Many banks and online lenders conduct hard credit checks when businesses apply for loans. Especially for companies with a poor credit score, hard credit checks can negatively impact their score even further, making it seem almost impossible for these businesses to find a suitable financing option.
Fortunately, there are solutions designed for small business owners in this exact situation. Bad credit business loans, no credit check business loans, and other financing alternatives – read more about what different lenders offer here.
As a number that rates your credit risk, your credit score is one of the most important criteria when applying for a typical bank loan. There are several agencies in the UK that keep credit records and measure credit scores. However, if one of them gives you a good score, it’s likely that the others will do the same.
A high, ‘good’ credit score shows you can manage credit and deal with repayments well, whereas a lower, ‘bad’ credit score is usually caused by a bad credit history of either failed or late repayments.
Each time lenders conduct a hard credit check to confirm your eligibility for a loan approval, your credit score is impacted negatively. This is why applying for too many small business loans, and thus going through multiple hard credit checks, can be damaging to your long term ability to secure finance for your company.
Luckily, there are various finance options that only require soft credit checks, which have no impact on your credit score. This is where no credit check business loans come into play.
You can apply for many types of no credit check business loans. To help, we’ve listed a range of options below. It’s important to keep in mind that some of these finance options may require hard credit checks in certain circumstances. If you are unsure whether a funding offer is possible without a hard credit check, it’s always best to research thoroughly and contact the lenders before you apply.
A merchant cash advance is an ideal type of no credit check loan. Instead of relying on your credit score, we assess your business’ recent debit and credit card transactions to determine affordability and produce a funding offer tailored for your business.
Get in touch with our team today to receive a tailored quote. The application process is quick and easy, and we can give you a funding decision within 24 hours.
There is no need for you to provide collateral or business plans, and we only conduct a soft credit check that does not affect your credit score. From this, we’re able to make a funding decision without running a hard check that will show on your credit report.
Unlike a traditional bank loan, there are no interest rates or fixed monthly payments to worry about. Instead, repayments are taken from a small percentage of your future debit and credit card payments.
We don’t require any APR as there is no fixed fee, just one all-inclusive cost that’s agreed on at the start, which never changes.
Typically, we look to provide no credit check business loan alternatives to companies which have been trading for a minimum of 6 months and have an average monthly credit and debit card turnover of £10,000 or above. Contact us to discuss the best options for your business, so you can secure your merchant cash advance today.