New entrepreneurs face a harsh reality: lenders love credit history, but startups lack it. You still secure business loans without a single score on file. Banks reject 70% of no-credit applicants, yet online lenders and smart strategies flip the odds. This guide reveals seven proven paths to funding when traditional doors slam shut.
1. Build Business Credit Before You Need It
Lenders scrutinize Dun & Bradstreet, Experian Business, and Equifax scores. Create profiles now.
Step-by-Step Credit Foundation
- Form an LLC or Corporation – Sole proprietors mix personal and business credit. Legal entities separate them.
- Get an EIN – Apply free at IRS.gov in minutes.
- Open Business Bank Accounts – Use the EIN and entity name. Deposit $1,000+ monthly.
- Secure Trade Lines – Order from net-30 vendors like Uline, Quill, or Summa Office Supplies. Pay early on $500–$2,000 invoices. Vendors report to D&B after 2–3 cycles.
- Add a Business Credit Card – Brex or Capital on Tap issue cards based on bank balances, not personal credit. Use 20% of limit, pay in full.
Six months of activity yields a Paydex score of 80+. Lenders view scores above 70 as “good” for startups.
2. Leverage Revenue-Based Lenders
Online platforms underwrite business loans on cash flow, not FICO.
Top No-Credit Options
- Kabbage (now American Express Business Line of Credit) – Links bank accounts; approves in hours up to $250,000.
- Fundbox – Connects invoices or accounting software; advances $150,000 against unpaid bills.
- Bluevine – Requires $40,000 monthly revenue; lines up to $250,000 at 6–8% simple interest.
Applicants upload three months of bank statements. Algorithms analyze deposits, withdrawals, and NSF counts. Consistent $10,000+ monthly revenue trumps zero credit history.
3. Use SBA Microloans as a Backdoor
The Small Business Administration partners with nonprofits to lend $50,000 max with no minimum credit score.
Why Microloans Work
- Community Advantage Lenders ignore FICO if you show character and cash flow.
- Terms run 6 years at 8–13% interest.
- Use of funds covers working capital, inventory, or equipment.
Search the SBA lender match tool. Prepare a one-page business plan and six months of bank statements. Approval takes 30–45 days, but rejection rarely dings personal credit.
4. Offer Collateral to Unlock Bank Loans
Assets replace credit history. Banks lend 70–90% of collateral value.
High-Impact Collateral Types
| Asset | Loan-to-Value | Example Lenders |
|---|---|---|
| Paid-off Equipment | 80% | Wells Fargo, Crest Capital |
| Real Estate | 75% | Local credit unions |
| Accounts Receivable | 85% | Triumph Business Capital |
| Inventory | 50% | Bank of America |
Appraisals cost $300–$1,500 but secure rates under 7%. Title the asset in the business name to avoid personal guarantees in many cases.
5. Bring a Co-Signer or Guarantor
Partners with 700+ FICO scores open traditional business loans.
Smart Co-Signer Rules
- Limit liability – Negotiate guarantee caps at 50% of loan amount.
- Choose family or mentors – Avoid co-signing with spouses unless assets stay separate.
- Exit clause – Add language releasing the guarantor after 12 on-time payments.
Banks like Chase or PNC drop rates 2–4% with strong co-signers. Document the relationship in the application.
6. Tap Invoice Financing or Factoring
Sell unpaid B2B invoices for instant cash. No credit check required.
How It Works
- Issue $50,000 invoice with net-60 terms.
- Factor advances 90% ($45,000) within 24 hours.
- Client pays factor at maturity; you receive the 10% reserve minus 2–4% fee.
AltLine, RTS Financial, or Porter Freight fund $5,000–$5 million. Approval hinges on your client’s credit, not yours. Rates equal 15–30% APR but beat credit card debt.
7. Pitch Revenue Share Agreements
Investors advance funds for a percentage of future sales until repaid.
Key Players
- Clearco – Funds e-commerce stores with $10,000–$10 million; takes 3–15% of daily revenue.
- Pipe – Buys recurring revenue contracts at a discount.
- Lighter Capital – Tech-focused; caps repayment at 2x advance.
No personal credit pull. Underwriting reviews bank or Stripe data for 60 days. Repayment flexes with sales—slow months cost less.
Application Checklist for No-Credit Loans
Print and complete before submitting:
- [ ] EIN and business formation docs
- [ ] 3–6 months business bank statements
- [ ] Voided business check
- [ ] Two years personal tax returns (lenders still verify income)
- [ ] List of collateral with appraisals
- [ ] Sample invoices or purchase orders
Organize in a single PDF per lender. Name files “LastName_LenderName_DocumentType.pdf”.
Sample Approval Timeline
| Week | Action |
|---|---|
| 1 | Form entity, open accounts, order from net-30 vendors |
| 2–4 | Build bank balance; connect QuickBooks to revenue lenders |
| 5 | Pre-qualify with Fundbox, Bluevine, local SBA microlender |
| 6 | Submit full apps to top two; negotiate rates |
| 7 | Sign docs; funds hit account |
Red Flags That Kill No-Credit Deals
Avoid these mistakes:
- Personal expenses in business account – Lenders flag Uber Eats or Netflix charges.
- Bounced checks – Even one NSF voids revenue-based offers.
- Multiple loan inquiries in 30 days – Hard pulls still hurt personal scores.
- Inflated revenue claims – Bank feeds expose lies instantly.
Long-Term Play: Graduate to Prime Loans
Repay your first no-credit loan early. After 6–12 months:
- Request credit limit increases – Shows lender trust.
- Add secured installments – Equipment loans report to bureaus.
- Monitor D&B Paydex monthly – Aim for 80+ consistently.
Prime business loans under 6% open once business credit hits mid-70s.
Final Action Plan
Start today with the path that matches your situation:
- E-commerce with $20K/month → Clearco or Pipe
- B2B services with invoices → AltLine factoring
- Brick-and-mortar with equipment → SBA microloan + collateral
- Zero revenue but strong personal savings → Brex card + trade lines
No credit history does not mean no funding. Lenders crave cash flow, collateral, or revenue share. Pick one strategy, execute relentlessly, and watch business loans flow in.