eCommerce

Ecommerce Funding Without A Credit Check? It’s Possible.

Ecommerce Funding Without A Credit Check? It’s Possible.

Ecommerce Funding Without A Credit Check? It’s Possible.

The world of business financing for eCommerce businesses has long been filled with challenges, especially for small and mid-sized merchants who struggle to meet traditional bank loan requirements.

Small Business Loan Requirements & Challenges

Banks still require a long list of qualifications for small business loans, including:

  • Good personal and business credit scores
  • Annual revenue above $250,000
  • At least 2 years in business
  • Fit business size and industry specifications
  • A detailed business plan
  • Collateral
  • Extensive paperwork such as tax documents, balance sheets, and proof of business experience

Even if you meet these requirements, most business lenders hesitate to provide credit check business loans or other business funding to eCommerce businesses due to the perceived risks. For business owners with bad credit or a limited credit history, securing funding through traditional small business loans can be nearly impossible.

However, with the explosion of eCommerce and advancements in fintech, alternative lenders now offer a variety of funding options—including revenue-based financing (also known as a merchant cash advance). This funding model provides flexible capital without requiring personal or business credit checks. Let’s explore how it works.

What is Revenue-Based Financing & How Does Credit Score Factor In?

Revenue-based financing is a funding solution that primarily evaluates your business's monthly revenue to determine the loan amount, repayment schedule, and fees. Instead of relying on personal credit scores, credit history, or collateral, business lenders analyze real-time credit card sales data to assess risk and offer funding.

Unlike SBA loans or a traditional term loan, revenue-based financing provides quicker access to capital without requiring a business credit card, a spotless credit report, or a long-standing bank account history.

Why Choose Revenue-Based Financing Over Traditional Lenders & Small Business Loans?

1. Fewer Requirements & Faster Approval

Unlike traditional business lenders that require creditworthiness evaluations, credit check business loans, extensive paperwork, and collateral, revenue-based financing is a faster and more accessible option. Most business owners can get funding quickly, often within 24 hours, making it a great alternative to traditional small business loans.

2. Flexible Repayment Terms & Cash Flow-Friendly

Traditional loans have fixed repayment schedules with interest rates calculated using FICO scores. In contrast, revenue-based financing works differently:

  • Repayment is tied to a percentage of your revenue, so payments adjust based on sales performance, improving cash flow management.
  • If your monthly revenue dips, your payments decrease accordingly, making it a more flexible and manageable option for borrowers.
  • Loan terms are shorter (typically 1-6 months), allowing businesses to avoid long-term debt and higher interest rates.

3. Tailored for eCommerce Business Owners

Most eCommerce businesses operate on a short inventory restocking cycle, typically every 3-6 months. Revenue-based financing aligns with this cycle, ensuring that:

  • Business owners can access funds quickly for inventory, marketing, and operational needs.
  • They don’t get locked into long-term debt with high interest, such as with a business credit card.
  • Capital is repaid within the same timeframe that new inventory starts generating sales.

Startup Funding Options: Types of Business Loans & Eligibility

For entrepreneurs, startups, and small business owners, securing capital from financial institutions can be particularly challenging. Traditional loan options such as small business administration (SBA) loans, term loans, business credit cards, and business lines of credit may require strong personal credit scores, collateral, and detailed financial records.

However, alternative lenders offer funding options like:

  • Merchant cash advances, ideal for businesses with consistent credit card sales
  • Invoice factoring, which allows businesses to leverage unpaid invoices for immediate capital
  • Microloans, a great option for startups needing smaller amounts of capital
  • Equipment financing, which helps businesses acquire essential machinery without depleting cash reserves
  • Crowdfunding, a popular way for startups to raise capital without taking on debt

These funding options provide a viable alternative for startups and growing businesses looking for capital with more flexible eligibility requirements.

Lenders Offering Revenue-Based Financing & the Application Process

If you run an eCommerce business and need flexible funding, Onramp Funds offers fast, revenue-based financing options designed specifically for online sellers.

Why choose Onramp Funds?

  • No credit checks required—perfect for borrowers with limited credit history.
  • Fast approvals—receive an offer the same day you apply.
  • Flexible repayments based on your sales, helping business owners manage cash flow effectively.
  • Tailored business funding for eCommerce businesses, including startups and growing brands.
  • No personal guarantee or collateral required, making it easier for businesses to qualify.

The application process is simple, with no extensive paperwork or collateral required. Most business owners can receive funding quickly, making it one of the best funding options available today.

Apply today and get the working capital loan you need to scale your business!

‍