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When Is a No Credit Check Business Loan Necessary?

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.

When Is a No Credit Check Business Loan Necessary?

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.

Types of No Credit Check Business Loans

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.

  • Invoice factoring helps you avoid cash flow problems and ensures you can pay contractors and suppliers in good time.
  • Microloans are mostly aimed at start-ups and can provide the finance needed to buy the essentials to get a business up and running.
  • Business Credit Cards are typically based on the personal credit score of the applicant. These cards can be used for purchasing company-required goods and services.
  • Working Capital can ensure that your business has the funds needed to carry out its daily duties, giving you the financial backing needed to keep operations running.
  • Merchant Cash Advances are based on your business’ credit and debit card sales, as repayments are made through a small percentage of your future card sales. At 365 Business Finance, we offer merchant cash advances between £10,000 and £300,000.

How a Merchant Cash Advance Works

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.

Conditions to Qualify for a Merchant Cash Advance

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.

Do I Qualify?

Qualification for our business cash advances is simple: Contact our customer services team to see if you are eligible.

  • In business for at least 12 months
  • Average monthly credit and debit card turnover of at least £5,000

Flexible finance for small businesses

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Business Cash Advance:

The flexible alternative to bank loans

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