When you apply for a business loan, lenders usually ask for both your Social Security number (SSN) and employer identification number (EIN) to check your personal and business credit.
Some lenders may approve loans using only your EIN, especially if your business has an established credit profile, strong revenue or valuable assets. But these loans are less common than loans backed by a personal guarantee and often come with stricter qualifications or higher costs.
What is an EIN?
An employer identification number (EIN), also called a business tax ID, is a nine-digit number the IRS assigns to identify your business for tax purposes — similar to how a Social Security number identifies an individual. You’ll need an EIN if your business has employees, is set up as a corporation or partnership, or files employment or excise taxes. EINs are also used to open business bank accounts, apply for licenses and establish business credit. Lenders use EINs to check business credit history when you apply for financing.
Types of loans you might be able to get with an EIN only
While most lenders still check both your business and personal credit, a few types of financing rely more on your business performance. If your company has solid revenue or assets, these loan options may allow you to qualify using only your EIN.
Online business loans
Online business loan providers tend to have more flexible requirements than banks and may consider factors like business revenue and cash flow instead of personal credit. This makes them one of the few places where you might qualify for financing using only your EIN.
Online business loans often fund quickly — sometimes within a few days — making them appealing if you need fast access to capital. But that speed and flexibility can come at a cost, with higher rates and potential origination or prepayment fees. These loans may be secured or unsecured, depending on the lender.
Merchant cash advance (MCA)
If your business has strong sales from credit and debit card transactions, you may qualify for a merchant cash advance (MCA) using only your EIN. An MCA provides a lump-sum advance in exchange for a percentage of your future card sales.
Repayments are typically deducted automatically from your business account daily or weekly, along with fees that make this one of the more expensive forms of short-term financing. MCAs can help with quick cash flow needs, but costs can add up fast.
Invoice financing or factoring
Invoice financing and invoice factoring both let you tap into money tied up in unpaid invoices, sometimes without using your personal credit.
With invoice factoring, you sell your outstanding invoices to a factoring company at a discount and receive most of the cash up front. With invoice financing, you keep ownership of the invoices but borrow against their value, repaying the lender once your customers pay you.
Both options can provide quick access to working capital, though fees can be high and the total cost depends on how long your customers take to pay.
Equipment loans
Equipment loans help businesses purchase tangible assets — like machinery, vehicles or tools — with the equipment itself serving as collateral. They work much like auto loans, with fixed monthly payments over a set term. If you stop making payments, the lender can repossess the asset.
Because these loans are backed by collateral and often include a down payment of 10% to 20%, they’re considered lower risk for lenders. That security can make it possible to qualify using only your EIN, provided your business meets other financial requirements.
No-doc business loans
No-doc business loans are offered mainly by online lenders that review your financial data digitally instead of requiring tax returns or long application forms. This streamlined process can make approval faster and, in some cases, available using only your EIN.
No-doc loans vary widely in amount and structure but are often funded within a few days. The tradeoff for speed and convenience is a higher APR and shorter repayment term than traditional business loans.
If you’re ready to apply for financing using your EIN, here’s how to prepare and improve your chances of approval:
Decide what you’re financing. Identify your loan purpose — such as working capital, new equipment or real estate — to focus your search on lenders that offer those types of funding.
Check your business credit. Your EIN is tied to your business credit profile, so review your score through Experian, Equifax or Dun & Bradstreet before applying.
Gather your documents. Collect recent financial statements, bank records and tax information that show your business’s revenue and stability. Having these ready can speed up the process and help you compare lenders accurately.
Compare lenders. Rates and fees are often higher with EIN-only loans, so shop around for lenders that match your needs and budget.
Apply online. After choosing a lender, complete the application and upload your documents. Many online lenders issue a decision within one to two business days.
Hot tip: If your business credit is thin or nonexistent, consider getting a business credit card to build or boost your credit score. Business credit card issuers typically review your personal credit history before approving the card, but credit cards can be easier to get than other types of financing and will help to improve your business credit.
Pros of EIN business loans
Personal credit isn’t a factor. EIN-only loans don’t require a personal credit check, which may help if your personal credit score is poor or you carry a lot of debt.
Faster access to funds. Lenders who offer EIN-only loans often base approval on sales or cash flow, allowing for quicker turnaround times.
Builds business credit. On-time payments can strengthen your business credit profile, helping you qualify for larger loans later.
Protects personal assets. If you default on an EIN business loan, the lender can only go after your business assets, not your personal property.
Cons of EIN business loans
Harder to find. Most lenders want to see both business and personal scores, so EIN business loans tend to be scarcer.
Higher cost. EIN-only business loans are riskier for the lender, which often results in higher interest rates and fees.
Limited to established businesses. Without a personal credit check, lenders rely more on your business credit and revenue, making EIN-only loans harder for startups to qualify for.
Stricter terms. Business loans that accept EIN only may have less flexible terms, like stricter repayment schedules and shorter loan terms.
Alternatives to business loans with an EIN only
If you can’t find an EIN-only loan that fits your business needs or the terms aren’t favorable, consider these alternatives. Most require a personal credit check, but they may offer lower rates or more flexible terms.
Business credit cards. A business credit card can help you manage short-term expenses and build your business credit history.
Business term loans. Traditional lump-sum financing from banks, credit unions or online lenders, repaid in fixed monthly installments that make budgeting easier.
Business lines of credit. Similar to credit cards, business lines of credit provide revolving access to funds up to a set limit, giving you cash on demand for recurring or unexpected costs.
Microloans. Smaller loans offered by nonprofits or online lenders, often with more flexible requirements for credit score or revenue.
Personal loans. A personal loan can fill financing gaps when you don’t yet qualify for a business loan, though you’ll be personally responsible for repayment.
Home equity loans or HELOCs. A home equity line of credit (HELOC) or home equity loan allows you to borrow against the equity in your home to cover business needs, typically with lower rates.
Bottom line
EIN-only business loans are harder to find than traditional financing, but they can help established businesses borrow without tying approvals to personal credit. Lenders that may offer them include online business lenders, merchant cash advance providers and invoice factoring companies.
Expect higher rates and stricter repayment terms, since these loans pose more risk to lenders. For most borrowers, it’s worth comparing both EIN-only loans and traditional options to see which offers the best balance of cost, speed and flexibility.
Frequently asked questions
Yes. Your EIN is tied to your business credit profile, which is tracked by bureaus like Dun & Bradstreet, Experian Business and Equifax Business. As your company borrows and pays bills, it builds its own credit history separate from your personal credit.
Not every business needs an employer identification number. For example, a sole proprietor with no employees and no excise or retirement plans can usually operate using their Social Security number instead.
You'll need an EIN if your business:
Has employees
Operates as a corporation or partnership
Files federal employment, excise or alcohol, tobacco and firearms tax returns
Withholds taxes for a nonresident alien
Maintains a Keogh (self-employed retirement) plan
Is a trust, estate, nonprofit organization or real estate mortgage investment conduit (REMIC)
If you're unsure, the IRS offers an online questionnaire to help determine whether you need an EIN.
The fastest way is to apply online through the IRS website, where you'll receive your EIN immediately after verification. You can also apply by mail or fax, but those methods take longer. Once approved, you can view, print or save your EIN confirmation notice for your records.
Yes. Many lenders work with LLCs, but most still check the owner's personal credit in addition to the business's EIN. You may qualify using only your EIN if your LLC has strong revenue, established business credit or valuable collateral.
It's possible, but rare. Only select lenders, such as some online, equipment or invoice financing providers, approve loans based solely on your EIN. You'll need solid business credit, consistent revenue and a solid financial history to qualify.
It's unlikely. Even if a lender doesn't check your personal credit, you'll still need to show business income, credit history or other financial proof to qualify for an EIN-only loan.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf.
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Christi Gorbett is a freelance writer with more than eight years of experience and a master's degree in English. She’s created a wide range of content for banks, financial product comparison sites, and marketing companies on topics like small business loans, credit cards, mortgages, retirement planning, lender reviews, and more.
As a former teacher, Christi excels at making complex financial topics accessible and easy to understand. Her interest in finance grew when she returned to the U.S. after living in South Korea for nearly a decade.
This shift was driven by several personal financial challenges: rebuilding her financial base after the move home, starting her own business, and catching up on retirement savings. These experiences deepened Christi’s practical understanding of finance and intensified her interest in the field.
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Where to get a business loan in Florida and how to qualify.
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