An ITIN loan can help you get capital to invest in your business.
Regardless of your immigration status, or if you don’t have a social security number, you can still access a loan with this tax ID number. In this post, we’ll tell you what is an ITIN loan, its requirements, and how to get one.
What Is An ITIN?
The IRS issues this tax ID number to foreign nationals who must file federal taxes.
ITIN stands for Individual Taxpayer Identification Number.
While it will not change your legal status, this tax number will allow you to obtain credit to finance your business.
How To Get An Individual Tax Identification Number (ITIN)
Here is a list of what you need to submit an ITIN application:
- Present a document that proves your identity, such as a passport or driver’s license. You must also attach a completed federal tax return.
- Send your application by mail or take it to an IRS office or a qualified agent for processing.
In about six weeks, you will receive a letter from the IRS with your Individual Tax Identification Number.
What Are ITIN Loans?
Business loans with an ITIN number are those available for business owners with no Social Security Number.
With an ITIN loan, any business owner can easily access credit, no matter what their immigration status is. It also opens the door to the future availability of various financial products.
These financial products help underserved communities and individuals grow and thrive.
You might also find them referred to as “Foreign National Loans.”
ITIN Loan Requirements
To be eligible for an ITIN business loan, you must meet the following eligibility requirements:
- You must be a business owner with a valid Individual Tax Identification Number.
- Your business might need to have been in business for a specific period. For example, most lenders require 2 years.
At Camino Financial, you only need to have been in business for 9 months. Or you can even apply for a startup loan.
- Your business must be in good standing and have a positive credit history.
At Camino Financial, you can get an ITIN loan even if you don’t have a previous credit history.
- You must have a reasonable ability to repay the loan according to the terms of the agreement. In other words, you need to meet the minimum-revenue requirement, which can range from $50,000 to $250,000.
At Camino Financial, we’ll only ask for a minimum annual revenue of $30,000.
- You might need to present bank statements.
At Camino Financial, we review your bank statements electronically using an app called Plaid.
- Present your latest last tax returns.
At Camino Financial, we only request your present your tax returns if you need over $50,000.
If you meet these ITIN loan requirements, you may be able to get the capital you need from an ITIN lender.
How To Apply For An ITIN Business Loan
First, you need to find several lenders and compare their interest rates and terms to find the one that best fits your needs.
Then, start the loan application process. This will require you to select the desired amount and provide information about your business, including its size, revenue, and tax returns.
They will check your credit score.
You’ll also need to provide personal information, such as your name, address, and Tax Number (in this case, your ITIN card, of course).
Once you’ve applied, the lender will let you know if they approved you. If so, they will deposit the funds into your bank account.
Business Loans With ITIN Number Number: Pros And Cons
- Credit history. Making timely payments on your ITIN loans helps you build credit. In addition, once you pay off the loan, you’ll be in a better position to qualify for a larger business loan with better terms.
- Purchases and investments. With an ITIN business loan, you can spend the proceeds strategically to grow your business.
- Convenience. Online ITIN loans allow you to complete the application process anywhere, anytime.
- Higher interest rates. Many lenders consider that ITIN card holders are a greater financial risk. This increases the borrower’s APR and monthly payments.
- Limited funding. Lenders may not offer ITIN borrowers the desired loan amount due to their requirements or bad credit history.
- More requirements. Borrowers may need to adhere to a specific debt or put up collateral to secure the loan. Most business owners just starting have more debt than equity and don’t have assets they can offer as a personal guarantee.
- Restrictions. Some lenders may restrict you from using loan proceeds in industries such as real estate and financial investing.
Tips To Improve Your Chance Of Getting An ITIN Loan
Easily get a business loan with an ITIN number by following these tips:
Register Your Business As A DBA
DBA (Doing Business As) is the business name you register with your local government.
The DBA will allow you to have a name other than your own or the name under which your company registers.
Regardless of your legal status, you will need a DBA to prove in detail to any financial institution you legally operate a business in the US.
The DBA by itself does not legally protect your business, but it could be a legal requirement depending on the state, city, or county
Why Register Your Company As A DBA?
This document shows that your business is legitimate.
If you are a sole proprietor, you must register a DBA to open a bank account under your business name.
If you don’t have a registered DBA, it will be more difficult to access ITIN loans.
Creating a DBA has other advantages:
- Sole proprietors can register a DBA to create a more suited brand for their type of business.
- If you have several businesses under the same organization, registering the DBA will allow you to separate the companies.
- The DBA can help you test your business idea with consumers before creating a formal legal entity such as a corporation or LLC. This is the least expensive way to do business legally.
How To Register A DBA Name?
The requirements depend on your state, but you should be able to do the paperwork at the state government office or the county clerk’s office.
Keep these recommendations in mind to simplify the process:
- First, the name DBA can’t end in “Inc.,” “LLC,” or “Corp.” because this gives the impression that your business is a corporation when in fact, it is not.
- Check if other local companies have a name like or equal to yours. Some states do not allow duplicated names. Consumers might also confuse your business with your competitors.
- Depending on the state, the registration involves paying fees ranging from $10 to $100.
- Some states need you to notify them regularly if you are still using the name.
Research Different Lenders
There could be lending institutions (like community banks or credit unions) in your area that will accept your tax ID. These institutions are often more forgiving when verifying your identity, and they may be more likely to approve your loan application.
Another option is to look for online lenders who specifically cater to entrepreneurs who don’t have a Social Security Number, like Camino Financial.
We understand the challenges of being an undocumented immigrant, and we are willing to work with you to get your business up and running.
Be Due With Existing Debts
Lenders are more likely to approve your application if they know you’re not carrying any excess debt. If you have a good credit score and a solid repayment history, this will work in your favor.
If you have unpaid debts, your lender will be less likely to give you a loan. This is because they will see you as being more of a risk.
Borrow Only The Amount You Need
You may be better off borrowing a smaller amount of money and using it to get your business off the ground. This way, you won’t use the loan for other purposes, and you’ll be more likely to pay it back on time.
Have A Good Credit Score
Your credit score is another factor that lenders will look at when deciding whether or not to give you a loan.
If you have a good credit score, your ITIN lender will be more likely to approve your application. So, if you’re looking to get a business loan, make sure you work on improving your credit score first.
At Camino Financial, you can apply even if you have no previous credit history.
Open A Business Bank Account
Small business owners must have a business bank account to access ITIN loan programs.
You shouldn’t use your personal account for business purposes. That’s called commingling, and it’s a bad practice.
By having separate accounts, you can protect your assets in the event of a lawsuit. Also, you can preserve your personal credit score if the business fails and make your accounting and tax reporting easier.
Even if you are an undocumented person, you can open a bank account for your business.
How To Open A Bank Account
By law, banks need to have some information about you:
Name And Place Of Birth
Banks may request any of these documents:
- Valid passport
- Driver’s license
- Consular identification
- Birth certificate
A current utility bill, lease, or driver’s license should be enough to meet this requirement.
You can provide any of the following:
- Alien identification card number
- Any other government-issued document that proves your nationality or residence, such as a driving license issued abroad or a passport
Some lenders might ask for a national identification card.
The requirements vary depending on the financial institution where you want to open the account.
Because you’re opening a commercial bank account, you need an EIN and the proper documentation, like business licenses and property agreements.
Opening an account for your business gives you many advantages. For example, it keeps your money safe, separates your personal and business accounts, and builds credit.
Besides, it allows you to access other benefits, such as business credit cards and ITIN business loans.
How To Use Your Business Bank Account
- Deposit all the money generated by your business into the account.
- Don’t use your account for personal expenses. For example, if you assign yourself a salary, always withdraw the same amount, and don’t do it more than twice a month.
- Do not let the account balance drop below $0.
- Use only one account unless your accountant recommends opening more accounts based on how you pay your business taxes.
Get ITIN Business Loans
Starting a business is part of the American dream, but it requires capital.
Many borrowers that don’t have a Social Security Number (SSN) feel like they won’t get the money they need to finance their dreams.
Fortunately, some lenders accept applicants with an Individual Taxpayer Identification Number.
To improve your business quickly and reliably, you can get ITIN financing with some lenders like Camino Financial.
Our business ITIN loan application process is simple and fast, and our approval requirements are easy to meet.
Our mission is for all underbanked small business owners in the United States to have access to the money they need to grow.
Besides offering ITIN loans to business owners without social security numbers, we provide our members with educational resources.
Camino Financial’s ITIN Lending
If you already have your Individual Taxpayer Identification Numbers, you have registered your business as a DBA. Now, you have opened a bank account for your company. But you still have no credit history.
Camino Financial is the only lender offering commercial ITIN loans to business owners with no previous history.
Camino Financial understands the challenges minority-owned businesses face and do everything we can to help business owners succeed.
- Our small business ITIN loans range from $5,000 to $400,000.
- We offer annual interest rates ranging from 12% to 40%.
- Most business owners don’t have collateral to offer as borrowing security. That’s why Camino Financial provides unsecured ITIN loans.
- The ITIN loan payback period can go from 24 to 60 months.
- When approved, our clients receive funding in 2 business days.
- We don’t ask for a down payment.
- The application process is entirely online and paperless.
We also offer ITIN personal loans.
Our lending requirements aren’t as stringent as other lenders. Minimum requirements include:
- Operating your registered business for at least 9 months.
- Generating annual sales or income of $30,000.
- Be current with any other debts.
We offer different types of business loan options to cater to different needs.
Ready to grow your business and apply for ITIN financing?
Apply for a small business loan and get the money you need to strengthen your business
It will only take a few minutes and will not affect your credit.
Can I get a small business loan with an ITIN?
While ITIN holders without an SSN face restrictions in the type of credit they can immediately access, they can still find ways to obtain financing.
Some lenders, like Camino Financial, don’t require borrowers to have a Social Security Number, and they will ask for an ITIN (Individual Tax Identification Number) instead.
Can I open a business with an ITIN?
It depends on what type of business you want to open.
An ITIN is a tax number for people that cannot get an SSN, but by itself, it won’t help you form a corporation. You need to open a corporation is an Employee Identification Number (though, to get your EIN, you will need your ITIN).
On the other hand, if you want to form a single-member LLC or a sole proprietorship, you won’t need an EIN; your ITIN will do.
Can I open a bank account without an SSN?
Not all financial institutions require you to have a social security card to open a checking or savings bank account.
Suppose you don’t have an SSN or even an ITIN. In that case, some banks and credit unions will accept a passport number and country of issuance, an alien identification card number, or another government-issued ID number.
Can you have a credit score with an ITIN?
Yes and no.
You see, credit bureaus like Experian and Equifax don’t consider ITINs as valid identifiers to collect information from individuals.
On the other hand, an SSN is a valid identifier, but it is not necessary to create a credit history. These bureaus use different types of information to collect and locate credit data, like your name, address, birthday, and employment history.
What do you need to qualify for an ITIN loan?
In addition to verifying your ITIN taxpayer ID number, lenders want to see other records.
Examples include payment rent records, employment history, tax returns, a copy of your business registration, personal and business credit scores, business financial statements, and bank statements.
All this extra information helps them verify your present and past income and validate that you pay your bills responsibly.
How can I refinance debt with an ITIN loan?
After applying for the ITIN loan and receiving it, you can use the proceeds to pay off your existing older loan with higher interest rates.
Just send a wire transfer or a certified check to pay off the old loan or have the refinancing lender pay off the old loan as part of the loan closing process.
Can I get a loan with an ITIN?
Yes, there are different ITIN loan options for people without social security numbers. Some examples are personal loans, business loans, mortgage loans, and car loans.
What banks accept ITINs?
There don’t seem to be any banks that accept ITIN to approve business loans.
If you want to get a personal loan, though, you can apply with Wells Fargo or US Bank.
How is an ITIN different from an SSN?
An ITIN is a tax identification number issued to foreign nationals who do not have a social security number (SSN).
An SSN is a social security number issued to US citizens and permanent residents.
Can I get a home loan with an ITIN number?
Yes, there are ITIN mortgage lenders that can give you an opportunity at homeownership.
Keep in mind that some lenders may be more willing to work with borrowers who have an Individual Tax Identification Number, while others may not be as flexible. Therefore, it’s essential to shop around and compare rates and terms from different lenders before deciding.
Keep in mind that to get ITIN mortgage loans, you might need to get an appraisal and make a down payment.
If you need ITIN home loans, First National Bank of America is a great alternative.
Can I get a car loan with an ITIN number?
Yes, you can get a car loan with an ITIN number.
However, the interest rates may be higher than for loans obtained with a social security card, plus they might require a down payment.
You should contact your financial institution to learn more about the specific terms and conditions that apply to ITIN loans.
Can I get personal loans with an ITIN number?
Fortunately, you can. It is easier to get personal ITIN loans than business loans.
Camino Financial has the Solopreneur loan, which is a financial product meant for startups, but that you can also use for personal purposes.
Can I apply for a PPP loan with an ITIN number?
At first, only SSN holders could apply for PPP loans. Later, the SBA allowed people with an Individual Tax Identification Number (ITIN) to apply for the Paycheck Protection Program, as long as they were lawful US residents.
The PPP loan stopped receiving applications on May 31, 2021.