How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 11 of the best bad credit business loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
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Fora Financial - Online term loan with Fundera by NerdWallet | 4.7/5 Best for Overall bad credit business loan | $1,500,000 | 570 | with Fundera by NerdWallet |
Expansion Capital Group Merchant Cash Advance | Best for Working capital | $300,000 | 500 | with Fundera by NerdWallet |
SBA Microloan | Best for Low interest rates | $50,000 | 620 | with Fundera by NerdWallet |
Headway Capital - Line of credit | 4.7/5 Best for Fast funding | $100,000 | 625 | with Fundera by NerdWallet |
National Funding - Online Term Loan | 4.3/5 Best for Prepayment discounts | $500,000 | 600 | with Fundera by NerdWallet |
OnDeck - Online term loan | 4.8/5 Best for Short-term loans | $250,000 | 625 | with Fundera by NerdWallet |
Triton Capital - Equipment financing | 4.0/5 Best for Equipment loans | $250,000 | 575 | with Fundera by NerdWallet |
Fundbox - Line of credit Read Review | 5.0/5 Best for Startups | $150,000 | 600 | Read Review |
Giggle Finance Merchant Cash Advance | Best for No credit check | $5,000 | 300 | with Fundera by NerdWallet |
AltLINE - Invoice Factoring Read Review | 4.7/5 Best for Invoice factoring | $5,000,000 | 300 | Read Review |
Accion Opportunity Fund - Small Business Working Capital Loan Read Review | 4.9/5 Best for Long-term loans | $250,000 | 600 | Read Review |
Here are 11 of the best bad credit business loans
Best for Overall bad credit business loan
Best for Working capital
Best for Low interest rates
Best for Fast funding
Best for Prepayment discounts
Best for Short-term loans
Best for Equipment loans
Best for Startups
Best for No credit check
Best for Invoice factoring
Best for Long-term loans
I'M INTERESTED IN:
Our pick for
Overall bad credit business loan
You may be able to qualify for a loan from Fora Financial with a minimum credit score of 570 and just six months in business. Fora can also offer large loan amounts and fast funding times.
Fora Financial - Online term loan
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
$1,500,000
Min. Credit score
570
Our pick for
Working capital
Expansion Capital Group can provide fast access to working capital for borrowers with a minimum credit score of 500. Like all merchant cash advances, however, this product may be expensive.
Expansion Capital Group Merchant Cash Advance
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
$300,000
Min. Credit score
500
Our pick 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
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
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
Our pick for
Fast funding
Headway Capital can fund applications within one business day of approval. You’ll need a minimum credit score of 625 to qualify.
Headway Capital - Line of credit
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
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
Our pick for
Prepayment discounts
If you think you’ll be able to repay your loan quickly, National Funding is a good option. Instead of charging prepayment penalties, the lender offers a discount to borrowers who repay early.
National Funding - Online Term Loan
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Short-term loans require daily or weekly repayment.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
Max loan
$500,000
Min. Credit score
600
Our pick for
Short-term loans
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 are good for specific, one-time purchases.
OnDeck - Online term loan
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
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
Our pick for
Equipment loans
The equipment you purchase with this type of financing serves as collateral on the loan, meaning online lenders, like Triton, may be more flexible with their credit qualifications.
Triton Capital - Equipment financing
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Max loan
$250,000
Min. Credit score
575
Apr range
6.50-34.99%
Our pick for
Startups
A business line of credit may be available from Fundbox if your credit score is at least 600. You only need three months in business to qualify.
Fundbox - Line of credit
Pros
- Financing available within one business day 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
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
No credit check
Giggle Finance doesn’t require a credit check because eligibility is based on your bank statements. You must have at least three months in business to qualify.
Giggle Finance Merchant Cash Advance
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $5,000.
- Factor rate and fee information not available on website.
- Charges an origination fee.
Max loan
$5,000
Min. Credit score
300
Our pick for
Invoice factoring
AltLINE is an invoice factoring company that will finance unpaid invoices up to $5 million per month. Because AltLINE focuses on the creditworthiness of your customers during underwriting, it has no set minimum credit score requirement.
AltLINE - Invoice Factoring
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
$5,000,000
Min. Credit score
300
Our pick for
Long-term loans
Nonprofit lender Accion Opportunity Fund focuses on more than just your credit score when determining eligibility. Repayment terms on their loans range from one to five years.
Accion Opportunity Fund - Small Business Working Capital Loan
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.
Max loan
$250,000
Min. Credit score
600
Apr range
8.49-24.99%
Fora Financial
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Expansion Capital Group
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SBA microloan
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Headway Capital
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National Funding
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OnDeck
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Triton Capital
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Fundbox
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Giggle Finance
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AltLINE
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Accion
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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.
Typically have higher rates and fees than traditional loans.
Borrowing limits are usually lower.
May require collateral to offset lender risk.
Online lenders
CDFIs
Nonprofit and community lenders
1. Calculate how much debt you can afford
2. Check your credit score
- Looking for errors on your credit reports and disputing them with the appropriate credit bureau.
- Making debt payments more frequently.
- Paying down or paying off debt.
3. Understand additional eligibility requirements
- 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.
4. Research and compare bad credit loan options
5. Consider offering collateral or adding a cosigner
6. Gather your documentation and apply
- 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.
- Small-business grants. Grants provide free access to capital that doesn’t need to be repaid. Grant applications can be competitive, but awarding organizations don’t typically evaluate businesses based on their creditworthiness. You can find business grants from federal and state governments, private corporations and nonprofits.
- Business credit cards. Business credit cards help you pay for everyday company expenses. If you have a lower credit score, you may still be able to qualify for a secured business credit card — which gives you credit access based on the security deposit you provide.
- Crowdfunding. If your business has a strong customer base or large internet presence, you may be able to leverage your network to get financing. You can use a crowdfunding platform to set up a campaign and share it online in order to gather donations for your business. In exchange, you typically offer your supporters something in return; you might offer a new product or exclusive access to an event.