How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 8 startup business loans for bad credit
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Short-term business loans for startups with bad credit | $1,500,000 | 500 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Quick business loans for startups with bad credit | $150,000 | 600 | |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Unsecured startup business loans for bad credit | $250,000 | 625 | with Fundera by NerdWallet |
Headway Capital - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Low-revenue business loans for startups with bad credit | $100,000 | 625 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for Microloans for startups with bad credit | $50,000 | 620 | with Fundera by NerdWallet |
National Funding - Equipment Financing with Fundera by NerdWallet | 4.5/5 Best for Equipment financing for startups with bad credit | $150,000 | 600 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 4.0/5 Best for Startup business loans for women and minority groups with bad credit | $250,000 | 570 | |
AltLINE - Invoice Factoring | 4.5/5 Best for Invoice factoring for startups with bad credit | $10,000,000 | 300 | |
Here are 8 startup business loans for bad credit
Best for Short-term business loans for startups with bad credit
Best for Quick business loans for startups with bad credit
Max Amount
$150,000
Min. Credit Score
600
Best for Unsecured startup business loans for bad credit
Best for Low-revenue business loans for startups with bad credit
Best for Microloans for startups with bad credit
Best for Equipment financing for startups with bad credit
Best for Startup business loans for women and minority groups with bad credit
Max Amount
$250,000
Min. Credit Score
570
Best for Invoice factoring for startups with bad credit
Max Amount
$10,000,000
Min. Credit Score
300
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Our pick for
Short-term business loans for startups with bad credit
Fora Financial offers short-term business loans to borrowers with at least six months in business and a credit score of 500 or higher.
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan
$1,500,000
Min. Credit score
500
with Fundera by NerdWallet
Our pick for
Quick business loans for startups with bad credit
Fundbox can approve and fund line of credit applications within 24 hours. You may be able to qualify with six months in business and a minimum credit score of 600.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
Unsecured startup business loans for bad credit
OnDeck does not require physical collateral or a down payment. You may be able to qualify with one year in business and a credit score of 625 or higher.
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
35.40-99.90%
with Fundera by NerdWallet
Our pick for
Low-revenue business loans for startups with bad credit
Your startup may be able to qualify for a line of credit from Headway Capital with a minimum credit score of 625 and a monthly revenue of approximately $4,167 or more.
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
with Fundera by NerdWallet
Our pick for
Microloans for startups with bad credit
Microlenders and nonprofit organizations can offer loans of up to $50,000 and may be willing to work with new businesses with bad credit.
SBA Microloan
with Fundera by NerdWallet
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
with Fundera by NerdWallet
Our pick for
Equipment financing for startups with bad credit
National Funding can work with startups and borrowers with a credit score of 600 or higher.
National Funding - Equipment Financing
with Fundera by NerdWallet
Max loan
$150,000
Min. Credit score
600
with Fundera by NerdWallet
Our pick for
Startup business loans for women and minority groups with bad credit
You may be able to qualify for a loan from Accion with 12 months in business and a minimum credit score of 570 or higher. Accion focuses its funding efforts in underserved communities — and says 90% of its borrowers are women, people of color, and/or low-to-moderate income.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-29.67%
Our pick for
Invoice factoring for startups with bad credit
AltLINE has no minimum credit score or length of time in business requirements. It can advance up to 90% of your unpaid invoices, with rates as low as 0.80%.
AltLINE - Invoice Factoring
Max loan
$10,000,000
Min. Credit score
300
What is a bad credit score?
Where to get a startup business loan with bad credit
Online lenders
Community development financial institutions
Microlenders
Merchant financing companies
How to get startup business loans with bad credit
1. Evaluate your business’s credentials
2. Calculate how much debt you can afford
3. Compare lenders — but beware startup business loans with guaranteed approval or no credit check
🤓 Nerdy Tip
Predatory lenders often target borrowers who are having trouble qualifying for financing. Be wary of any lender that guarantees approval, advertises startup loans with no credit check, requires a fee to review your application and lenders that are not transparent about rates and terms. At best, those may be expensive products. At worst, they could signal predatory lenders that will potentially hurt your new company more than help it.4. 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.
5. Review agreement and get funds
Factors that can strengthen your loan application
- Build your credit. It may sound obvious, but improving your credit — both business and personal — can expand your loan options and access to better rates and terms. Ways to build credit include fixing mistakes in your credit report and paying down debt. Some lenders may offer business loans and lines of credit — backed up with cash deposits — that can be used to establish positive payment histories. Startups can also look to build business credit through actions like updating business information and uploading financial statements to business credit bureaus.
- Offer collateral. Collateral, an asset that can be seized if you don’t repay the borrowed funds, can help you get financing and also access more competitive interest rates and repayment terms.
- Add a cosigner. Having someone who agrees to take over payments on the business loan if you default, can make your application more favorable to a lender. Valuable cosigners usually have strong credit and personal finances.
Alternatives for borrowers with bad credit
Personal business loans
Business credit cards
Family and friends loans
Small business grants
Selling equity
Crowdfunding
Find the right business loan
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.