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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 10 bad-credit business loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Short-term business loans for bad credit | $250,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Business lines of credit for bad credit | $150,000 | 600 | |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Fast business loans for bad credit | $250,000 | 625 | with Fundera by NerdWallet |
Headway Capital - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Easy business loans for bad credit | $100,000 | 625 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Working capital loans for bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
AltLINE - Invoice Factoring | 4.5/5 Best for Invoice factoring for bad credit | $10,000,000 | 300 | |
National Funding - Online Term Loan with Fundera by NerdWallet | 4.0/5 Best for Unsecured business loans for bad credit | $500,000 | 600 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 5.0/5 Best for Long-term business loans for bad credit | $250,000 | 570 | |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Equipment loans for bad credit | $250,000 | 575 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for SBA loans for bad credit | $50,000 | 620 | with Fundera by NerdWallet |
Here are 10 bad-credit business loans
Best for Short-term business loans for bad credit
Best for Business lines of credit for bad credit
Max Amount
$150,000
Min. Credit Score
600
Best for Fast business loans for bad credit
Best for Easy business loans for bad credit
Best for Working capital loans for bad credit
Best for Invoice factoring for bad credit
Max Amount
$10,000,000
Min. Credit Score
300
Best for Unsecured business loans for bad credit
Best for Long-term business loans for bad credit
Max Amount
$250,000
Min. Credit Score
570
Best for Equipment loans for bad credit
Best for SBA loans for bad credit
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Our pick for
Short-term business loans for bad credit
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
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
with Fundera by NerdWallet
Our pick for
Business lines of credit for bad credit
A business line of credit may be available from Fundbox 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
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
Fast business loans for bad credit
Bluevine can approve applications and offer financing in as little as 24 hours. You’ll need a minimum credit score of 625 to qualify.
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
with Fundera by NerdWallet
Our pick for
Easy business loans for bad credit
You may be able to qualify for a line of credit from Headway with a minimum credit score of 625. The lender offers a streamlined application and other flexible qualifications.
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
with Fundera by NerdWallet
Our pick for
Working capital loans for bad credit
If you have a credit score of 570 or higher, you may be able to qualify for a working capital loan. You can use a loan from Fora Financial to purchase inventory, make payroll or manage cash flow gaps.
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan
$1,500,000
Min. Credit score
570
with Fundera by NerdWallet
Our pick for
Invoice factoring for bad credit
AltLINE is an invoice factoring company that will finance unpaid invoices up to $10 million, with no revenue or time in business requirements and no minimum credit score.
AltLINE - Invoice Factoring
Max loan
$10,000,000
Min. Credit score
300
Our pick for
Unsecured business loans for bad credit
National Funding doesn’t require you to put up physical collateral to secure your loan. However, the lender will file a lien on your business assets and require you to sign a personal guarantee.
National Funding - Online Term Loan
with Fundera by NerdWallet
Max loan
$500,000
Min. Credit score
600
with Fundera by NerdWallet
Our pick for
Long-term business loans for bad credit
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
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-29.67%
Our pick for
Equipment loans for bad credit
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
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
575
Apr range
5.99-34.99%
with Fundera by NerdWallet
Our pick for
SBA loans for bad credit
Microloans are offered through nonprofit, community-based organizations, which may be more willing than some other lenders to work with those who have bad to fair credit.
SBA Microloan
with Fundera by NerdWallet
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
with Fundera by NerdWallet
What is a bad credit business loan?
What is a bad credit score?
Types of bad-credit business loans
Loan type | Overview | Use cases |
Lump sum of capital you borrow from a lender and repay, over a set period of time, with interest. Online lenders tend to have flexible qualification requirements. | Short-term expenses, specific projects or purchases. | |
Gives you access to a set amount of funds, which you can draw from as needed. Lines of credit are also available from online lenders with flexible requirements. | Working capital, cash flow gaps, seasonal slows, emergency funding. | |
Asset-based financing where the equipment you purchase serves as collateral on the loan. You may not need to rely as heavily on traditional eligibility criteria because equipment secures the loan. | Purchasing equipment and machinery for your business. | |
Unpaid invoices are sold to a factoring company at a discount in exchange for a cash advance. Lenders can be lenient with qualifications because your invoices provide security. | Business-to-business companies that have cash tied up in unpaid invoices. | |
Company gives you an upfront sum of capital that you repay using a percentage of your debit and credit card sales, plus a fee. MCA companies tend to focus on sales and cash flow when evaluating applications. | Businesses that have substantial debit and credit card sales. However, MCAs can have extremely high APRs, so they should be used as a last resort option. | |
Loans are underwritten to future revenue, and payments are a percentage of monthly revenue. Revenue-based loans rely less on personal credit and finances because your payments are guaranteed by monthly revenue. | High-revenue businesses that are experiencing cash flow shortages, or are looking to scale and grow. | |
Small-dollar loans, typically available in amounts up to $50,000. Issued by nonprofit and community organizations who often have flexible qualification requirements. | Day-to-day expenses associated with starting and/or growing a business. Can be a good option for traditionally underserved businesses. |
Pros and cons of bad credit business loans
Bad credit business loans help your business access capital you may otherwise not get to boost operations, grow your business or cover gaps in cash flow.
Making payments on a business loan can also help build and improve your business credit, which can help you qualify for more business funding in the future.
Bad credit business loans offer fast access to capital — some within as little as 12 hours of applying.
Because they are considered higher risk, lenders may not approve high loan amounts on bad credit business loans.
Bad credit business loans typically have higher rates and fees than traditional loans.
You may be asked to pledge collateral on a bad credit business loan to offset some of the lender’s risk.
Where to get a business loan with bad credit
Online lenders
CDFIs
Microlenders
How to get a business loan with bad credit
- 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.
1. Calculate how much debt you can afford
2. Check your credit score
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 business 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.
7. Review your business loan agreement
🤓 Nerdy Tip
Small-business owners, especially those with poor credit, can be targets for predatory lending, defined as a lending practice that deceives consumers into accepting unfair loan terms or loans they don’t need. As you look for lenders, watch out for red flags such as unclear rates or terms, aggressive phone calls or lenders that refuse to answer questions.Alternatives to bad-credit business loans
- 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.
- 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, providing details about your business and setting a funding goal. Share your campaign with customers, social media followers, friends and family 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.
- Angel investors. If you have a unique business idea or plan on growing quickly, you might consider looking for investors to finance your company. Angel investors are usually high-net-worth individuals who fund early stage businesses in exchange for equity. These investors often provide business expertise in addition to business capital. You might also find investor companies that allow you to pitch your business with the hope of getting someone in the company’s network to invest. Although these investors may not prioritize your credit score when deciding whether or not to invest, you’ll likely need to be able to show high growth and profitability potential.