No credit check for a business loan is what some business owners with poor personal credit are looking for. Well the good news is that there are business lenders out there that will not let poor personal credit prevent you from getting a business loan. However those type of loans are very high interest and require a lot of collateral. But it doesn’t have to be that way you have other options.
This is the best option, for business owners with poor personal credit, is to build your business credit rating so that your business can stand on its own for financing. Then, there is still a credit check, but it is your business’s credit the lenders are checking and not yours. Some lenders are more interested in your business credit and the soundness of your business plan than they are in your personal credit history.
However, building your business credit takes planning and follow-through. You didn’t get poor personal credit overnight and you won’t get great business credit overnight either. The process of building business requires that you first incorporate or form an LLC. Then you must completely separate your business credit from you personally.
You must register your business with the IRS, get a separate business bank account and get your business listed with the 3 business credit agencies. Then you must obtain at least 5 trade credit accounts (printers, suppliers, etc.) that will give you a small buyers credit line and report your payment histories to the business credit agencies. Once that is done you are ready for larger no credit check for business loan applications.