Best of
Best Business Loans for Bad Credit 2019
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Online lenders provide small-business loans for borrowers with bad credit. Rates may be higher than bank loans.
Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.
It's free and won't affect your credit.
on Lendio's website
Our picks for
500+ personal credit score
Kabbage, Fundbox and QuarterSpot provide short-term cash for working capital.
Kabbage - Line of credit
Est. APR
24.00 - 99.00%
Min. Credit Score
560
Pros
- Financing up to $250,000 available within a few days.
- Accepts low credit scores.
Cons
- Rates are high compared to other online lenders.
- Must have online checking or PayPal account to verify cash flow.
- Fixed-fee structure means early repayment does not save interest.
Qualifications
- Minimum credit score: 560.
- Minimum time in business: 1 year.
- Minimum annual revenue: $50,000.
Fundbox - Line of credit
Est. APR
10.10 - 79.80%
Min. Credit Score
500
Pros
- Cash can be available by the next day.
- Low minimum credit score requirement.
Cons
- Rates are high compared to other online lenders.
Qualifications
- Minimum credit score: 500.
- Minimum time in business: 3 months.
- Minimum annual revenue: $50,000.
QuarterSpot - Online term loan
Est. APR
30.00 - 70.00%
Min. Credit Score
550
Pros
- Requires low minimum credit score.
- Cash can be available within the same day.
- No prepayment penalty.
Cons
- Rates are high compared to other online lenders.
- Short loan terms.
- Requires personal guarantee.
Qualifications
- Minimum credit score: 550.
- Minimum time in business: 2 years.
- Minimum annual revenue: $200,000.
- Average at least 10 monthly revenue-producing deposits.
- Minimum $2,000 average daily account balance.
Our picks for
600+ personal credit score
StreetShares and BlueVine offer financing up to $250,000 and require a minimum credit score of 600.
StreetShares - Online term loan
Est. APR
8.00 - 39.99%
Min. Credit Score
600
Pros
- No prepayment penalty.
Cons
- Requires weekly repayments.
- Financing amounts limited to 20% of annual revenue.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 1 year.
- Minimum annual revenue: $25,000.
- No bankruptcies in the past 3 years.
BlueVine - Line of credit
Est. APR
15.00 - 78.00%
Min. Credit Score
600
Pros
- Offers options for businesses less than a year old.
- Cash can be available within 12 to 24 hours.
Cons
- Short repayment term results in higher payment amounts.
- Requires personal guarantee.
- Not available in North Dakota, South Dakota or Vermont.
Qualifications
- 6-month line of credit
- Minimum credit score: 600.
- Minimum time in business: 6 months.
- Minimum annual revenue: $100,000.
- 12-month line of credit
- Minimum credit score: 620.
- Minimum time in business: 2 years.
- Minimum annual revenue: $450,000.
Our pick for
Businesses with unpaid customer invoices
BlueVine lets you turn your unpaid customer invoices into immediate cash. It typically evaluates the strength of your customers, such as whether they pay on time, more than your personal credit.
BlueVine - Invoice factoring
Est. APR
15.00 - 68.00%
Min. Credit Score
530
Pros
- Finances larger invoices.
- Cash can be available within the same day.
- Accepts low minimum credit score and short time in business.
Cons
- Not for businesses that do not invoice on net terms.
- Loan amount is tied to the value of your invoices.
- Dependency on customers to pay their bills on time.
Qualifications
- Minimum credit score: 530.
- Minimum time in business: 3 months.
- Minimum annual revenue: $100,000.
Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.
It's free and won't affect your credit.
on Lendio's website
Summary of Best Business Loans for Bad Credit 2019
| Lender | Best For | Est. APR | Min. Credit Score |
|---|---|---|---|
Kabbage - Line of credit | 500+ personal credit score | 24.00 - 99.00% | 560 |
Fundbox - Line of credit | 500+ personal credit score | 10.10 - 79.80% | 500 |
QuarterSpot - Online term loan | 500+ personal credit score | 30.00 - 70.00% | 550 |
StreetShares - Online term loan | 600+ personal credit score | 8.00 - 39.99% | 600 |
BlueVine - Line of credit | 600+ personal credit score | 15.00 - 78.00% | 600 |
BlueVine - Invoice factoring | Businesses with unpaid customer invoices | 15.00 - 68.00% | 530 |
| Lender | Best For | Est. APR | Min. Credit Score |
|---|---|---|---|
Kabbage - Line of credit | 500+ personal credit score | 24.00 - 99.00% | 560 |
Fundbox - Line of credit | 500+ personal credit score | 10.10 - 79.80% | 500 |
QuarterSpot - Online term loan | 500+ personal credit score | 30.00 - 70.00% | 550 |
StreetShares - Online term loan | 600+ personal credit score | 8.00 - 39.99% | 600 |
BlueVine - Line of credit | 600+ personal credit score | 15.00 - 78.00% | 600 |
BlueVine - Invoice factoring | Businesses with unpaid customer invoices | 15.00 - 68.00% | 530 |
How do you get a business loan with bad credit?
Alternative lenders provide options for borrowers with a spotty credit history. Most of these lenders require a minimum personal credit score ranging from 500 to 650. A few lenders have no minimum credit score requirement.
Other factors that may be considered include your annual revenue, time in business and whether you’ve had recent bankruptcies.
Borrowers should consider the following before choosing a financing option:
- A lower credit score may result in a higher interest rate on your loan.
- If you have unpaid customer invoices, you can get immediate cash through invoice factoring or financing. While lenders may still check your credit score, approval is based mainly on the value of your invoices.
- If you can wait and improve your personal credit, you may qualify for more options at better rates.
If you have less than a year in business
If your enterprise is less than a year old with little revenue, it’ll be tough to find a loan, no matter your credit. Here are startup financing options to help you grow your company.
Potential options include business credit cards, which typically provide borrowing amounts up to $50,000. However, approval is based on your personal credit score, and you’ll need a minimum credit score of 630 to qualify for most cards.
If you need to improve your credit score, consider getting a secured personal credit card first. These cards require a cash security deposit when you open the account. However, use the card responsibly, and you’ll improve your personal credit and get back your deposit.
Compare more small-business loan options
If none of the loans included here works for you, or if you’d like to compare loan options, NerdWallet has a list of small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.
Last updated on November 21, 2019
To recap our selections...
NerdWallet's Best Business Loans for Bad Credit 2019
- Kabbage - Line of credit: Best for 500+ personal credit score
- Fundbox - Line of credit: Best for 500+ personal credit score
- QuarterSpot - Online term loan: Best for 500+ personal credit score
- StreetShares - Online term loan: Best for 600+ personal credit score
- BlueVine - Line of credit: Best for 600+ personal credit score
- BlueVine - Invoice factoring: Best for Businesses with unpaid customer invoices
