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Best Business Loans for Bad Credit 2019

Steve NicastroNovember 21, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Online lenders provide small-business loans for borrowers with bad credit. Rates may be higher than bank loans.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

Get Started

on Lendio's website

Our picks for

500+ personal credit score

Kabbage, Fundbox and QuarterSpot provide short-term cash for working capital.

Kabbage - Line of credit

Kabbage - Line of credit

Est. APR

24.00 - 99.00%

Min. Credit Score

560

Kabbage provides fast loans for business owners with bad personal credit, but rates can be high.

Pros

  • Financing up to $250,000 available within a few days.
  • Accepts low credit scores.

Cons

  • Rates are high compared to other online lenders.
  • Must have online checking or PayPal account to verify cash flow.
  • Fixed-fee structure means early repayment does not save interest.
Read full review

Qualifications

  • Minimum credit score: 560.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $50,000.
Fundbox - Line of credit

Fundbox - Line of credit

Est. APR

10.10 - 79.80%

Min. Credit Score

500

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

Pros

  • Cash can be available by the next day.
  • Low minimum credit score requirement.

Cons

  • Rates are high compared to traditional banks.
Read full review

Qualifications

  • Minimum credit score: 500.
  • Minimum time in business: 3 months.
  • Minimum annual revenue: $50,000.
QuarterSpot - Online term loan

QuarterSpot - Online term loan

Est. APR

30.00 - 70.00%

Min. Credit Score

550

QuarterSpot's short-term business loans provide a financing option for borrowers with poor credit, but at high rates.

Pros

  • Requires low minimum credit score.
  • Cash can be available within the same day.
  • No prepayment penalty.

Cons

  • Rates are high compared to other online lenders.
  • Short loan terms.
  • Requires personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 550.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $200,000.
  • Average at least 10 monthly revenue-producing deposits.
  • Minimum $2,000 average daily account balance.

Our picks for

600+ personal credit score

StreetShares and BlueVine offer financing up to $250,000 and require a minimum credit score of 600.

StreetShares - Online term loan

StreetShares - Online term loan

Est. APR

8.00 - 39.99%

Min. Credit Score

600

StreetShares offers a business term loan for newer businesses that need to finance an expansion.

Pros

  • No prepayment penalty.

Cons

  • Requires weekly repayments.
  • Financing amounts limited to 20% of annual revenue.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $25,000.
  • No bankruptcies in the past 3 years.
BlueVine - Line of credit

BlueVine - Line of credit

Est. APR

15.00 - 78.00%

Min. Credit Score

600

BlueVine's line of credit provides fast working capital for short-term borrowing needs.

Pros

  • Offers options for businesses less than a year old.
  • Cash can be available within 12 to 24 hours.

Cons

  • Short repayment term results in higher payment amounts.
  • Requires personal guarantee.
  • Not available in North Dakota, South Dakota or Vermont.
Read full review

Qualifications

  • 6-month line of credit
  • Minimum credit score: 600.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $100,000.
  • 12-month line of credit
  • Minimum credit score: 620.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $450,000.

Our pick for

Businesses with unpaid customer invoices

BlueVine lets you turn your unpaid customer invoices into immediate cash. It typically evaluates the strength of your customers, such as whether they pay on time, more than your personal credit.

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Est. APR

15.00 - 68.00%

Min. Credit Score

530

BlueVine’s invoice factoring works best for financing larger invoices, but only if your customers reliably pay on time.

Pros

  • Finances larger invoices.
  • Cash can be available within the same day.
  • Accepts low minimum credit score and short time in business.

Cons

  • Not for businesses that do not invoice on net terms.
  • Loan amount is tied to the value of your invoices.
  • Dependency on customers to pay their bills on time.
Read full review

Qualifications

  • Minimum credit score: 530.
  • Minimum time in business: 3 months.
  • Minimum annual revenue: $100,000.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

Get Started

on Lendio's website

Summary of Best Business Loans for Bad Credit 2019

LenderBest ForEst. APRMin. Credit Score
Kabbage - Line of credit

Kabbage - Line of credit

500+ personal credit score

24.00 - 99.00%

560

Fundbox - Line of credit

Fundbox - Line of credit

500+ personal credit score

10.10 - 79.80%

500

QuarterSpot - Online term loan

QuarterSpot - Online term loan

500+ personal credit score

30.00 - 70.00%

550

StreetShares - Online term loan

StreetShares - Online term loan

600+ personal credit score

8.00 - 39.99%

600

BlueVine - Line of credit

BlueVine - Line of credit

600+ personal credit score

15.00 - 78.00%

600

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Businesses with unpaid customer invoices

15.00 - 68.00%

530

LenderBest ForEst. APRMin. Credit Score
Kabbage - Line of credit

Kabbage - Line of credit

500+ personal credit score

24.00 - 99.00%

560

Fundbox - Line of credit

Fundbox - Line of credit

500+ personal credit score

10.10 - 79.80%

500

QuarterSpot - Online term loan

QuarterSpot - Online term loan

500+ personal credit score

30.00 - 70.00%

550

StreetShares - Online term loan

StreetShares - Online term loan

600+ personal credit score

8.00 - 39.99%

600

BlueVine - Line of credit

BlueVine - Line of credit

600+ personal credit score

15.00 - 78.00%

600

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Businesses with unpaid customer invoices

15.00 - 68.00%

530

How do you get a business loan with bad credit?

Alternative lenders provide options for borrowers with a spotty credit history. Most of these lenders require a minimum personal credit score ranging from 500 to 650. A few lenders have no minimum credit score requirement.

Other factors that may be considered include your annual revenue, time in business and whether you’ve had recent bankruptcies.

Borrowers should consider the following before choosing a financing option:

  • A lower credit score may result in a higher interest rate on your loan.
  • If you have unpaid customer invoices, you can get immediate cash through invoice factoring or financing. While lenders may still check your credit score, approval is based mainly on the value of your invoices.
  • If you can wait and improve your personal credit, you may qualify for more options at better rates.

If you have less than a year in business

If your enterprise is less than a year old with little revenue, it’ll be tough to find a loan, no matter your credit. Here are startup financing options to help you grow your company.

Potential options include business credit cards, which typically provide borrowing amounts up to $50,000. However, approval is based on your personal credit score, and you’ll need a minimum credit score of 630 to qualify for most cards.

If you need to improve your credit score, consider getting a secured personal credit card first. These cards require a cash security deposit when you open the account. However, use the card responsibly, and you’ll improve your personal credit and get back your deposit.

Compare more small-business loan options

If none of the loans included here works for you, or if you’d like to compare loan options, NerdWallet has a list of small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.

Last updated on November 21, 2019

To recap our selections...

NerdWallet's Best Business Loans for Bad Credit 2019