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8 Best Small Business Loans For Startups With Bad Credit

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Few things in life feel as good as a fresh start. This is especially true when you’re launching a new business and are full of enthusiasm to start making your dream a reality. But if you’ve been through some financial hardships that have left your credit score battered and bruised, a fresh start can be hard to come by. How can you get the startup funds you need if most banks won’t touch you with a ten-foot pole?

This is where alternative financing–online loans, personal loans, merchant cash advances, and many other options–can come in. Contrary to popular thought, it is possible to get a reasonably priced startup loan, even if you have a poor personal credit score of 600 or even lower. There are even some lenders that issue business loans with no credit check.

What follows are eight highly-rated lending services for startups with bad credit.* There is a very good chance that one of these financing options will propel you toward that fresh start in business you’ve been dreaming of.

But first things first: check your credit score before you start applying so that you’ll know which of these options you qualify for.

*Note that for this article, I’m talking about “startups” as businesses 6 months old or newer and “bad credit” to be a score of 600 or lower.

Learn More About Our Top Picks

CompanyHighlightsNext Steps
  • Minimum credit score: 550
  • Time in business: 6 months
  • Revenue: $10,000 per month

Visit Site

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  • Minimum credit score: 530
  • Time in business: 3 months
  • Revenue: $10,000 per month

Visit Site

Read More

  • Minimum credit score: 500
  • Time in business: 2-3 months
  • Revenue: N/A

Visit Site

Read More

  • Minimum credit score: N/A
  • Time in business: 6 months
  • Revenue: $5K or $12K/month

Visit Site

Read More

  • Minimum credit score: 550 or 575
  • Time in business: N/A
  • Revenue: Sufficient cash-flow to repay loan

Visit Site

Read More

Other Featured Options:

  • Avant:
    • Minimum credit score: 580
    • Time in business: N/A
    • Revenue: N/A
  • Credibly:
    • Minimum credit score: 500-600
    • Time in business: 6 months
    • Revenue: $50K-$180K/year
  • PayPal Working Capital:
    • Minimum credit score: N/A
    • Time in business: 3 months
    • PayPal revenue: $15K-$20K annually

Read more below to learn why we chose these options.

Best Startup Loans For Bad Credit

The best bad credit startup loans help businesses get financing when bank loans aren’t an option. Most of these lenders check credit, but will accept scores as low as 500-600. Some good financing types for a startup business with bad credit are personal loans, lines of credit, and invoice financing.

1. Lendio: Best For Most Small Businesses

Lendio



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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. Even if you have a credit score as low as 550, you can likely find some financing options through Lendio. By using this service, you can prequalify for short-term loans (STLs), lines of credit (LOCs), merchant cash advances (MCAs), equipment financing, Small Business Administration (SBA) loans, Paycheck Protection Program (PPP) loans, and more. Lendio is especially helpful if you’re new to business financing and aren’t sure which options you might qualify for or would work for your business.

Lendio’s network includes more than 75 lenders, including big names like KabbageOnDeckAmex, and BlueVine. As of September 2020, Lendio is also still accepting PPP loan applications in hopes that Congress will extend funding for the program.

Any business can apply for Lendio, but for the best chance of getting funded, Lendio recommends that in addition to a 550+ credit score, you have 6 months in business and make at least $10K monthly. Read our Lendio review to learn more about Lendio’s business lending marketplace.

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

Get Started with Lendio

Read our in-depth review

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2. BlueVine: Best For B2B Startups With Unpaid Invoices

BlueVine



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BlueVine is one of our favorite online lenders in the small business lending space. That’s in part because BlueVine has relaxed borrower requirements for invoice factoring services, and partly because BlueVine’s terms are fair and transparent. BlueVine is also very easy to apply for, and you can get approved and start submitting invoices within 24 hours. Unlike some invoice factoring lenders, BlueVine doesn’t require you to use invoicing software; just upload your unpaid invoices in BlueVine’s convenient online dashboard.

As far as borrower requirements, for BlueVine’s invoice factoring service–perfect for B2B and B2G (business to government) startups with unpaid invoices–you only need a score of 530. Note that for BlueVine’s invoice factoring only available to startups already generating revenue, you need to make $10,000/month to qualify.

Down the road, once you are in business at least three years and have raised your credit score to 650, you can apply for a revolving line of credit through BlueVine. Previously, their LOCs were also available to startups but they recently changed their terms. (Your business also needs to be a corporation or LLC and bring in $40,000/month.)

Pros

  • Transparent advertising
  • Invoice financing is easy to qualify for
  • You don’t need to use invoicing software

Cons

  • LOCs not available to startups

Get Started with BlueVine

Read our in-depth review

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3. Fundbox: Best For Businesses That Use Accounting Or Invoicing Software

Fundbox



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Fundbox has two very-easy-to-qualify-for products: revolving lines of credit and invoice financing.

In case you’re not sure, here is the difference between invoice financing and invoice factoring. As long as you have a credit score of at least 500 and use compatible invoicing/accounting software or have a compatible business banking account, you should be eligible for Fundbox’s services. With its low credit score requirement and no time-in-business requirement (other than using accounting or invoicing software for two months), Fundbox is suitable for both startups and bad-credit borrowers.

You do have to pay the loan quite quickly–over 12 or 24 weeks depending on your offer–and the maximum borrowing amount is $100K. So, larger and more established businesses will get better terms with another lender.

As mentioned, Fundbox requires that you must have been using a compatible accounting or invoicing software for at least two months before applying, or have three months of transactions in a compatible business bank account. Read our Fundbox review to find out if the software or bank account you use is compatible.

Pros

  • Will accept very poor credit
  • No revenue requirement
  • No draw fee, prepayment fee, origination fee, or maintenance fees

Cons

  • Short repayment terms

Get Started with Fundbox

Read our in-depth review

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4. Fora Financial: Best For Merchants With Strong Daily Credit Card Sales

Fora Financial



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Fora Financial offers merchant cash advances (MCAs) and short-term loans (STLs) up to $500K to businesses that have been open 6 months or longer, including those with poor credit. The company does do a hard check on your credit score when you apply, but there is no specific credit score requirement, and having a bad score will not prevent you from accessing capital.

Fora Financial’s main requirement is that you have at least $5K in monthly debit/credit card sales (or $12K if you’re applying for a loan). With a merchant cash advance such as those offered by Fora Financial, the lender fronts you a sum of cash and then takes a percentage of your daily credit card sales until the principal is repaid. MCAs can be a viable source of capital to startups and bad-credit businesses because they generally have relaxed borrower requirements.

Fora Financial’s fees can be on the high side–10-30% of the borrowing amount–but these fees are in line with those of other MCA and STL lenders. Fora also offers a discount for repaying STLs early, allowing you to save as much as $1.10 for every dollar still owed. Read our Fora Financial review to learn more about this short-term business lender.

Pros

  • No credit score requirement
  • Early repayment incentives
  • Can borrow up to $500K

Cons

  • High fees

Get Started with Fora Financial

Read our in-depth review

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5. Accion: Best For Minority & Women Owned Businesses

Accion



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Accion is a nonprofit CDFI offering short- and medium-term installment loans to startups and existing businesses. These loan products mostly include microloans that are under $50K, but there are also some offers for loans as large as $1 million. Accion specializes in lending to minority-owned businesses and women-owned businesses.

If you have poor personal credit but need a small startup loan, Accion is one of the few reputable online lenders that can help you without screwing you over. The only caveat is that loans are offered on a regional basis. You’ll only be able to apply to whichever loans (if any) are available in your area.

To qualify f0r an Accion loan, you need a credit score of 575, or 550 in some areas, and sufficient cash flow to repay the loan. Startups also need to have less than $3K in outstanding debt, a business plan with a 12-month cash flow projection, and a partner referral (such as SCORE or SBDC). Read our Accion review to learn more about this nonprofit lender and visit their website to see loan offerings in your area.

Pros

  • Low-interest microloans
  • Targeted to marginalized business owners
  • Monthly repayments

Cons

  • Loan offers limited by region

Read our in-depth review

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6. Avant: Best For New Business Owners With Steady Personal Income

Avant



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Personal loans are a way brand-new businesses can receive startup funds, even if you have no business credentials to speak of. That’s because these loans are based on your personal creditworthiness, not the strength of your business. Avant is a reputable provider of 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 (as low as 580).

While Avant accepts poor-credit (though not very-poor-credit) borrowers, you may be denied funding for other reasons, such as insufficient personal income to meet the incremental payments. It does not have any business income requirements, however.

Avant’s rates are not cheap, with APRs ranging from 9.95% to 35.99%, but they are fair and not predatory (especially compared to other personal lenders, such as payday lenders). Read our Avant review to learn more about this highly received personal lender.

Pros

  • No time-in-business or business income requirement
  • No prepayment penalty
  • Monthly repayments

Cons

  • Doesn’t accept scores in low 500s

Read our in-depth review

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7. Credibly: Best For Startups With Poor Credit & Strong Business Revenues

Credibly



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Credibly originates several types of short-term loans, including working capital loans and merchant cash advances 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!

Credibly’s working capital loans and MCAs have a minimum required credit score of just 500, while business lines of credit are offered to applicants with 560+ personal credit. Note that some of Credibly’s products, including their lines of credit, are made available through Credibly’s network of external funding partners rather than through Credibly directly.

Credibly’s revenue requirements vary based on product, but they are on the high side compared to those of some other online lenders; your business must be bringing in $15K/month ($180K/year) to qualify for a working capital loan or MCA; however, the money comes through fast and the amounts you can borrow are pretty high considering the relaxed borrower requirements. Credibly is also transparent about its rates and requirements, listing all the information you need to know on their website. Visit our Credibly review for more information.

Pros

  • Can borrow up to $400K
  • Will accept very poor credit
  • Transparent rates and fees

Cons

  • High revenue requirements

Get Started with Credibly

Read our in-depth review

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8. PayPal Working Capital: Best For PayPal Sellers

PayPal Working Capital



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PayPal Working Capital offers short-term loans that function similar 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.

The application can be easily accessed within your PayPal account and PayPal does not check your credit at all because it’s strictly based on your PayPal sales. If you have a PayPal Business or Premier account that’s been open for at least 3 months and is processing a certain amount of sales ($15K/year for Business accounts or $20K/year for Premier accounts), you can get funded within minutes of accepting a loan offer. PayPal also offers business loans through LoanBuilder, and those loans are open to all businesses and not just PayPal sellers. However, businesses need at least 9 months in business to qualify for a LoanBuilder loan.

Pros

  • No credit check
  • Easy, automatic repayments
  • Quick access to cash

Cons

  • Only available to PayPal sellers

Read our in-depth review

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Another Option: Get Fast Startup Financing With A Business Credit Card For Bad Credit

Since most lenders require that you have at least some time in business and an established business revenue stream, you may not qualify for a loan at first. If you aren’t quite ready for a business loan, a business credit card can be a good way to pay for startup expenses while building your credit. Business credit cards are also an effective way to establish business credit history and/or separate your personal credit history from your business credit history. Some cards also offer some type of cash back reward or perk.

If you think a credit card could work for your situation, check out our post on the best credit cards for businesses with bad credit. These cards don’t offer as much cash-back as those for good credit, and some carry a high APR. You might also not be able to borrow that much at first if your credit score is low. However, these cards can help you build your credit while helping you finance your business expenses. If you can pay off your balance every month, then you won’t have to pay any finance charges.

FAQs About Startup Loans & Bad Credit

Is it possible to get a startup loan if I have bad credit?

Yes. In fact, some online lenders and nonprofit lenders cater to new business owners with bad credit. However, loans for borrowers with bad credit tend to carry higher interest and have shorter repayment terms compared to traditional business loans. If you lack strong business credentials, it may also be difficult for you to get a loan larger than a microloan ($50K and smaller).

How can I get a startup loan with bad credit?

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 have at least a few months in business 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.

If you find a loan that you are interested in and are eligible for, 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 of accepting the offer.

Do I need collateral to get a bad credit startup loan?

Usually not. That is, these loans usually don’t require you to put up any specific collateral or business assets. However, most online startup loans require a UCC-1 blanket lien and/or a personal guarantee.

The blanket lien covers your business assets as a whole–meaning the lender can seize whatever business assets you do have in the event that you stop paying on the loan. The personal guarantee is an agreement that you are personally responsible for repaying the loan even if your business dissolves or is unable to make repayments.

Can I get an SBA loan with bad credit?

Generally, no. You usually need to have at least fair credit to get an SBA loan. The SBA has different credit score requirements for different loans, but the minimums tend to be in the 600s. For example, the SBA 7(a) loan requires a score of 640, while an SBA Microloan has a minimum of 620.

There are some exceptions, though. For example, the SBA did not require credit checks for the temporary Paycheck Protection Program (PPP) loan program, but participating lenders could pull applicants’ credit and make a lending decision based on the lender’s own requirements.

Which loan company is best for bad credit business loans?

It really depends on your needs–for example, how fast you need the money and how large of a sum you need–and your credentials, such as your credit score, your income, and what stage of growth your startup is in. If your startup is still in the “idea” stage and you just need a few thousand dollars to get off the ground, you may be limited to personal lenders. If your score is in the high 500s and your business is already making money, you’ll have more options, including short-term loans and lines of credit.

To find the best lender you qualify for, be sure to read small business loan reviews to verify that a lender is reputable before you apply. Once you find some good candidates, you can get apply to several loans, and compare pre-approval offers to see which one is best (in terms of the loan amount, interest rate, etc.).

Final Thoughts

The great thing about all of these bad-credit startup loans is that, with a few exceptions, the application process is quick, painless, and entirely online. Also, there’s no risk in getting pre-approved, as this usually only requires a “soft” credit check, which does not impact your credit score. That means you can get pre-qualified for multiple loans and then compare your offers to choose the best one.

If you check out some loan or credit card options and are not pleased with the offers you’re getting, you might consider trying to improve your credit score or looking further into alternative financing ideas. The following resources have some information on how to fund your startup.

Also note that once you’ve been in business for 12 months, many more loan options will be available to you. So it might be worth it to wait a little bit longer to apply for financing if you can. Just make sure you don’t waste your time applying for a bunch of loans that you don’t meet the minimum qualifications for.

In Summary: Best Startup Loans For Bad Credit

  1. Lendio:
    • Minimum credit score: 550
    • Time in business: 6 months
    • Revenue: $10,000 per month
  2. BlueVine:
    • Minimum credit score: 530
    • Time in business: 3 months
    • Revenue: $10,000 per month
  3. Fundbox:
    • Minimum credit score: 500
    • Time in business: 2-3 months
    • Revenue: N/A
  4. Fora Financial:
    • Minimum credit score: N/A
    • Time in business: 6 months
    • Revenue: $5K or $12K/month
  5. Accion:
    • Minimum credit score: 550 or 575
    • Time in business: N/A
    • Revenue: Sufficient cash-flow to repay loan
  6. Avant:
    • Minimum credit score: 580
    • Time in business: N/A
    • Revenue: N/A
  7. Credibly:
    • Minimum credit score: 500-600
    • Time in business: 6 months
    • Revenue: $50K-$180K/year
  8. PayPal Working Capital:
    • Minimum credit score: N/A
    • Time in business: 3 months
    • PayPal revenue: $15K-$20K annually
Shannon Vissers

Shannon Vissers

Shannon is a writer and editor based in San Diego, CA. Shannon attended San Diego State University, graduating in 2005 with a BA in English. She is the former editor-in-chief of SteelOrbis, an online trade publication. Shannon has also published articles for LIVESTRONG.COM, eHow, Life'd, and other websites. She has been with Merchant Maverick since 2015, writing about POS software, small business loans, and financing for women entrepreneurs.
Shannon Vissers
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50 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    EH Pothik

    What is the best alternative of MCA loans.

      This comment refers to an earlier version of this post and may be outdated.

      Jessica Dinsmore

      Hi EH,

      There are many variables to consider when deciding what is best for any given business, but generally speaking, a short-term business loan can be a very good alternative to a Merchant Cash Advance. Our Merchant’s Guide to Short-Term Loans may be helpful to you.

        This comment refers to an earlier version of this post and may be outdated.

        Greg Bonkowski

        Ok, I’m confused. The top of this article says, Don’t Let Bad Credit Stop You From Getting A Startup Loan,” PayPal doesn’t do start-up loans. Now, did you actual research this article, or did you just type “start-up loans” into Google? I even clicked on the Paypal link above and it didn’t even go to Paypal. In fact, if you go over to PayPal, it says that you have to have a “working history with a Paypal account” and nothing about start-ups.

          This comment refers to an earlier version of this post and may be outdated.

          Shannon Vissers

          As we state in the article, PayPal Working Capital is a startup loan option for businesses who already do businesses with PayPal— i.e., you have a PayPal Business or Premiere account. A startup is defined as a business that’s been around for 6 months or less, and you only need to have 3 months history with PayPal to qualify for a PPWC loan. So no, it won’t be an option for you if you don’t have a PayPal account and you just started your business today. 🙂

            This comment refers to an earlier version of this post and may be outdated.

            Greg

            So, you really can’t help people who are looking for start-up financing in the first place? I’m sorry, but when people hear the word “start-up” they assume that they are looking for capital in the first place…when they haven’t done in sales in the first place. Now, can you help me?

              This comment refers to an earlier version of this post and may be outdated.

              Jessica Dinsmore

              Hi Greg,

              This particular post pertains to “businesses six months old or newer and “bad credit” to be a score of 600 or lower,” though typically speaking, startups are considered businesses less than 2 years old. You’d be pretty fortunate to find a traditional lender willing to fund a startup without any proven sales history, even with collateral. Startups are most often funded by their founders until they get an idea off the ground. Luckily, crowdfunding or venture capitalists often come into play. Equipment financing can also be a quick and easy way to purchase the necessary equipment to start your business. And home equity loans are a good option for many entrepreneurs. We’ve got several posts on startup grants as well. That’s a pretty healthy list of helpful resources for startups! I hope you find something in there that will help you take your idea to the next level. If not, we will keep trying! We don’t have all the answers, but we sure try to help our readers find as many as possible! Best of luck to you!

                This comment refers to an earlier version of this post and may be outdated.

                Ash Carter

                Jessica Dinsmore you are right. Lendio is Awesome … I worked with them when I started my first business..

                  This comment refers to an earlier version of this post and may be outdated.

                  jayino

                  Thanks for your good website and information !

                    This comment refers to an earlier version of this post and may be outdated.

                    GREGORY

                    Lendio, DOES NOT do bad credit business startup loans.

                      This comment refers to an earlier version of this post and may be outdated.

                      Mike T

                      Thanks ” Shannon Vissers” for your depth informative post. Personally, I like PayPal for its Fast application process and Easy repayment system.

                        This comment refers to an earlier version of this post and may be outdated.

                        Tab Pierce

                        I have an 8+ year old services firm. We’ve had a bit of hard luck over the past three years, but have pretty much pulled ourselives up and out through much difficulty. We’re now sitting on a six month SOW/PO of $840,000. However, that means we have to hire four new people and we don’t have the capital to bridge invoice payments. We’ve looked at one more traditional loan and it didn’t work. We’ve considered factoring, but the timing appears to be off. We don’t want to turn to a hard money lender because of the rates. However, based on my personal credit history and things with the business we’re havign a tough time connecting the dots. Any suggestions on how to receive funding, even for six months or so, without giving up a first born child?

                          This comment refers to an earlier version of this post and may be outdated.

                          Shannon Vissers

                          Hi there! Depending on your credit score, you might be eligible for any of the loans mentioned in this article, or any of the loans from our SMB lender comparison chart. You can usually prequalify and see what rates they might offer you without it dinging your credit score. However, a few of those options, including Lendio and Fundation, could get you as much funding as you need.

                          You might also be eligible for an SBA loan (if you haven’t already looked into that). SmartBiz is another online lending service for established businesses like yours, which helps you apply for an SBA loan. It might also be worth it for you to look into some more invoice factor options, even though the ones you already checked wouldn’t work for you.

                            This comment refers to an earlier version of this post and may be outdated.

                            Greg Bonkowski

                            It says business start up loans, but to qualify you have to be in business for at least a few month and draw revenue. Doesn’t make sense, does it?

                              This comment refers to an earlier version of this post and may be outdated.

                              Shannon Vissers

                              By most definitions, a startup means 6 or fewer months in business. So, a 6-month old business can still be considered in the startup phase. You will be hard-pressed to find a bank or online lender willing to extend a loan to someone who hasn’t made any money from their business yet. If this is the case, you could try taking out a personal loan. And some online lenders like Fundbox only require 3 months in business.

                                This comment refers to an earlier version of this post and may be outdated.

                                John Nichols

                                That’s all well and good but, like in my case. I need $5,000,000.00 just to even start anything. Can’t get a personal loan for that much anywhere.

                                  This comment refers to an earlier version of this post and may be outdated.

                                  Greg Bonkowski

                                  Yep. Sights like this are pretty much BS. They say that they can help you, but they can’t. For some reason, sites like this keep on popping up when you type “start-up loans” into Google. Perhaps, they should stop advertising like that.

                                    This comment refers to an earlier version of this post and may be outdated.

                                    Esther Taylor

                                    Hi. I’ve had my business for about a year. It’s solely on-line. However, I want to move into an actual brick and mortar store. I’m trying to get some help with funding on acquiring my stock for the store as well as help with the deposit for the location. I could make this possible with about $3000.00.Any suggestions?

                                      This comment refers to an earlier version of this post and may be outdated.

                                      Jessica Dinsmore

                                      Hi Esther!

                                      We’ve broken down all of our recommended lenders by type of financing, as well as credit score and time in business to make it easy for you to narrow down your options. We also have revenue requirements listed. I’d definitely suggest taking another look and reaching out to those that seem like a suitable match. We’ve spent a lot of time researching these lenders for you, so you can trust you’ll be in good hands with whoever you choose. Best of luck with your move!

                                        This comment refers to an earlier version of this post and may be outdated.

                                        Darian Taylor Jr

                                        HI my name is Darian Taylor Im looking for a Business loan up to $30,000. I thought of a New ashtray system that goes in your vehicle that also eliminates odors in your car for every one who’s in the car who doesn’t like Cigarettes like me. I hate cigs I grew up with all kinds of family and friends who like it but me no I’m the total opposite that’s why i thought of this Idea. I have so many blueprints on and it how it would work. It could be a multimillion dollar business and its good for people who likes cigs and for people who live with other people who smoke cigs! What’s the best start up loan place cause if i could get help from them i can give them double the amount. Thats how good my Idea is….

                                          This comment refers to an earlier version of this post and may be outdated.

                                          Jessica Dinsmore

                                          Hi Darian,
                                          We’ve named ten great startup lenders in this article that should be able to help you. But if you want to check out other types of loans available, this article might help. Good luck!

                                            This comment refers to an earlier version of this post and may be outdated.

                                            George Davis

                                            My credit score is in the low 500s and I need about $20,000 for the start up cost of everything I’ll need to get it going. I currently make around $11,000 monthly but I need to lease an actual location for my massage company. I would have around $2,000 to put down for any loan. Any ideas on what might work for me?

                                              This comment refers to an earlier version of this post and may be outdated.

                                              Shannon Vissers

                                              Hi there! If you have officially been in business for at least six months, you could almost qualify for Credibly—but you’d have to get your business revenue up to $15K a month. You might also qualify for a loan from Accion, though you might need to improve your credit score to at least 575. Check their website to see the requirements and loan options in your state. Avant is another possibility if you can get your score up to 600. Hope it helps!

                                                This comment refers to an earlier version of this post and may be outdated.

                                                Scott

                                                I’m a certified life coach wanting to jumpstart my coaching and public speaking business, I have very little disposable income and a credit score below 550. Are there any options available to me?

                                                  This comment refers to an earlier version of this post and may be outdated.

                                                  Shannon Vissers

                                                  Hi Scott! You do have options with bad credit, but whether you’re eligible will depend on your income level. Lenders want to see that you have enough money to make payments on your loan—daily or weekly repayments on your loan will start as soon as you receive the money. Credibly, for example, will accept scores as low as 500, but they’ll want to see that you make $15K/month. You might also have to pay a lot of interest if you have bad credit, so that’s something else to keep in mind.

                                                    This comment refers to an earlier version of this post and may be outdated.

                                                    Tambrey

                                                    my husband and I have a small wellness centre (massage therapy, wellness products) in a rural community in NW Iowa. We basically have no credit, other than medical bills that have brought our scores way down…house paid for, vehicle paid for, no credit cards…
                                                    Small business with maybe $2000 income at the moment (single therapist, soon to be me and my husband part time)…so trying to find a lender who will loan is even $15,000 is difficult, because we do not have a minimum revenue of $15,000 a month or big deposits in our checking account.
                                                    All we have built up so far has been done with our own saved money and turning what we make at the business back into it.
                                                    What are options for a small but growing business, who could take that $15,000 and potentially turn it into an additional $30,000 in revenue within the first year. We have our business plan, and the upgrades we want to incorporate will bring in extra revenue easily, with little additional effort on our part.
                                                    Spa treatments within our scope of massage license, Sauna room, yoga and dance, herbal store….we just need to find the opportunity of someone taking the chance with us…somewhere

                                                      This comment refers to an earlier version of this post and may be outdated.

                                                      Shannon Vissers

                                                      Hi there! It’s difficult if your income and credit score are both low. The lenders that accept bad credit tend to have higher income requirements. Business lenders will want to see that you have sufficient income to repay the loan, because loan repayments can be quite large and are taken from your account on a weekly or even daily basis. For a short-term loan of even just $15K, you’d likely be paying back something at least $500-$1000/month (broken into daily or weekly repayments), depending on the length of your loan term.

                                                      With all that said, I think the best bet for you would probably be a personal loan, as these don’t have business income requirements and they may accept applicants with fair credit scores. A personal loan will also usually allow you to repay the loan over 2-5 years, compared to a short-term business loan that could require you to pay back the loan in just a few months. Here is a resource on personal loans for business to get you started. Prosper, Lending Club, and Lending Point are a few popular lenders in this category.

                                                      If you can improve your credit score so that it’s at least in the 600s, you might be able to qualify for a personal loan (though you’ll need to check each individual lender’s requirements). Also be sure to check the loan terms before accepting an offer to make sure you can afford the repayments.

                                                        This comment refers to an earlier version of this post and may be outdated.

                                                        Brad

                                                        I’m trying to start a trucking company and only have a credit score of 600 the only bad credit is hospital bills I got my EIN# and llc yesterday I need a lone to buy a commercial straight truck. Me and my wife have about 90,000 of personal income annul for 2 years but if we start are own business it would generate about 200,000 per year per truck the goal is to start small with one truck and after 2 years get 2 more and start hiring employees what are my options for lines of credit and financing of equipment

                                                          This comment refers to an earlier version of this post and may be outdated.

                                                          Shannon Vissers

                                                          Hi Brad, we recently published The Best Business Loans For Trucking Companies which I think will help you. For your particular situation, since you just need to buy one truck, I think an equipment loan/lease might be the best fit.

                                                            This comment refers to an earlier version of this post and may be outdated.

                                                            Charlie

                                                            I have a concrete business that once generated 3 million dollars in revenue annually. Due to illness and some personal issues, the business closed. I have overcome all the personal issues, and I am ready to restart the business. However, I do not have the working capital but I have equipment valued between $650k and $820, I need a loan of $100k -$150k to be able to restart the business. The construction industry is blooming and I have ready customers for my products. My credit score is about 600.

                                                              This comment refers to an earlier version of this post and may be outdated.

                                                              Kenneth Wells

                                                              Hi,

                                                              We’re a start-up Solar company doing about $50k in revenue, we are in need of some working capital. But can’t find anyone to approve us.

                                                                This comment refers to an earlier version of this post and may be outdated.

                                                                Jessica Dinsmore

                                                                Hi Kenneth,

                                                                I think this blog post on Working Capital should point you in the right direction! I’d also suggest this one, on being declined. Best of luck to you with your solar business!

                                                                  This comment refers to an earlier version of this post and may be outdated.

                                                                  Yvonne

                                                                  I have an idea for technology start-up. My credit is fair. I have a business plan, a non-working prototype. I would like a small business loan to get started on building a working product.

                                                                  Are there any lenders I should consider going to?

                                                                    This comment refers to an earlier version of this post and may be outdated.

                                                                    Jessica Dinsmore

                                                                    Hi Yvonne,

                                                                    I’d suggest looking over our startup loan comparison chart. We have their credit score requirements posted on the chart, so you can easily determine which ones you might qualify for. Good luck!

                                                                      This comment refers to an earlier version of this post and may be outdated.

                                                                      Walt Wade

                                                                      Hi I have mining claims lease for 11 years. My mine has certified registered geologist report stateing I have 6 million ton on the surface , my estimated ton is 300 million. Ton ton of my iron ore will produce 1500 pounds of gun grade steel. This is the only deposit of iron ore in the world at this time. I also have certified lab results showing 40 ounces of gold 400 ounces silver and copper. The mine is already approved to mine truck state BLM. I decided to build a foundry to pour the steel out and seperate the precious metals off the steel. This takes a 3 step melting process which have built all crushing and milling equipment greater exchange and 2 of the 3 melters needed for the separation. I spent all my money doing this and also ruined my credit doing it. I have decided to form 2 LLC companies one for the mine and the other for the foundry to keep them separate. I also want to write up a contract from my mine to my foundry for the production of 6 million tons of the iron ore. One ton of gun grade steel retails for 22 thousand my melter will produce 1.6 ton in 24 hours using foundry coke for fuel. That around 35 thousand a day in steel product and 78 thousand a day in gold and 7,500 a day in silver I am in need of 120 thousand to finish into production with in a 3 to 6 month time . Is this type of loan possible

                                                                        This comment refers to an earlier version of this post and may be outdated.

                                                                        Jessica Dinsmore

                                                                        Hi Walt!

                                                                        To be honest, this isn’t something we’ve ever encountered before, so it may be a bit outside of our expertise. I’d rather not give you an answer that I’m not too certain about. I’d suggest looking into lenders that specialize in the mining/industrial sector. If you happen to figure this out on your own, please let us know what solution you find so we can learn how to answer something like this in the future. Good luck!

                                                                          This comment refers to an earlier version of this post and may be outdated.

                                                                          Damaris

                                                                          Hi, I have a credit score of about 656, a few late payments (less than a year old but maybe 6 or so months old), and I also have a bankruptcy that never went through with but is showing up as dismissed from 6 1/2 years ago. I am looking for startup funds to help purchase kitchen equipment and help with buildout payments to contractors for a small restaurant. Are there any companies or organizations that would approve funding with that credit history and only 1 sole owner?

                                                                            This comment refers to an earlier version of this post and may be outdated.

                                                                            Shannon Vissers

                                                                            Hi Damaris, your credit history shouldn’t be a problem with any of these lenders; your approval will depend more on your current income. For most of these lenders, you will need to have been in business at least 6 months and already be generating business revenue. Avant doesn’t have any time-in-business or business revenue requirements but will want to see that you have sufficient personal income to support repayments.

                                                                              This comment refers to an earlier version of this post and may be outdated.

                                                                              Josh

                                                                              Hello,
                                                                              My credit score is bad (around 590 or so) and I need a start up business loan for a group home business (for individual with disabilities). Which of this lenders would be a perfect match for me?

                                                                                This comment refers to an earlier version of this post and may be outdated.

                                                                                Shannon Vissers

                                                                                Hi Josh! I think Accion would be a good fit for you, as they are a nonprofit that lends to startups with bad credit and especially caters to inclusive businesses that help the community. They have pretty fair rates, too. If you don’t qualify, you may be able to get a small loan through Kiva if you can get some loan backers from your personal networks. Credibly lends to startup businesses that are already generating revenue, so you may also look into them if you’re making $15k/month.

                                                                                  This comment refers to an earlier version of this post and may be outdated.

                                                                                  Tiffany

                                                                                  Hello! Do any of the above lenders extend credit to owners of ecommerce/online businesses? I want to purchase an existing ecommerce business and while my credit is not terrible (650), I’d prefer not seek financing through a traditional lender.

                                                                                    This comment refers to an earlier version of this post and may be outdated.

                                                                                    Shannon Vissers

                                                                                    You could likely get a loan through a lender like Accion, Prosper, Avant, or Upstart (maximum $10K-$50K) but these are pretty small loans which likely would not be large enough to finance an entire business purchase. You might want to check out my article on business acquisition loans for some more ideas on how to finance your business purchase.

                                                                                      This comment refers to an earlier version of this post and may be outdated.

                                                                                      Marley Wells

                                                                                      I have bad credit below 550 and I want to open my own boutique. Which would be best for me bruh that I don’t have much income due to a art time job

                                                                                        This comment refers to an earlier version of this post and may be outdated.

                                                                                        Shannon Vissers

                                                                                        With a credit score that low, it will be pretty difficult to get a startup loan, especially since you don’t have much income or any time in business. You might be able to get a very small loan from Kiva, which doesn’t have any income or credit score requirements; however, businesses younger than 90 days can only get a max of $5K and businesses still in the idea stage can get a max. loan of $1K. Accion or Credibly might also be a possibility after you’ve been in business six months and started generating some revenue. You might consider establishing a home-based business and selling online or at events before opening the actual boutique — you can get a PayPal Working Capital loan once you have had a PayPal business account for a few months and are processing $15K a year.

                                                                                          This comment refers to an earlier version of this post and may be outdated.

                                                                                          Shanawaz khan

                                                                                          Thanks for the useful and informative article! There should be less interest rates and easy repayments.

                                                                                            This comment refers to an earlier version of this post and may be outdated.

                                                                                            Max Baron

                                                                                            I think PayPal Working Capital is one of the best lending services because PayPal’s Working Capital doesn’t charge interest and obviously Easy repayments and bad credit-friendly. I have to say the reasons because recently I got the loan in PayPal Working Capital.

                                                                                              This comment refers to an earlier version of this post and may be outdated.

                                                                                              clive ngobeni

                                                                                              i nee a loan t pay for the franchise

                                                                                                This comment refers to an earlier version of this post and may be outdated.

                                                                                                Jessica Dinsmore

                                                                                                Hi Clive,
                                                                                                Here is a great article on Financing a Franchise that might be helpful to you. Good luck!

                                                                                                  This comment refers to an earlier version of this post and may be outdated.

                                                                                                  Marvin Bowen

                                                                                                  I think it’smay be in to take loans for bad credit if you have a good plan that would work if you’re about to do business.

                                                                                                  Like me, I am currently trying to get loans to bring my idea to life after I just got the patent, but it has been difficult getting a loan. I believe in the idea that if made right, it would work.

                                                                                                    This comment refers to an earlier version of this post and may be outdated.

                                                                                                    Steve Trooper

                                                                                                    Nice list of lenders for getting a business startup loan. There are some people that get a personal loan when trying to start a business and that is a bad decision. People should only get a personal loan for personal use hence the name. I have seen people take out a business installment loan online for bad credit. This is a big mistake. These loans should online be used for financial emergencies.

                                                                                                      This comment refers to an earlier version of this post and may be outdated.

                                                                                                      Fahad

                                                                                                      Thanks for this informational article, I really like the way of your dedication.

                                                                                                        This comment refers to an earlier version of this post and may be outdated.

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