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Getting a business loan with no credit check is never an easy ordeal, especially not in the modern economic climate. Business loans are usually very tightly regulated, and credit is, of course, one of the key determining factors. However, if you are just starting a business and have not yet built credit, then you are one of many entrepreneurs that needs cash…and luckily, options are available.
With no credit yet established, your options will lead you invariably to getting a business loan with no credit check. The best place to do this is through the Small Business Association (SBA). The SBA is a branch of the division of commerce that acts as a guarantor of business loans for women, minorities, veterans, the disadvantaged, and others. The SBA is a very useful tool and can help get your small business off the ground. Check with the division of commerce and ask your local bank branches if they participate in any SBA programs.
Now, once you have access to some capital for investment purposes, the idea is to build credit so that you are not in that situation any more. Applying for a business loan with no credit check will not give you the best loans; those come to individuals with good credit scores. Business credit works a little differently from personal credit; business credit is based on the Paydex score (by Dun & Bradstreet), and issues credit from a score of 0-100, with 75 and higher being considered excellent. While it certainly helps your credit score substantially to pay off your business credit cards and pay your merchants on time, business credit puts more emphasis on the stability and profitability of your business. If you are able to show long, steady profits, this will ensure a high Paydex score and give you many more options when looking for a loan in the future.