Yarrow Blog

How to Get a Business Loan With No Business Credit

Woman running numbers on a calculator and laptop.

For many young small business owners, or aspiring business owners, a business loan can open avenues for new possibilities and opportunities. Because of this, obtaining a business loan for your operation might be on your mind. After all, you have a business plan for growth, and understand that infusing your efforts with capital will give this growth the jumpstart it requires.

And when researching what is necessary for applying for a business loan, you likely have read about such factors as credit reports and checks, and wondered if you can get a small business loan with no credit. Or perhaps you don’t have any business credit history, since you haven’t had a business in your name before, and are therefore wondering whether you get a business loan using personal credit, or if there are additional loan options available to you. 

These are valid questions, and the short answer is yes, you can take out a business loan with no credit. However, there are considerations to be aware of. And just like every business is unique and the products or services you are intending to provide are yours alone, your loan options and repayment terms will be unique as well. 

In this way, business loans don’t come in one-size-fits-all packaging, and while there are many traditional business loans, these unique factors inform what your loan options look like.

Your Personal Credit Score

Credit history plays a role in your application process, but largely to decide the loan terms, as opposed to whether you will be approved or not. After all, banks, online lenders, and other forms of financial lending institutions want to do business, and not everyone has excellent credit. However, this shouldn’t be the end all be all. 

Applying for any type of business loan requires a credit check, and it is important to note that applying for a business term loan only results in a soft check. If you are wondering the difference between a soft credit check and a hard credit check, the answer is that soft checks don’t impact your credit score, while hard checks could impact your score slightly as well as be seen by other online lenders in the future. 

The hard check comes after various approvals, so you can see your options before your credit score is impacted, which can benefit you in the approval process.

Additionally, online lenders can operate more independently than traditional banking branches. This is because online lenders typically have access to various networks of partners and financers, and a range of rates and offers, enabling real-time competitive offerings.

Collateral or Business Structure

There are instances where a lender might request some form of collateral in exchange for getting a business loan with no credit. Additionally, there are different types of business structures, and this can create additional questions for those seeking capital. 

For example, there are some who wonder if it is in their best interest to apply for a small business loan in the form of an LLC, as opposed to an individual. Sometimes the options and requirements for these business loans are comparable to those offered to larger companies. 

On the other hand, you might want to align your business loan with an EIN number, which is also a possibility. These are all avenues for loan options, but it comes back to the uniqueness of your financial situation as well as that of your business, or intended business.

It Shouldn’t be Hard

Couple signing a contract for a small business loan.

Getting a business loan with no credit shouldn’t be intimidating, nor should it be hard. And fortunately, if you are having trouble or lacking guidance, there are other options when it comes to online lenders. 

At Yarrow Financial, we believe in partnering with small business owners and aligning them with the capital they need to operate. We demonstrate this belief with our 95% approval rates, our 24-hour funding process, and our flexible payment options. 

We even provide the opportunity for you to check your rate, at no impact to your credit score, and for no fee. After all, there are many factors about starting a business that can be stressful, but knowing where you stand financially should not be one of them. And with Yarrow Financial, it isn’t.

Make the most of your business funding options and achieve your business goals by partnering with Yarrow Financial. Check your rate with our loan calculator, and let us help guide you through the business loan process, regardless of your credit status.

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