Best No Credit Check Business Loans of 2022 – Forbes Advisor
If you can’t qualify for a traditional business loan because of your credit and don’t want to pursue options without a credit check, consider alternatives.
Friends and family
Some small business owners borrow money from relatives, especially during the start-up phase. However, if you have access to such an opportunity, it is crucial to ensure that everyone understands the financial arrangements from the start.
Determine if your loved one’s funds are a gift, an investment or a loan. You can also discuss what would happen if you couldn’t repay a business loan as quickly as expected. It’s best to make sure everyone is on the same page at the start so there are no nasty surprises later, which could lead to damaged relationships.
Crowdfunding is a popular approach to raising funds for businesses, but also one that takes a lot of effort and sometimes a bit of luck to be successful. Two of the most common types of corporate crowdfunding campaigns are:
- Crowdfunding based on rewards. This type of crowdfunding model offers incentives to people who donate funds for your company’s campaign. For example, donors may receive a special product or service in return for their contributions.
- Equity-based crowdfunding. With this crowdfunding option, you give backers a small share of your business when they invest in your business. There’s no credit check and your business won’t go into debt with this capital raising approach.
If you want to raise money for your business through crowdfunding, you will need to use an online platform to manage the process. With equity crowdfunding, the funding portal you use must be a broker registered with the United States Securities and Exchange Commission (SEC). You should also expect to pay fees to the crowdfunding platform you use. These fees will come from any contributions or investments your business receives.
Small Business Grants
A small business grant is a type of business financing that requires no credit checks or repayments. You may be able to find and apply for grants from federal, state and local governments, businesses, and other organizations.
Of course, this attractive business financing solution tends to come with a lot of competition. You will need to find a way to stand out from other applicants if you hope to win grants to support your business goals.