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Best Small-Business Loans for Women with Bad Credit 2020

Jackie ZimmermannMay 15, 2020

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

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

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.

Our picks for

Business owners with a credit score of 500 to 600

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.
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.

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

13.99 - 63.00%

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

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.

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 2020

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

Fundbox - Line of credit

Best for Business owners with a credit score of less than 500

10.10 - 79.80%

500

Kabbage - Line of credit

Kabbage - Line of credit

Best for Business owners with a credit score of 500 to 600

24.00 - 99.00%

560

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Best for Business owners with a credit score of 500 to 600

15.00 - 68.00%

530

OnDeck - Online term loan

OnDeck - Online term loan

Best for Business owners with a credit score of 600 to 650

9.00 - 99.00%

600

OnDeck - Line of credit

OnDeck - Line of credit

Best for Business owners with a credit score of 600 to 650

13.99 - 63.00%

600

BlueVine - Line of credit

BlueVine - Line of credit

Best for Business owners with a credit score of 600 to 650

15.00 - 78.00%

600

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

Line of credit: Kabbage requires a minimum credit score of 560 to qualify. The company offers financing of up to $250,000.

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: StreetShares offers competitive rates, and you need a minimum credit score of 600 to qualify for both of its loan products.

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 May 15, 2020

To recap our selections...

NerdWallet's Best Small-Business Loans for Women with Bad Credit 2020