Can You Get a Business Line of Credit With No Credit Check?
Are you considering options to fund your business? Then it’s inevitable to ask if you can get a business line of credit with no credit check.
The answer is, it’s possible but much unlikely. Although some lenders and specifically alternative financiers do not require hard, upfront credit inquiries, expect them to check your FICO score before issuing a loan. Still, you can find other options to secure funds even with a low or no FICO depending on the financier you work with.Business lines of credit work like small business loans but with a few vital differences. They are more suited for businesses with quickly changing needs. So you can draw more funds anytime your business needs; expansion, marketing, and other business-related needs.
Even when you get approved for large amounts, you only pay interest for the cash you used. This makes lines of credit an easy and fast source of financing options for business owners with unprecedented business needs.
There’re several reasons to acquire a business line of credit with no credit check. You may be worried about the effect of a credit inquiry on your business or whether you’re concerned about qualifying a Business Funding Advisor who can help you get approved quickly.
Read on to understand if you can qualify for a business line of credit without a credit check and the available options if you can’t get one.
What Is a Business Line of Credit With No Credit Check?
A business line of credit with no credit means you qualify for financing without providing FICO scores.
Inquiring a credit check is a typical application process for a business line of credit, and most financing options. This enables your lender to get a picture of your business financial status.
Several factors determine your FICO score, but all point back to your financial history. So to get a business line of credit without a credit check means your lender will over look your credit scores and focus on other features. Some typical factors include; time in business, business revenue, and the opportunity at hand.
Credit check has a significant impact on your business qualifications. Therefore, skipping this process may limit your options. Do you need a Business Funding Advisor to help you accordingly?
The Purpose of a Credit Check (And Why It’s Not the Defining Factor)
The key aim of a credit check is to review your financial history. It lets your financiers tell you how you’ve handled other financial commitments before and if your business can pay the balance.
A high FICO score shows positive financial responsibility. On the flip side, a lower FICO score shows you’ve struggled with your finances in the past. Nonetheless, lenders understand that establishing small and new businesses is challenging and resonate with some of the struggles.
Each lender has different standards from the others. Banks have set strict measures to reduce risks and consider your FICO score as the defining factor when deciding your approval.
On the contrary, alternative financiers take FICO scores as a single piece of the whole puzzle. So you can qualify for some options even with lower scores. On top of your credit score, alternative lenders also check your revenue and consider your business vision.
How Does Credit Score Affects Interest Rates
Your FICO score doesn’t decide whether you qualify for a business line of credit or not. However, it can affect your interest rates.
High scores indicate your financial strength, therefore, your options will be many and more favorable. Usually, with high credit scores, you’ll qualify for competitive interest rates. Additionally, your term length or the period through which you pay your line of credit may be more flexible.
On the contrary, a lower FICO score indicates that you’ve had some struggles with your finances in the past. However, this sould not discourage you from applying because you’ll still have vital options, although most of them will involve higher interest rates.
A credit check is vital for both you and your lender. Therefore, getting a business line of credit with no credit check may slightly limit your options because financiers cannot access and read your credit score. This often results in interest rates that are somewhat higher than usual.
Say your business gets a new opportunity that can double or triple revenue. Won’t the high interest rates be worthwhile?
What’s the Minimum Credit Score for a Business Line of Credit?
A minimum FICO score for a business line of credit varies and depends on the lender you work with. For instance, banks highly consider credit scores and won’t settle for something less than 670. Also, you’ll have to prove beyond doubt that their cash will be fully repaid.
Alternative financiers work differently instead. They focus on the future of your business. And high revenue is the best sign that your business will continue growing.
How to Apply for a Business Line of Credit
Securing a business line of credit with no credit check may be challenging. But securing one with a lower credit score is possible. To find out your available options, let an experienced Business Funding Advisor guide you through the suitable choices. Work with lenders that are more invested in seeing your business grow.