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Ask FundThrough: How to Get a Working Capital Loan With No Credit Check

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Ask anyone in business and they’ll tell you that it takes money to make money. But if you’re a new business owner, you might be wondering how to get a working capital loan with no credit check. After all, your business hasn’t been around long enough to have the type of financial history most conventional lenders like banks look for when approving traditional business loans, business credit cards, or business lines of credit. You probably don’t have the backing of an angel investor or VC firm either. So, just how can you access the working capital necessary to cover day-to-day expenses while also growing your business? And can you really get a working capital loan with no credit check? Fear not – you can access the business funding you need, even if you don’t have adequate credit history or have bad credit.

What Is a Working Capital Loan?

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. 

Can You Get a Working Capital Loan With No Credit Check?

Traditional financial institutions are increasingly becoming more risk averse. They’re tightening lending standards due to previous economic crises, market volatility, and an increase in financial fraud. Unless you have a great business credit score, strong cash flow, have been running your business for a while, or have collateral, you more likely won’t be able to get a working capital loan with no credit check.

You can, however, get funds for your working capital through funding sources such as payday loans and cash advance financing. Unfortunately, the interest charges on these types of lending are quite high, which may cause you to take pause and rethink if getting access to funds in this manner is even worth it. Before seeking out term loans and other business financing options, it’s important to assess your cash flow situation, and optimize where possible. Not sure where to start? Our Ultimate Cash Flow Guide breaks down everything you need to know.

That said, there are some financial products designed with new businesses (or those with bad credit history) in mind. They allow your business to access a working capital loan with no credit check. 

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. 

  • Wider availability. The beauty of a working capital loan with no credit check is that it’s 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 approval. 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 option for business owners that need cash fast. Because of their wide availability and fast approval process, they can be ideal for when businesses are facing a time sensitive cash flow crunch. 

Cons of Working Capital Loan With No Credit Check

You might think there are only benefits to getting a working capital loan with no credit check, but that’s not the case. There are some negatives to be aware of when opting for this funding source. 

  • 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 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 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.

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 with no credit check. If you don’t have a lot of time in business or don’t have a strong personal credit score, here are some options to consider.


Fundbox offers working capital loans via a revolving line of credit of up to $150,000. Applying won’t impact your credit score, and they offer funding as soon as the next business day upon approval. 

PayPal Working Capital

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

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.


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. There’s also Kiva U.S., which offers working capital loan amounts with no credit check of up to $15,000 at 0% interest.

Invoice Factoring

Invoice factoring (sometimes called invoice financing) is a cash flow financing solution where a business sells its unpaid invoices at a discount to a third party, for access to immediate cash. At FundThrough, we’ve created a seamless experience for small businesses to get funded in a matter of days – without the hefty paperwork. With revenue-based financing like factoring, your access to working capital grows the more you invoice. Want to learn more about invoice factoring? We cover everything you need to know in our comprehensive Invoice Factoring Guide.

Factoring companies have different terms and offers. As far as credit checks are concerned, we mostly care about the credibility of your customers and ability of your customers to pay their outstanding invoices. Even if you or your business has little credit history or poor credit for any reason, invoice factoring offers a smart solution for getting working capital with no credit check.

Another great thing about invoice factoring is that it doesn’t constitute a debt in the way that a bank loan does. It is only an advance on the amount you invoice your customer for work you’ve already done. This means that factoring companies charge a factoring fee for the cash advance rather than an interest fee. It also allows you to grow your business without taking on debt or giving away equity.

How to Maintain a Healthy Level of Working Capital

Maintaining a healthy level of working capital is essential to keeping your business secure. There are two main strategies to do this:

  • While waiting for your invoices to be paid, tap into your net profits to cover your ongoing expenses (provided you have funds saved up).
  • Access external capital.


A mixed approach combining these methods is also not uncommon. In general, unless a company has an abundance of cash or their business cycle is relatively short, the first model is unsustainable. Check out our blog to learn more about how to increase your working capital.

Put FundThrough to Work for Your Business

We help small business owners navigate working capital hurdles every day. Sign up now and start funding within days. Get easy access to the working capital you need to cover everyday expenses, buy supplies, and take on growth opportunities – no credit check required.

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