Best business loans with no credit history

If your business has no credit history, the best loans are the ones that decide on something else: your sales and deposits, your plan, or the equipment itself. Merchant Fund Express is our recommended funder if you already have sales hitting the bank; Kiva lends small amounts with no minimum score; SBA microloans and CDFIs cost less but take more paperwork; and equipment vendors finance the machine you're buying.

"No credit history" is not the same as "bad credit." Plenty of owners who are new to the U.S., young, or who always paid cash simply don't show up at the credit bureaus. That shuts the door at most banks, but not with every funder. Here's which option fits your situation and how to start building a credit file today.

The best options with no credit history, ranked

We rank with criteria you can verify: speed, minimum time in business, minimum credit, ITIN acceptance, documents, amounts and collateral. No ratings or made-up scores; the details are in how we rank business funding options.

1. Merchant Fund Express, recommended funder. Its review is based on your sales and deposits, not just your score. It works with amounts from $5,000 to $5,000,000, credit from FICO 500+, and decisions often in 2 to 4 hours; collateral isn't required in most cases. It also accepts applicants with an ITIN (no SSN needed). If your file is thin but your business already brings in steady revenue, this is the fastest route. If you have no score at all yet, say so when you apply.
2. Kiva. Offers loans from $1,000 to $15,000 at 0% interest, with no fees and no collateral. According to its site, there's no minimum score and it doesn't base its decision on your credit score or history. You need to be 18, live and operate in the U.S., have a PayPal account, and have no bankruptcy, foreclosure or liens. It doesn't operate in Nevada or North Dakota.
3. SBA microloan. The SBA publishes microloans up to $50,000, with an average around $13,000, a maximum term of 7 years and rates that the SBA says generally run between 8% and 13%. They're made by SBA-approved nonprofit community lenders that also provide coaching. Each sets its own credit requirements, and many work with owners who are just starting.
4. Local CDFIs. Community development financial institutions exist precisely for people traditional banks don't serve. They usually want a plan, projections and a few meetings, but they weigh your experience and your community, not just a bureau report. They're slower.
5. Equipment vendor financing. If you need an oven, a machine or a van, the seller may finance it with the equipment as backing. That reduces how much your credit history matters. Compare the total cost and the late-payment terms.

Side by side: what they check instead of your history

Notice what each option looks at in place of your history. If you already have sales, your bank statements speak for you. If you're not selling yet, your plan and experience are what count, and that's where Kiva, microloans and CDFIs are more realistic. For more angles on this, read business funding with no business credit.

Personal credit vs. business credit

Your credit history has two parts that people mix up all the time:

• Personal credit: what Equifax, Experian and TransUnion report about you as an individual, under your SSN or, in some cases, your ITIN. This is what produces your FICO score.
• Business credit: what bureaus like Dun & Bradstreet, Experian Business or Equifax Business report about your company, tied to your EIN. It's built through suppliers that report, business cards and loans you've paid.

Nearly every small business loan checks your personal credit, because you're the one backing the debt. So even if you form a brand-new LLC, the funder will look at your personal file. Having none doesn't disqualify you everywhere, but it does at banks and at many online lenders that want 625 or higher.

If you came to the U.S. recently, your credit history from your home country generally doesn't show up here. You start from zero even if you had loans and cards back home. That's not a judgment about you; it's just missing data. That's why it pays to start building a U.S. file as soon as possible, even before you need financing.

In the meantime, some documents can stand in for history with a funder: three to six months of business bank statements, contracts or invoices from repeat customers, rent and utility receipts paid on time, business licenses and tax returns. Not every funder counts them, but CDFIs and community lenders usually do.

The one thing you can show right now is cash flow. A business account with regular deposits and no negative-balance days is what matters most to revenue-based funders. If you're paid in cash, deposit it; if you're paid by Zelle, route it into the business account.

Which one to choose for your situation

Use these rules to decide:

• You've been selling 6+ months with steady deposits: a revenue-based funder like our recommended funder. Get the offer in writing with the payment frequency and term.
• You're just starting and need less than $15,000: Kiva, if you meet its requirements and can wait out the process.
• You need up to $50,000 and want coaching: an SBA microloan through a lender in your area.
• You're buying a specific piece of equipment: vendor or equipment financing, where the machine backs the debt.
• No rush and you want the lowest cost: a local CDFI.

What to avoid: loans that promise approval without reviewing anything, upfront fees to "release" your loan, and offers that won't be put in writing. A legitimate funder doesn't charge you to apply. Also avoid borrowing more than your sales can repay just because you were approved for it; starting with a moderate amount and paying it on time opens better offers later.

How to build credit with your first financing

Every loan you pay on time becomes history. These steps work for owners starting from scratch:

1. Get your EIN and open a business bank account. It's the foundation that lets business bureaus and funders identify you.
2. Register your business with the same name and address everywhere. State filing, bank, Google Business Profile and suppliers. Mismatches confuse the bureaus.
3. Open accounts with suppliers that report. Ask your material suppliers whether they report payments to the business credit bureaus.
4. Use a secured or business credit card. Spend a little and pay it in full every month. If you use an ITIN, look for issuers that accept it.
5. Take a small first financing. A microloan or a moderate amount paid on time carries a lot of weight on your next application.

If you're working with an ITIN, our guide to building business credit with an ITIN walks through the steps in more detail.

Our recommendation

If you're already selling and your deposits are steady, start with Merchant Fund Express, our recommended funder. Applying is free, doesn't affect your credit, Spanish-speaking support is available, and the decision often comes back in 2 to 4 hours. If you're just getting started, pair a small Kiva loan or a microloan with a plan to build your credit file over the next 12 months.

A year from now, with on-time payments and a clean business account, you'll have access to options with higher requirements and a lower cost, like lines of credit that ask for 625 or more. The goal isn't just getting money today; it's getting off the "no credit history" list for good. Prefer Spanish? Leer en español.