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Personal Loans to Fund Your Business that Don’t Require a Credit Check

Being self-employed and owning a small business can have many advantages. For many, it means not relying on an employer for income and being in charge of their time. However, starting a new business or expanding your current company requires capital. 

As people struggle with the current living costs and find it hard to save, there is little money left to pump into a business. Even if you have savings, it isn’t wise to use it all to grow or start a business because you will be without funds if you have a personal emergency. Also, if you’re starting a new business venture, the company will probably only see profits after a few months, so if you have savings, you will need them to meet your living expenses. 

Suppose you’ve done your homework and are relatively confident that starting a new business or expanding your current venture will be lucrative. In that case, it will be worth your while to borrow money to finance the project. You may want to apply for a business loan, but these are typically offered to companies that have been running for a few years and are financially stable. So, if your business is new or the finances have been erratic, you will probably not be eligible.

Your next option is to apply for a personal loan. People who have good credit can apply at a traditional lender like a bank and will easily secure a loan with good terms that is manageable to pay off. However, folks with poor credit scores may not be successful in securing a personal loan from a bank. Still, you are not out of options. Several loans for bad credit no credit check are available. 

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Loans that Don’t Require a Credit Check

If you know your credit score is low, it is best to look for loans that don’t require credit checks. These loans are designed for folks who have bad credit. There are several types offered by different lenders, so it’s helpful to review a few options and find one that suits you. Here are some common types:

PayPal Working Capital

If you have been using PayPal to accept payments, you may qualify for a PayPal Working Capital Loan. To be eligible, you need a Paypal Business or Premier account that has been active for at least ninety days. The amount you qualify to borrow is calculated on your sales and is typically about 35% of your annual sales. You must pay a fee based on the amount you borrow and pay back the loan in fixed monthly installments. The loan term can be up to eighteen months.

The application is quick, requires no credit check, and you can receive the funds almost immediately. 

Credit Card

If you have a business credit card and want to avoid a credit check and apply for a loan, you can use your existing line of credit. Most businesses accept bank transfers, so if you use internet banking, you can link your credit card to your check account. Once it’s linked, you can transfer funds from your credit card into your check account and then transfer money to whoever you need to pay.

You can also use your credit card to withdraw funds if you need cash. You will need to have a pin code on your account first, which you can set up online or with the credit card company. When you’ve got your pin, you can withdraw at any ATM, but remember the withdrawal fees can be high, and there is a limit to how much you can withdraw or transfer, which is lower than your swiping limit.

To avoid high-interest rates, you must pay back the amount you’ve withdrawn or transferred within the billing cycle. Using a credit card is convenient for businesses as it’s a revolving line of credit – when you repay what you’ve spent, the credit is replenished. 


While not technically a loan, crowdfunding is becoming a popular means to raise capital for a small business, thanks to social media. Crowdfunding works by getting many people to contribute a small amount to your business rather than looking for one investor to provide a large sum. 

You can launch a crowdfunding campaign on well-known crowdfunding sites like GoFundMe, and then share it on social media to reach more people.

A successful crowdfunding campaign should tell a great story to get people interested in your business. You can compensate people who invest in your company by giving them equity in the business. If you prefer not to give up equity, you can offer investors a free product or discounts on products. 

Building Up Your Credit Score

While it’s possible to secure personal loans with bad credit, improving your credit score will be beneficial in the future. You can qualify for loans with better terms and lower interest rates with a high credit rating. Your credit rating is determined by five factors, namely:

  • Payment history
  • Amount of debt you have 
  • Credit available vs. how much you’ve spent
  • Your credit mix, for example, you might have a home loan, auto loan, and personal loan
  • Any new credit you’ve received or applied for

Everyone starts with a low credit score because your score is low when you don’t have a payment history. A low credit score is anything under 580, between 580 and 670 is average, and scores above 670 are good.

Your payment history counts for the most significant chunk of your credit score, so the best way to increase your credit is to borrow money and then repay it within the stipulated time frame. Lenders need to see that you are responsible for your debt and that you will pay it back timeously. 

Make sure that you pay your bills on time, and if you have any outstanding or late invoices, prioritize paying these off and then work towards being up to date on all your accounts. Not paying your bills on time can harm your credit rating.

Another thing you must do is limit the number of loans and credit cards you apply for. While you need some credit to build up your credit history, having too many loans and credit cards can suggest that you have a problem managing your money and sticking to a budget. 


If you have a poor credit rating and need to borrow money for your business, there are several options available to you. You can consider Paypal Working Capital Loan if you use PayPal or use your credit card. Another option is to run a Crowdfunding campaign to raise funds. While there are loan options for business owners with a low credit score, it’s helpful to work on improving your credit rating so that you can secure traditional business loans in the future. 

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