A closer look at the top bad credit lenders
At a glance:
☑️: Advances up to $15,000 ($20,000 for repeat customers).
☑️: Funding in as little as a few hours.
☑️: Requires 3+ months in business and doesn’t check your credit score.
🔍 Why we like it:
Giggle Finance can provide capital up to $15,000 in just minutes. The advance is repaid using automatic debits from your bank account. Giggle is marketed toward freelancers, contractors and self-employed individuals, but can be used by any small-business owner with at least 3 months in operation. 📋 Key details:
Funding type: Merchant cash advance.
Repayment term: Payments are based on your business’s revenue. You’ll make weekly payments until you repay the full advance amount.
Speed: As fast as the same day.
➡️ Good fit for: Startups, businesses with bad credit that can’t qualify for other options.
Best for low interest rates
At a glance:
☑️: Loans up to $50,000.
☑️: Funding in as little as one week.
☑️: Requirements vary based on microlender.
🔍 Why we like it:
SBA microloans are issued by participating intermediaries, such as nonprofit organizations or community lenders, who tend to have more flexibility with their eligibility criteria. Many SBA microlenders offer loans to traditionally underserved borrowers, including those with bad or limited credit. 📋 Key details:
Loan type: Term loan.
Interest rate range: 8% to 13%.
Repayment term: Up to 84 months.
Speed: As fast as one week.
➡️ Good fit for: Traditionally underserved business owners; business owners who can wait for funding in order to get the lowest interest rates.
At a glance:
☑️: Up to $5 million in invoices per month.
☑️ Funding in as little as 24 hours.
☑️: No minimum credit score or time in business requirements.
🔍 Why we like it:
Like other factoring companies, AltLINE underwrites your application largely based on the creditworthiness of your customers, the age of your receivables and the value of your invoices — as opposed to more traditional requirements. In fact, AltLINE does not set minimum requirements for your personal credit score, time in business or annual revenue. The lender may, however, still consider these factors as part of your application.
📋 Key details:
➡️ Good fit for: Business-to-business companies with slow-paying customers.
Best for equipment purchases
At a glance:
☑️: Loans starting at $3,000.
☑️: Requires a 550+ credit score and accepts startups.
🔍 Why we like it:
ELease can help you finance a variety of essential business equipment or machinery. Because the equipment you purchase serves as collateral on the loan, the lender can work with startups and borrowers who have lower credit scores.
📋 Key details:
Loan type: Equipment loan.
Interest rate range: 9% to 22%.
Repayment term: Up to 60 months.
➡️ Good fit for: Businesses that need to purchase equipment or machinery.
At a glance:
☑️: Advances up to $500,000.
☑️: Funding in as little as 48 hours.
☑️: Requires a 500+ credit score and 6+ months in business.
🔍 Why we like it:
Expansion Capital Group (ECG) offers fast access to working capital. ECG’s merchant cash advance can be a good option for businesses that have strong incoming revenue from debit and credit card sales. Like most MCA providers, however, ECG charges interest as a factor rate, which can be expensive. You’ll want to translate your costs into an APR and compare multiple options to ensure this product is a fit for your business. 📋 Key details:
Funding type: Merchant cash advance.
Repayment term: Payments are based on your business’s revenue. You’ll make daily or weekly payments until you repay the full advance amount.
Speed: As fast as a few hours after approval.
➡️ Good fit for: Businesses with strong revenue from credit card sales that can’t qualify for other funding options.
At a glance:
☑️: Loans up to $1.5 million.
☑️: Funding in as little as 24 hours.
☑️: Requires a 570+ credit score and 6+ months in business.
🔍 Why we like it:
Fora Financial is an online lender that has flexible qualification requirements, making it a good option for startups and borrowers with bad credit. Fora also doesn’t require physical collateral, which can be helpful if your business doesn’t have significant assets to offer as security.
📋 Key details:
➡️ Good fit for: Startups, businesses that need fast access to funds.
At a glance:
☑️: Credit lines up to $250,000.
☑️: Funding in as little as two business days.
☑️: Requires a 600+ credit score and 3+ months in business.
🔍 Why we like it:
Fundbox is one of the best online line of credit options for startups. You only need 3 months in business to qualify. Plus, Fundbox has flexible credit score and annual revenue requirements — making it accessible to borrowers with bad credit and/or businesses with low revenue.
📋 Key details:
Loan type: Line of credit.
Interest rate range: 36% to 99%.
Repayment term: 3 to 24 months.
Speed: Within two business days.
➡️ Good fit for: Startups, low-revenue businesses that want flexible access to funds.
At a glance:
☑️: Loans up to $250,000.
☑️: Funding takes six days, on average.
☑️: Requires a 620+ credit score and 12+ months in business.
🔍 Why we like it:
Accion issues business loans with repayment terms of up to 36 months, longer than many other bad credit business loans. The lender has flexible qualification requirements, but also offers competitive interest rates.
📋 Key details:
Loan type: Term loan.
Interest rate range: 9.99% to 28.95%.
Repayment term: Up to 36 months.
Speed: Six days, on average.
➡️ Good fit for: Low-income and traditionally underserved entrepreneurs, such as women-, minority- and veteran-owned businesses.
Best for short-term, one-off purchases
At a glance:
☑️: Loans up to $400,000.
☑️: Funding in as little as hours after approval.
☑️: Requires a 625+ credit score and 12+ months in business.
🔍 Why we like it:
OnDeck’s short-term business loan can be a good choice for specific, one-time investments in your business. Although OnDeck requires daily or weekly repayment, payments are fixed and don’t change over the course of your loan.
📋 Key details:
Loan type: Term loan.
Interest rate range: 35% to 99% (minimum provided is for rates that at least 5% of customers received).
Repayment term: Up to 24 months.
Speed: As fast as the same day.
➡️ Good fit for: Fast access to capital to be used for a specific purpose.
Best for flexible spending
At a glance:
☑️: Credit lines up to $100,000.
☑️: Funding in as little as 24 hours.
☑️: Requires a 625+ credit score and 6+ months in business.
🔍 Why we like it:
Headway Capital offers a business line of credit that’s a good choice for those who can’t qualify for traditional financing. The lender has a simple application process and flexible qualification requirements. Headway also offers three repayment term options — more than other similar competitors.
📋 Key details:
Loan type: Line of credit.
Interest rate range: 39% to 82%.
Repayment term: 12, 18 or 24 months.
Speed: As fast as the next business day.
➡️ Good fit for: Businesses that want a fast, flexible line of credit.
What is a bad credit business loan?
A bad credit business loan is a loan that’s targeted toward business owners with personal credit scores from poor to fair. These loans allow entrepreneurs to access capital despite credit challenges, but they typically have higher interest rates, shorter repayment terms and lower loan amounts.
What is a bad credit score?
Individual small-business lenders may have varying guidelines for what's considered a bad credit score, based on which scoring model they use. FICO, one of the most well-known scoring models, defines credit score ranges like this: 300 to 579: Very poor.
580 to 669: Fair.
670 to 739: Good.
740 to 799: Very good.
800 to 850: Exceptional.
On this page, you’ll find lenders that work with “very poor” scores, as well as those that accept the lower end of “fair” scores.
How to get a business loan with bad credit
Here are steps you can follow to get a business loan if you have bad credit.
1. Calculate how much debt you can afford
First, determine how much debt you can reasonably afford. Lower credit scores may result in higher interest rates, which can make it difficult to repay a new loan — and leave you worse off financially than you were when you started.
Consider:
Shorter terms means larger payments, but less interest. Longer terms mean smaller payments, but more interest over the life of the loan — which increases your total cost.
2. Work to improve your credit score, if you can
Start by checking your score:
Established companies should also check their business credit scores from Experian, Equifax and Dun & Bradstreet. The higher your credit score, the easier it will be to get a loan, especially one with competitive rates and terms. If you're able to wait for financing, take the time to build your score.
Looking for errors on your credit reports and disputing them with the appropriate credit bureau.
Making debt repayments more frequently.
Being added as an authorized user to a credit card belonging to someone you know and trust who has a good credit score.
3. Strengthen other areas of your application
Although business loan requirements vary, most lenders will use similar criteria when evaluating your application. If you have a lower credit score, these other requirements will be even more important to help you access financing.
Most lenders will consider the following:
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.
Prepare to bolster your business profile in any way possible to help increase your chances of approval.
For example, if you have significant collateral available, consider offering more than the minimum — or offer collateral even if the lender doesn’t require it. Your business’s strengths may make your application more attractive to lenders, even if your credit score is lagging.
You might also consider finding a cosigner to help you secure a loan. If you default on the loan, the cosigner assumes responsibility for repayment. The cosigner should have a higher credit score and ideally strong personal assets to improve your chances of approval. 4. Research and compare bad credit loan options
You may be able to find bad credit business loans from online or nonprofit lenders. As you explore different options, you should compare them based on:
5. Gather your documentation and apply
To complete your loan application, you may need to provide some, if not all, of the following:
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.
Types of bad credit business loans
There are several types of business loans available for bad credit. These loans may have low credit score requirements or include collateral, which can make it easier for bad credit borrowers to qualify.
Pros and cons of bad credit business loans
Pros
- 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.
Cons
- Typically have higher rates and fees than traditional loans.
- Borrowing limits are usually lower.
- May require collateral to offset lender risk.
Frequently asked questions
Last updated on April 21, 2026
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