Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
---|---|---|---|---|---|---|---|
with Fundera by NerdWallet | Best for easy approval | $300,000 | 6 months | Undisclosed | Undisclosed | with Fundera by NerdWallet | |
with Fundera by NerdWallet | Read expert review | Best for small-dollar merchant cash advances | $10,000 | 3 months | Undisclosed | Undisclosed | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for short-term loans | $1,500,000 | 6 months | Undisclosed | 4 to 18 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for no collateral requirements | $250,000 | 12 months | 31.3% | 18 to 24 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for quick funding | $250,000 | 3 months | 36% | 3 to 6 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for low revenue | $350,000 | 12 months | 8.49% | 12 months to 5 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for equipment financing | $150,000 | 6 months | Undisclosed | 24 months to 5 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for invoice factoring | $5,000,000 | Undisclosed | Undisclosed | 1 to 3 months | with Fundera by NerdWallet |
![]() | Best for zero-interest loans | $15,000 | Undisclosed | Undisclosed | Up to 3 years |
of the best startup business loans for bad credit: More details
Expansion Capital Group: Best for easy approval
Expansion Capital Group offers a simple and fast approval process for startups with bad credit. To apply, you only need to answer a few basic questions about your business and add three months of bank statements. You’ll receive a quote within 24 hours.
Expansion Capital Group - Merchant cash advance
with Fundera by NerdWallet
Pros
- Simple application with minimal documentation required.
- Low minimum credit score requirement.
- Daily or weekly repayment available.
- Offers prepayment discounts.
Cons
- Business assets required as collateral in some cases.
- Factor rate and fee information not available on website.
- Charges an origination fee and a monthly servicing fee.
Pros
- Simple application with minimal documentation required.
- Low minimum credit score requirement.
- Daily or weekly repayment available.
- Offers prepayment discounts.
Cons
- Business assets required as collateral in some cases.
- Factor rate and fee information not available on website.
- Charges an origination fee and a monthly servicing fee.
with Fundera by NerdWallet
Giggle Finance: Best for small-dollar merchant cash advances
If your startup only needs a small amount of capital, Giggle Finance may be a worthwhile option. You may qualify for up to $5,000 if you have at least three months in business and an average monthly revenue of $3,000 or more.
Giggle Finance - Merchant cash advance
with Fundera by NerdWallet
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
with Fundera by NerdWallet
Fora Financial: Best for short-term loans
You can use a short-term loan from Fora Financial to cover a range of startup costs, such as buying supplies and inventory, paying utility bills and marketing your business. This is a good term loan option for borrowers with a credit score below 600.
Fora Financial - Online term loan
with Fundera by NerdWallet
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
with Fundera by NerdWallet
OnDeck: Best for no collateral requirements
If your startup doesn’t have business assets to put up to secure your loan, you might consider OnDeck. OnDeck doesn’t require physical collateral or a down payment. This loan can help you cover a variety of short-term expenses for your new business.
OnDeck - Online term loan
with Fundera by NerdWallet
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
with Fundera by NerdWallet
Fundbox: Best for quick funding
Fundbox offers flexible lines of credit that can be a good option for startups who need working capital. You can receive funding within 24 hours and only need a minimum credit score of 600 to qualify.
Fundbox - Line of credit
with Fundera by NerdWallet
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
with Fundera by NerdWallet
Accion: Best for low revenue
You might consider Accion if your startup has been operating for at least 12 months, but it isn’t generating a lot of revenue yet. To qualify, Accion requires $50,000 in annual revenue, which is lower than other lenders on our list.
Accion Opportunity Fund Small Business Working Capital Loan
with Fundera by NerdWallet
Pros
- Loan amounts from $5,000 to $350,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
Pros
- Loan amounts from $5,000 to $350,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
with Fundera by NerdWallet
National Funding: Best for equipment financing
National Funding can be a good option if you need to purchase equipment for your startup. Because the equipment serves as collateral on the loan, National Funding can offer more flexible requirements than traditional lenders.
National Funding - Equipment financing
with Fundera by NerdWallet
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
with Fundera by NerdWallet
AltLINE: Best for invoice factoring
AltLINE has no minimum credit score or length of time in business requirements. It can be a good option for new B2B businesses with outstanding invoices.
AltLINE - Invoice factoring
with Fundera by NerdWallet
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
- Charges an origination fee.
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
- Charges an origination fee.
with Fundera by NerdWallet
Kiva U.S.: Best for zero-interest loans
Kiva allows you to borrow up to $15,000 through crowdfunding. There is no interest charged on these crowdfunding loans. Kiva can be a good option for startups with an existing online following.

Kiva U.S. - Microloan
Pros
- Reports to credit bureaus, which can help you build business credit.
- Don’t need to meet credit, time in business, or annual revenue requirements to qualify.
Cons
- Funding can take weeks and depends on your fundraising efforts.
Pros
- Reports to credit bureaus, which can help you build business credit.
- Don’t need to meet credit, time in business, or annual revenue requirements to qualify.
Cons
- Funding can take weeks and depends on your fundraising efforts.
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A closer look at the best startup business loans for bad credit
Expansion Capital Group
Giggle Finance
Fora Financial
OnDeck
Fundbox
Accion Opportunity Fund
National Funding
AltLINE
Kiva
What is a bad credit score?
Options for startup business loans with bad credit
Online loans
Community development financial institution loans
Microloans
Merchant cash advances
💬 From a lending expert: Don't let bad credit hold you back
Bad credit shouldn’t hold you back. We’ve secured loans for more than 2,000 unique businesses with a credit score of 600 or less.
Through our trusted lender network, we’ll coach you through the funding process, while helping secure the best rate possible.
with Fundera by Nerdwallet

— Mike Ross, NerdWallet Business Loans Team Lead
How to get startup business loans with bad credit
1. Evaluate your business’s credentials
- Personal credit score of 500 or higher.
- At least three months in business.
- Consistent revenue.
2. Calculate how much debt you can afford
3. Compare lenders
4. Prepare and strengthen your application
5. Submit your application
- A business plan.
- Business and personal bank statements.
- Business and personal tax returns.
- Business financial statements, such as a profit and loss statement or a balance sheet.
- Cash flow projections.
6. Review agreement and get funds
Alternatives for startups with bad credit
Frequently asked questions
How Fundera by NerdWallet works
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
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Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.