You probably know that getting funding is hard if you have a business. You need to have good credit and collateral, but you need to have both of those things to get the money that your business needs to grow. Fortunately, there are ways around this problem! Here are four different sources of funding for small business loans for no credit check:
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Crowdfunding
A crowdfunding campaign can be a great way to get a small business loan for no credit check. It’s a good idea if you want to start your own business and have an idea that you think will make money but don’t have the financial means to do it by yourself. You can create your own website and offer rewards for different donation amounts, then promote your project on social media platforms like Twitter and Facebook as well as websites.
Invoice Financing
Invoice financing is a type of asset-based lending that provides you with cash upfront for the invoices you’ve already received. For example, your business sells its receivables to a third party (usually an invoice factoring company), which then pays you upfront based on your outstanding invoices. The great thing about this option is that it doesn’t require any personal credit check or collateral, allowing businesses of all shapes and sizes to take advantage of it.
Equipment Financing
There are four types of equipment financing:
- Equipment leasing – Leasing is an arrangement in which you pay a monthly fee to use the equipment while paying off the balance over time. The leasing company owns the equipment at all times and it’s yours to use as long as you continue making payments.
- Equipment installment purchases – This type of financing allows you to purchase new or used equipment by borrowing money from a bank or other financial institution for a stated amount of months (usually 12 to 60). You then make monthly payments until your balance has been paid off in full.
- Trade-in/refinance programs – This program allows businesses that have older machines that still work but need replacing due to technological advances.
Business Line of Credit
A business line of credit is a revolving line of credit you can use to borrow money at any time. It’s ideal for businesses that need funds for projects, inventory or other expenses.
This type of financing is the most flexible and has the least impact on your cash flow. You can take out funds as needed, then repay them later when you’re ready.
There are no collateral requirements, so you won’t have to worry about losing equipment or property if you can’t pay back what’s owed (though there may be penalties if payments aren’t made on time). This makes it ideal for small businesses that don’t have many assets or equity in their business yet—or those who simply don’t want to put their valuables on the line just yet.
Lantern by Sofi professionals says, “Few lenders offer business loans without credit checks to provide you the boost you need.”
Getting a business loan without a credit check is a great way to get the funding you need for your small business. Many options are available, from crowdfunding to invoice financing and equipment financing. The business line of credit can also be an option if you have good credit history and want to go through this process online.
