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Best Small-Business Loans for Women With Bad Credit

By Randa Kriss, Edited by Sally Lauckner | Last updated on February 1, 2023
Online and nonprofit lenders can provide business loans for women with bad credit, but interest rates can run high.

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Women-owned businesses are more likely to be denied financing than businesses owned by men — even if they have strong credit. And for women with a rocky credit history, it can be even more challenging to get a small-business loan.
Although banks and credit unions don’t typically offer loans to borrowers with poor credit, female entrepreneurs may be able to get funding from online or nonprofit lenders.
Below, compare some of the best business loans for women with bad credit — defined by FICO as a score between 300 and 629 — and learn more about how to qualify for financing.

How much do you need?

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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.

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Here are 6 small-business loans for women with bad credit

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Lender
NerdWallet Rating
Max loan amount
Min. credit score
Next steps

Fora Financial - Online term loan

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4.5/5

Best for Startup business loans for women with bad credit

$1,400,000500

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Fundbox - Line of credit

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5.0/5

Best for Business lines of credit for women with bad credit

$150,000600

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Triton Capital - Equipment financing

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4.0/5

Best for Equipment loans for women with bad credit

$250,000600

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SBA Microloan

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Best for SBA loans for women with bad credit

$50,000620

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OnDeck - Online term loan

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5.0/5

Best for Short-term loans for women with bad credit

$250,000625

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Accion - Business Loans

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4.0/5

Best for Small-business loans for minority women with bad credit

$100,000300

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Here are 6 small-business loans for women with bad credit

Best for Startup business loans for women with bad credit

Fora Financial

Max Amount

$1,400,000

Min. Credit Score

500

Best for Business lines of credit for women with bad credit

Fundbox

Max Amount

$150,000

Min. Credit Score

600

Best for Equipment loans for women with bad credit

Triton Capital

Max Amount

$250,000

Min. Credit Score

600

Best for SBA loans for women with bad credit

U.S. Small Business Administration

Max Amount

$50,000

Min. Credit Score

620

Best for Short-term loans for women with bad credit

OnDeck

Max Amount

$250,000

Min. Credit Score

625

Best for Small-business loans for minority women with bad credit

Accion

Max Amount

$100,000

Min. Credit Score

300

Our pick for

Startup business loans for women with bad credit

Fora Financial - Online term loan

4.5
NerdWallet rating 
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Max Loan Amount
$1,400,000
Min. credit score
500
Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.
4.5
NerdWallet rating 

Max loan

$1,400,000

Min. Credit score

500

Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.
Read Review

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Our pick for

Business lines of credit for women with bad credit

Fundbox - Line of credit

5.0
NerdWallet rating 
Read Review

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Max Loan Amount
$150,000
Min. credit score
600
Est. APR
10.10-79.80%
Fundbox offers a business line of credit to fill a cash-flow gap, and qualifying is easier than with other lenders.
May fund quickly
5.0
NerdWallet rating 

Max loan

$150,000

Min. Credit score

600

Apr range

10.10-79.80%

Fundbox offers a business line of credit to fill a cash-flow gap, and qualifying is easier than with other lenders.
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Our pick for

Equipment loans for women with bad credit

Triton Capital - Equipment financing

4.0
NerdWallet rating 

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Max Loan Amount
$250,000
Min. credit score
600
Est. APR
5.99-35.00%
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.
4.0
NerdWallet rating 

Max loan

$250,000

Min. Credit score

600

Apr range

5.99-35.00%

Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.

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Our pick for

SBA loans for women with bad credit

SBA Microloan

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Max Loan Amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%
The average microloan is roughly $13,000, according to the Small Business Administration.

Max loan

$50,000

Min. Credit score

620

Apr range

8.00-13.00%

The average microloan is roughly $13,000, according to the Small Business Administration.
Read Review

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Our pick for

Short-term loans for women with bad credit

OnDeck - Online term loan

5.0
NerdWallet rating 
Read Review

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Max Loan Amount
$250,000
Min. credit score
625
Est. APR
29.90-97.30%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
5.0
NerdWallet rating 

Max loan

$250,000

Min. Credit score

625

Apr range

29.90-97.30%

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
Read Review

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Our pick for

Small-business loans for minority women with bad credit

Accion - Business Loans

4.0
NerdWallet rating 
Read Review

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Max Loan Amount
$100,000
Min. credit score
300
Est. APR
7.70-24.89%
Accion Opportunity Fund loans are an option for established businesses that haven’t been able to secure traditional financing due to poor credit, no credit history or a small loan amount.
4.0
NerdWallet rating 

Max loan

$100,000

Min. Credit score

300

Apr range

7.70-24.89%

Accion Opportunity Fund loans are an option for established businesses that haven’t been able to secure traditional financing due to poor credit, no credit history or a small loan amount.
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How Much Do You Need?

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General Qualifications

This is a common profile for our borrowers but we have a wide number of options for many business owners.

Credit Score

550 or higher

Annual Revenue

at least $50k

Time in Business

6 months or more

What is a bad credit score?

A bad credit score usually falls between 300 and 629 (on a scale of 300 to 850), according to the most common credit score models, like VantageScore and FICO. Personal credit scores ranging from 630 to 689 are typically considered fair credit.
Business lenders may have their own criteria to define bad credit, however, bad-credit business loans typically target borrowers with credit scores below 630.

Where to get a business loan for women with bad credit

Traditional lenders, like banks and credit unions, are unlikely to issue loans to borrowers with bad credit. The alternative sources below, however, may be willing to work with women-owned businesses, even if you have a rocky credit history.

Online lenders

Online lenders tend to have flexible minimum credit score requirements, ranging from 500 to 650. Some of these lenders don’t set a credit requirement at all — and instead focus more heavily on cash flow or collateral when evaluating your application.
Online lenders typically offer easy approvals and fast funding, especially compared with more traditional lenders. As a result, however, online business loans will usually have higher interest rates and shorter repayment terms.
Although there are numerous reputable lenders in the online market, there are also predatory lenders who try to take advantage of borrowers who are having trouble qualifying for funding. Be wary of any lenders offering no credit check loans or guaranteed approval.

CDFIs

Community development financial institutions, or CDFIs, are banks and credit unions that receive government funding to provide banking access to low-income and underserved communities — including women, veterans and minority groups.
Unlike other traditional lenders, CDFIs tend to have flexible qualification requirements and are more amendable to working with startups and businesses with bad credit. 
Accion Opportunity Fund, for example, doesn’t set a minimum credit score and only requires a minimum of three months in business. The lender also states that over 90% of its borrowers are women, people of color and/or low-to-moderate-income individuals.
CDFIs offer competitive interest rates and repayment terms, but funding may be slower than online lenders.
» MORE: Best small-business loans for women

Nonprofit lenders

Like CDFIs, nonprofit lenders focus on offering business loans to borrowers who can’t qualify for traditional financing, such as those with limited or poor credit histories. Many of these lenders provide free or low-cost coaching and business training.
Some nonprofit lenders are also SBA microlenders. These lenders receive government funding, but administrate their own loans. Microlenders can set their own standards for interest rates, repayment terms and qualifications — subject to SBA guidelines.
Justine Peterson, for instance, is a St. Louis-based nonprofit microlender that offers SBA microloans up to $50,000. Typical interest rates range from 7.25% to 11%.

How to get a business loan for women with bad credit

When you’re looking to get a business loan for bad credit, start by checking your credit score. You can get a free credit score on NerdWallet, and also pull your personal credit report from the three major reporting bureaus for free at AnnualCreditReport.com.
If possible, it can be helpful to build your credit before applying for financing. Look for any errors on your credit report and dispute them with the appropriate credit bureau. Making more frequent payments or paying off debt can also help build your credit score.
Next, evaluate your other business criteria — annual revenue, time in business, cash flow, available collateral — to determine the type of funding you can qualify for. You’ll want to look for the areas where your business is the strongest, maybe you have excellent cash flow, for example, and highlight these strengths on your loan application.
Once you have a sense of your qualifications, you can begin researching and comparing lenders. You'll want to consider factors like borrowing costs, repayment terms, funding speed and lender reputation when choosing the right option for your needs.
» MORE: How to apply for a small-business loan

Alternative funding options for women with bad credit

Here are some alternative financing options you might consider:
  • Asset-based funding. With asset-based financing, you receive money from a lender to purchase products for your business. The product you’re looking to purchase, such as inventory or equipment, serves as collateral on the loan. Because this type of financing is self-collateralized, lenders are often more willing to work with borrowers with bad credit.
  • Small-business grants. Business grants offer free funding that you don’t have to repay. Grant providers don’t typically use your credit score to evaluate your application, though application processes can be competitive. Some companies even offer specific business grants for women.
  • Crowdfunding. With crowdfunding, you put your business on an online platform and advertise your financing goal. People can donate money to your business — usually in exchange for equity or some type of perk or benefit. Crowdfunding can be a good option for product-based businesses with an internet following.

Find the right business loan

The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Last updated on February 1, 2023

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

Learn more