The 11 Best Startup Business Loans With Bad Credit
Compare these small business loans for bad credit to find the right startup loan for you. Most of these lenders will accept scores below 600.
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Expert Analyst & Reviewer
UPDATED
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Getting startup business loans with bad credit may seem nearly impossible. However, while having a bad credit score can make it harder to get a startup loan for your small business, there are still ways to finance your new venture. You can even find small business loans for startups that aren’t yet earning revenue.
To help you on your quest for funding, we’ve put together this list of the best small startup business loan options for bad credit. We’ll also look at what constitutes bad credit and what business lenders want to see in your application.
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Read more below to learn why we chose these options.
Table of Contents [hide][show]
- What Is Considered A Bad Credit Score?
- 11 Best Startup Business Loans For Bad Credit
- 1. Revenued: Best Bad Credit Startup Loan For Cash Back
- 2. National Business Capital: Best Bad Credit Start Up Loan With Flexible Requirements
- 3. Lendio: Best Equipment Financing Loans For Startups With Bad Credit
- 4. BusinessLoans.com: Best Bad Credit Startup Loans For Borrower Support
- 5. Fundbox: Best Bad Credit Short-Term Loans For Startups
- 6. Upstart: Best Easy Approval Startup Business Loans For No Credit History
- 7. Credibly: Best Merchant Cash Advances For Startups With Bad Credit
- 8. Avant: Best Small Personal Loans For Startups With Bad Credit
- 9. PayPal Working Capital: Best Startup Loans For PayPal Sellers
- 10. Accion: Best Microloans For Startups With Bad Credit
- 11. Kiva: Best Crowdfunding For Startups With Bad Credit
- Why We Don't Recommend These Bad Credit Startup Loan Options
- Can You Get Startup Business Loans For Bad Credit Guaranteed?
- How To Get A Startup Loan With Bad Credit
- Bad Credit Startup Loan Application Tips
- Alternative Startup Funding For Bad Credit Borrowers
- FAQs About Startup Small Business Loans With Bad Credit
- In Summary: 11 Best Startup Business Loans For Bad Credit
Table of Contents
- What Is Considered A Bad Credit Score?
- 11 Best Startup Business Loans For Bad Credit
- 1. Revenued: Best Bad Credit Startup Loan For Cash Back
- Revenued Eligibility Requirements
- Why We Chose Revenued
- 2. National Business Capital: Best Bad Credit Start Up Loan With Flexible Requirements
- National Business Capital Eligibility Requirements
- Why We Chose National Business Capital
- 3. Lendio: Best Equipment Financing Loans For Startups With Bad Credit
- Lendio Eligibility Requirements
- Why We Chose Lendio
- 4. BusinessLoans.com: Best Bad Credit Startup Loans For Borrower Support
- BusinessLoans.com Eligibility Requirements
- Why We Chose BusinessLoans.com
- 5. Fundbox: Best Bad Credit Short-Term Loans For Startups
- Fundbox Eligibility
- Why We Chose Fundbox
- 6. Upstart: Best Easy Approval Startup Business Loans For No Credit History
- Upstart Eligibility Requirements
- Why We Chose Upstart
- 7. Credibly: Best Merchant Cash Advances For Startups With Bad Credit
- Credibly Eligibility Requirements
- Why We Chose Credibly
- 8. Avant: Best Small Personal Loans For Startups With Bad Credit
- Avant Eligibility Requirements
- Why We Chose Avant
- 9. PayPal Working Capital: Best Startup Loans For PayPal Sellers
- PayPal Working Capital Eligibility Requirements
- Why We Chose PayPal Working Capital
- 10. Accion: Best Microloans For Startups With Bad Credit
- Accion Eligibility Requirements
- Why We Chose Accion
- 11. Kiva: Best Crowdfunding For Startups With Bad Credit
- Kiva U.S. Eligibility Requirements
- Why We Chose Kiva U.S.
- Why We Don't Recommend These Bad Credit Startup Loan Options
- Can You Get Startup Business Loans For Bad Credit Guaranteed?
- How To Get A Startup Loan With Bad Credit
- Bad Credit Startup Loan Application Tips
- Alternative Startup Funding For Bad Credit Borrowers
- FAQs About Startup Small Business Loans With Bad Credit
- Can I get an easy approval startup business loan if I have bad credit?
- Can I get a startup business loan with no credit check?
- Do I need collateral to get a bad credit startup loan?
- Can I get an SBA loan with bad credit?
- What is the minimum credit score for the SBA?
- Which loan company is best for bad credit business loans?
- Can I get an easy approval business loan with a 500 credit score?
- How can I start a small business with no money and bad credit?
- Can I get credit for my business with bad credit?
- Can I get startup business loans with no revenue?
- In Summary: 11 Best Startup Business Loans For Bad Credit
What Is Considered A Bad Credit Score?
| Type Of Credit | Credit Score |
|---|---|
| Poor | 300-579 |
| Fair | 580-669 |
| Good | 670-739 |
So, how do you define a bad credit score, anyway? Personal FICO credit scores under 670 are considered subprime. Having a subprime credit score tells lenders that the borrower may have difficulty repaying a loan. However, there are two categories of subprime credit: bad/very poor credit and fair credit.
Credit scores below 580 are considered “bad” or very poor, based on the FICO credit scoring system. Scores between 580 and 669 are considered fair, but still subprime.
Though credit scores can go as low as 300, even “bad credit business loans” tend not to accept applicants with scores below 500 — many of these lenders require a minimum score of 580 or 600.
11 Best Startup Business Loans For Bad Credit
If you’re seeking startup business loans with bad credit, the following list of funding options is for you. These options include crowdfunding, equipment financing, short-term loans, lines of credit, and PayPal loans and can be accessed by small business owners with bad credit or no revenue.
1. Revenued: Best Bad Credit Startup Loan For Cash Back
Revenued Business Card |
|---|
Pros
- No credit check required
- 3% cash back on purchases
- Considers applicants with no credit
- $500 welcome offer
Cons
- Factoring costs can top typical APR
- Does not build a credit profile
Revenued’s business funding product is hard to classify. Though the Revenued Business Card resembles a business credit card in many ways, it is actually a prepaid spending card tied to your future business revenue. The flexible line of credit connected to your card uses your future sales as collateral, making Revenued’s lending model akin to a merchant cash advance.
Revenued’s unique lending model allows it to offer its spending cards without performing a credit check on applicants. What’s more, every purchase made with your Revenued Business Card will earn you 3% cash back — an extraordinary flat rate that surpasses that of most business credit cards, much less business credit cards that accept borrowers with poor credit. Plus, there are no monthly or annual fees.
Get Started With Revenued Business Card
2. National Business Capital: Best Bad Credit Start Up Loan With Flexible Requirements
National Business Capital |
|---|
Pros
- No credit check for certain financing products (if you meet other requirements)
- Relaxed time-in-business and revenue requirements if your credit is 650+
- Lends to businesses in the marijuana industry (with 1+ year in business)
Cons
- Rates can be high
National Business Capital is an online lending marketplace with 75+ lenders and a business model similar to that of Lendio. Interested borrowers can choose from various types of business financing, including traditional small business loans, lines of credit, equipment financing, and SBA loans. Rates can be on the high side, but the financing is fast and easy to qualify for, even if you’re a startup with bad credit.
Get Started With National Business Capital
3. Lendio: Best Equipment Financing Loans For Startups With Bad Credit
Lendio |
|---|
Pros
- Saves time by sending your application to multiple lenders at once
- Helps you figure out which financing product is best for your needs
- Lets you compare different loan offers so you can choose the best one
Cons
- Not all lenders in Lendio’s network accept bad-credit applicants
Lendio is an easy-to-use online loan matchmaking service that lets you compare and apply to multiple business loans in just 15 minutes and get funded as soon as 24 hours. Lendio no longer publishes specific borrower requirements, but it can often find lenders willing to work with poor credit scores. By using this service, you can prequalify for equipment financing, merchant cash advances (MCAs), short-term loans (STLs), lines of credit (LOCs), Small Business Administration (SBA) loans, and more.
Lendio’s network includes more than 75 lenders, including big names such as Kabbage Funding, OnDeck, Amex, and BlueVine. In the equipment financing space, Lendio connects with Balboa Capital, B2B Leasing, Simmons Bank, and others.
4. BusinessLoans.com: Best Bad Credit Startup Loans For Borrower Support
BusinessLoans.com |
|---|
Pros
- Saves time by sending your application to multiple lenders at once
- Great support & guidance for borrowers
- Quick & easy application process
Cons
- Funds can take a while to disburse
- Not all lenders in BusinessLoans.com’s network accept applicants ith bad credit
BusinessLoans.com is another loan marketplace in which applicants are connected to loan products from within the company’s lender network. BusinessLoans.com is free to use and will send you loan offers without performing a hard pull on your credit. Also, there is no recommended minimum credit score for loan applicants to meet — the company makes an effort to find loan products for would-be borrowers of all credit levels.
Lending products offered through BusinessLoans.com include short- and long-term loans, lines of credit, and merchant cash advances. Lending amounts range from $5,000 to $3 million.
Get Started With BusinessLoans.com
5. Fundbox: Best Bad Credit Short-Term Loans For Startups
Fundbox |
|---|
Pros
- Simple application
- Next-day funding
- No draw fee, prepayment fee, origination fee, or maintenance fees
Cons
- Doesn’t accept very poor credit or brand-new businesses
Fundbox has a convenient lending product for newer businesses with subprime credit: revolving lines of credit. Though short-term loans may not be a good fit if your credit is completely trashed or your business isn’t earning revenue yet, Fundbox loans are quite accessible to businesses that have six months under their belt and are already bringing in some revenue. Businesses can get a funding decision within three minutes of submitting an application, and funds can arrive in your account as soon as the next business day.
6. Upstart: Best Easy Approval Startup Business Loans For No Credit History
Upstart |
|---|
Pros
- No time-in-business or business income requirement
- Builds personal credit
- Considers applicants with no credit
Cons
- The origination fee is taken off the top of the loan
Personal loans are a way brand-new businesses can receive startup funds, even if you have no business credentials. One personal loan option for startups is Upstart, a lending platform that partners with banks to provide personal loans ranging from $1,000 to $50,000. Read our guide to using personal loans for business for more details on this common practice.
Loans through Upstart have three or five-year terms, with monthly repayments. After you accept an Upstart loan offer, the funds will usually hit your account by the following business day. As far as rates, Upstart APRs typically range from 6.5%-35.99%.
7. Credibly: Best Merchant Cash Advances For Startups With Bad Credit
Credibly |
|---|
Pros
- Can borrow up to $400K
- Will accept very poor credit
- Transparent rates and fees
Cons
- High revenue requirements
Credibly originates several types of short-term loans, including merchant cash advances and working capital loans up to $400K, business lines of credit up to $250K, and others. This company is startup-friendly — though you do need to have been in business for six months — and will accept you even if you have very poor credit. Woo-hoo!
Note that some of Credibly’s products, including its lines of credit, are made available through Credibly’s network of external funding partners rather than through Credibly directly.
8. Avant: Best Small Personal Loans For Startups With Bad Credit
Avant |
|---|
Pros
- No time-in-business or business income requirement
- Quick time-to-funding
- Monthly repayments
Cons
- A one-time administration fee is taken off the top of the loan
Avant is a reputable provider of small personal installment loans from $2K to $35K that can be used for business, including startup expenses. It also accepts credit scores that most personal lenders would balk at.
9. PayPal Working Capital: Best Startup Loans For PayPal Sellers
PayPal Working Capital |
|---|
Pros
- No credit check
- Easy, automatic repayments
- Quick access to cash
Cons
- Only available to PayPal sellers
PayPal Working Capital offers short-term loans that function similarly to merchant cash advances. These loans have no credit score requirements and are good options to consider if you already do business through PayPal.
As with most other short-term lending options, PayPal’s Working Capital doesn’t charge interest. Instead, you are charged a one-time fee that you repay along with the loan. PayPal will then collect a small percentage of your daily sales until you have repaid the loan and the fee.
Get Started With PayPal Working Capital
10. Accion: Best Microloans For Startups With Bad Credit
Accion |
|---|
Pros
- Low-interest microloans
- Targeted to marginalized business owners
- Monthly repayments
Cons
- Loan offers limited by region
Accion is a nonprofit CDFI offering short- and medium-term installment loans to startups and existing businesses. These loan products mostly include micro-loans under $50K, but there are also some offers for loans as large as $1 million.
As part of the company’s nonprofit mission, Accion specializes in lending to minority-owned businesses and women-owned businesses.
11. Kiva: Best Crowdfunding For Startups With Bad Credit
Kiva U.S. |
|---|
Pros
- No credit check
- No interest or fees
- Flexible repayment plans
Cons
- $1,000 limit on startup loans
- You’ll need to conduct a successful crowdfunding campaign
Kiva U.S. is a nonprofit dedicated to helping small businesses succeed in their communities with interest-free financing. Kiva offers small, crowdfunded loans to entrepreneurs worldwide, but Kiva U.S. is for US-based businesses specifically. Individual lenders back these loans in amounts as small as $25 per lender.
Why We Don't Recommend These Bad Credit Startup Loan Options
One prominent online lender needed to be dropped from this list as it no longer accepts most startup businesses.
BlueVine: Requires A Credit Score of 625+
BlueVine is one of our favorite online lenders in the small business lending space. Specifically, BlueVine offers small business lines of credit up to $250,000. The terms are fair and transparent, and BlueVine’s LOCs are also very easy to apply for. Just provide a connection to your bank and some basic details about your business.
Unfortunately, BlueVine recently tightened its eligibility requirements and now requires 24+ months in business, at least $40K/month in revenue, and a credit score of at least 625. With businesses less than two years old being ineligible, I decided to take BlueVine off this list of startup lenders. For more established businesses, however, BlueVine is an excellent funding option.
Can You Get Startup Business Loans For Bad Credit Guaranteed?
Getting small business startup loans with bad credit can be hugely disappointing if your credit is so bad — or your business so new — that you don’t qualify for any loans at all. The same goes for new or aspiring business owners searching for first-time business loans with no revenue yet.
Sadly, there is no such thing as a startup loan with guaranteed approval, especially for new businesses that can’t meet minimum qualifications. However, there are still some financing options available to you even if you don’t qualify for any new business loans.
How To Get A Startup Loan With Bad Credit
Even if you have bad credit, you can still qualify for a startup small business loan.
First, evaluate and compare different lenders that cater to new business owners who have bad credit. Generally, you should be able to find a startup loan as long as you’ve been in business for at least a few months and your credit score is at least 500. You’ll also need to show that you have sufficient income (personal or business, depending on the lender’s requirements) to repay the loan.
Once you find a loan that appeals to you (and for which you’re eligible), it’s easy to apply online. If you meet the minimum criteria and are “pre-approved,” the lender will reach out and ask for more information for the underwriting process. Once you return the requested information, you will hopefully receive a “hard” approval and a loan offer. With most online lenders, you’ll receive your funds as soon as 24 hours to a few days after accepting the offer.
Check out our step-by-step breakdown of the startup loan application process for more details.
Bad Credit Startup Loan Application Tips
With a few exceptions, the application process for these startup loans is quick, painless, and entirely online. However, startup business loans for borrowers with bad credit are never guaranteed. To increase your chances of startup business loan approval, here are a few tips for applying:
- Don’t waste your time applying for startup loans when you don’t meet the minimum qualifications
- When you do qualify, apply for multiple loans and then compare your offers to choose the best one (there’s no credit risk in getting pre-approved, as this usually only requires a “soft” credit check)
If you check out some loan or credit card options and are not pleased with the offers you’re getting, you might consider:
- Taking steps to improve your personal credit score
- Waiting until you’ve been in business 12 months, after which you’ll qualify for more loans
- Looking into alternative business financing options such as crowdfunding
For more business funding alternatives for bad credit, see our full list of options below.
Alternative Startup Funding For Bad Credit Borrowers
If you don’t qualify for small business loans, alternative funding types have more flexible credit score requirements. Consider the following alternatives to startup business loans for bad credit:
Small Business Credit Cards
If you aren’t yet ready for a business loan, a small business credit card for bad credit can be a good way to cover startup expenses while building your credit. Business credit cards are also an effective way to establish a business credit history and separate your personal credit history from your business credit history.
Corporate Cards
For new businesses registered as corporations, a corporate card is another type of business credit card that can be used to pay for business expenses. Since you are applying as a corporation, the card issuer will not check your personal credit. The caveat is you will need a high balance in your corporate bank account. For example, Amex’s corporate card program for startups requires a minimum $1 million bank account balance.
Small Business Grants
Business grants do not need to be repaid, and no credit check is involved. Various organizations, local governments, and private companies offer small business grants, including startup business grants. However, your company will usually need to meet certain criteria to qualify. For example, some grants require that your business be woman-owned or be operating in a specific city and/or industry.
Crowdfunding
In addition to crowdfunded loans, such as Kiva, other crowdfunding platforms for businesses do not require any repayment (or credit check). Depending on how the service is structured, businesses may need to offer equity in their company or provide backers with a reward related to the project for which they are soliciting funds.
FAQs About Startup Small Business Loans With Bad Credit
In Summary: 11 Best Startup Business Loans For Bad Credit
- Revenued Business Card:
- Best Bad Credit Startup Loan For Cash Back
- Minimum Credit Score: N/A
- Revenue: $10K+/month
- National Business Capital:
- Best Startup Loan For Flexible Borrower Requirements
- Minimum Credit Score: 580
- Minimum Revenue: $10,000/month
- Lendio:
- Best Equipment Financing Loans For Startups With Bad Credit
- Minimum Credit Score: N/A
- Revenue: N/A
- BusinessLoans.com:
- Best Bad Credit Startup Loans For Borrower Support
- Minimum Credit Score: N/A
- Revenue: N/A
- Fundbox:
- Best Short-Term Loans For Startups
- Minimum Credit Score: 600
- Revenue: $100K/year
- Upstart:
- Best Easy Approval Loans For No Credit
- Minimum Credit Score: 600
- Revenue: N/A
- Credibly:
- Best Merchant Cash Advance For Startups
- Minimum Credit Score: 500
- Revenue: $15K/month
- Avant:
- Best Small Personal Loans
- Minimum Credit Score: 580
- Revenue: N/A
- PayPal Working Capital:
- Best For Startup PayPal Sellers
- Minimum Credit Score: N/A
- PayPal Revenue: $15K-$20K annually
- Accion:
- Best Microloans For Bad Credit
- Minimum Credit Score: Varies
- Revenue: Sufficient for repayment
- Kiva U.S.:
- Best Crowdfunding For Startups
- Minimum Credit Score: N/A
- Revenue: N/A
Jason Vissers
Expert Analyst & Reviewer at Merchant Maverick
Jason Vissers has been researching, analyzing, and writing about small business software and finance since 2015. His financial expertise has been cited in numerous publications, including The Ladders. Jason graduated with a Political Science degree from San Diego State University in 2001.
View Jason Vissers's professional experience on LinkedIn.
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