Accion is a nonprofit organization that provides small business loans to entrepreneurs. As of September 30, 2019, Accion had lent a total of $1.06 billion to 73,158 borrowers. Accion looks at more than just your credit score when evaluating your loan application, making it a good fit for borrowers who may not have the financial credentials to qualify elsewhere. Accion will work with borrowers who don’t have a Social Security number (SSN) but pay taxes through an Individual Taxpayer Identification Number (ITIN). Most of Accion’s loan types require a minimum credit score of 575 or higher.
How Accion Makes Money
ACCION International is a nonprofit organization that finances small, short-term loans through partner lending organizations. Fees and discounts are included in the loan terms. Minimum and maximum loan terms are different for Accion loans. The origination fee is usually 3 to 5 percent of the loan amount. Beyond addressing business owners’ financing needs, the organization also facilitates business coaching, educational materials and a support network for borrowers.
Understanding Credit Checks
Your unofficial credit report has essentially the same information contained in the official reports financial institutions receive when they perform hard credit inquiries.
Does Accion conduct a credit check?
Yes, Accion carries out a credit evaluation during the loan application process. However, they consider more than just credit scores, making them accessible to a broader range of borrowers. Minimum required credit score for most loans is 575.
What do you need to qualify for Accion?
To be eligible for a loan from Accion, a credit score of at least 575 is typically required despite their broader evaluation criteria. The organization caters to entrepreneurs with ITINs and those who may not have traditional financial credentials.