Small Businesses Increasingly Benefit From Loans Issued Without Credit Checks

Lenders who approve business loans without looking into the credit histories of owners open up new financing options for many companies, No Credit Check Loans Online reports

September 12, 2019 – Interest rates remain low by historical standards, but this is not to say every business finds it easy to borrow. Companies of considerable size can raise capital by many means, but entrepreneurs and small businesses often have to work harder to obtain the funding they need.

In some cases, that will mean having a lender look into the credit history of a small company’s owner. That can put loans out of reach even when the business in question has a bright future before it. Grants, crowd-funding, and even credit cards sometimes fill in the gaps for smaller companies that run into such obstacles.

A look at some small business loan information found online, though, will reveal that there are still other options. Groups like No Credit Check Loans Online are connecting business owners with lenders who are ready to work with them, regardless of credit score and related factors.

The same organization regularly arranges assistance for individual borrowers who need to pay for unexpected car repairs or are simply going back to school. Although credit scores issued by groups like Fair Isaac and VantageScore remain influential, there are other ways to borrow for those who need the help.

Last year saw a record-breaking million-plus businesses with employees opening their doors, according to a report recently published by the Office of Advocacy at the United States Small Business Administration. With the average person’s FICO score hovering somewhere around 700 out of a possible 850, many businesses that need financing find that conventional lenders are not especially accommodating.

Applying for a loan online that does not require a credit check at all can allow a small business to secure the funding it needs to compete and grow more successfully. Some lenders are ready to approve and fund loans almost instantly, without even needing to pull an owner’s credit reports.

American small businesses borrow prodigiously, so options like these are increasingly important. A 2017 survey conducted by the Small Business Administration, in fact, found that small-business owners borrowed a combined $600 billion annually, with more than half of all business loans totaling $100,000 or less.

That more and more often means relying on alternative lenders, frequently operating online, whose application and approval processes do not necessarily include metrics like the traditional credit check. The alternative lending segment, according to research portal Statista, will issue about $267 billion in funding worldwide over the course of 2019 alone.

This corresponds to average annual growth of around ten percent, a rate that could see alternative lenders extending nearly $400 billion in loans come 2023. With about $180 billion of this year’s total going to businesses, banks and other conventional lenders are no longer the only sources for loans at all.

While there are normally some drawbacks associated with loans issued without credit checks, many business owners find the prices paid to be more than worthwhile. About 30 percent of all small business failures can be blamed on a lack of funding, according to the Small Business Administration, so securing a loan can easily be an existentially important requirement. Viable businesses whose owners’ credit scores might otherwise keep them from much-needed financing are being supported by lenders who are especially flexible and accommodating.

Contact Info:
Name: Pam Dooberman
Email: Send Email
Organization: No Credit Check Loans Online
Website: https://nocreditcheckloansonline.net

Source URL: https://marketersmedia.com/small-businesses-increasingly-benefit-from-loans-issued-without-credit-checks/88918450

Source: MarketersMEDIA

Release ID: 88918450