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See Your Loan OptionsBusiness Loans with NerdWallet
Getting a business loan can be challenging, and several factors — cost, speed, repayment schedule — can play a role in deciding which product is right for you. Let us help you through the process.
Key takeaways
- If you have bad or fair credit, you can still get a business loan from online or nonprofit lenders.
- These loans will likely have higher rates, shorter terms and smaller funding amounts than traditional financing.
- To improve your chances of qualifying, you should try to strengthen your credit (if time allows). If not, you can lean on other qualifying factors — cash flow, collateral, co-signer — to shore up your application.
Review our picks for the best bad credit business loans or click here to learn more about how to qualify.
Sort by:
- Default
- NerdWallet rating (high to low)
- Max loan amount (high to low)
- Min. time in business (low to high)
- Min. interest rate (low to high)
- Term length (high to low)
SBA microloan
Best for low interest rates
Max loan amount
$50,000
Min. credit score
620
Min. annual revenue
Undisclosed
with NerdWallet Small Business
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 microloans are funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders. Microloans stand out as a choice for traditionally underserved businesses, such as startups, women-owned companies and businesses located in low-income communities. Although SBA microloans only provide up to $50,000, they offer competitive interest rates and repayment terms. They also have flexible eligibility requirements — making them a good option for borrowers who can’t qualify for other business loans.
- Be a U.S. business.
- Show your ability to repay the loan.
- Personal guarantee and collateral likely required.
- Specific financial qualifications determined by individual lender.
Giggle Finance - Merchant cash advance
Best for no credit check
Max loan amount
$15,000
Min. credit score
300
Min. annual revenue
$30,000
with NerdWallet Small Business
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $15,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
Giggle Finance is specifically designed to offer small amounts of capital to freelancers, contractors and self-employed individuals. The company provides same-day funding through a simple application process. Giggle is also a standout option for borrowers with bad credit — as the company does not check your credit and instead uses your bank information to underwrite your application.
- Minimum credit score: All credit scores may be accepted (ranging from 300 to 850).
- Minimum time in business: Three months.
- Minimum annual revenue: $18,000.
Fundbox - Line of credit
Best for startups
Max loan amount
$250,000
Min. credit score
600
Min. annual revenue
$30,000
with NerdWallet Small Business
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Weekly repayments required.
Fundbox is one of the best online line of credit options for startups. Businesses with just three months in business may be able to qualify. Fundbox is also a good option for borrowers with bad credit and businesses with low revenue. The lender offers a flexible short-term line of credit that can fund within two business days after approval.
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum annual revenue: $30,000.
AltLINE - Invoice factoring
Best for B2B businesses
Max loan amount
$5,000,000
Min. credit score
300
Min. annual revenue
Undisclosed
with NerdWallet Small Business
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.
If you’re a business-to-business company with capital tied up in unpaid invoices, altLINE can provide fast access to cash. The lender offers competitive factoring rates and can factor large invoice amounts. AltLINE stands out for its flexible underwriting process that focuses heavily on the creditworthiness of your customers, as opposed to more traditional business loan requirements. This makes it a worthwhile option for startups or borrowers with bad credit.
- All credit scores may be accepted (ranging from 300 to 850).
- No minimum time in business requirement.
- No minimum annual revenue requirement.
- Must be a B2B business.
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 NerdWallet Small Business
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.
- Aggressive repayment schedule (daily or weekly).
- Charges an origination fee.
Fora Financial stands out as a fast funding option for borrowers who may fall short of qualifying for traditional bank financing. The lender can work with startups and borrowers with bad credit — as long as they have strong revenue. Fora offers large maximum loan amounts and can provide prepayment discounts for those who repay early.
- In business for at least six months.
- At least $20,000 per month in revenue.
- No open bankruptcies or dismissed bankruptcies within the past year.
eLease - Equipment financing
Best for equipment purchases
Max loan amount
Undisclosed
Min. credit score
550
Min. annual revenue
$0
with NerdWallet Small Business
Pros
- No loan or leasing maximums.
- No minimum revenue requirement.
- Startups and low credit scores accepted.
Cons
- Must apply over the phone.
ELease can be a good option for businesses that don’t qualify for more traditional forms of equipment financing. It has flexible qualification requirements and can work with startups and borrowers with bad credit. The company offers competitive interest rates and repayment terms. Unlike other specialized equipment lenders, however, eLease requires you to apply over the phone.
- Minimum credit score: 550.
- Minimum time in business: 6 months.
- Minimum annual revenue: No minimum requirement.
Expansion Capital Group - Merchant cash advance
Best for working capital
Max loan amount
$500,000
Min. credit score
500
Min. annual revenue
$96,000
with NerdWallet Small Business
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 stands out as a merchant cash advance option for startups and borrowers with bad credit. The company has a simple and streamlined application process and may be able to issue funding within hours of you signing your agreement. Expansion Capital Group also offers prepayment discounts if you’re able to repay your advance early.
- Minimum credit score: 500.
- Minimum time in business: Six months.
- Minimum annual revenue: $96,000.
Headway Capital - Line of credit
Best for flexible spending
Max loan amount
$100,000
Min. credit score
625
Min. annual revenue
$50,000
with NerdWallet Small Business
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 offers a fast and flexible business line of credit that’s a good option for those who can’t qualify for traditional financing. The lender can work with startups and businesses with low revenue. Headway can fund applications as fast as the next day after approval. Unlike some online lines of credit, however, you’ll likely have to pay a draw fee to access your funds from Headway.
- Minimum credit score: 625.
- Minimum time in business: Six months.
- Minimum annual revenue: $50,000.
Accion Opportunity Fund Small Business Working Capital Loan
Best for flexible terms
Max loan amount
$250,000
Min. credit score
620
Min. annual revenue
$300,000
with NerdWallet Small Business
Pros
- Loan amounts from $5,000 to $250,000.
- 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 (AOF) stands out as an affordable option for business owners who can’t qualify for traditional financing. AOF offers competitive interest rates, long repayment terms and flexible qualification requirements. Startups and borrowers with bad credit may qualify. This lender also targets its funding efforts toward minority-, women- and low-to-moderate-income entrepreneurs.
- Minimum credit score: 620.
- Minimum time in business: 24 months.
- Minimum annual revenue: $300,000.
OnDeck - Online term loan
Best for short-term, one-off purchases
Max loan amount
$400,000
Min. credit score
625
Min. annual revenue
$100,000
with NerdWallet Small Business
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’s short-term loan is a good option for making one-time investments in your business, such as opening a new location or renovating your space. This loan offers fast funding (sometimes as quickly as the same day) for borrowers who may not qualify for more traditional financing options. OnDeck’s short-term loan can also be used to establish and build business credit — as the lender reports your payment history to the three commercial credit bureaus.
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $100,000.
- Must have business bank account.
best business loans for bad credit: More details
U.S. Small Business Administration: Best for low interest rates
SBA microloans are offered through nonprofit, community-based organizations which can be more willing to work with borrowers with fair or bad credit. Interest rates on these loans typically range from 8% to 13%.
SBA microloan
with NerdWallet Small Business
Max loan amount
$50,000
Min. credit score
620
Term length
Up to 7 years
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 microloans are funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders. Microloans stand out as a choice for traditionally underserved businesses, such as startups, women-owned companies and businesses located in low-income communities. Although SBA microloans only provide up to $50,000, they offer competitive interest rates and repayment terms. They also have flexible eligibility requirements — making them a good option for borrowers who can’t qualify for other business loans.
- Be a U.S. business.
- Show your ability to repay the loan.
- Personal guarantee and collateral likely required.
- Specific financial qualifications determined by individual lender.
Giggle Finance: Best for no credit check
Giggle Finance doesn’t require a credit check. Instead, eligibility is based on your bank statements, and you’ll need at least three months in business to qualify.
Giggle Finance - Merchant cash advance
with NerdWallet Small Business
Max loan amount
$15,000
Min. credit score
300
Term length
Up to 6 months
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $15,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
Giggle Finance is specifically designed to offer small amounts of capital to freelancers, contractors and self-employed individuals. The company provides same-day funding through a simple application process. Giggle is also a standout option for borrowers with bad credit — as the company does not check your credit and instead uses your bank information to underwrite your application.
- Minimum credit score: All credit scores may be accepted (ranging from 300 to 850).
- Minimum time in business: Three months.
- Minimum annual revenue: $18,000.
Fundbox: Best for startups
You may be able to qualify for a Fundbox line of credit with a minimum credit score of 600 or higher. Plus, this lender has one of the lowest time in business requirements on our list — making it ideal for startups.
May fund quickly
Fundbox - Line of credit
4.7NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
with NerdWallet Small Business
Max loan amount
$250,000
Min. credit score
600
Term length
3 to 24 months
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Weekly repayments required.
Fundbox is one of the best online line of credit options for startups. Businesses with just three months in business may be able to qualify. Fundbox is also a good option for borrowers with bad credit and businesses with low revenue. The lender offers a flexible short-term line of credit that can fund within two business days after approval.
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum annual revenue: $30,000.
AltLINE: Best for B2B businesses
AltLINE can provide funding for B2B businesses who have capital tied up in unpaid invoices. Because AltLINE focuses on the creditworthiness of your customers during underwriting, it has no set minimum credit score requirement.
AltLINE - Invoice factoring
4.4NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
with NerdWallet Small Business
Max loan amount
$5,000,000
Min. credit score
300
Term length
1 to 3 months
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.
If you’re a business-to-business company with capital tied up in unpaid invoices, altLINE can provide fast access to cash. The lender offers competitive factoring rates and can factor large invoice amounts. AltLINE stands out for its flexible underwriting process that focuses heavily on the creditworthiness of your customers, as opposed to more traditional business loan requirements. This makes it a worthwhile option for startups or borrowers with bad credit.
- All credit scores may be accepted (ranging from 300 to 850).
- No minimum time in business requirement.
- No minimum annual revenue requirement.
- Must be a B2B business.
Fora Financial: Best for fast funding
You may be able to qualify for a loan from Fora Financial with a minimum credit score of 570. Fora can also offer large loan amounts and funding in as little as 24 hours.
Fora Financial - Online term loan
4.7NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
with NerdWallet Small Business
Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 18 months
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.
- Aggressive repayment schedule (daily or weekly).
- Charges an origination fee.
Fora Financial stands out as a fast funding option for borrowers who may fall short of qualifying for traditional bank financing. The lender can work with startups and borrowers with bad credit — as long as they have strong revenue. Fora offers large maximum loan amounts and can provide prepayment discounts for those who repay early.
- In business for at least six months.
- At least $20,000 per month in revenue.
- No open bankruptcies or dismissed bankruptcies within the past year.
eLease: Best for equipment purchases
The equipment you buy with this type of financing serves as collateral on the loan, meaning online lenders, like eLease can be more flexible with its credit qualifications. For example, you may qualify if you have a credit score as low as 550.
eLease - Equipment financing
4.0NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
with NerdWallet Small Business
Max loan amount
Undisclosed
Min. credit score
550
Term length
24 months to 5 years
Pros
- No loan or leasing maximums.
- No minimum revenue requirement.
- Startups and low credit scores accepted.
Cons
- Must apply over the phone.
ELease can be a good option for businesses that don’t qualify for more traditional forms of equipment financing. It has flexible qualification requirements and can work with startups and borrowers with bad credit. The company offers competitive interest rates and repayment terms. Unlike other specialized equipment lenders, however, eLease requires you to apply over the phone.
- Minimum credit score: 550.
- Minimum time in business: 6 months.
- Minimum annual revenue: No minimum requirement.
Expansion Capital Group: Best for working capital
Expansion Capital Group can provide fast access to working capital for borrowers with a minimum credit score of 500 and at least six months in business under their belt.
Expansion Capital Group - Merchant cash advance
with NerdWallet Small Business
Max loan amount
$500,000
Min. credit score
500
Term length
Undisclosed
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 stands out as a merchant cash advance option for startups and borrowers with bad credit. The company has a simple and streamlined application process and may be able to issue funding within hours of you signing your agreement. Expansion Capital Group also offers prepayment discounts if you’re able to repay your advance early.
- Minimum credit score: 500.
- Minimum time in business: Six months.
- Minimum annual revenue: $96,000.
Headway Capital: Best for flexible spending
A business line of credit allows you to tap into funds on an as-needed basis. You may qualify for one from Headway Capital if your credit score is at least 625 and you have six months in business or more.
Headway Capital - Line of credit
4.8NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
with NerdWallet Small Business
Max loan amount
$100,000
Min. credit score
625
Term length
12 to 24 months
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 offers a fast and flexible business line of credit that’s a good option for those who can’t qualify for traditional financing. The lender can work with startups and businesses with low revenue. Headway can fund applications as fast as the next day after approval. Unlike some online lines of credit, however, you’ll likely have to pay a draw fee to access your funds from Headway.
- Minimum credit score: 625.
- Minimum time in business: Six months.
- Minimum annual revenue: $50,000.
Accion: Best for flexible terms
Nonprofit lender Accion Opportunity Fund may approve borrowers with a credit score as low as 620. Monthly repayment terms range from 18 months to three years, and interest rates start at 9.99%.
Accion Opportunity Fund Small Business Working Capital Loan
4.8NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
with NerdWallet Small Business
Max loan amount
$250,000
Min. credit score
620
Term length
18 months to 3 years
Pros
- Loan amounts from $5,000 to $250,000.
- 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 (AOF) stands out as an affordable option for business owners who can’t qualify for traditional financing. AOF offers competitive interest rates, long repayment terms and flexible qualification requirements. Startups and borrowers with bad credit may qualify. This lender also targets its funding efforts toward minority-, women- and low-to-moderate-income entrepreneurs.
- Minimum credit score: 620.
- Minimum time in business: 24 months.
- Minimum annual revenue: $300,000.
OnDeck: Best for short-term, one-off purchases
If your credit score is at least 625, you may be able to qualify for an OnDeck loan of up to $250,000. These short-term business loans must be repaid within 24 months, making them a potential option for specific, one-time purchases you can repay quickly.
May fund quickly
OnDeck - Online term loan
4.9NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
with NerdWallet Small Business
Max loan amount
$400,000
Min. credit score
625
Term length
18 to 24 months
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’s short-term loan is a good option for making one-time investments in your business, such as opening a new location or renovating your space. This loan offers fast funding (sometimes as quickly as the same day) for borrowers who may not qualify for more traditional financing options. OnDeck’s short-term loan can also be used to establish and build business credit — as the lender reports your payment history to the three commercial credit bureaus.
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $100,000.
- Must have business bank account.
Jump to
A closer look at the top bad credit lenders
What is a bad credit business loan?
Types of business loans for bad credit
Pros and cons of bad credit business loans
How to get a business loan with bad credit
Frequently asked questions
💡 Want more detailed insights into our top five picks? Check out our article here.
A closer look at the top bad credit lenders
SBA microloan
Best for low interest rates
At a glance:
☑️: Loans up to $50,000.
☑️: Funding in as little as one week.
☑️: Requirements vary based on microlender.
🔍 Why we like it:
SBA microloans are issued by local nonprofits and community lenders, not the SBA itself. These lenders set their own requirements, and they’re often more flexible than a bank’s. Many microlenders focus on borrowers who’ve had trouble getting credit elsewhere, including those with bad or limited credit.
📋 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.
Giggle Finance
Best for no credit check
At a glance:
☑️: Advances up to $15,000 ($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 $15,000 in just minutes. The advance is repaid using automatic debits from your bank account. Giggle is marketed toward freelancers, contractors and self-employed individuals, but can be used by any small-business owner with at least 3 months in operation.
📋 Key details:
- Funding 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.
Read our full Giggle Finance review.
➡️ Good fit for: Startups, businesses with bad credit that can’t qualify for other options.
Fundbox
Best for startups
At a glance:
☑️: Credit lines up to $250,000.
☑️: Funding in as little as two business days.
☑️: Requires a 600+ credit score and 3+ months in business.
🔍 Why we like it:
Fundbox is one of the best online line of credit options for startups. You only need 3 months in business to qualify. Plus, Fundbox has flexible credit score and annual revenue requirements — making it accessible to borrowers with bad credit and/or businesses with low revenue.
📋 Key details:
- Loan type: Line of credit.
- Interest rate range: 36% to 99%.
- Repayment term: 3 to 24 months.
- Speed: Within two business days.
➡️ Good fit for: Startups, low-revenue businesses that want flexible access to funds.
Read our full Fundbox review.
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 reviews 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:
- Funding 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.
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.
eLease
Best for equipment purchases
At a glance:
☑️: Loans starting at $3,000.
☑️: 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: 9% to 22%.
- Repayment term: Up to 60 months.
➡️ Good fit for: Businesses that need to purchase equipment or machinery.
Read more about equipment financing for bad credit.
Expansion Capital Group
Best for working capital
At a glance:
☑️: Advances up to $500,000.
☑️: 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, which can be expensive. You’ll want to translate your costs into an APR and compare multiple options to ensure this product is a fit for your business.
📋 Key details:
- Funding 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.
Headway Capital
Best for flexible spending
At a glance:
☑️: Credit lines up to $100,000.
☑️: 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: 39% to 82%.
- Repayment term: 12, 18 or 24 months.
- Speed: As fast as the next business day.
➡️ Good fit for: Businesses that want a fast, flexible line of credit.
Read our full Headway Capital review.
Accion
Best for flexible terms
At a glance:
☑️: Loans up to $250,000.
☑️: Funding takes six days, on average.
☑️: Requires a 620+ credit score and 24+ months in business.
🔍 Why we like it:
Accion issues business loans with repayment terms of up to 36 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: 9.99% to 28.95%.
- Repayment term: Up to 36 months.
- Speed: Six days, on average.
➡️ Good fit for: Low-income and traditionally underserved entrepreneurs, such as women-, minority- and veteran-owned businesses.
Read our full Accion review.
OnDeck
Best for short-term, one-off purchases
At a glance:
☑️: Loans up to $400,000.
☑️: 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: 35% to 99% (minimum provided is for 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.
What is a bad credit business loan?
A bad credit business loan is designed for borrowers with poor to fair personal credit.
These loans allow entrepreneurs to access capital despite credit challenges. 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 different guidelines for what's considered a bad credit score, based on which scoring model they use. FICO, one of the most well-known scoring models, defines credit score ranges like this:
- 300 to 579: Poor.
- 580 to 669: Fair.
- 670 to 739: Good.
- 740 to 799: Very good.
- 800 to 850: Exceptional.
On this page, you’ll find lenders that work with “poor” scores, as well as those that accept the lower end of “fair” scores.
Types of business loans for bad credit
There are several types of bad credit business loans. These loans may have low credit score requirements or include collateral, which can make it easier for bad credit borrowers to qualify.
- Short-term business loans: Choose for short-term expenses, specific projects or purchases.
- Business lines of credit: Choose for working capital needs, managing cash flow gaps or seasonal slows and emergency funding.
- Equipment financing: Choose for buying equipment and machinery.
- Invoice factoring: Choose if you’re a business-to-business company with slow-paying customers.
- Microloans: Choose if you need $50,000 or less and can wait longer for funding.
- Merchant cash advances: Choose as a last resort. You should have a high volume of credit card sales to cover payments.
Pros and cons of bad credit business loans
Pros
- Can help your business access capital you may not otherwise get to boost operations, grow your business or cover gaps in cash flow.
- Offer fast access to capital — some within as little as 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 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.
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
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. This can leave you worse off financially than you were when you started.
Consider:
- How much funding you need.
- Possible interest rates.
- Additional fees.
- Repayment schedule (daily, weekly or monthly).
A shorter term means larger payments, but less interest. A longer term means smaller payments, but more interest over the life of the loan — which increases your total cost.
You can use NerdWallet's business loan calculator to help estimate these costs.
2. Work to improve your credit score, if you can
Start by checking your score:
- Check your personal credit score for free on NerdWallet.
- Get your credit report from the three major reporting bureaus for free at AnnualCreditReport.com.
Established companies should also check their business credit scores from Experian, Equifax and Dun & Bradstreet.
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.
Credit-building strategies include:
- Looking for errors on your credit reports and disputing them with the appropriate credit bureau.
- Making debt repayments more frequently.
- Being added as an authorized user to a credit card belonging to someone you know and trust who has a good credit score.
3. Strengthen other areas of your application
If you have a lower credit score, other business loan requirements will be even more important to help you get financing.
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. Or, offer collateral even if the lender doesn’t require it. Your business’s strengths may make your application more attractive to lenders, even if your credit score is lagging.
You might also consider finding a co-signer to help you secure a loan. If you can’t repay the loan, your co-signer has to. The co-signer should have a higher credit score and strong personal assets to improve your chances of approval.
🤓
Data from our latest business loan study showed that nearly 24% of approved applicants on NerdWallet Small Business reported credit scores of 659 or below. Among those approved borrowers, most reported at least $500,000 in annual revenue and five years or more in business. This suggests that strong revenue and a longer track record can help offset a lower credit score.Nerdy Tip
4. Research and compare lenders
You may be able to find bad credit business loans from online or nonprofit lenders. In general:
Nonprofit lenders will:
- Provide lower rates.
- Be slower to fund.
- Require a more in-depth application.
- Offer hands-on support and resources.
Online lenders will:
- Provide the fastest funding.
- Charge higher rates.
- Offer applications with minimal paperwork.
- Have more flexible qualification requirements.
As you compare options, keep cost top of mind. Look at the APR — which is the total cost of borrowing, including fees — not just the interest rate.
If your lender charges a factor rate, translate that into an APR. Say, for example, you have a $50,000 loan with a factor rate of 1.4. You’ll pay $20,000 in fees on that loan — which, if you pay weekly over one year, calculates to an APR of nearly 69%.
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.
Frequently asked questions
Most lenders require a minimum personal credit score ranging from 500 to 660, but some have no minimum requirement. Your annual revenue and time in business may also be considered on your application. You should always shop around and compare your small-business loan options to get one that fits your needs.
Yes, online lenders, CDFIs and microlenders may offer startup business loans to borrowers with bad credit. However, your options will be limited, and they can be expensive. To qualify, you’ll generally need at least six months in business and a minimum credit score of 500 or higher.
It is possible to get a business loan with a 500 credit score from certain lenders like AltLINE or Expansion Capital Group. Be aware that these loans may have collateral requirements, minimum revenue requirements or high fees.
Last updated on September 4, 2026
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
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 that accept credit scores of “poor” to “fair” — according to FICO’s guidelines.
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 and our editorial guidelines.
