BEST OF

Best Small-Business Loans for Women with Bad Credit 2021

Women business owners with bad personal credit may still qualify for financing through online lenders, but rates can be high.

Jackie ZimmermannJanuary 29, 2021
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Like any small-business owner, the business financing options available to women entrepreneurs include Small Business Administration 7(a) loans and online lenders. If your personal credit score is bad (300 to 629 FICO), you may have fewer options — and you'll likely pay higher rates — but securing a small-business loan is still possible.

Online lenders are a good place to begin your search for financing. You can also consider microloans and small-business grants for women.

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 Fundera's website

Our pick for

Business owners with a credit score of less than 500

Fundbox - Line of credit

Fundbox - Line of credit

Est. APR

10.10 - 79.80%

Min. Credit Score

550

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: 550.
  • Minimum time in business: 2 months.
  • Minimum annual revenue: $50,000.

Our pick for

Business owners with a credit score of 500 to 600

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Est. APR

15.00 - 68.00%

Min. Credit Score

530

BlueVine has temporarily paused applications for this product to prioritize PPP funding.

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.

Our picks for

Business owners with a credit score of 600 to 650

OnDeck - Online term loan

OnDeck - Online term loan

Est. APR

9.00 - 99.00%

Min. Credit Score

600

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

Pros

  • Cash can be available within the same business day.
  • Requires low minimum credit score.
  • Less paperwork than most lenders.

Cons

  • Fixed-fee structure means early repayment will not save interest.
  • Requires frequent (daily or weekly) repayments.
  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 3 years.
  • Minimum annual revenue: $250,000.
  • No bankruptcies in the past 2 years.
OnDeck - Line of credit

OnDeck - Line of credit

Est. APR

11.00 - 61.90%

Min. Credit Score

600

OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.

Pros

  • Cash can be available within the same business day.
  • Requires low minimum credit score.
  • Less paperwork than most lenders.

Cons

  • Fixed-fee structure means early repayment will not save interest.
  • Requires weekly repayments.
  • Requires personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 3 years.
  • Minimum annual revenue: $250,000.
  • No bankruptcies in the past 2 years.
BlueVine - Line of credit

BlueVine - Line of credit

Est. APR

15.00 - 78.00%

Min. Credit Score

650

BlueVine has temporarily paused applications for this product to prioritize PPP funding.

Pros

  • Cash can be available within 12 to 24 hours.
  • Multiple products for different financing needs

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: 650.
  • Minimum time in business: 3 years.
  • Minimum annual revenue: $100,000.
  • 12-month line of credit
  • Minimum credit score: 650.
  • Minimum time in business: 3 years.
  • Minimum annual revenue: $480,000.

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 Fundera's website

Summary of Best Small-Business Loans for Women with Bad Credit 2021

If you own a startup

Startups face unique challenges, since many lenders won't extend credit to new companies that don’t have a track record. However, there are other sources of startup funding, such as microloans, nonprofit lenders and personal business loans, that can help you get going.

If your personal credit score is less than 500

Loans for borrowers with bad credit can be expensive and should only be considered if you need cash right away and don’t have time to build your credit before applying for loans.

It's also worth checking to see if you’re eligible for federal, state or local small-business grants for women.

  • Line of credit: Fundbox doesn’t require a minimum credit score; however, you'll need annual revenue of at least $50,000 and three months in business to meet its minimum qualifications.

If your personal credit score is 500 to 600

Invoice factoring: For outstanding invoices, BlueVine offers invoice factoring loans from $20,000 to $5 million. It requires a minimum credit score of 530 to qualify.

If your personal credit score is between 600 and 650

Term loan and line of credit: OnDeck requires a minimum credit score of 600 to qualify, although its typical borrower has a score between 680 to 720.

Line of credit: BlueVine requires a minimum credit score of 600 for its six-month line of credit and 620 or its 12-month line of credit.

Find and compare the best small-business loans

To help you compare small-business loan options, NerdWallet has compiled a list of loans to help meet business owners’ needs. We’ve gauged them on trustworthiness, market scope and user experience, and sorted them into categories based on revenue and the length of time you’ve been in business.

Last updated on January 29, 2021

To recap our selections...

NerdWallet's Best Small-Business Loans for Women with Bad Credit 2021