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Working Capital Management

How to Get Working Capital Loans With No Credit Check

Ask anyone in business and they’ll tell you that it takes money to make money. But if you’re a new business owner, it can be tough to get a working capital loan with no credit check. You need working capital to cover day-to-day expenses like payroll and buy equipment and materials while also growing your business. But, maybe your business hasn’t been around long enough to have the type of financial history most conventional lenders like business banks look for when approving startup business loans, business credit cards, or business lines of credit. We’ve heard this from our clients who have promising businesses, but they can get traditional loans and lines of credit from banks. Don’t sweat it – we’ll go over what your options are for accessing the business funding you need, even if you don’t have adequate credit history or have bad credit.

What Disqualifies You From a Business Loan?

You may have been disqualified for a business loan for a number of different reasons. Reasons for disqualification depend on the financial partner you applied with, but there are some common reasons for disqualification across institutions:

  • No credit. Unfortunately, without enough credit history a financial institution may deny your business loan application. Many have minimum credit score requirements and time in business requirements you’ll have to meet in order to qualify.
  • Bad credit. You may have enough credit history, but perhaps it’s poor or even bad. Unfortunately, most lenders will not extend a business loan to owners with bad credit.
  • No collateral. The bank wants to know it can recover its money in the event you don’t make your loan payments. Without collateral, they have little recourse.
  • Lack of cash (ironically). Banks favor businesses with consistent cash flow, so if your balance sheet shows a lack of available cash to repay your debts, you’ll be hard pressed to get a loan approval.
  • Weak business plan. Traditional banks and lenders want to see a strong business plan before lending you money. This is to ensure you’ll be able to pay them back for your loan. Ensuring your business plan is in tip-top shape before application can help reduce your chances of rejection.

How to Get Working Capital With Bad Credit or No Credit

While you can certainly get no credit check business loans, your options are narrow. Payday loans and other cash advance options can have incredibly high interest rates. These sorts of high fees are not what you need when you’re looking for business funding with no credit check in the first place. However, there are alternative finance options and other ways of getting funded outside the traditional banking system.

What Type of Loan Does Not Require a Credit Check?

There are a few non-predatory business loans with no credit check options as well as alternative finance options for business owners that don’t require a credit check but can help you get the working capital you need:

  • Specific P2P lending programs. Many P2P platforms offer programs that are just for borrowers with less than perfect credit. P2P websites work like marketplaces, connecting those who want to lend money with those who want a loan. It is a way for business owners to secure working capital loans without going to the traditional sources of funding, such as banks and other financial institutions. 

  • Platform-based lending programs. Companies like Square and PayPal offer lending programs that look at your account history in order to determine eligibility. Your loan is repaid based on the transactions (aka your business’ sales) processed by your account on the platform. You’ll have a set time period in which to repay the loan, with minimums over a specific amount of time. These no credit check loans for business get you funding in days, once approved.

  • Invoice factoring. With invoice factoring, you get your outstanding invoices paid in days while the factoring company waits for your customer to pay on net terms. Factors care about your customer’s credit, not yours. (See if you qualify!)

Pros of Working Capital Loan With No Credit Check

While it’s not always easy to access a working capital loan with no credit check, if you can then there are some advantages versus accessing business financing through a traditional business lender.

  • Easier approval. The beauty of small business loans with no credit check are that they’re available to a wider customer base. Even those with a bad credit rating or no personal credit history may qualify for a working capital loan for their business.
  • Fast process. Working capital loans with no credit checks often come from online business lenders that approve and fund loans quickly. On the flip side, traditional bank loans require a lengthy and time consuming application process that can take weeks or even months to be approved.
  • Quick access to funds. Another advantage of a working capital loan with no credit check is that it may be a good business funding option for business owners that need extra capital quickly for a growth project, payroll, equipment, or anything else.

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Cons of Working Capital Loan With No Credit Check

There are some negatives to be aware of when opting for any business loan with no credit check.

  • Less than favorable terms. Given that they offer an easier approval process with less strict requirements, a working capital loan with no credit check tends to have higher interest rates and shorter repayment terms than a traditional short-term loan.
  • Require collateral. While their approval process is often easier than a bank, some working capital loans with no credit check may still require collateral like real estate or equipment in order to secure the loan. This may be difficult for businesses that are just starting out that have no or very few assets. In this case, you may be required to personally secure the loan – meaning you’re on the hook for repayment in the event the business cannot meet its obligations. This might mean putting up personal assets as collateral. 

Working Capital Loan Options With No Credit Check

While few in number, there are some options available to startups and newer businesses looking for working capital loans that don’t require a credit check. If you don’t have a lot of time in business, annual revenue history, or don’t have a strong personal credit score, here are some options to consider.

Invoice Factoring

Invoice factoring (sometimes called invoice financing, accounts receivable financing or revenue based financing) is a cash flow financing solution where a business sells its unpaid invoices to a third party for access to immediate cash. Businesses like invoice factoring because it gives them quick access to funds ahead of lengthy net payment terms (for a fee.) The factoring company then works with your customer to settle the invoice according to the original terms. (See our approach to treating your customers like our own.)

Factoring companies are more concerned with your customers’ creditworthiness than any business or personal credit scores since they’re depending on them to pay their invoice. Our clients are often new businesses without credit history, or they have established bank financing that they can’t get a limit raise on for a timely opportunity, or to cover expenses like payroll until their customers pay. They’ve told us a few reasons they opted for factoring:

  • Quick funding process. Traditional bank financing can take weeks if not months to process and approve. Nevermind the lengthy application process and annual revenue requirements. On the other hand, invoice factoring applications are much quicker in comparison, and approvals can be done in a matter of days. Once you’re set up with a factoring company, you can often get same- or next-day funding.
  • Flexibility. With invoice funding, you can pick and choose the invoices you want to fund for ultimate cash flow flexibility. (And the best factoring companies won’t have monthly minimum funding requirements.)
  • Non-dilutive funding. Because invoice factoring is basically an advance on your outstanding invoices, you aren’t giving away equity or control of your business. Other funding sources may require you to give up a share of your company.
  • No debt. Invoice factoring is not technically a type of loan, so you aren’t adding any debt to your balance sheet. You’re simply selling assets (unpaid invoices) for quick access to working capital for your business.
  • Reduced admin load. When you factor your invoices, you no longer have to worry about chasing down outstanding payments and managing receivables — the factoring company takes care of that stress for you! This type of financing gives you more time back in your day to focus on your business. (See our approach to treating your customers like our own.)


PayPal Working Capital Loan

The PayPal Working Capital program gives you access to a working capital loan with no credit check, based primarily on your PayPal sales history. Loans from this online lender are automatically repaid using a percentage of your future daily sales – you choose the percentage when you apply for the PayPal Working Capital program.

American Express Business Loans

American Express offers a business loan program to American Express business card members. It is a fixed rate, unsecured working capital loan without a business or personal credit check. Businesses can access fast funding of up to $75,000 to help improve cash flow. Eligibility is based at least 1 year of account history, among other factors.


A microloan is a working capital source for startups and small businesses, generally valued at under $50,000. The U.S. Small Business Administration (SBA) has a microloan program aimed at small business owners and startups. In Canada, businesses can access microloans through programs such as ACCESS Community Capital Fund, Centre for Entrepreneurship Education and Development (CEED), and Vancity Next Step microloan.


Kiva U.S. offers working capital loan amounts with no credit check of up to $15,000 at 0% interest. You can quickly find out if you’re prequalified, then easily fill out the online application. You’ll be asked to prove your creditworthiness by inviting friends and family to lend to you, after which your loan request goes public and is promoted to the platform’s 1.6+ million lenders around the world. You have up to 36 months to repay any loans.

How to Maintain a Healthy Level of Working Capital

Maintaining a healthy level of working capital is essential to keeping your business secure. Here are a few best practices to keep in mind:

  • While waiting for your invoices to be paid, tap into your net profits or cash reserves to cover your ongoing expenses. However, many small and medium businesses don’t have enough profits or reserves yet to take this route.

  • Make cash flow forecasting a habit. By knowing where you stand from a cash perspective, you can anticipate working capital shortages in advance so you can take action and avoid an emergency.

  • Focus on your most profitable customers and pursue leads like them. This is important because a smaller, more valuable pool of customers can help your bottom line by reducing your overhead costs and reducing the number of bad customers you have to manage. Better customers are more likely to refer your business, and your most profitable customers are more likely to do more business with you. By keeping an eye on CAC (customer acquisition cost), you can ensure you’re investing in the best leads to help you grow your business instead of chasing small fish.

  • Line up external funding sources. This could mean getting approved with P2P networks in advance of a funding need, applying for business grants, checking out an alternative lender, or partnering with an invoice factoring company so you can get working capital quickly and easily.

The best approach is to do everything on this list – but these suggestions aren’t exhaustive. Check out our blog to learn more about how to increase your working capital.

Get Working Capital With No Credit Check With FundThrough

See if you qualify to get your outstanding invoices paid in just a few business days with FundThrough. Get easy access to the working capital you need to cover everyday expenses, buy supplies, and take on growth opportunities – no business credit check required.


What Qualifies as Working Capital?

A working capital loan is a type of business loan that gives you access to working capital. Working capital is the amount of money your business has above and beyond any current liabilities. Essentially, it’s the cash on hand your company has to cover everyday business expenses like payroll, rent, and operational costs. Working capital is also used to manage cash flow gaps a business may encounter, such as during a slow season.

A working capital loan is helpful as a short-term financial strategy to bridge financial gaps during the time between the collection of accounts receivable and payments of accounts payable. A working capital loan is paid out as a lump sum, and the lender can ask for repayment at any time – though you’ll often make regular payments in installments.

Most working capital loans are secured loans. That is, their repayment is backed by a company’s assets. Like other types of loans, working capital loan terms such as interest rate and amortization period depend in large part on the borrower’s ability to repay the loan, in addition to how the loan is secured.

What Credit Score Do You Need for Working Capital?

Depends on the lender. You can get products designed for poor credit or low credit scores with a score in the 500s. However, you can get better rates with scores in the high 600s.

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