Best Business Loans for Bad Credit of September 2025
Even if you have a lower credit score, you may still qualify for certain business loan options.
If you have bad credit (a score below 630), it’s difficult to get a small-business loan from a bank or credit union. But online and nonprofit lenders offer bad credit business loans to borrowers with personal credit scores as low as 500.
Why trust NerdWallet
| Loan | NerdWallet rating | Best For | Max loan amount | Min. credit score | Next steps |
|---|---|---|---|---|---|
 Giggle Finance - Merchant cash advance with Fundera by NerdWallet | Best for No credit check | $10,000 | 300 | with Fundera by NerdWallet | |
| Pros
Cons
| |||||
 SBA microloan with Fundera by NerdWallet | Best for Low interest rates | $50,000 | 620 | with Fundera by NerdWallet | |
| Pros
Cons
| |||||
 Fora Financial - Online term loan with Fundera by NerdWallet | Best for Fast funding | $1,500,000 | 570 | with Fundera by NerdWallet | |
| Pros
Cons
| |||||
 Expansion Capital Group - Merchant cash advance with Fundera by NerdWallet | Best for Working capital | $300,000 | 500 | with Fundera by NerdWallet | |
| Pros
Cons
| |||||
 AltLINE - Invoice factoring with Fundera by NerdWallet | Best for B2B businesses | $5,000,000 | 300 | with Fundera by NerdWallet | |
| Pros
Cons
| |||||
 eLease - Equipment financing with Fundera by NerdWallet | 4.0
/5
| Best for Equipment loans | Undisclosed | 550 | with Fundera by NerdWallet |
| Pros
Cons
| |||||
 OnDeck - Online term loan with Fundera by NerdWallet | Best for Short-term loans | $250,000 | 625 | with Fundera by NerdWallet | |
| Pros
Cons
| |||||
 Headway Capital - Line of credit with Fundera by NerdWallet | Best for Startups | $100,000 | 625 | with Fundera by NerdWallet | |
| Pros
Cons
| |||||
 Accion Opportunity Fund Small Business Working Capital Loan with Fundera by NerdWallet | Best for Long-term loans | $350,000 | 600 | with Fundera by NerdWallet | |
| Pros
Cons
| |||||
 Rapid Finance - Online term loan with Fundera by NerdWallet | Best for Larger loan amounts | $1,000,000 | 650 | with Fundera by NerdWallet | |
| Pros
Cons
| |||||
Max loan amount
$10,000
Min. credit score
300
Min. annual revenue
$18,000
See Your Loan Options with Fundera by NerdWallet
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
Giggle Finance - Merchant cash advance
Best for No credit check
Max loan amount
$10,000
Min. credit score
300
Min. annual revenue
$18,000
with Fundera by NerdWallet
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
Max loan amount
$50,000
Min. credit score
620
Min. annual revenue
Undisclosed
with Fundera by NerdWallet
Pros
- Can be used for a variety of funding purposes.
- Designed to finance traditionally underserved businesses.
- Startups and business owners with bad credit may be able to qualify.
- Competitive interest rates, low fees and long repayment terms.
- Intermediaries typically offer business training and educational resources.
Cons
- Loan amounts max out at $50,000.
- Can’t be used to pay existing debt or purchase real estate.
- Collateral is likely required.
- Slow funding timeline.
SBA microloan
Best for Low interest rates
Max loan amount
$50,000
Min. credit score
620
Min. annual revenue
Undisclosed
with Fundera by NerdWallet
Pros
- Can be used for a variety of funding purposes.
- Designed to finance traditionally underserved businesses.
- Startups and business owners with bad credit may be able to qualify.
- Competitive interest rates, low fees and long repayment terms.
- Intermediaries typically offer business training and educational resources.
Cons
- Loan amounts max out at $50,000.
- Can’t be used to pay existing debt or purchase real estate.
- Collateral is likely required.
- Slow funding timeline.
Max loan amount
$1,500,000
Min. credit score
570
Min. annual revenue
$240,000
with Fundera by NerdWallet
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Fora Financial - Online term loan
Best for Fast funding
Max loan amount
$1,500,000
Min. credit score
570
Min. annual revenue
$240,000
with Fundera by NerdWallet
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Max loan amount
$300,000
Min. credit score
500
Min. annual revenue
$100,000
with Fundera by NerdWallet
Pros
- Simple application with minimal documentation required.
- Low minimum credit score requirement.
- Daily or weekly repayment available.
- Offers prepayment discounts.
Cons
- Business assets required as collateral in some cases.
- Factor rate and fee information not available on website.
- Charges an origination fee and a monthly servicing fee.
Expansion Capital Group - Merchant cash advance
Best for Working capital
Max loan amount
$300,000
Min. credit score
500
Min. annual revenue
$100,000
with Fundera by NerdWallet
Pros
- Simple application with minimal documentation required.
- Low minimum credit score requirement.
- Daily or weekly repayment available.
- Offers prepayment discounts.
Cons
- Business assets required as collateral in some cases.
- Factor rate and fee information not available on website.
- Charges an origination fee and a monthly servicing fee.
Max loan amount
$5,000,000
Min. credit score
300
Min. annual revenue
Undisclosed
with Fundera by NerdWallet
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
- Charges an origination fee.
AltLINE - Invoice factoring
Best for B2B businesses
Max loan amount
$5,000,000
Min. credit score
300
Min. annual revenue
Undisclosed
with Fundera by NerdWallet
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
- Charges an origination fee.
Max loan amount
Undisclosed
Min. credit score
550
Min. annual revenue
$0
with Fundera by NerdWallet
Pros
- No loan or leasing maximums.
- No minimum revenue requirement.
- Startups and low credit scores accepted.
Cons
- Must apply over the phone.
eLease - Equipment financing
Best for Equipment loans
Max loan amount
Undisclosed
Min. credit score
550
Min. annual revenue
$0
with Fundera by NerdWallet
Pros
- No loan or leasing maximums.
- No minimum revenue requirement.
- Startups and low credit scores accepted.
Cons
- Must apply over the phone.
Max loan amount
$250,000
Min. credit score
625
Min. annual revenue
$100,000
with Fundera by NerdWallet
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
OnDeck - Online term loan
Best for Short-term loans
Max loan amount
$250,000
Min. credit score
625
Min. annual revenue
$100,000
with Fundera by NerdWallet
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Max loan amount
$100,000
Min. credit score
625
Min. annual revenue
$50,000
with Fundera by NerdWallet
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Headway Capital - Line of credit
Best for Startups
Max loan amount
$100,000
Min. credit score
625
Min. annual revenue
$50,000
with Fundera by NerdWallet
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Max loan amount
$350,000
Min. credit score
600
Min. annual revenue
$50,000
with Fundera by NerdWallet
Pros
- Loan amounts from $5,000 to $350,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
Accion Opportunity Fund Small Business Working Capital Loan
Best for Long-term loans
Max loan amount
$350,000
Min. credit score
600
Min. annual revenue
$50,000
with Fundera by NerdWallet
Pros
- Loan amounts from $5,000 to $350,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
Max loan amount
$1,000,000
Min. credit score
650
Min. annual revenue
$120,000
with Fundera by NerdWallet
Pros
- Cash can be available quickly.
- Borrowers with low credit scores may have some options here.
- Multiple term lengths for different financing needs.
Cons
- Loans max out at $1 million.
- May require a lien.
- Longest loan term is 60 months.
Rapid Finance - Online term loan
Best for Larger loan amounts
Max loan amount
$1,000,000
Min. credit score
650
Min. annual revenue
$120,000
with Fundera by NerdWallet
Pros
- Cash can be available quickly.
- Borrowers with low credit scores may have some options here.
- Multiple term lengths for different financing needs.
Cons
- Loans max out at $1 million.
- May require a lien.
- Longest loan term is 60 months.
Concerned about tariffs?
Many small-business owners are under increased economic stress and uncertainty following the latest tariff announcements. NerdWallet is here to help you find answers for whatever you're looking for. Here are some resources to help you get started:
- Need emergency funding? Consider a
business line of credit - Looking for fast access to working capital? Discover the
best working capital loans - Want tips on how to mitigate the impact of tariffs? Read
our guide
A closer look at the top bad credit lenders
Giggle Finance
Best for no credit check
At a glance:
✅: Advances up to $10000 ($20,000 for repeat customers).
✅: Funding in as little as a few hours.
✅: Requires 3+ months in business and doesn’t check your credit score.
🔍 Why we like it:
Giggle Finance can provide capital up to $10000 in just minutes. The advance is repaid using automatic debits from your bank account. Giggle is marketed toward freelancers, contractors and self-employed individuals
📋 Key details:
- Loan type: Merchant cash advance.
- Repayment term : Payments are based on your business’s revenue. You’ll make weekly payments until you repay the full advance amount.
- Speed: As fast as the same day.
➡️ Good fit for: Startups, businesses with bad credit that can’t qualify for other options.
Read our full Giggle Finance review
SBA microloan
Best for low interest rates
At a glance:
✅: Loans up to $50000.
✅: Funding in as little as one week.
✅: Requirements vary based on microlender.
🔍 Why we like it:
📋 Key details:
- Loan type: Term loan.
- Interest rate range: 8% to 13%.
- Repayment term: Up to 84 months.
- Speed: As fast as one week.
➡️ Good fit for: Traditionally underserved business owners; business owners who can wait for funding in order to get the lowest interest rates.
Read more about how to get an SBA loan with bad credit
Fora Financial
Best for fast funding
At a glance:
✅: Loans up to $1.5 million.
✅: Funding in as little as 24 hours.
✅: Requires a 570+ credit score and 6+ months in business.
🔍 Why we like it:
Fora Financial is an online lender that has flexible qualification requirements, making it a good option for startups and borrowers with bad credit. Fora also doesn’t require physical collateral, which can be helpful if your business doesn’t have significant assets to offer as security.
📋 Key details:
- Loan type: Term loan.
- Repayment term: Up to 18 months.
- Speed: As fast as 24 hours.
➡️ Good fit for: Startups, businesses that need fast access to funds.
Read our full Fora Financial review
Expansion Capital Group
Best for working capital
At a glance:
✅: Advances up to $300000.
✅: Funding in as little as 48 hours.
✅: Requires a 500+ credit score and 6+ months in business.
🔍 Why we like it:
Expansion Capital Group (ECG) offers fast access to working capital. ECG’s merchant cash advance can be a good option for businesses that have strong incoming revenue from debit and credit card sales. Like most MCA providers, however, ECG charges interest as a factor rate
📋 Key details:
- Loan type: Merchant cash advance.
- Repayment term: Payments are based on your business’s revenue. You’ll make daily or weekly payments until you repay the full advance amount.
- Speed: As fast as a few hours after approval.
➡️ Good fit for: Businesses with strong revenue from credit card sales that can’t qualify for other funding options.
Read more about working capital loan options
AltLINE
Best for B2B businesses
At a glance:
✅: Up to $5 million in invoices per month.
✅: Funding in as little as 24 hours.
✅: No minimum credit score or time in business requirements.
🔍 Why we like it:
Like other factoring companies, AltLINE underwrites your application largely based on the creditworthiness of your customers, the age of your receivables and the value of your invoices — as opposed to more traditional requirements. In fact, AltLINE does not set minimum requirements for your personal credit score, time in business or annual revenue. The lender may, however, still consider these factors as part of your application.
📋 Key details:
- Loan type: Invoice factoring.
- Speed: As fast as 24 hours after submitting invoices.
➡️ Good fit for: Business-to-business companies with slow-paying customers.
Read our full AltLINE factoring review
eLease
Best for equipment loans
At a glance:
✅: Loans starting at $3000.
✅: Requires a 550+ credit score and accepts startups.
🔍 Why we like it:
ELease can help you finance a variety of essential business equipment or machinery. Because the equipment you purchase serves as collateral on the loan, the lender can work with startups and borrowers who have lower credit scores.
📋 Key details:
- Loan type: Equipment loan.
- Interest rate range: 7.5% to 22%.
- Repayment term: Up to 72 months.
➡️ Good fit for: Businesses that need to purchase equipment or machinery.
Read more about equipment financing for bad credit
OnDeck
Best for short-term loans
At a glance:
✅: Loans up to $250000.
✅: Funding in as little as hours after approval.
✅: Requires a 625+ credit score and 12+ months in business.
🔍 Why we like it:
OnDeck’s short-term business loan can be a good choice for specific, one-time investments in your business. Although OnDeck requires daily or weekly repayment, payments are fixed and don’t change over the course of your loan.
📋 Key details:
- Loan type: Term loan.
- Interest rate range: 31.3% to 99.9% (based on loans originated in the half-year ending March 31, 2024; minimums provided are rates that at least 5% of customers received).
- Repayment term: Up to 24 months.
- Speed: As fast as the same day.
➡️ Good fit for: Fast access to capital to be used for a specific purpose.
Read our full OnDeck review
Headway Capital
Best for startups
At a glance:
✅: Credit lines up to $100000.
✅: Funding in as little as 24 hours.
✅: Requires a 625+ credit score and 6+ months in business.
🔍 Why we like it:
Headway Capital offers a business line of credit that’s a good choice for those who can’t qualify for traditional financing. The lender has a simple application process and flexible qualification requirements. Headway also offers three repayment term options — more than other similar competitors.
📋 Key details:
- Loan type: Line of credit.
- Interest rate range: 35% to 80%.
- Repayment term: 12, 18 or 24 months.
- Speed: As fast as the next business day.
➡️ Good fit for: Startups or low-revenue businesses that want a fast, flexible line of credit.
Read our full Headway Capital review.
Accion
Best for long-term loans
At a glance:
✅: Loans up to $350000.
✅: Funding in as little as seven days.
✅: Requires a 600+ credit score and 12+ months in business.
🔍 Why we like it:
Accion issues business loans with repayment terms of up to 60 months, longer than many other bad credit business loans. The lender has flexible qualification requirements, but also offers competitive interest rates.
📋 Key details:
- Loan type: Term loan.
- Interest rate range: 8.49% to 24.99%.
- Repayment term: Up to 60 months.
- Speed: As fast as seven days.
➡️ Good fit for: Low-income and traditionally underserved entrepreneurs, such as women-, minority- and veteran-owned businesses.
Read our full Accion review
Rapid Finance
Best for larger loan amounts
At a glance:
✅: Loans up to $1 million.
✅: Funding in as little as one to two business days.
✅: Requires a 650+ credit score and 36+ months in business.
🔍 Why we like it:
Rapid Finance is an online business lender that offers unsecured term loans, meaning you don’t have to provide physical collateral upfront. Rapid offers larger loan amounts than some other alternative lenders — up to $1 million.
📋 Key details:
- Loan type: Term loan.
- Repayment term: Up to 60 months.
- Speed: As fast as one business day after approval.
➡️ Good fit for: Established businesses with strong revenue.
Read our full Rapid Finance review.
💬 From a lending expert: Don't let bad credit hold you back
Bad credit shouldn’t hold you back. We’ve secured loans for more than 2,000 unique businesses with a credit score of 600 or less.
Through our trusted lender network, we’ll coach you through the funding process, while helping secure the best rate possible.
GET STARTED
with Fundera by Nerdwallet
— Mike Ross, NerdWallet Business Loans Team Lead
What is a bad credit business loan?
A bad credit business loan is a loan that’s targeted toward business owners with a personal credit score below 630. These loans allow entrepreneurs to access capital despite credit challenges, but they typically have higher interest rates, shorter repayment terms and lower loan amounts.
What is a bad credit score?
Individual small-business lenders may have varying guidelines for what's considered a bad credit score
How to get a business loan with bad credit
Here are steps you can follow to get a business loan if you have bad credit.
1. Calculate how much debt you can afford
First, determine how much debt you can reasonably afford. Lower credit scores may result in higher interest rates, which can make it difficult to repay a new loan — and leave you worse off financially than you were when you started.
To figure out how much debt you can afford, you should consider how much funding you need, possible interest rates, additional fees, as well as the repayment schedule (daily, weekly or monthly). You can use NerdWallet's business loan calculator
Your repayment schedule and term length will dictate the size of your payments, but also how much interest you end up paying. A shorter term means larger payments, but less interest, whereas longer terms mean smaller payments, but more interest over the life of the loan.
2. Work to improve your credit score, if you can
Start by checking your score (you can check your personal credit score for free
Established companies should also check their business credit scores
The higher your credit score, the easier it will be to get a loan, especially one with competitive rates and terms. If you're able to wait for financing, take the time to build your score.
3. Strengthen other areas of your application
Although business loan requirements
Most lenders will consider the following:
- How long you’ve been in business.
- What your annual revenue is.
- How strong your cash flow is.
- What kind of collateral you can provide.
Prepare to bolster your business profile in any way possible to help increase your chances of approval.
For example, if you have significant collateral available, consider offering more than the minimum — o
You might also consider finding a cosigner to help you secure a loan
4. Research and compare bad credit loan options
You may be able to find bad credit business loans from online or nonprofit lenders. As you explore different options, you should compare them based on:
Type of lender
Cost of borrowing
Collateral and personal guarantee
Time to funding
5. Gather your documentation and apply
To complete your loan application, you may need to provide some, if not all, of the following:
- Basic information about you and your business.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements.
- Detailed information about your collateral, if applicable.
Types of bad credit business loans
There are several types of business loans
Short-term business loans
Business lines of credit
Equipment financing
Invoice factoring
Microloans
Merchant cash advances
Pros and cons of bad credit business loans
Pros
Can help your business access capital you may otherwise not get to boost operations, grow your business or cover gaps in cash flow.
Offer fast access to capital — some within as little as 12 hours of applying.
Can help build and improve your business credit (if your lender reports on-time payments), which can help you qualify for more business funding in the future.
Cons
Typically have higher rates and fees than traditional loans.
Borrowing limits are usually lower.
May require collateral to offset lender risk.
Where to get business loans with bad credit
Banks and credit unions likely won’t approve you if you have bad credit. But these alternative sources may let you get a business loan with a less-than-ideal credit history.
| Lender type | Best for | Typical credit score requirement | Funding speed | Potential drawbacks |
|---|---|---|---|---|
| Fast funding, minimal documentation, startups. | 500 to 660. | As fast as the same day. | High interest rates, frequent repayment, short terms. | |
| Underserved businesses, those located in low-income communities. | No specific minimum. | As fast as one week. | Longer application process, slower funding timeline. | |
| Startups, local businesses, additional education and support. | No specific minimum. | As fast as one week. | Smaller loan amounts, limited availability by location. |
Frequently asked questions
What credit score is required for a business loan?
Can you get a startup business loan with bad credit?
Can I get a business loan with a 500 credit score?
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
To come up with our list of the best bad credit business loans, we selected lenders with a minimum credit score requirement of 629 or lower.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans editorial guidelines
