The 5 Best Small Business Loans For Bad Credit

Get Started With BusinessLoans.com

Pros

No minimum credit score required
A variety of bad credit loan types are available
Available in all 50 states
Funding amounts as large as $3 million

Cons

Minimal fee information disclosed on the website

Why We Chose BusinessLoans.com For Businesses With Bad Credit

BusinessLoans.com is an online lending marketplace with multiple types of business loans available to businesses with bad credit via the free service’s network of partnered lenders. Some of these loan types include short-term loans (STL), merchant cash advances (MCA), lines of credit (LOC), invoice factoring, equipment financing, and others.

Importantly, BusinessLoans.com does not require any minimum credit score to apply. Different lenders in its network may have different qualifications they desire in applicants, but BusinessLoans.com will try to find you with a matching offer, even if your credit is bad.

BusinessLoans.com Rates & Fees

BusinessLoans.com does not disclose much information about rates and fees on its website. However, BusinessLoans.com does estimate that payback fees on MCAs will equal 20% to 40% of the total advance amount (typical for an MCA).

BusinessLoans.com Eligibility Requirements

Business loan requirements for loans obtained through BusinessLoans.com vary, but the following requirements apply generally:

Time In Business	6 months
Business Revenue	$100,000 per year
Personal Credit Score	N/A

2. Revenued: Best Business Credit Card With No Credit Check

Revenued Business Card

Get Started With Revenued Business Card

Annual Fee

Minimum Recommended Credit

N/A

Rewards Rate

3% cash back on eligible purchases

Pros

No FICO score or credit check
No monthly or annual fee
3% cash back on all purchases
$500 welcome offer

Cons

Cannot carry a balance
Cash advances have high factor rates
It doesn’t help you build credit

Why We Chose Revenued For Businesses With Bad Credit

Revenued is one of the only business credit cards with no minimum FICO but still offers rewards. In fact, Revenued does not conduct any hard credit checks at any point during the application or approval process. Instead, approvals and borrowing limits are based on your business revenue.

Revenued also allows cardholders to withdraw cash advances against their credit line. These no-credit-check business loans can have high factor rates, but they are still in line with industry standards,

As for rewards, you can earn $500 after spending $5,000 within your first three months as a Revenued cardholder and 3% cash back on all purchases thereafter.

Revenued Rates & Fees

You will not incur any fees when using the Revenued business credit card since you cannot carry a balance. For cash advances, Revenued charges customers using a factor rate model, with factor rates ranging from 1.1-1.5.

Revenued Eligibility Requirements

Applicants should meet the following minimum criteria:

Time In Business	6 months
Business Revenue	$15,000 per month
Personal Credit Score	N/A

3. Fundbox: Best LOC For Bad Credit

Fundbox

Pros

Get approval decision in as little as three minutes
Access funds as soon as the next business day
Apply and draw funds from Fundbox mobile app

Cons

Small credit limits ($150K or less)
Must repay the loan quickly (12 or 24 weeks)

Why We Chose Fundbox Loans For Businesses With Bad Credit

Fundbox offers an easy-to-use business line of credit that is not backed by specific collateral, even with bad credit. Fundbox uses algorithms to gain a holistic view of your business and make quick lending decisions. Most applicants will be able to fill out their applications, learn about their eligibility in a few minutes, and start drawing funds immediately.

Fundbox also made our list of the best unsecured business loans.

Fundbox Rates & Fees

Fundbox rates start at 4.66% for 12-week terms and 8.99% for 24-week terms. Fees are paid automatically every week.

Fundbox Eligibility Requirements

Before you apply to Fundbox, first make sure you meet the following minimum qualifications:

Time In Business	6 months
Business Revenue	$100,000 per year
Personal Credit Score	600

Get Started With Fundbox

4. Lendio: Best For Bad Credit Business Loan Options

Lendio

Pros

Free service
Saves time by sending your application to multiple lenders at once
A variety of loan types are available
Large lender network

Cons

Not all lenders are bad-credit friendly
Not for brand-new businesses that aren’t making money yet

Why We Chose Lendio For Businesses With Bad Credit

Lendio is not actually a lender. It’s an online loan marketplace you can use to search and apply for business loans of all types, including short-term loans, medium-term loans, lines of credit, and merchant cash advances, among others. Lendio has a vast lender network that includes some lenders that accept applicants with bad credit.

Lendio’s free service lets you prequalify for and compare multiple loan offers so that you can select the best one. Lendio saves you time and ensures you secure a fairly-priced loan, even with bad credit.

Lendio Rates & Fees

Interest rates on loans available through Lendio’s partnered lenders can be as low as 3% for certain types of financing, such as accounts receivable financing. Your offer rate will depend on which type of loan you’re applying for (and how bad your credit score is). Lendio does not charge borrowers any additional fees to use the service.

Lendio Eligibility Requirements

Depending on which type of loan you apply for, Lendio’s borrower requirements vary. For example, you can apply for a business line of credit through Lendio with a credit score as low as 560. For a term loan, you’ll need to have a score in the high 600s.

The company recommends that you at least meet the following minimum requirements:

Time In Business	6 months
Business Revenue	$10,000 per month
Personal Credit Score	560

Get Started With Lendio

5. Credibly: Best Working Capital Loan For Bad Credit

Credibly

Get Started With Credibly

Pros

Credit score can be as low as 500
Discount for early repayment
Loans as large as $400K

Cons

It can take longer than some other online lenders
Not available in every state

Why We Like Credibly For Businesses With Bad Credit

Credibly offers short-term working capital loans for bad credit, as well as equipment financing and invoice factoring for businesses with poor credit. Lines of credit, SBA loans, and business expansion loans are also available, though these require slightly better credit.

Credibly’s loans are not available in every state, so make sure Credibly serves your state before applying.

Credibly has a relatively easy online application process and good customer service. However, some users say that the application process took longer than expected. Note that the “48-hour funding” that Credibly advertises refers to how long it will take to receive the funds after your application is approved. Still, as long as you’ve got all your documents ready, the entire time from application to funding usually doesn’t exceed five days.

Credibly Rates & Fees

Credibly’s factor rates for STL, MCA, equipment financing, and invoice factoring start at 1.09.

Credibly Borrower Requirements

To qualify for a working capital loan or merchant cash advance, make sure you meet the following minimum borrower requirements before applying:

Time In Business	6 months
Business Revenue	$15,000 per month
Personal Credit Score	500

Credibly’s LOC has a minimum credit score of 560.

Best Types Of Business Loans For Bad Credit

To improve your chances of getting a loan despite bad credit, look for types of business loans that don’t place as much emphasis on credit during the application and review process.

Types of loans for bad credit you might want to consider include:

Online Loans: Also called “alternative lenders,” online lenders place less importance on credit scores because they examine non-traditional risk metrics.
Microloans: Microloans feature small borrowing amounts and short-to-medium business loan repayment terms. Microloans are considered low-risk because loan amounts are small, so poor credit isn’t always a barrier to funding.
Invoice Financing: Invoice financing is a type of loan in which you put up your unpaid invoices as collateral in exchange for immediate financing. Because invoice financing is dependent on your customers paying their invoices, not you, your credit is not an important consideration.
Crowdfunding: Although crowdfunding can be significantly more work than other types of business financing, your credit score isn’t usually a consideration. Instead, backers decide to contribute to your fund based on your business plan’s strength, a desire to contribute to a business in a particular community, or other factors.
Business Credit Cards: You won’t qualify for the best credit cards if you have bad credit, but many issuers still offer credit cards for businesses with low scores. In addition to granting you access to cash, credit cards will help you build your credit up to get better financing down the line.

How To Get A Business Loan With Bad Credit

Wondering how to get a business loan with bad credit, or if it is even possible to get a business loan with bad credit? It is definitely possible to get a business loan even with subprime credit, but finding a business loan when you have poor credit does present an extra challenge.

Here are four things you can do to make sure you’re getting the best loan possible.

Check Your Credit Reports

Take a good look at your credit score and reports before looking for a small business loan. You might discover there are errors you can fix or forgotten debt you can pay off, which could improve your credit score quickly. Knowing your credit score will also help you find lenders that work with borrowers in your credit range.

You can check your credit reports annually with free credit reports from credit reporting agencies. Additionally, you can monitor your score and reports by signing up for a free credit score website.

Know How Much You Can Borrow

Don’t get stuck with money you’ll struggle to pay back. Take a good look at your financials to understand how much you can repay monthly. Coming to lenders with this knowledge will help you make the right decision about which loan terms are best for your situation.

Knowing how to calculate your borrowing limits and understanding debt service coverage and debt-to-income ratios will keep you from getting in over your head with loan repayments.

Shop Around

Though it can be tough to get a business loan with bad personal credit, know that you have options. Don’t take the first loan offer that you find. Instead, take some time to learn about all the loans available to you and compare options.

Understand The Loan Terms

Bad credit small business loans often come with unfamiliar fee structures and borrowing terms. Before accepting a business loan offer, make sure you understand the borrowing terms. Take the time to learn:

How much you’ll be paying every month
How much you’ll be paying in fees overall
What happens if you repay the loan early
What happens if you make a late payment
What options you have if you can no longer repay the loan

By understanding how business loans work and the particulars of the loan you’ve been offered, you can compare loan offers and choose the best option for your business.

Business Loans & Bad Credit: FAQs

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

Yes, it is possible to get a business loan if you have bad credit. However, you will most likely face larger fees and smaller borrowing amounts than borrowers with good credit.

If you have poor credit, you might be able to improve your chances of getting a loan if you can put up collateral or prove that you have strong credentials in other areas (i.e., healthy business revenue and industry experience).

What credit score do I need to get a business loan?

You will usually need a score of at least 500 to secure a business loan, such as a short-term loan or line of credit.

Some online lenders do not have any stated minimum credit score requirements. However, they will usually pull your credit and verify your personal and business information to look for any red flags that indicate you won’t be able to repay your loan.

Where can I get a business loan for bad credit?

The best place to get business loans for bad credit depends on several factors, including what specific type of financing you need, how long you’ve been in business, how much revenue your business makes, and your credit score. The lenders listed in this article are a good place to start.

How much do bad credit business loans cost?

Business loans for poor credit are not cheap. You could end up paying as much as 40% of your loan amount or more in fees. The amount you will have to pay will depend on your business credentials, which lender you choose, the size and term length of your loan, and other factors.

Lenders often have loan calculators on their websites to help you get a rough idea of what your fees could be.

Are there any resources to help me get a bad credit business loan?

If you have not been able to qualify for a business loan on your own due to bad credit, it is a good idea to check if any local business associations are offering low-interest loans to struggling small businesses in your region. Local Community Development Financial Institutions can offer CDFI business loans or connect you to resources that can help.

More Resources For Business Loans & Bad Credit

Finding business loans is still generally possible even if you have bad credit.

Low credit score business loans can enable businesses to purchase needed inventory and equipment or cover payroll during slow seasons. Though a traditional bank requires a good credit score to qualify for a loan, many online lenders will be willing to lend to you even if your credit isn’t anything to brag about. Just make sure that you look over the loan terms before accepting an offer because many short-term lenders have unfavorable terms.

Finally, a credit card is another option to consider as an alternative to a loan. If you have business expenses you can pay for with a credit card and don’t necessarily need liquid cash, you should read about the best credit cards for bad credit to explore your best options.

In Summary: Best Business Loans For Bad Credit

BusinessLoans.com:
- Offers: Business loan matchmaking services
- FICO: N/A
- APR: Not disclosed
Revenued Business Card:
- Offers: Business credit card & cash advances
- FICO: N/A
- Factor rate: 1.1-1.5
Fundbox:
- Offers: Lines of credit
- FICO: 600+
- APR: 4.66%+
Lendio:
- Offers: Business loan matchmaking services
- FICO: 560+
- APR: 3%+
Credibly:
- Offers: STL, MCA, invoice factoring, equipment financing & more
- FICO: 500+
- Factor Rate: 1.09+

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Shannon Vissers

Senior Staff Writer at Merchant Maverick

Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.

@ShannonVissers

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1. BusinessLoans.com

❮ ❯

Offers: Business loan matchmaking services
FICO: N/A
APR: Not disclosed

2. Revenued Business Card

❮ ❯

Offers: Business credit card & cash advances
FICO: N/A
Factor rate: 1.1-1.5

3. Fundbox

❮ ❯

Offers: Lines of credit
FICO: 600+
APR: 4.66%+

4. Lendio

❮ ❯

Offers: Business loan matchmaking services
FICO: 560+
APR: 3%+

5. Credibly

❮ ❯

Offers: STL, MCA, invoice factoring, equipment financing & more
FICO: 500+
Factor Rate: 1.09+