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 6 options for you
Lender | Best for | Max loan amount | Min. credit score | Next steps |
---|---|---|---|---|
OnDeck - Online term loan with Fundera by NerdWallet | Best for Short-term loan for bad credit | $250,000 | 600 | with Fundera by NerdWallet |
Fundbox - Line of credit with Fundera by NerdWallet | Best for Business lines of credit for bad credit | $150,000 | 600 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | Best for Business lines of credit for bad credit | $250,000 | 600 | with Fundera by NerdWallet |
OnDeck - Line of credit with Fundera by NerdWallet | Best for Business lines of credit for bad credit | $100,000 | 600 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | Best for Equipment loan for bad credit | $250,000 | 600 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for SBA loan for bad credit | $50,000 | 620 | with Fundera by NerdWallet |
Our pick for
Short-term loan for bad credit
If your credit score is at least 600, you may be able to qualify for a short-term loan with amounts up to $250,000. These loans are good for specific, one-time purchases.
OnDeck - Online term loan
$250,000
600
9.00-99.00%
Our picks for
Business lines of credit for bad credit
Lines of credit may be available from online lenders if your credit score is at least 600. You only pay interest on the funds you draw from the credit line, giving you more flexibility than a term loan.
Fundbox - Line of credit
$150,000
600
10.10-79.80%
Bluevine - Line of credit
$250,000
600
15.00-78.00%
OnDeck - Line of credit
$100,000
600
11.00-61.90%
Our pick for
Equipment loan for bad credit
The equipment you purchase with this type of financing serves as collateral on the loan itself, meaning online lenders may be more flexible with their credit qualifications.
with Fundera by NerdWallet
Triton Capital - Equipment financing
with Fundera by NerdWallet
$250,000
600
4.99-25.00%
Our pick for
SBA loan for bad credit
Microloans are offered through nonprofit, community-based organizations, which may be more willing to work with you if you have low or poor credit.
SBA Microloan
$50,000
620
8.00-13.00%
How Much Do You Need?
- 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.
- Check your credit. Before applying for a small-business loan, check your credit to know what lenders are going to see. You can get a free credit score on NerdWallet, and pull your personal credit report from the three major reporting bureaus for free at AnnualCreditReport.com. Business credit scores are available from Experian, Equifax and Dun & Bradstreet.
- Wait, if you can. If your credit score is lower than you’d like, consider ways to build it up before applying for business financing. For example, look for any errors on your credit reports and dispute them with the appropriate credit bureau. Other credit-strengthening strategies can include making payments more often and paying down or paying off debt, which can build your business credit as well.
- Shop around. If you need financing now, bad credit will likely mean you’ll have fewer options to choose from. But don’t let that stop you from shopping around. A low credit score may result in a high interest rate, which could make it difficult to repay your new loan — and leave you worse off financially than you started. By working to get the best deal possible, you’ll better position yourself for success.
- Online lenders. Most online lenders require a minimum personal credit score between 500 and 650. But a few have no minimum credit score requirement, focusing on factors like your business’s cash flow instead. Online lenders offer easier approvals and faster funding than other business lending options, but they typically charge higher rates — even for those with good credit.
- CDFIs. A community development financial institution, or CDFI, receives government funding to provide banking access to low-income or underserved communities. CDFIs are often banks and credit unions, but don’t have the same strict credit requirements for lending those financial institutions have. If you’re eligible for CDFI financing, you could get a competitive interest rate. Funding can be slower than online lenders, though.
- Microlenders. If you have bad credit, you may be able to get a microloan for your business. Microloans typically come from nonprofits. Because profit isn’t these organizations’ primary driver, they may be more willing to work with business owners with a thin credit history. The downside of a microloan is right in its name: Funds typically top out around $50,000, which may not be enough for your company’s needs.
- Your business. Invoice factoring or financing can turn unpaid customer invoices into immediate cash and is best for business-to-business companies. While lenders may still check your credit score, approvals are based mainly on the value of your invoices. A merchant cash advance can also let bad credit borrowers tap into their own business for financing. But this kind of loan should be a last resort, as rates can reach triple digits.
To recap our selections...
6 Best Business Loans for Bad Credit of May 2022
- OnDeck - Online term loan: Best for Short-term loan for bad credit
- Fundbox - Line of credit: Best for Business lines of credit for bad credit
- Bluevine - Line of credit: Best for Business lines of credit for bad credit
- OnDeck - Line of credit: Best for Business lines of credit for bad credit
- Triton Capital - Equipment financing: Best for Equipment loan for bad credit
- SBA Microloan: Best for SBA loan for bad credit