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A few months ago, a restaurant owner came to me looking for financing. His business usually brought in $60,000 a month, but last year, a slow winter and a surprise repair bill destroyed his credit score.
No credit-check offers don't skip your credit score. They typically run a soft credit pull and base approval on your revenue and bank statements.
Below, I'll get into the basics of what a no-credit-check really means and how to find options that fit your credit score. If you already know what you need, you can apply today.
| Option | What is it based on | Typical speed | How you repay |
|---|---|---|---|
| Short-term business loans | Monthly revenue, with no collateral required | As fast as same day | Fixed repayment schedule over 6 to 36 months, with weekly, biweekly, or monthly payments |
| Business line of credit | Monthly revenue, with no collateral required | As fast as same day | Revolving credit over 6 to 36 months, with weekly or monthly payments and interest only on what you use |
| Equipment financing | The equipment, which serves as collateral | 1 to 5 days | Fixed monthly payments over 12 to 72 months |
| Merchant cash advance | Future sales | As fast as same day | A percentage of future sales, through daily, weekly, or monthly payments with no fixed term |
| Invoice factoring | Your invoices and your customers' credit | 1 to 2 weeks | Tied to when your customer pays, typically 30, 60, or 90 days, with fees charged per invoice |
What “No Credit Check” Really Means
No credit check usually just means a soft credit check. These are credit checks that don't impact your score.
Hard credit checks, by comparison, happen when a lender is reviewing your credit for a loan application. Hard inquiries can bring your FICO score down by five points or less.
One hard inquiry won't make much of a difference, but several over a short period of time can make an impact. When you apply for financing through Clarify Capital, our lending advisors start with a soft pull. Checking your options with us won't affect your credit score. Lenders may run a hard credit check once you are approved.
Here's what else matters to lenders offering revenue-based financing.
Monthly revenue
Lenders want to see steady deposits in your business bank account. They'll check that you can carry monthly payments with some room.
Time in business
Your time in business matters to lenders. Through Clarify Capital, businesses can qualify for some types of financing with six months in business. The longer your track record, the less risky you are to lenders.
Bank statement health
Lenders review your recent bank statements for any red flags. They typically look for overdrafts, negative balances, and any returned payments.
Existing debt
Lenders count all of your debt to ensure you can take on another payment.
When you use revenue-based financing, you'll often be asked to sign a personal guarantee, which means you're personally responsible for the loan if the business can't pay it back. Lenders also file a Uniform Commercial Code (UCC) lien, or a public notice that gives them a claim on the business assets should you default.
Minimum Qualifications
For Financing Through Clarify Capital
$10,000 in monthly revenue
Your business must earn at least $10K per month in a business bank account.
500+ credit score
You can get approved with any credit score. But the better your credit rating, the better interest rates lenders offer. Your FICO score should be above 500.
Minimum six months in business
Your company should be operational for a minimum of six months. This shows business lenders that your company is sustainable and won't go out of business.
Have a business bank account
Your Clarify advisor will need three or four months of your most recent bank statements to verify income. This is just to see you're actually making $10K+ month in revenue.
How To Get Funded With Bad Credit
Bad credit narrows which financing types you can get, and it puts more weight on the rest of your application: your revenue, your bank statements, and how you plan to repay.
Financing Options by Credit Score
Lenders use your credit score as a read on your overall creditworthiness. It isn't the only thing they consider, but it's still an important part of the process. FICO scores run from 300 to 850, with scores below 580 considered poor and those in the 580 to 669 range considered fair.
Here's what's realistically available to you at each score level.
Credit scores below 580
Bad credit business loans typically fit here. These often include MCAs, which are based on your future sales, and invoice factoring, which turns your outstanding invoices into cash. Equipment financing and short-term business loans require a minimum credit score of 550 through Clarify Capital's lender network.
Credit scores from 580 to 669
With fair credit, you have a few more options. With a score of 600, business lines of credit become available. SBA loans become an option at 640.
Credit Scores from 670 to 739
With a good credit score, traditional lenders like banks and credit unions are an option. Alternative lenders compete harder for your business at this level.
Credit scores of 740 and above
This is a very good or exceptional credit rating. Strong credit typically opens up the most competitive interest rates and repayment terms for borrowers.
Ways To Strengthen an Application With Bad Credit
Your credit score is just one portion of your application. Here are a few ways to strengthen your application if you don't have strong credit.
Check your credit reports
Each credit bureau offers a free weekly credit report. Check it and dispute errors before lenders see them.
Clean up your bank statements
Alternative lenders review your bank statements in place of tax returns, and recent months count the most. Overdrafts or returned payments are a red flag.
Build business credit
Your business credit score is separate from your personal credit score, so you'll need to build it up separately. A business credit card or a vendor account that reports to credit bureaus can help build your business credit history.
Show how you'll repay
A detailed business plan can go a long way here. Make sure to include details about what the financing will cover, like inventory or payroll.
Lower your credit utilization
How much of your available credit you're using is one of the biggest factors in your FICO score. Paying card balances down to 30% or less of your limits before you apply can lift your score within a billing cycle or two.
Qualify on revenue
Alternative lenders weigh your monthly deposits and time in business more heavily than your score. Through Clarify Capital's lender network, you'll need at least $10,000 in monthly revenue and six months in business.
How To Spot Predatory Lenders
When you have bad credit, it's important to keep an eye out for predatory lenders. These are the red flags I tell clients to watch out for.
Guaranteed approval
Legitimate lenders don't promise approval before reviewing your application.
Fees before financing
A classic scam is pressuring a borrower to pay for insurance or a processing fee before the money arrives.
No written total cost
If a lender is being shady about providing the total cost of the loan, in addition to the fees and repayment schedule, it could be a scam.
Confession of judgment clauses
These clauses let a lender win a judgment in court against you without a trial.
Withdrawals you didn't approve
A lender should never pull money out of your account without your permission first.
Pressure to sign today
A legitimate lender will give you time to read your offer and ask any questions.
Working With Clarify Capital
Clarify Capital works with a network of 75+ vetted, reputable lenders. We match small and midsize businesses with 7+ types of business financing. Our two-minute application can surface several offers. Every applicant works with a lending advisor, a real person, who can walk you through your options after you apply.
Our average time to funding is 24 hours, and several financing types offer same-day funding. We have a 5.0 Trustpilot rating. That's the highest trust rating in the industry. Three out of four clients return, that's nearly twice the industry average.
Step 1:Apply online
It takes about two minutes. You'll need your business's legal name, EIN, time in business, monthly revenue, requested loan amount, owner contact information, and a credit authorization.
Step 2:Connect with a lending advisor
A U.S.-based Clarify Capital lending advisor reviews the application, runs a soft credit pull (no impact to your score), and requests 3 to 4 months of recent business bank statements.
Step 3:Get matched and funded
Clarify Capital works with 75+ vetted lenders and matches your profile with the right financing. Approvals often get a same-day offer (SBA loans can take longer).
Compare Total Cost Before You Sign
No hard credit check financing is real for established businesses with steady revenue. Before you sign anything, compare the total payback and repayment schedule with your cash flow.
When you're ready to see what you qualify for, apply today. Checking your options won't affect your credit score.
Frequently Asked Questions
Can an LLC Get a Loan With No Credit?
Yes, but lenders will look at the personal credit scores of the LLC members. Even if lenders offer no-doc loans with only an EIN, they often still check the business owner's creditworthiness.
What Is the Easiest Business Loan To Get Approved For?
Merchant cash advances and invoice factoring typically have the most flexible requirements. To qualify through Clarify Capital's network, you need a credit score of 500 for MCAs. Invoice factoring is typically approved based on your client's credit score.
What Is the Monthly Payment on a $50,000 Business Loan?
The monthly payment depends on the interest rate and repayment term. At a 6% APR over 24 months, a $50,000 loan runs about $2,216 a month. At 12% over 12 months, it's about $4,442 a month,
Can I Get Same-Day Financing With a 500 Credit Score?
It's possible with a merchant cash advance. Through Clarify Capital's lender network, you need a score of 500 to qualify for financing that can land as quickly as same day. You'll need to show steady revenue and at least six months in business.
Can a Startup LLC Get a Loan?
Clarify Capital doesn't finance startups. Our lenders typically need at least six months in business and $10,000 in monthly revenue. If you're looking for a startup business loan, SBA Microloans are a good place to start. Small business grants, crowdfunding, and business credit cards are also options.
Is My Information Secure With Clarify?
Yes. Clarify follows SOC 2 security principles to protect the financial details you share when you apply. Your application goes to a U.S.-based lending advisor.
Bryan Gerson
Co-founder, Clarify
Bryan has personally arranged over $900 million in funding for businesses across trucking, restaurants, retail, construction, and healthcare. Since graduating from the University of Arizona in 2011, Bryan has spent his entire career in alternative finance, helping business owners secure capital when traditional banks turn them away. He specializes in bad credit funding, no doc lending, invoice factoring, and working capital solutions. More about the Clarify team →
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