Starting business is a good choice for someone who want try to be a successful entrepreneur, no one can regulate you in your business because you are the boss. If you have enough money to start your business, you will not get difficulties with capital. But if you don’t have money but you want to open business, you should get loan. There are many finance companies that provide loans for borrowers but not all of them will give loans for beginner in business.
WHAT IS BUSINESS LOAN WITH NO CREDIT CHECK?
When you want to get loan, it is essential to know first your credit and some lenders will check your credit first before approve your proposal. But it does not mean that you can get loan when you have bad credit because there some lenders which consider some factors besides credit. You can also try some method to get loan without checking your credit.
METHODS TO GET LOAN WITHOUT CHECKING CREDIT
Some lenders may check your credit when you apply to get loan. It is common that lenders take it to avoid problem when borrowers cannot pay debt. Here are some methods to get loan without checking credit:
This is a popular method to get loan when business owners want to start business. There are some platforms like Indiegogo, Kickstarter and GoFundMe. When you join one of them, you can offer your proposal and do not forget to inform what kind of funding that you want such as donation-based crowdfunding, Rewards-based crowdfunding and Equity-based or securities crowdfunding.
This method is provided by government and it is most awesome way to get money. Mostly, business relates to science, medical research and conservation reports that will get grants. Government will identify which industries fit with this program.
- Microloans and non- profit
This program is for business with small capital or with bad credit. Borrowers will not get difficulties when get loan because this program is exclusive for developing business in certain community and child care non-profit foundation.
- Friends and family
You have big family and a lot of friends is beneficial for you, especially when you need help for your business. You can borrow some money from them to start your business or develop it. They know who you are and they trust you. You just need to make them believe in you that you can pay your debts and even give them part of your profit.
The credit score under 500 often causes worries that lenders will not approve the application. The reason is simple, they argue they cannot calculate your power in handling the money. Indeed loaners have another parameter to measure your business power. Usually, they can see the financial report within a year. However, this is still a big issue for you who has just run a business less than a year.
But don’t worry, the startup business loans often ignore the credit check. You can search some startup loans in your country. There are some of them that don’t require a credit check.