No credit check for business loans: what you need to know

If you have bad or limited credit, the last thing you need is to accumulate multiple hard searches on your credit file. As a result, many business owners seek out a no credit check business loan in the hope of avoiding further damage to their credit report.

However, it’s important to understand how credit scores actually work. Recent figures show that two-thirds of adults mistakenly believe frequent credit score checks negatively impact their score, while 90% of business owners don’t fully understand how their business credit score is determined. This highlights the need for greater awareness of creditworthiness—and whether a no credit check business loan is truly the best path forward.

Below, we explain what no credit check business loans are and explore alternative options you might consider for funding.

What is a no credit check business loan?

A no credit check business loan is a facility where the lender does not carry out a hard credit check on your business (or personal credit file) before approving funds. Instead, they may consider other business metrics—such as cash flow, turnover, or future revenue projections—to assess risk. Because the lender has less security, these loans often come with higher interest rates and stricter terms.

Businesses that seek out no credit check business loans typically do so because they’ve experienced challenges in securing finance elsewhere—perhaps due to repeated rejections and a lack of helpful feedback or alternative solutions.

What is a bad credit business loan and do they differ from no credit check business loans?

A bad credit business loan is designed specifically for businesses with poor or limited credit histories. Unlike no credit check loans, lenders for bad credit business loans do conduct a credit check, but they do so with the understanding that adverse credit is part of the applicant’s profile. Much like no credit check loans, these facilities can also carry higher interest rates due to the increased risk to the lender.

If a lender does run a credit check, is it run on the applicant's personal or business credit score?

That depends a lot on the type of loan you’re requesting. As a general rule of thumb, if you’re asked to extend a personal guarantee, the lender will likely run a credit check on you as an individual.

However, bear in mind, it’s entirely possible your business credit score and personal credit scores differ wildly from each other, in which case, you may have a very different experience when applying as a business compared to possible past experiences when applying as an individual.

If you don’t know your business credit score, you may be able to find out with Tide’s Credit Score Insights.

Types of no credit check business loans

There are some types of loans that can sometimes come with no credit checks, these include:

Merchant cash advance

A merchant cash advance isn’t really a loan – but an advance against future earnings. Essentially, you trade a percentage of future sales for cash today, and these can sometimes come with no credit checks.

Invoice finance

Invoice finance (specifically, invoice factoring) can involve selling your invoices to a factoring company, which again, isn’t a loan so much as a sale.

Short-term business loan

Some short-term business loans are offered without credit checks, for instance, your current bank or lender may be able to extend a loan without running a check, as you are already an established customer with them.

Crowdfunding, and family and friends

Crowdfunding, small investment rounds, and funding from family and friends can sometimes go through without the need for a credit check, although, generally, the bigger the investor the more likely they are to run a credit check on you or your business.

Is a no credit check business loan right for me?

While it can feel like credit checks are there to punish you, they’re actually there to protect you. Overextending yourself or your business can have severe, long lasting effects on your financial health. A credit check is there to help prevent businesses entering into an unhealthy cycle of debt.

The problem is, you often don’t get a lot of information after a rejection, so it can start to feel like one rejection after another. Ultimately, the decision is yours, but we recommend taking extra care not to enter into a debt cycle or to enter into an agreement with a predatory lending company.

Find business loans with Funding Options by Tide

Whether you’ve decided to take out a no credit check business loan, a bad credit business loan, a merchant cash advance, or a standard business loan, reach out to our expert support team using the link below to find out if we can help you find the most suitable options for you. We work with many of the most established lenders in the UK and help facilitate loans ranging in value from £1,000 and £20M.

Find a business loan.

Short-term lending can lead to financial difficulty and is not suitable for everyone. Contact us for support if you ever face difficulties making your repayments. Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.