Online Long Term Installment Loans No Credit Check
At some point, all businesses need extra finance. If you want to expand, take on more staff, need capital investment for machinery or inventory, a loan is often the best way forward. When you take out a loan, you avoid tying up all your available cash and make running your business difficult on a daily basis.
There are many types of financing available for small businesses, depending on your needs and eligibility. There are short-term loans, long-term loans, SBA loans, invoice factoring, business line of credit, merchant cash advances and others. But for many, the long-term loan remains the loadstone as it often offers the best rates, longest terms, a lump sum in your bank account, and regular monthly installments.
But… can you get one with no credit check? Probably not, but let’s look at the circumstances in which you may.
Can You Get a Long-Term Business Installment Loan?
Long-term business installment loans are the bedrock of many businesses. They are the sort of loans that have been around since banking started.
Long-term business installment loans aren’t always the answer. They often take quite a long time for you to get approval, at least if you go to traditional lenders, and the approval process is often involved. In fact, getting approval usually relies on you having been in business for a reasonable amount of time, be doing well financially, and have a very good credit score. In short, you’ve got to be willing to jump through their hoops, especially if you’re going to a traditional bank or want an extremely low interest rate.
The positive is that these loans are usually worth it. Large sums are available for the right applicants, at low rates and with flexible repayment periods between 3 and 7 years typically, though can be as high as 30 for some specialist SBA loans. The finance obtained can be used flexibly, so you don’t have to borrow for just one reason or project, and the repayments are straightforward, fixed amounts, usually paid monthly.
Can You Get a Long-Term Loan with No Credit Check?
In an ideal world, a long-term loan with no credit check would be everyone’s preferred financing option! In reality, the short answer is no. There are forms of loans that are available without a credit check, which we will come to shortly, but long-term installment loans always require some investigation into your financial history.
Of course, while we’d like borrowing money to be easy, you have to look at it from the lender’s point of view. The reason they are happy to loan at a low rate over a relatively long period is because of the extremely high likelihood of getting all the money plus interest paid back. Those who are more of a gamble get higher rates because they want to make a profit for as long as possible in case you default.
A credit check allows them to be reassured that you are money-savvy, and your business is profitable. It is often said that banks are only prepared to lend to those who already have money, and this is why. Banks and lenders don’t often like to gamble.
Today, whether or not you’ll receive approval or disapproval will be decided by the lender’s software.
What to Consider When Looking for Long-Term Installment Loans with No Credit Check
As we have established, long-term loans without a credit check are a rarity. If they exist at all, and you do find one, be very careful. Any lender offering such a loan should be treated with caution, they are unlikely to be trustworthy.
One major lender does offer long-term installment loans without a credit check, and that provider is American Express. Before you get too excited, this is purely because they do require you to have been pre-approved. The approval comes through your having an existing Amex account, so they already know your credit history. The chances of you getting a long-term loan if your credit is less than very good are not high.
Top Business Loan Options That Don’t Require a Credit Check
If your credit score is not good and your financial situation is less than perfect, you still have borrowing options. There are types of loans available that either don’t require a credit check or have less stringent requirements than those required for a long-term loan. These short-term solutions will likely be more expensive, but on the other hand, they may well be much quicker to organize and the cash available to you almost at once.
In effect, you are paying for not having a credit check, but at least the door to the required finance is open. And borrowing in this way, if done responsibly, may well help to improve your credit score and the chance of a successful application for a long-term business loan down the line. (A win-win if used properly!)
The three worth considering are:
- Merchant Cash Advance – A merchant cash advance allows you to borrow money on the strength of your future credit card sales (a few lenders can also utilize cash sales). The finance provider then takes an agreed percentage of your daily credit card sales until the amount is repaid in full.
Qualification for a merchant cash advance is relatively easy, and you will receive the money quickly. But this comes at a price – literally. APRs can be sky-high, as much as 350%, so you need to think very carefully before agreeing to borrow. Rates of that order can severely damage your cash flow, so you need to decide if the trade-off is worth it.
Something you should be aware of is that some lenders will still require a credit check, so you will need to shop around. But many will be more interested in your business’s credit card revenues and will use that in their decision-making process.
- Invoice Financing – There is often no credit check involved with invoice financing as the money is lent based on your client’s ability to pay. You instantly receive a high percentage of the invoice’s value, around 70-85%, and pay it back when your client pays you. Invoice financing allows you to get most of the money owed to you quickly, which is great for businesses working with large invoices and want to remain in control of communication with their clients.
- Invoice Factoring – Invoice factoring is very similar, but the factoring company is responsible for collecting on the invoice. Essentially, you “sell” them the invoice and they pay you around 70-80% for it. When the client pays them, they’ll provide you with the remainder, minus their fees. Again, this is based on your client’s ability to pay. (In other words, if they’re not paying up and are difficult, you’ll need to hire a collections agency, not choose invoice factoring.)
How to Qualify For Long-Term Installment Loans
If your credit rating is lacking, and you’ve got time before you need to borrow your loan (6-12 months), it’s well worth putting in the effort to improve your score. The best way to do this to pay all your relevant bills on time and borrow small amounts on a loan or credit card that is designed to help you build up your credit.
If your business needs capital now, then source the cheapest and most affordable short term loan that your credit score allows then make certain your repayments are on time every week or month. This simple measure will help improve your credit score. If you’re not sure what you’ll be eligible for, we can help. Simply click here to start comparing business loans.
With your credit score repaired, you will have a much better chance of any application you make for a long-term loan to be successful.
Top Lenders That Offer Long-Term Business Loans
Once you feel that you will qualify for a long-term installment loan here are the top three lenders we recommend:
A Funding Circle loan is perfect for large investments in machinery or expansion. You do need excellent credit and to have been in business for more than two years, but the competitive rates and one to five-year terms for sums of $25,000 – $500,000 make it a good choice. And business profitability is not necessarily a problem.
|Loan Amount:||$25,000 – $500,000|
|APR Range:||4.99% – 26.99%%|
|Time To Fund:||10 days on average|
|Loan Terms:||One to five years|
|How To Qualify:||660+ Personal Credit Score
No Minimum Annual Revenue
|Great Option For:||Established Businesses, Not Sole Proprietors|
|Click “Check Rates” to apply to Funding Circle|
For smaller amounts, $5,000 – $300,000 consider LendingClub. They have high standards but offer fast approval and fixed interest, so are a popular choice for a long-term loan.
|Loan Amount:||$5,000 – $300,000|
|APR Range:||9.8% – 35.7%|
|Time To Fund:||As quick as 2 days|
|Loan Term:||One to five years|
|How To Qualify:||600+ Personal Credit Score
$75,000 Annual Revenue
|Great Option For:||Good Personal Credit
Works With All Entities Including Sole Proprietors
|Click “Check Rates” to apply to LendingClub|
A SmartBiz loan’s low-interest rates are sure to interest you. They offer loans of between $30,000 – $350,000, with an easy online application process and long repayment terms – up to 10 years.
|Loan Amount:||$30,000 – $350,000|
|APR Range:||9.7% – 11.04%|
|Time To Fund:||Typically take several weeks to fund, but can fund as quickly as within seven days.|
|Loan Term:||Maximum loan term is 10 years.|
|How To Qualify:||675+ Personal credit score
$50,000+ Annual revenue
|Great Option For:||Borrowers with good credit
Funding real estate purchases
|Credit Check?||Soft credit check and hard pull|
|Co-Applicants Accepted?||No cosigners|
|Direct Pay-Off To Creditors?||No|
|Click “Check Rates” to apply to SmartBiz|
» MORE: SmartBiz SBA Loan Review
While a long-term installment loan might be beyond your business currently, it is something that can be worked toward. Meanwhile, there are other avenues for finance you can explore.
At PrimeRates, we know the options and can guide you through the processes to make the search for finance quick and straightforward, whatever your financial requirements may be.