No Credit Score Business Loans

Having no or a low personal credit score can certainly make it difficult to obtain financing. Most mainstream business lenders prefer to provide funding to borrowers with established credit over 680, but these days alternative business capital is abound making it easier for business owners with credit scores down to 550 or even 500 to get funding. But what if your credit score is below 500, or even worse, what if you don’t have a credit score? You could expect that obtaining business financing with poor credit or no credit would be extremely costly, and in most instances you would be right. Today, there are actually lenders who are looking passed personal credit and relying on other underwriting criteria to extend business capital that is surprisingly affordable.

Who Has No Credit Score?

It may surprise you to learn that according to CNBC, about 45 million Americans are living without a credit score. This is a staggering figure when you consider the current US population of about 328 million people. This statistic is not inclusive of children, meaning that about 14% of American adults do not have a credit score. A credit score is populated by Equifax, Experian or TransUnion (the three largest national credit reporting agencies) based on information obtained from an individual’s credit history. If a person has never opened a credit card, purchased a home, financed a car or other goods, then he will have no credit history. Without sufficient data the reporting agencies don’t have enough information to populate a credit score; or if they do populate a credit score it will be extremely low.

The Catch-22

How are you supposed to get credit if you have no credit history? The answer is that someone either has to take that first chance on you, or you need to locate a lender that doesn’t consider personal credit in its lending decision. The later is harder to find than the former, and most of the time borrowers with no, or extremely low credit, end up paying exorbitant interest rates to obtain their first business loan. With 28 million small businesses in the US and 45 million people with no personal credit score, there are a ton of business owners paying a gratuitous premium to finance their operations; or they are relying on personal funds or loans from family and friends to propel their business growth.

Affordable Financing for Borrowers with No or Low Credit

Fundbox is a small business lender that has no credit score minimum or requirement and offers two distinct financing products, a business line of credit (LOC) and invoice financing. Fundbox delivers financing from $1,000 to $100,000 to small businesses and does not factor in personal credit into its lending decision. The firm’s application process is fully automated (no paperwork) and takes roughly 3 minutes to complete. There is one simple weekly fee from 0.4% to 0.9%, meaning you could borrow up to $100,000 for a cost as low as $400. Fundbox charges no application fees, no origination fees, no out-of-pocket fees and no junk fees. If approved after the short automated application process, funds are available as quickly as the next business day. Fundbox’s financing can be paid down or off at any time without penalty, and funds can be drawn down on a continual basis. Financing is available to most businesses located in all 50 States, Washington D.C., Puerto Rico, U.S. Virgin Islands, Guam, American Samoa and Northern Mariana Islands.


Just because you are one of the 45 million Americans who has no personal credit score, this doesn’t mean you can’t obtain financing for your business or that you have to pay egregious interest rates. Fundbox is not only an affordable financing option for borrowers with no or low credit, but it is the lowest cost of capital we could locate from any business lender. If you are working on building your credit profile, you don’t have to worry about applying for financing with Fundbox because it won’t effect your credit score. There is no cost to apply for financing from Fundbox and if you are approved there is no obligation to draw funds, you can keep your financing approval open for when you need it.

If you have no or a low personal credit score but are interested in obtaining financing for your business, contact our recommended lender Fundbox.