How to Get Business Funding Without a Credit Check

If your credit score isn’t where you’d like it to be, you’re not alone — and you’re not out of options. Many small business owners face challenges qualifying for traditional loans due to limited credit history, past financial setbacks, or simply being new to entrepreneurship.

The good news is that it’s absolutely possible to get business funding without a credit check. By exploring alternative financing options, working with nontraditional lenders, and leveraging your revenue, assets, or invoices instead of your credit score, you can secure the capital you need to grow.

This guide breaks down how to do it — and which strategies work best for different types of businesses.

Why Lenders Check Credit (and When They Don’t)

Most banks and SBA lenders run credit checks to measure risk. A strong score shows a history of timely payments and responsible borrowing. But credit isn’t the only way to prove you’re a good investment.

Alternative lenders and newer fintech platforms often use business performance data, cash flow, collateral, or revenue-based models to make lending decisions — no traditional credit pull required.

Best Ways to Get Business Funding Without a Credit Check

1. Revenue-Based Financing (RBF)

Revenue-based financing is one of the most popular ways to secure funding without a credit check. Instead of focusing on your credit score, lenders base approval on your monthly revenue and sales performance.

How it works:

• You receive a lump sum upfront.

• You repay it as a percentage of your monthly revenue.

Pros:

• No personal or business credit score required

• Approval based on sales, not credit history

• Repayments scale with your revenue

Cons:

• Can be expensive — effective APR is often higher than loans

• Best for businesses with consistent revenue

Best for: E-commerce, subscription services, or companies with predictable monthly sales.

2. Merchant Cash Advances (MCAs)

MCAs are another popular no-credit-check option. You get a lump sum of cash upfront, and the lender takes a percentage of your future credit card or debit card sales as repayment.

Pros:

• No credit check required

• Fast approval — sometimes within 24 hours

• Payments adjust with sales volume

Cons:

• One of the most expensive forms of funding

• Daily or weekly repayments can strain cash flow

Best for: Retailers, restaurants, and service businesses with high card sales.

3. Invoice Financing (Accounts Receivable Financing)

If your customers pay invoices on net-30, net-60, or longer terms, you can use invoice financing to unlock cash without a credit check. Lenders advance you a portion of your outstanding invoices and get repaid when your client pays.

Pros:

• Approval based on invoice quality, not credit

• Fast funding, often within a few days

• Great for B2B companies with long payment cycles

Cons:

• Fees can add up over time

• Best suited for businesses with reliable customers

Best for: B2B companies, freelancers, agencies, and service providers.

4. Equipment Financing (Collateral-Based Loans)

If you’re purchasing equipment for your business — such as vehicles, machinery, or tools — you can often finance it without a credit check. In these cases, the equipment itself serves as collateral.

Pros:

• Credit requirements are often minimal or nonexistent

• Equipment acts as security, lowering lender risk

• Builds business credit over time

Cons:

• Limited to equipment purchases

• You risk losing the equipment if you default

Best for: Construction, logistics, manufacturing, and medical businesses.

5. Crowdfunding Platforms

Crowdfunding lets you raise capital from individual backers without a credit check — and you don’t have to repay the funds if they’re structured as contributions.

Types:

• Rewards-based: Offer perks in exchange for funding (Kickstarter, Indiegogo)

• Equity-based: Sell small stakes in your business (StartEngine, Wefunder)

Pros:

• No credit check

• No repayment required (for rewards-based campaigns)

• Builds community and customer loyalty

Cons:

• Time-consuming and competitive

• Requires strong marketing and a compelling pitch

Best for: Consumer product businesses, startups, and creative projects.

6. Grants and Competitions

Grants are one of the few types of business funding that never require a credit check. These are offered by government agencies, nonprofits, and private organizations — and don’t need to be repaid.

Pros:

• No credit check

• No repayment required

• Can significantly boost your business

Cons:

• Highly competitive

• Lengthy application process

Best for: Women-owned, minority-owned, veteran-owned, or early-stage startups.

Steps to Get Funding Without a Credit Check (Featured Snippet Section)

1. Analyze your revenue and cash flow

2. Choose a funding option based on your business model

3. Prepare documentation (bank statements, invoices, sales reports)

4. Apply to lenders or platforms that don’t require credit checks

5. Use funds strategically and plan repayment if required

Tips for Maximizing Your Approval Odds

• Show consistent revenue: Even if credit isn’t checked, lenders want proof your business generates cash.

• Organize your financials: Clean financial statements, tax returns, and bank records improve your application.

• Offer collateral: Physical assets can strengthen your case.

• Start small: Securing a smaller amount first can build trust and open doors to larger funding later.

Pros and Cons of No-Credit-Check Funding

Pros:

• Accessible to businesses with poor or no credit

• Fast approval and funding

• Flexible qualification criteria

Cons:

• Higher costs and fees

• Limited funding amounts

• May not build traditional business credit

Conclusion: Funding Is Possible — Even With Bad Credit

Having a low credit score doesn’t mean your business dreams are over. Today, a growing number of lenders and platforms offer business funding without a credit check, relying instead on revenue, invoices, collateral, or crowdfunding.

By choosing the right approach for your situation — whether that’s revenue-based financing, invoice factoring, or a grant — you can secure the capital you need to grow, even without a stellar credit score.

With preparation and strategy, you can fund your next stage of growth — no credit report required.