPal sales with a Premier account or at least $15,000 in annual PayPal sales with a PayPal Business account.
✨ You don’t have to make payments on days without sales, but there’s a minimum repayment requirement every 90 days.
✨ Depending on your loan terms, you’ll have to pay at least 5% or 10% of your total loan amount, including the fixed fee every 90 days.
✨ The 5% minimum applies to loans with an estimated repayment term of 12 months or more, whereas the 10% minimum applies to loans estimated to be repaid within 12 months.
Pros & Cons
🟢 It doesn’t charge interest.
🟢 Has flexible repayment terms.
🔴 You can only qualify for one PayPal Working Capital loan at a time.
🔴 Limited to business with PayPal accounts.
3. Nucleus Commercial Finance
Nucleus Commercial Finance is an alternative business finance lender that provides flexible funding solutions to small and medium-sized businesses.
It offers several financial products:
- Unsecured and secured business loans
- Revenue-Based Loans
- Invoice Finance
- Merchant Cash Advances.
Key Highlights:
✨ To apply for a loan, you’ll need at least 12 months of trading history and at least 1 director based in the UK.
✨ The application process covers your business, trading and loan information, and personal details.
✨ Depending on the loan type, you can get between £3,000 and £500,000 with the repayment period starting from 3 months.
✨ The repayment fee is set upfront and based on the type of loan, the amount borrowed, and your financial profile.
✨ There are no hidden or early repayment fees.
✨ While Nucleus considers business performance over credit scores, a clean credit history is preferable.
Pros & Cons
🟢 Offers various loan types.
🟢 Has flexible repayment terms.
🔴 May include an arrangement fee.
4. 365 Finance
365 Finance specializes in merchant cash advance loans, meaning it assesses your business’ recent debit and credit card transactions to give you a loan.
It runs a soft credit check that doesn’t affect your credit score or loan approval.
Key Highlights:
✨ To apply for a loan, your business's monthly credit and debit card sales must exceed £10,000, and you must be in business for at least 6 months.
✨ The loan amount ranges from £10,000 to £400,000.
✨ The repayment period is typically between 6 to 10 months
✨ There aren’t any interest rates but a fixed percentage of your credit and debit card sales to repay the business cash advance.
It is usually between 5% and 15% of your card sales.
✨ Loan calculator enables you to get an estimated quote based on the duration of your business, monthly card takings, and loan amount.
Pros & Cons
🟢 Has no interest charges, APRs, or late fees, as the costs are added to the advance as a lump sum.
🟢 You can apply for additional funding.
🔴 Has shorter repayment periods.
5. Silvr
Silvr is a FinTech solution that provides
- Invoice Financing
- Inventory Financing
- Growth Financing, and
- Working Capital Loans for SMEs based in Germany and France.
It offers only short-term financing options.
Key Highlights:
✨ To be eligible for a loan, your monthly turnover should start from €7,000 per month if your business is based in France and €10,000 per month in Germany.
✨ You must showcase at least 6 months of financial records, financial statements, and KYB/KYC documents.
✨ Based on your loan type and conditions, fixed interest rates may start from 1% monthly.
✨ You can apply for a loan between €5,000 and €1million.
✨ The repayment period can be from 1 to 6 months.
Pros & Cons
🟢 Offers high maximum loan amounts.
🔴 Has shorter repayment periods.
5 Best Business Loans for Small Businesses With No Credit Check — Which Is The Best?
Securing a business loan without a credit check can be a viable option to provide essential capital for small businesses that may otherwise struggle to access traditional financing.
Nucleus Commercial Finance can be worth exploring if you’d like more versatile loan options.
Silvr can be a good choice if you need high loan amounts, whereas 365 Finance makes a logical pick if you’re looking for MCA loans.
Regardless of what loan type you are interested in, proper and comprehensive cash flow management is an essential aspect that always gets checked.
But its importance goes even beyond meeting a lender’s loan requirements.
Healthy cash flow planning helps you streamline financial planning processes and access real-time financial data to make well-informed decisions and reduce the risk of costly errors.
Only one of the above solutions offers robust cash flow management and planning tools along with loan capabilities — Puls Project.
Why Consider Puls Project?
Puls Project is an all-encompassing financial solution that provides tools to cater to the main financial axes of your business:
🔥 Thorough and streamlined cash flow management.
🔥 Accurate forecasting and better budgeting thanks to real-time data.
🔥 Loan access to close any liquidity gaps, expand your business, invest in inventory, etc.
Ready to get practical with Puls Project?
Sign up for Puls Project today to access capital without the burden of credit checks.
Keep Learning:
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