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A survey shows that 16% of US citizens have poor credit. Bad credit may prevent them from applying for equipment loans for their business establishments. That’s where no credit check equipment financing comes in! These financial solutions help business owners who struggle with traditional lenders due to poor credit history. This way, they can acquire the equipment needed for business operations without the lender performing a credit check.
| Lender | Highlights |
|---|---|
| Swoop Funding | If you need flexible funding without bothering yourself with credit history evaluations, consider Swoop Funding. |
| Clear Skies Capital | Even with a score as low as 550, your business can contact this lender to get different equipment types with competitive rates. |
| ProBizCap | Businesses can unlock their full potential with ProBizCap via accessible funding solutions tailored to their operational needs. |
| GoKapital | With just $30k a month in revenue, you can get equipment purchases financed by this lender. Get approved in 24 hours. |
| Alternative Funding Group | This lender offers loans of various types, from gas stations to landscaping. Some of these types include no credit score requirements. |
Mission Driven France | One of their offerings is Advance California, where they give you up to $1.5 million with no credit score requirements and terms going as high as 30 months. |
| Asphalt Kingdom | This lender offers up to $35k in financing without credit score requirements. |
| Shore Funding Solutions | At Shore Funding, you can get no credit check equipment financing in a jiffy. Also, you don’t have to give this lender any business documents. Just apply for an equipment loan and get approved in seconds. |
| National Truck Loans | This lender offers vehicle financing up to $250k without credit checks. They claim to finance scores as low as 400 in some cases. |
| SBG Funding | This lender also offers no credit check financing options to US-based businesses. You get quick access to the necessary capital to keep your company operational. |
Types of No Credit Check Equipment Available
To start, let’s look into who can use no credit check equipment loans. You may need this option if you happen to be:
- Maybe you’re a startup without an established credit history
- Or, you may be a business with poor credit due to your financial difficulties
- Many small businesses with limited revenue only have cash flow and operational viability to promise lenders long-term revenue & repayment capability
- Many companies needing quick access to business capital can expect no credit check lenders to provide them with a faster approval process & no lengthy financial stability assessments
You can acquire the following pieces of equipment with these financing options:
- Construction equipment like heavy machinery (bulldozers, cranes, etc.)
- Medical equipment like MRI machines, ultrasound equipment, surgical tools, etc.
- Office techs like computers, printers, copiers, chairs, and other items
- Vehicles like trucks/vans for your logistics and moving company
- Manufacturing equipment, such as conveyor belts and assembly line equipment
- Fitness equipment like treadmills, weight machines, and other gym-related stuff
- Beauty and salon equipment like hair styling chairs, pedicure stations, spa beds, and other pieces of equipment
Top 10 Best No Credit Check Equipment Loans in the US
If you’re looking for lenders who don’t care about your credit history, check out these names:
1. Swoop Funding
If you need flexible funding without bothering yourself with credit history evaluations, consider Swoop Funding. This lender offers flexible equipment financing options without any credit history validation process. So, your business will acquire essential business equipment even if you lack good credit.
2. Clear Skies Capital
CK Capital lets businesses with bad credit apply for equipment financing loans. Even with a score as low as 550, your business can contact this lender to get different equipment types with competitive rates.
3. ProBizCap
ProBizCap specializes in financing solutions for businesses with credit issues. Businesses can unlock their full potential with ProBizCap via accessible funding solutions tailored to their operational needs.
4. GoKapital
At GoKapital, your credit history plays a very minimal score in securing loans to afford your necessary equipment. With just $30k a month in revenue, you can get equipment purchases financed by this lender. Get approved in 24 hours.
5. Alternative Funding Group
This lender offers loans of various types, from gas stations to landscaping. Some of these types include no credit score requirements.
6. Mission Driven Finance
This lender offers different financing options for clients who lack credit checks. One of their offerings is Advance California, where they give you up to $1.5 million with no credit score requirements and terms going as high as 30 months. They also offer healthcare equipment financing.
7. Asphalt Kingdom
This lender offers up to $35k in financing without credit score requirements. If you are in the construction sector and need no credit check equipment loans, get in touch with this one.
8. Shore Funding Solutions
At Shore Funding, you can get no credit check equipment financing in a jiffy. Also, you don’t have to give this lender any business documents. Just apply for an equipment loan and get approved in seconds.
9. National Truck Loans
This lender offers vehicle financing up to $250k without credit checks. You don’t need to have good credit to utilize the financing services offered by National Truck Loans. They claim to finance scores as low as 400 in some cases.
10. SBG Funding
This lender also offers no credit check financing options to US-based businesses. You get quick access to the necessary capital to keep your company operational. Their application process initially includes a soft credit pull, allowing businesses to explore funding without immediate impact on their credit score.
Types of No Credit Check Equipment Financing Options
Did you know that around one-half of loan applications for equipment financing and other stuff are denied? That’s why you should spread your wings and seek diverse financing options.
If you need financing with poor credit, here are your options besides loaning:
- Merchant Cash Advances: This option gives you a lump sum upfront in exchange for a percentage of your future sales. So, merchant cash advances are a pretty good option for businesses experiencing fluctuating revenues.
- Invoice Financing: You can leverage unpaid invoices to get quick cash flow from a lender who doesn’t care about checking your credit history. This way, you can expect to receive advances on their invoices without needing a credit check.
- Lines of Credit: With lines of credit that don’t involve credit checks, your business can apply for funds up to a preset limit. It’s just like having a business credit card, and you pay interest only on the amount withdrawn.
No Credit Check Equipment Loan: Are You Eligible?
A Forbes article lists damaged credit scores as the top reason why your business isn’t getting bank loans and applications are being denied. If you have no credit check financing options, it is easier to determine your eligibility. You can check your eligibility by:
Eligibility Criteria
- Checking your business age (for instance, being a six-month-old startup)
- Your minimum monthly revenue must be around $10k to $25k so you can support loan repayments
- Lenders will require a down payment due to your low credit score (it’s often 20% to 50% of the amount), or collateral has to be paid
- Applicants also have to demonstrate the financial health of their business via:
- Tax returns
- Bank statements
- A well-prepared business plan can help you easily pass the eligibility check here
- Don’t have an unfavorable debt ratio.
Although some lenders advertise no credit checks, most will still perform a soft credit inquiry or consider credit scores in some capacity. Scores as low as 500 may be accepted by some lenders, but higher scores will generally yield better terms.
Application Process
- You should first start by looking into your equipment needs and determine which one you need.
- Then, look for lenders that offer no credit check financing options (and read previous Sophisticated Investor articles to find more names).
- Gather all the necessary equipment for your loan application, such as equipment quotes, financial documents, business plans, personal/business information, etc.
- Then, you can submit your application and get funding from the lender in question.
Bad Credit Equipment Financing: Pros and Cons
| Pros | Cons |
| With a faster approval process, you can get the necessary business funding without a great credit score | This loan option comes with much higher interest rates and stringer payment terms (weekly instead of monthly) |
| Lenders will offer very flexible terms & conditions that help you resume your business operations | Due to your low credit score, you’ll only get a small amount approved for purchasing a particular piece of equipment |
| Access new and advanced equipment will help you gain prominence in your field & surpass your competitors | No credit check financing often comes with expenses like origination fees or prepayment penalties |
| Equipment financing often comes with tax advantages, such as deductions on interest payments and depreciation | While no credit check options are accessible, they may not offer the same favorable terms that traditional loans provide |
Choosing the Right Lender for No Credit Check Equipment Financing
Were you aware that 6 in 10 US-based businesses are financially poor and struggling? That is why many companies choose no credit check equipment financing options to run business operations smoothly. Given the pros & cons of this financing option, you can choose perfect lenders in this regard by looking into the following factors:
- The lender’s reputation and credibility matter a lot (to make sure they’re not loan sharks trying to exploit your poor credit history).
- Look at how much time the approval process takes and if they can disburse funds quicker than traditional lenders.
- Flexible financing options are yet another important factor to consider here because of varying loan amounts, repayment terms, equipment types, etc.
- Don’t forget to assess the level of customer service this lender offers; good support and communication will make this whole process very smooth.
- You should understand your lender’s eligibility criteria as well, including revenue limits or time constraints.
If you need help understanding which no credit check equipment financing option is better for you, we provide amazing reviews of different lenders and their services.
Get in touch with Sophisticated Investor to learn more about your loan/leasing options in the United States. Don’t let bad credit prevent you from getting your equipment purchases easily financed. There are many lenders who don’t care about credit checks, and we can help you get in touch with them.
No Credit Check Equipment Financing: FAQs
Q. How quickly can I get approval for no credit check loans?
- One of the key advantages of credit check equipment financing is that you get very fast approval. Many lenders will approve your application in a few hours or even days.
Q. Are there any downsides to no credit check financing?
- Yes, the downsides include the following:
- Higher interest rates
- Shorter repayment terms
- Limited loan amounts
- Extra charges and fees
Q. Can I use this money to lease equipment instead of buying it? Yes, you can find no credit check lenders who offer leasing options, too. This way, you can use that particular piece of equipment without having to purchase it in the end, reducing the monthly amount to be repaid to the lender.
Brandi is a financial writer and entrepreneur with decades of expertise covering U.S. business and financial topics. Her work has been featured on Consumer Affairs, ASBN Small Business Network, Koho and many other top financial publications.
