Last year’s Bureau of Labor figures for business not less than a year old (startups) stood at 415,226 firms. With such a high number, it’s evident that this group of businesses can would like finance currently over ever.
Yet business loans area unit not AN option—qualifying typically|will be|is|may be} difficult as they often need up to 2 years of documentation to prove that your company is profitable.
So what area unit some no credit check business loans for startups that haven’t created profits or engineered credit?
- SBA Microloans
For years, the SBA (Small Business Administration) has acted as the link between companies and willing lenders. And recently, they added microloans to their list of products which is good news for firms that don’t meet the criteria for larger loans with stricter requirements.
Microloans usually range from $2k to $50K, and they come with fewer obstacles to jump over. They are perfect for startups as they are less demanding to get hands on. Previously, the SBA gave a list of non-profit groups and banks and that provided microloans. Today, they scrutinize you to get you a match before you apply.
With Crowdfunding platforms like Kickstarter, one can get funding from hundreds or thousands of potential investors. While it also involves family and pals, crowdfunding makes the process of seeking funds from loved ones more official.
Plus, most crowdfunding sites allow you to settle the debt by providing a product or service to compensate for the money, which makes it an economic decision. What’s more, there are no accruing interests or tight repayment schedules to worry about.
- Credit Cards
Any business that’s been up and running for over two years should have a business credit score good enough to get them a line of credit from a business credit card. But the rates for these may be high – more so if you need cash—so it’s best to go for credit lines only if you experience high credit card sales.
For short-term needs, even personal lines of credit card can get you through financial storms, but it’s advisable to try to secure a line with your business credit profile as a starting step to building a healthy credit profile.
- P2P Lending
More and more Peer-to-peer lending platforms are surfacing with one common goal; to ease the access to funds for individuals. The only thing you need is your business plan, profile, and a few other documents to make the grade.
P2P loans, though not as large as business loans, are a surer way to go if you have no business records. Any borrower who uses credit responsibly and has an excellent score has higher approval chances.
However, P2P lending rules vary by state, so it is wise to familiarize with your lender’s rules before you apply.
Choose wisely from this list of products to get one that will meet your requirements without putting a strain on your company’s finances.
Author Bio: Michael Hollis is a no credit check business loans expert. He has been in the finance industry for 10+ years. When he isn’t funding million dollar deals, you’re sure to find him scuba diving off the California coast!