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.
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.
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.
Analyze your revenue and cash flow
Choose a funding option based on your business model
Prepare documentation (bank statements, invoices, sales reports)
Apply to lenders or platforms that don’t require credit checks
Use funds strategically and plan repayment if required
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:
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
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.