The Complete Guide To Business Loans With EIN Only

Camino Financial09 Jan 2024
The Complete Guide To Business Loans With EIN Only

Did you know you can apply for a business loan with EIN only? Yes, there are various funding products you can get if you don't have an SSN.

Whether it's to invest in new equipment or inventory, hire staff members, or simply provide an emergency cash cushion – businesses need money to thrive and grow. In this article, you'll find everything you need to know to apply for funding using an Employee Identification Number.
Table of Contents
1. Are there loans that accept an EIN instead of an SSN?
2. What are the types of EIN business loans
3. Pros and cons of a loan with an EIN number
4. What are the main requirements for business loans using an EIN?
5. How to get a business loan with an EIN
6. What are the alternatives to business loans with an EIN?
7. What is EIN?
8. Conclusion
9. Frequently asked questions

Are There Loans That Accept An EIN Instead Of An SSN?

Yes, individuals who are not eligible for an SSN can still obtain business loans using only an EIN number through certain financial institutions. This is particularly relevant for self-employed individuals and small business owners. However, it's worth noting that getting a business loan using only an EIN is often not an option, especially for startup founders. If you are self-employed or a small business owner with a strong business credit score, there may be some exceptions to this rule, and you might be eligible for a loan with just an EIN. When using your EIN to apply for a loan, the lender will typically still need assurance in the form of a credit score. This will depend on your business's credit history, as the lender must evaluate the risk associated with lending to your enterprise. Your business credit score can provide this assurance, allowing the process to move forward in some cases.

What Are The Types Of EIN Business Loans

Online Loans

Online business loans offer fast funding with flexible credit requirements. Including options like hard money or asset-based loans, these online solutions provide quick approval, making them a convenient choice for entrepreneurs.

Merchant Cash Advances

MCAs are loans that the business repays via credit card sales. The lender advances your business to a lump sum of cash based on your credit card receipts rather than your credit score. MCAs are easy to apply for but generally come with high-interest rates.

Invoice Factoring

Under this model, the lender buys your outstanding invoices for a lump sum. They deduct a fee on every invoice you sell and determine creditworthiness based on your customer's credit scores, not your business credit history.

Accounts Receivable Financing

With this EIN business funding, the lender advances a lump sum based on the total amount of your past-due invoices. Unlike invoice factoring, you still own the invoices and can collect from them to repay the lender. Other EIN financing options are available, but these are among the most common.

What Are The Main Requirements For Business Loans Using An EIN?

When securing a business loan using an Employer Identification Number (EIN), several qualifications must be met. These qualifications can vary widely among lenders, but there are some common factors typically required. Understanding these requirements can significantly streamline the loan application process.
  • Established Credit History. A strong and well-established credit record not only reflects prudent financial management but is often a vital criterion for lenders. It provides them with confidence in the business's ability to manage debt responsibly.
  • Owner's Personal Guarantee. Many lenders insist on a personal guarantee from the business owner. This commitment makes the owner personally accountable if the business fails to repay the loan, aligning the lender's interests with those of the owner.
  • Collateral Requirements. Tangible assets such as real estate, machinery, or other valuable property may be required to secure the loan. These assets can be seized by the lender in the event of default, reducing the lender's risk.
  • Comprehensive Business Plan. Lenders may request an in-depth business plan that articulates the business objectives, strategies, market analysis, and projected financials. This plan demonstrates the business's potential and viability, helping the lender assess the risk involved in the loan.
  • Evidence of Steady Cash Flow. Documentation of revenue and expenses, including bank statements, is vital to show financial stability. Lenders seek steady cash flow, indicating the business's ability to manage costs and repay the loan.
By being aware of these key requirements and preparing accordingly, business owners can increase their chances of obtaining a loan through an EIN, facilitating growth and expansion opportunities.

How To Get A Business Loan With an EIN

Build A Credit History

Start by getting EIN for your business, and make a separate bank account only for your company.

Use business credit cards and pay on time while establishing credit lines with suppliers. Regularly monitor your credit, keep its utilization low, and avoid debts. Consider seeking professional financial advice and building strong relationships with financial institutions. Building a solid credit history will take time, and the longer your company can demonstrate a stable financial presence, the higher the chances of getting a loan.

Back-Up Your Credit History With Paperwork

Lenders want to understand your credit profile. So they will ask for financial reports and paperwork. For example, bank statements, invoices, tax returns, and financial projections.

Ensure You Have Capable Financial Managers

Good financial managers are crucial to obtaining a business loan with an EIN. They will be able to help you create a plan for success when applying for a loan.

Find A Lender

You will want to start by finding the best lender for your business. Make sure to account for all loan requirements, including terms and fees, and find the one that works best for your business.

Apply For A Loan

Prepare to meet the lender's requirements by gathering your financial reports, proving your ability to repay, and being ready to pay the higher interest rates that come with EIN-only loans. Complete the lender's application with honest and accurate information. HOW TO VERIFY YOUR EIN NUMBER

Pros and Cons of a Loan With An EIN Number


  • They don't require a personal credit report, making them ideal for small business owners with lower credit scores who couldn't qualify for a traditional loan.
  • Individuals who do not possess an SSN can still receive small business funding.
  • They are easier to apply for and more likely to receive approval since they depend solely on the business's financial information.


  • Not all lenders offer EIN loans. You might have difficulty getting the funds you need if you have no SSN.
  • It is more challenging to obtain them due to the lack of data available for evaluation. As a result, many lenders do not extend EIN-only loans, and those willing to offer such loans tend to charge higher interest rates.
  • The repayment period is usually shorter than in personal credit loans. This means businesses may have difficulty paying back their loan within the stipulated time frame.
  • There is a higher risk due to the lack of regular income and other forms of financial security, such as collateral or personal guarantee.

What Are The Alternatives To Business Loans With EIN Only?

If you are not interested in the aforementioned business loans with an EIN, or your business cannot meet the requirements, there are a few other alternatives.

Business Credit Card

You can use a business credit card to finance your business, which helps you establish good credit. They also require a good credit score, so you may need to look into other options if your score is not up to par. Fortunately, many credit cards accept EIN numbers.

Personal credit card

You could also apply for a credit card with your personal credit score. You can either:
  • apply for a secured credit card, which requires an upfront payment as security but allows you to get one even without a perfect credit score
  • rely on your good credit score and apply for an unsecured credit card

Friends And Family

You could request a private loan contract with a friend or family member, but this could damage your relationships.

Angel Investors

The risk with angel investors is that investors usually require some control over your business even if you can get the funding.

ITIN Business Loan

You can still get commercial funding if you don't have a Social Security Number or an Employee Identification Number.

What Is An EIN Number?

EIN stands for "employer identification number," a unique number that identifies your business as an entity apart from you or your business partners for the sake of loans or taxes. This number, like an SSN, allows you to get business funding based on your company's credit history. The main difference between an EIN and SSN is that one is for people, the other for businesses. As such, an EIN allows you to build a business credit score not connected to your personal credit score and apply for business loans when you don't have an SSN.

When Does Your Business Need An EIN?

Your business needs an Employer Identification Number (EIN) when it meets any of the following criteria:
  • Hiring Employees. If your business plans to hire employees, you need an EIN for tax purposes, reporting, and paying employment taxes.
  • Forming a Corporation or Partnership. If you're creating a corporation or partnership, you need an EIN to identify your business entity for tax purposes.
  • Opening a Business Bank Account. Most banks require an EIN to open a business bank account.
  • Filing Tax Returns. If your business needs to file tax returns, you will need an EIN to identify your business entity.
  • Changing Business Type. If you change your business type (e.g., from a sole proprietorship to a partnership), you must obtain a new EIN for the new business entity.

How To Get An EIN?

Getting an EIN requires completing the online application form and sending it to the IRS. It is completely free. It is important to note that you need an SSN to complete the process. With that said, for those who do not have an SSN, you would need to first apply for an ITIN, and once you have that, then apply for your EIN. You can do both relatively quickly via IRS forms.


Does Camino Financial offer business loans with an EIN number only?

No, you need an SSN to apply for a Camino Financial loan.

Can I get a business loan with an EIN number?

Yes, but only with some lenders. Consult with a lender for specific requirements.

How to build business credit with an EIN?

To help boost your business's overall financial profile:
  • Set up trade accounts with vendors or suppliers who report their transactions to the commercial reporting bureaus.
  • Ensure lenders report accurate information to the bureaus (Dun & Bradstreet or Experian Business Credit Bureau).
  • Consider applying for loans through alternative lenders specializing in approving small businesses without traditional FICO scores.

Does your EIN have a credit score?

No, your EIN has no credit score. An EIN is a nine-digit number the Internal Revenue Service (IRS) assigns to business entities for tax filing and reporting purposes. That said, your business credit score is linked to your EIN (the same way your personal credit score is linked to your SSN).

How do I find my EIN?

Fortunately, there are several different methods you can use to find your EIN quickly and easily: Check your tax returns, contact the IRS, contact your bank or financial institution, or use online search services.

What does EIN stand for in business?

EIN stands for Employer Identification Number.

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