Categories
Business Loans

Start Up Business Loans No Credit Check

A guide on start up business loans no credit check

Most of us tend to overlook our credit scores – not until a financial need arises that may require a business loan. This is the time you realize that credit scores are not only important when you need to purchase a home or your dream car, but it is also essential to have good business credit scores when you want a loan to pay for business expenses.

So whether you have been denied a business loan in the past due to poor credit or you are still looking for the best business funding option and you are aware that your score isn’t that attractive, you may have this question in mind – How can you find a start up business loans no credit check?

Getting a small business loan with no credit check

There is no denying the fact that finding small business capital loans with poor credit can be difficult. When talking about bank loans, lending institutions try as much as possible to reduce the risks involved when issuing a loan. Borrowers with good credit can easily qualify for these loans compared to their poor credit counterparts. Lucky enough, the emergence of online lending has made it possible for business owners to take out small business startup loans, no credit check.

In fact, some of them to do not even have credit score as a requirement to qualify for business loans. For instance, you can easily access a small business loan through invoice financing. With this alternative, the lender does not perform any credit check before approving the funds. Most of them will require you to be in business for at least 3 months, generate a specified amount of revenue and issue your customers’ outstanding invoices as collateral when providing the loan.

This works well for an established business. There are several other startup loans no credit check options available for new small businesses.

Types of small business loans with no credit check

Now that you already know that there are different financing options available for small businesses that do not require a credit check, we suggest that you find an option that will suit your business needs. Here are some of the options you can consider without worrying about a poor credit report.

  • Merchant cash advance
    This is a business lending option that provides businesses with a lump sum amount that is repaid back with a percentage of the business’s daily credit card receipts. You can easily qualify for a merchant cash advance if you have bad credit. Just like invoice financing, this is a perfect way for businesses to access fast cash to improve their cash flow.
  • Crowdfunding
    Crowdfunding has recently become a popular option for small businesses that want to introduce a new product or service in the market. With this option, you can easily raise business capital from customers, friends, family members, and individual investors. This is done by hosting an online campaign and reach your target group through social media and email. You can also get views about the product or service through feedback from backers.
  • Small business grants
    This is also an awesome small business financing option since unlike business loans, you won’t have to worry about paying the money back. You only need to qualify for the funds, which may be difficult for small business owners. The loans are also reserved for certain industries to fund specific projects like medical or scientific research among others.
  • Microloans for nonprofits
    If you are from a less advantaged background and want to start a small business, you can qualify for a microloan or funding from nonprofit organizations. With these options, no credit check is required so a poor credit history won’t hinder you from securing the funds. The lenders are not in the business of making money. Their main purpose is to assist traditionally marginalized groups to improve their lives.
  • Business credit cards
    If you have poor credit or the business is still brand new with no credit history, you might also consider a business credit card. As much as credit cards are overlooked by business owners, it is actually a good funding option for individuals who need small business startup loans. For business startups, lenders consider your personal credit score rather than the business financial history for approval.

4 best small business loans with no credit check

While accessing small business loans no credit check in a traditional bank is almost impossible, the above sources can work well for such business owners. Microloans, invoice factoring and are some of the business financing options that do not require a credit check. Here are the top companies that provide these 3 financing options:

  • Kiva U.S
    Kiva provides peer-to-peer microloans without performing a credit check. It can be a good option for people who have compelling business ideas and require a small loan. The money is paid back with no interest and fee charges. Businesses can borrow up to $10,000 with a loan term of 6-36 months.
  • PayPal Working Capital
    This is also an easy way to get a small business loan with no credit check. Besides, the loans are available at affordable rates. To qualify, you need to have a PayPal premier or business account that has been active for at least 3 months.You can borrow up to $97,000 with a loan term of 10 months. The loans have a one time fixed fee.
  • Square Capital
    Square Capital provides bad credit business loans for amounts up to $100K. The loans have a term of 18 months. The company lends to businesses that generate annual revenue of at least $10,000. The loan is paid by a portion of daily credit card transactions.
  • Kickstarter
    This is rewards-based crowdfunding that helps entrepreneurs with creative projects. Backers are not repaid with money, but a reward that you promise to give in your Kickstarter campaign. Just like other crowdfunding options, no credit check is performed.

Bottom line

While getting a traditional bank loan with no credit check can be tricky, there are several other ways you can receive business funding with poor credit rating. The only limitations are the maximum amount you can qualify for and the extra fee charges. You also have the option of improving your credit and qualify for loans with affordable rates like SBA and other term loans.

Categories
Business

Minority Business Loans

What Are Minority Business Loans?

Businesses almost always need loans to meet their daily needs to operate until their earning assets are adequate to cover their working capital needs. As the business continues to thrive and their own assets grow, they profit and can start repaying their loan to the bank. However, minority business loans are available as there are sources of business funding offered exclusively to minority-owned businesses.

Why small business loans for minorities are needed?

Based on data provided by U.S. Census Bureau, minority entrepreneurs owned nearly 27.6 million businesses and the number is growing yearly. However, their need for funds has always been a challenge for minorities. The Federal Minority Business Development Agency attested that most minority entrepreneurs have credit scores lower than other business owners and lack assets for loan security from financial institutions and land government contracts. According to recent studies, the average credit score given to minority business owner is only 707. This score is 15 points lower than the average of all other small business owners in the U.S.

Why Do Minorities Have Difficulty Accessing Small Business Loans?

Minority business owners find it difficult to obtain small business funding for these reasons:

  • Lack of assets
    Compared to their white counterparts, the wealth levels for African-Americans and Latinos are lower by 11 to 16 times.
  • Location of business in poor locations
    Small businesses are needed in poorer communities to motivate their economies, but big lending institutions do not typically approve funding programs, especially with long-term goals in mind.
  • Unreliable credit history
    Based on business records, the credit score average found in minority small business is only about 707 – that is 15 points lesser than other average U.S. small business owners.

Where to Find Minority Small Business Loans?

When seeking funding, even strong minority businesses have to face minor issues like having only a minimal collateral or inadequate credit history, resulting in denying an application or even giving loans with higher rates and shorter terms. Minority borrowers have destroyed their good record that is needed to qualify for credit needed by lending institutions for a minority-owned business. If you are looking for loans to bolster your minority business enterprise, there are lots of loans available. Below are listed many options offered for you to get the best one that suits your business.

Who qualifies for the loan?

Loans for minorities are available for (i) African-Americans; (ii) Natives of Alaska; (iii) American Indians; (iv) Asian-Americans; (v) Hispanic-Americans or (vi) Pacific Islanders. Only members of the above groups of a minority must own a minority-owned business and have ownership of at least 51% of the company.

Four Steps to Prepare for a Minority Business Loan

  1. Look at the Pros and Cons of a loan
    Any kind of debt is a serious matter; it is very important that you carefully consider how the amount of the loan can provide for your business and how much is the interest.
  2. Consider the Amount You Need
    You have to decide exactly how much working capital you need. Think about what you can afford, what you need the loan for and how long you’ll need to pay it back.
  3. Research for better deals
    Now that you’ve figured out what you need, it’s time to research and shop around for better deals. Make sure you’re getting the right type of loan for your needs at the best possible rate and with the simple application process.
  4. Opt for the Best Offer
    Compare differently available loans found on business centers to include APR and the repayment period. Round up alternative financing options or available grants program that may be a good fit.

Types of Loans Available for Minority-Owned Businesses

However, as of now, there are several avenues that have tried to bridge the gap of finance that exists by providing loans to minority-owned businesses who are often economically disadvantaged individuals. Study this list of loan types available for minority-owned businesses that any minority may qualify to get a quick loan to either start or expand their businesses.

  • The Black-Business Loan Fund (BBLF)
    For African Americans to qualify for this loan program, they have to own at least 51% of the total value of the business that has been operational in the last two years. No collateral is needed but you just need to make an application and that is all.
  • The SBA Community Advantage Loans
    The only thing that could be a hindrance to assessing this type of SBA loans is the aspect of creditworthiness. The SBA demands that an applicant can have access to capital for loans if they do not have bad credit.
  • Minority-Owned Business Loans
    The loan is offered by Accion an NGO that is fully dedicated to cushioning all minorities regardless of their origin or race. There is no restriction to this loan for you can use this loan to whichever type of business that you want.
  • The Business Diversity Lending Program
    Offered by Union bank, you have to fall under the bank’s race category, have active business for the last 2 years, run 51 % of the business and you can borrow less than $2.5 million. To get the loan, the application is done online.
  • The National-African American Micro Business Loan Fund
    This business loan is at present for the minority African-Americans who are residing in the following places: Chicago, Los Angeles, and New York. They can easily access loans of between $35,000 and $250,000.
  • Business and Industry Guaranteed Loan Program
    Once you approach a lender who can lend you credit, just fill out the documents and present them at the rural development office. The lender and the borrower will first discuss and agree with interest rates for the loans.
  • The Hispanic Small Business Loans
    Capital is the property owned and managed by Hispanics for they have created and provided a platform to guarantee the availability of money or rather capital to any Hispanic who starts or expands a business.
  • The ATNI Loan Fund
    The advantage of ATNI Loan Fund is twofold: they either give a borrower a full loan or at times act as an intermediary between the borrower and the financial institution. As community-based financing, they offer different types of business loans.
  • Latino Economic Centre Loans
    If you belong to the minority in Minnesota, then Latino Economic Development Centre will get you a soft loan to expand your business

Conclusion

There are many financial opportunities and financing options that most of the minorities have yet to explore. Many organizations are willing to give small business loans at low interest rates to minority groups with the aim of improving their lives. Minority business loans are quickly accessible and do not have a lot of restrictions.

Categories
bad-credit credit cards

Almost Instant Approval Credit Cards for Bad Credit

 

Improvement in technology and internet penetration has led to behavioral changes. People now expect things to get done fast, often with the click of a button. Speed and simplicity are the two most desired qualities in any process.

Credit cards are no different. People expect a simple and short application for their credit card, and they also expect to get approval quickly. They want the credit card in their hands by the end of the week or within a few days.

The expectations are the same for credit cards with bad credit. Even though a person with a low credit score tends to find it very difficult to get a credit card, he/she has some options on cards that are available to people with bad credit.

At the same time, the expectation of quick approval and simple application process holds true with even this segment of the consumer. And remember, this is a segment that has very few options when it comes to credit cards.

The reasons for wanting quick approval is not always behavioral. Sometimes, the person applying for the credit card is in an emergency. Perhaps some medical bills need to be paid or a vehicle breakdown has led to unexpected repair expenses that need to be paid in order to be able to drive to work.

There can be plenty of emergencies and other reasons for wanting quick approval and access to credit.

Near-instant approval of a credit card depends on two main factors, identity, and income. The credit card company has to be able to verify your identity and your income. If that part of the application is successful, then your credit card application is essentially being evaluated in real-time. You will most probably be able to see the approval (or denial) decision right away.

However, if the credit card company is not able to verify your identity for some reason, then it might take a few days and some additional documentation from your end to process the application.
The best way to increase your chances of almost instant approval is focusing on your credit score. Try to improve your credit score by as much as you can before applying.

To do so, you can pay off any small debts, pay existing and future bills on time, and clear any outstanding dues if possible. The higher your credit score, the faster the credit card approval.

Thus, keeping in mind the expectations and desires of customers, various credit card companies now offer credit cards for bad credit with fast or near instant approval. There are mainly two types of cards available to consumers with low credit scores, secured and unsecured cards.

There is a third option which is not really a credit card, but it is perhaps the quickest and simplest card to get. That card is the prepaid card. Let us look at each category more closely.

Secured cards

Secured card is great for someone with a low credit score because they have a high approval rate and are normally offered to a consumer who can pay a minimum security deposit.

It works on the principle of surrendering a fully refundable security deposit amount which sits in a protected savings account. This amount serves as collateral for your credit line.

So, while you are expected to pay your monthly bills, anything that does not get paid will be adjusted against the security deposit that you submit. As a result, secured credit cards are much easier to get than unsecured cards.

Capital One Secured Mastercard

Capital One offers a secured mastercard that is a bit different from a conventional credit card. Normally, the security deposit paid is the credit limit on the card.

However, Capital One’s secured mastercard has a variable deposit structure for the same amount of credit limit. For example, you could pay anything from $49 to $200 for a 200 credit limit. The amount you pay is decided by Capital One based on your credit profile and score.

Staying with credit limits, one can hope to see a potential increase in their Capital One Mastercard’s credit limits by making timely payments for at least 5 months. Good financial habits and timely payments can reward you with an increased credit limit.

There are no annual charges with the Capital One secured mastercard, so that is a relief and it lowers the cost of owning and holding the card. However, the APR rates are pretty high at 24.99%.

One important point about the approval process, it is fast and the application can be completed within minutes. There is no detailed credit check (i.e. hard check), so that quickens up the application and approval process.

One downside is the lack of a cashback or rewards program. This credit card is a no-nonsense card that has a fast approval process.

Discover It Secured Card

If cash backs and rewards are your thing, but you cannot get a conventional or an unsecured card because of bad credit, then Discover has “It” for you.

The Discover It card does not go into too much history and depth with your credit report. It also does not charge annual fees. So, easy to get approval and cheap enough to use, the Discover It secured card gives you the chance to build your credit score.

Refundable security deposit is $200 for a credit limit of $200. A high APR of 24.99% is charged when you use this card. So, the benefits do come with costs.

However, the most standout feature of this card is the 2% cashback at select gas station and restaurants. Additionally, a 1% cashback on other qualifying purchases completes an impressive rewards program for a card meant for people with low credit scores.

FICO credit score can be monitored for free while using this card. So, if pushing up your credit profile is the goal, then Discover makes it convenient for you.

Make regular and full payments for 8 months and Discover might just return your security deposit to you as a reward for the steady and constructive use of the credit card.

OpenSky Secured Visa Card

Since we are talking about almost instant approval credit cards, the OpenSky Secured Visa credit card is quite well-known for having a fast approval process. One big reason for the quick process is the fact that there is no credit check involved during the evaluation stage (soft check may be performed).

There is no need to stress out about negatives in your past showing up on your credit report and denying you a credit card. Not having to go through a hard credit check also means that there is no risk of your credit score getting lowered because of frequent credit checks.

The OpenSky secured visa card sends your account information to the three main credit bureaus of the country. Hence, it is no wonder that 99% of people who started using this card without a credit score got one within 6 months of using the card.

This card is excellent to build your credit or to improve a bad credit score. Do keep in mind that these benefits come at a cost as the OpenSky card is subject to an annual fee of $35.

The minimum security deposit to be submitted is $200. The APR rate is actually quite low (relatively) at only 19.14%. So, this card does well among its competition. Just like the Capital One mastercard, this one has no cashback rewards either.

Unsecured

Unsecured credit cards do not involve any security deposit. They are simple like a line of credit that the cardholder gets for a certain annual fee. Since there is no “safety” of a security deposit, the fees and interest rates tend to be a lot higher.

Hence, holding and using an unsecured credit card is more expensive. Additionally, the rates of approval for an unsecured card are not as high as those for a secured credit card.

Many people often start with a secured card and then once their credit has improved up to a certain point, they move on to unsecured cards because they can get back the deposit “float” money.

Credit One Bank Platinum Visa

This is an excellent unsecured credit card for bad credit profiles, it also is one of the lowest cost unsecured cards, and it is a card with a rewards program. Credit One Bank Platinum Visa seems to have it all.

The annual fee on this Credit One card ranges between $0 and $99, and that amount is deducted from your credit card limit. Normally, a $300 line of credit is offered initially. This card is great for someone looking to meet emergency expenses or has bad credit but wants an unsecured credit card.

Your creditworthiness decides the APR that you will pay on the Credit One bank platinum visa card. The range of APR is from 20% to 25%.

The attractive feature of cashback rewards offers you 1% cashback on qualifying purchases from vendors that participate in the program. The option of setting up email and text alerts allows you to seamlessly monitor your account.

Another handy feature is the free online access to Experian’s credit score information. You can check the positive impact of your credit card use on your credit score. Terms and conditions apply for this feature, so read the documentation.

The Credit One bank platinum visa card is a bit of an all-rounder. You can use it to meet short-term expenses and emergencies. You can build up your credit score, or you simply use this card because every other option was closed to you.

Total Visa Unsecured

The Total Visa Unsecured card, being a visa card, is accepted all over the world. It is a simple unsecured credit card with basic features. It will help you improve your bad credit and move on to something with more features and options.

The Total Visa Unsecured has a $75 annual fee during the first year and then $48 thereafter. The APR rate is one of the highest we have seen at 29.99%. There may also be a one-time $89 fee. You must be wondering why to bother going for this card with so many fees and expenses.

First of all, it has a quick approval process. The application is also quite simple. Secondly, this card offers a person with bad credit a chance to rebuild his/her credit score.

Even if you have had a bankruptcy, you may apply for this credit card. A $300 credit limit minus the annual fee is good enough to start creating a credible record of spending and repayment. Credit bureaus keep a copy of your account information. No cash backs and rewards.

This card is just a simple and hassle-free way to get an unsecured card and put your head down towards rebuilding your credit.

Prepaid cards

Prepaid cards  are different from credit cards. But they are cards that can be used for payment and more importantly, they are the quickest approval cards. All you need to do is load the card up with some credit by paying cash and you are good to go.

The credit limit is what’s pre-loaded onto the card. Simple and easy to use, if it has a visa or mastercard logo, then many merchants in the country will accept your prepaid card. Another bonus with prepaid cards is no credit checks at all! Soft checks may be performed. So whether you have good credit or bad, that aspect is simply not a factor in the approval decision.

Brinks Prepaid MasterCard

With a short application process of about 10 minutes, the Brinks Prepaid MasterCard is a decent option among prepaid cards. You can get paid from your work via direct deposit to this card, you can reload money onto this card via machines and ATMs, and you can use it at most places since it is a MasterCard.

There is even a cashback program and a $10 purchase cushion when you are low on balance.

Midnight Prepaid Visa RushCard

The midnight prepaid visa is another great option for a prepaid card. You can pay bills, manage your account online, and receive direct deposit payments with this card. Being a visa, it will be accepted widely across the country. Your loaded funds are insured by FDIC, so there is an added layer of security.

The application is also quite simple and takes about 10 minutes.