ABN Loans — No Credit Check
Are you wondering if you can find an ABN loan with no credit check? If you are an ABN holder, like most business owners or self-employed individuals in Australia, you might want to get an ABN loan for business financial aid. Lenders use your ABN as part of the loan application process to determine your financial stability and creditworthiness, among other criteria.
Perhaps you are afraid of hurting your credit score when lenders perform a credit check. Perhaps you are concerned that your credit score is too low to qualify for an ABN loan. Whatever the reason, you may want to know whether or not you can acquire an ABN loan with no credit check.
Can an ABN holder acquire an ABN loan with no credit check?
Yes, although when you have bad credit score, searching for an ABN loan can be excruciating. It is generally uncommon to get ABN loans without a credit check. Lenders perform credit checks to stress test the borrower’s finances and to establish a borrower’s credit history including any evidence of bad debts or loan defaults. However, there are financing options if you have a less-than-stellar credit score or are looking to go without a credit check.
The Advantages of ABN loans with no credit check:
- No credit score impairment
- Minimal requirements & documentation
- Higher approval rate
- Faster approval
- Free assessment
Now, the thorough research commences. There are lenders who will help you get access to funds even if there is no credit check. This is in correlation with the increasing number of need, thus the supply. You can have an amazing opportunity to be evaluated as a borrower for something other than your credit score. Approval can be within an hour and you can have access to the loan in less than two days. Let’s take a look at some financing options that cater to this.
Invoice financing is borrowing money against the borrower’s outstanding accounts receivables. The lender gives you the cash right away and then gets it back with fees and interest once your own client pays ups.
Let’s say you want to get a loan to help you purchase new business equipment. In equipment financing, the newly purchased equipment will serve as collateral. This method does require a credit check but because there’s collateral involved, your credit score matters less. If you don’t make the loan repayments, the lender simply repossesses the equipment. There’s no risk for assets you already owned.
Crowdfunding has become an increasingly popular option for startups and small businesses who believe there’s a community who can help them by sponsoring the development of their product or service.
There are platforms that can host an online campaign, show off your business, and reach potential backers through email and social media. Not only does it help to get the capital you need, but the built community can give great insight and feedback on your product or service.
Instead of looking for a no credit check loan, why don’t you finance yourself? Most entrepreneurs self-fund some part of their businesses to get off the ground. They can do this with savings accounts, low-interest credit cards, or the use of assets — like cars, homes, fine art, and appliances.
If you are confident in the value of your business, you should be taking a financial risk. This will also show future investors that you are ready to put up your own money out of belief and confidence in your business.
Bootstrapping a business is total hard work but can help accelerate a company’s success.
Friends & Family
Friends and family can give you access to funds, although it can be a risky business. To avoid the risk of creating friction in your personal relationships, approach the deal as a loan and seek legal counsel. Forbes contributor, Brett Gleeson suggests structuring this type of funding “as a high-interest loan for one year. Borrowing just enough to launch the business into operations, build your website, or develop some additional pitch material… And as much as you will want to avoid racking up legal fees, it is imperative that all parties get sound legal advice. Not doing so can potentially cost you much more down the road.”
Although grants can be incredibly selective and hard to qualify, you don’t have to pay them back. Federal, state, and local governments offer grants to help small businesses when there’s nothing else to turn to. They typically help specific industries like scientific or medical research or conservation efforts.
If you have doubt hanging over your credit score, there’s nothing else to do but improve it. You have to demonstrate your creditworthiness to improve your credit score. Do this by paying bills on time and clearing up defaults.
It’s not the end of the road for you when trying to get an ABN loan with no credit check. Make sure to think outside the box and do your research. Don’t let any blocks on the road come between you and your goal of a successful business.