Can You Get a Business Loan With Only An EIN? (2024)

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In some cases, you may be able to get a business loan with only an EIN, or employer identification number. Whether or not your business can get a loan will depend on your business credit score, which is attached to your EIN.

If you are self-employed or a small business owner with a strong business credit score, there may be some cases where you can get a business loan with only an EIN. For most self-employed individuals and small business owners—especially startup founders—getting a business loan using only an EIN is rarely an option.

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What Is an EIN?

An employer identification number, commonly known as an EIN, is a nine-digit number that the IRS assigns. EINs are used to identify businesses and other entities for tax purposes; they’re similar to Social Security numbers (SSNs) for individuals. An EIN is required for most businesses, including sole proprietors, partnerships, corporations and nonprofits. Employers who pay wages to employees must also have EINs.

Obtaining an EIN is a straightforward process that can be done online or by mail, and you’ll need one to comply with federal tax laws. An EIN is commonly used on tax forms, including payroll tax filings for employers and employees. EINs are also widely used on insurance and loan applications filed in the name of a business.

Pros and Cons of Loans With an EIN Number

Although it’s possible for some businesses to get a loan with only an EIN, there are pros and cons to getting financing this way. These loans aren’t widely available and they can come with higher interest rates than personally-guaranteed business loans.


  • Protect your personal assets. If you get a business loan using only an EIN versus providing a personal guarantee, it won’t be tied to your personal credit. So, if your business defaults on the loan, the lender can only take possession of your collateral and can’t pursue you personally for repayment.
  • Helps build business credit. When you get a loan using your EIN, your lender may report the loan and your payment history to business credit bureaus. This starts the process of building credit for your business.
  • Doesn’t account for personal finances. If you get a loan using only an EIN, your lender may not use any of your personal finances in your loan application or require a personal guarantee. As a result, you may still qualify for a competitive interest rate even if you have considerable personal debt.


  • Only available for established businesses. You need to have established business credit to qualify for a business loan with only an EIN. This usually requires being in business for several years and an established history of reliable debt repayment.
  • Higher interest rates. Since loans extended based only on an EIN are rarely personally guaranteed, they’re riskier for lenders and have higher interest rates.
  • Less flexible loan terms. The high risk associated with EIN loans can mean terms are shorter—only a few years—before they need to be refinanced or paid off.

How To Apply for a Business Loan With an EIN

You can apply for a business loan with your EIN if you’re a new business owner without established credit. However, you may also need to include your SSN and details about your personal finances because you’ll likely have to provide a personal guarantee.

If you have a well-established business with strong finances, you may qualify based on your EIN and business credit score.

Follow these general steps to apply for a business loan with an EIN:

  1. Check your credit. If you want to apply for a business loan with an EIN, check your business credit score. Business credit scores typically range from 0 to 100, though FICO business scores go up to 300. If you have a low credit score—or no business score at all—first consider taking steps to improve it. This may include paying off existing business debts or opening and using a small business credit card.
  2. Decide what type of loan you want. The best financing tool for your business depends on your borrowing needs and qualifications. Loans can differ based on interest rate or repayment terms, as well as personal guarantees and collateral requirements.
  3. Gather documentation. If you plan to apply for a business loan with only an EIN, you’ll likely need to provide additional documentation as part of the verification and underwriting process. This often includes business financials to demonstrate the business can pay back the loan on its own.
  4. Choose a lender and apply. Based on your borrowing needs and qualifications, shop around for lenders that can offer the necessary funds on terms that meet your timeline and budget. Once you have chosen a lender, complete and submit a loan application.

Business Loans That Don’t Always Require a Credit Check

Although it’s possible to get a loan with only an EIN, these loans are still based on the creditworthiness of your business. Alternatively, some options for getting business financing are not dependent on your business or personal credit.

Online Business Loans

Online business loans help businesses obtain funding quickly and easily. These loans are often designed to be more accessible than those from traditional lenders, with a much shorter wait time for approval and funding. Online lenders may offer hard money loans or asset-based loans and may not take a business’s credit score into account when making lending decisions.

Online business loans can be an excellent option for businesses with poor credit histories or those that have struggled to obtain financing from traditional lenders. These lenders often rely more on other factors, such as the business’s revenue, its cash flow and the value of its assets.

That said, online business loans often come with higher interest rates than traditional loans and some lenders may charge origination fees or early repayment fees.

Merchant Cash Advances

Merchant cash advances (MCAs) are a popular form of financing, particularly among small business owners who rely on credit card sales. With this type of financing, a provider gives a business owner an upfront advance and then takes a percentage of the business’s daily credit card sales until the advance is fully repaid, with interest.

These financial products are most popular in the restaurant and retail industries, where credit card sales are a significant component of daily operations. With this financing, lenders don’t look at a business owner’s credit score to determine their eligibility for financing. Instead, the focus is on the business’s sales history, so even business owners with less-than-perfect credit can still be eligible for merchant cash advances.

Invoice Financing

Invoice financing and factoring are two alternative lending options that allow businesses to obtain cash quickly without a credit check. With invoice financing, a lender lends money based on outstanding invoices owed to a business.

The lender reviews the invoices and the creditworthiness of the borrower’s customers before offering an advance, typically between 70% and 90% of the invoice’s value. Once customers pay those invoices, the business collects that money and pays off the loan, including interest and fees.

Invoice factoring, on the other hand, is when a lender purchases a business’s outstanding invoices at a discount. The lender assumes the risk of collecting payment from the customer and pays the business an immediate advance, typically 80 to 90% of the invoice’s value. Once the lender collects payment from the customer, it pays back the remaining balance, minus fees, to the business.

In both cases, the lender is more concerned with the creditworthiness of the borrower’s customer than the borrower. Therefore, these financing options are accessible to businesses with less-than-perfect credit scores. By factoring or financing their invoices, businesses can access the cash they need to grow, cover expenses or take advantage of opportunities that require immediate funding.

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Can You Get a Business Loan With Only An EIN? (2024)


Can You Get a Business Loan With Only An EIN? ›

You can apply for a business loan with your EIN if you're a new business owner without established credit. However, you may also need to include your SSN and details about your personal finances because you'll likely have to provide a personal guarantee.

Does an EIN have a credit score? ›

While your personal credit score is tied to your Social Security number, your business credit score is tied to an EIN. This helps you keep your personal financial information private while you build and maintain your business credit score.

Can I use my EIN instead of SSN when applying for credit? ›

For your business, you may use an EIN to apply for credit, although sole proprietorships may be able to use their social security number instead.

How to build business credit with EIN number? ›

How to Build Business Credit Quickly: 5 Simple Steps
  1. Step 1 – Choose the Right Business Structure. ...
  2. Step 2 – Obtain a Federal Tax ID Number (EIN) ...
  3. Step 3 – Open a Business Bank Account. ...
  4. Step 4 – Establish Credit with Vendors/Suppliers Who Report. ...
  5. Step 5 – Monitor Your Business Credit Reports.
Dec 5, 2019

Do business loans require proof of income? ›

Each lender will have unique documentation requirements, but at the very least, you'll likely need to provide: Business and personal bank statements. Business and personal tax returns. Financial statements, like balance sheets and income statements.

Can I get a loan with just my EIN number? ›

You can apply for a business loan with your EIN if you're a new business owner without established credit. However, you may also need to include your SSN and details about your personal finances because you'll likely have to provide a personal guarantee.

Can I get a line of credit with EIN? ›

It is possible to obtain credit accounts with just your EIN. Note we said “credit accounts,” not “credit cards.” There are credit accounts that don't check or report to personal credit; they are called vendor or trade credit. These accounts will often give you 30 days to pay your balance.

How do I find my EIN credit score? ›

How to Check Your Business Credit Score
  1. Dun and Bradstreet: Often used by vendors and suppliers to evaluate trading terms with your business. ...
  2. Experian: Often used by lenders when considering your business for loans or lines of credit. ...
  3. Equifax: Often used by vendors, suppliers, and lenders.

What can I do with my EIN number? ›

This EIN is your permanent number and can be used immediately for most of your business needs, including:
  • Opening a bank account.
  • Applying for business licenses.
  • Filing a tax return by mail.
Apr 7, 2023

What happens if I use an EIN instead of SSN? ›

Individuals can eliminate their risk of sharing personal information via the business by using an EIN instead of an SSN. EINs are provided free of charge from the IRS and are used by companies to protect the privacy of an owner's SSN and other personal information.

How long does it take to build EIN credit? ›

Experts say it can take three years or more to build business credit, but some creditors may only require one year.

How long does it take to build credit with EIN number? ›

For new businesses, it usually takes between one to three years to build enough credit to be eligible for small business loans. If you continue to pay back your loans on time, your small business credit will continue to grow.

What is the fastest way to get business credit for an LLC? ›

Once you've established a foundation, it's time to start building good business credit quickly.
  1. Get a Business Bank Account. ...
  2. Get a Business Credit Card. ...
  3. Establish Net 30 Vendor Accounts. ...
  4. Apply for In-Store Credit Cards. ...
  5. Ask for Higher Net-30 Credit Lines. ...
  6. Apply for a Business Loan.
Jul 27, 2023

What are the easiest loans to get approved for? ›

The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory in nature due to outrageously high interest rates and fees.

What do you need for a first time business loan? ›

For a line of credit less than $50,000, good credit and some personal or business assets may suffice. For larger amounts, your business's revenue, profit history and cash flow will matter more. Term loans typically have longer terms of 3 to 5 years, and secured term loans require some form of collateral.

Can I get a business loan with a 500 credit score? ›

Yes, it is possible to get a small business loan even if you have bad credit. This is because your credit score doesn't matter as much as the overall financial health of your business. Many lenders require a minimum credit score of 500, at least six months in business, and more than $30,000 in annual revenue.

How do I check my EIN business credit score? ›

Anyone can go to one of the reporting agencies and look up your business's score — though they may have to pay to do so. Several business credit reporting agencies track business credit scores. Three of the major ones are Dun & Bradstreet, Equifax Business and Experian Business.

Does my LLC get a credit score? ›

While you personally may have bad credit, your business is starting from scratch. Starting an LLC gives your business the opportunity to pay vendors, utilities, credit cards, and loans on time, which will help to build your LLC's credit score.

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