Bad Credit? Where to Find Business Loans

Small Business, Small Business Loans
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Business loans for borrowers with bad credit
Here are minimum personal credit scores from lenders that accept bad credit.
NOTE: Credit score is just one factor. Lenders also have minimum requirements for revenue and time in business.

Funding options
APR
Personal credit score
fundbox
* For invoice financing

Apply now at Fundbox
16.4%-76.5%
None

More on qualifying
kabbage
Apply now at Kabbage
24%-99%
None

More on qualifying
ondeck

Apply now at OnDeck
9%-99%
500

More on qualifying
bluevine
* For invoice financing

Apply now at BlueVine
17%-60%
530

More on qualifying
Street Shares
Apply now at StreetShares
9%-40%
600

More on qualifying

Bad credit is a red flag for lenders. It indicates you’ve either mismanaged your personal finances or fallen on hard times. Either way, lenders see you as higher risk — more likely to miss payments or default on a loan than a borrower with good credit.

Bad credit, defined by FICO as a score of 300 to 629, is one reason loan applications are rejected. Alternative lenders provide more options. They emphasize the strength and operating history of your business rather than your credit score. Be sure to compare all of your choices carefully, weighing terms and annual percentage rates.

Here are our recommendations based on personal credit:

If your personal credit score is under 500

If your personal credit score is 500 or higher

If your personal credit score is 600 or higher

Bad credit business loans: Summary of options

Note: If your business is a startup less than a year old, it’ll be tough to find a loan, no matter your credit. Here are financing ideas to help you launch your company.

If your personal credit score is under 500

Fundbox is a good option for businesses with unpaid customer invoices.

  • Pros: You won’t need a minimum credit score, personal guarantee or collateral
  • Cons: Financing is costly

Kabbage is a good option for businesses needing short-term working capital.

  • Pros: Kabbage checks your credit score, but there’s no minimum, and it doesn’t weigh credit score as heavily as other factors
  • Cons: Higher borrowing costs than other financing options
fundbox
kabbage
Do you qualify?
  • No minimum credit score
  • Must have unpaid customer invoices
  • Must have minimum of six months activity in an online accounting or bookkeeping software application such as Quickbooks, Xero or Wave
  • No minimum credit score
  • 1+ years in business
  • $50,000+ annual revenue
  • Must have a business checking, payment platform or accounting software account

Borrow:
$1,000 to $100,000 $2,000 to $100,000
APR:
16.4% to 76.5% 24% to 99%
Apply now at Fundbox
Apply now at Kabbage


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If your personal credit score is 500 or higher

OnDeck is a good option if you need fast cash for an expansion.

  • Pros: Funding as fast as 24 hours and high borrowing amounts of up to $500,000
  • Cons: Frequent repayments; lien and personal guarantee required

Kabbage is a good option if you need fast cash for working capital.

  • Pros: Fast funding, and you can qualify with poor credit
  • Cons: Higher cost and shorter repayment terms than other financing options

BlueVine is a good option if you have unpaid customer invoices.

  • Pros: High borrowing amounts of up to $2 million
  • Cons: Need strong revenue to qualify
ondeck kabbage bluevine
Do you qualify?
  • 500+ credit score
  • $100,000+ annual revenue
  • 1+ years in business
  • No personal bankruptcies in past two years
  • No minimum credit score, although most borrowers have 500+
  • $50,000+ annual revenue
  • 1+ years in business
  • 530+ credit score
  • Must have unpaid customer invoices
  • $120,000+ annual revenue
  • 3+ months in business
Borrow:
$5,000 to $500,000 $2,000 to $100,000$20,000 to $2 million
APR:
9% to 99%24% to 99%17% to 60%
Apply now at OnDeck
Apply now at Kabbage
Apply now at BlueVine


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If your personal credit score is 600 or higher

StreetShares is a good option for businesses that need small financing amounts.

  • Pros: Competitive rates and fast funding; revenue requirement starts at $25,000
  • Cons: Borrowing tops out at $100,000

OnDeck is a good option if you need to finance a large expansion.

  • Pros: High borrowing amounts up to $500,000
  • Cons: Higher financing costs; lien and personal guarantee required
Street Shares

ondeck
Do you qualify?
  • 600+ credit score
  • 1+ years in business
  • $25,000+ annual revenue
  • 500+ credit score
  • 1+ years in business
  • $100,000+ annual revenue
Borrow:
$2,000 to $100,000 $5,000 to $500,000
APR:
9% to 40%
9% to 99%
Apply now at StreetShares


Apply now at OnDeck

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Bad credit business loans: Summary of options

(Scroll right to see all the lenders.)
Funding options for
bad credit
Fundbox

fundbox
Kabbage

kabbage
OnDeck

ondeck
BlueVine

bluevine
StreetShares

Street Shares
Best forBusinesses with unpaid customer invoicesShort-term working capitalFast cash for an expansionBusinesses with unpaid customers invoicesWorking capital loans under $100,000
Loan details
Loan amount$1,000 to $100,000$2,000 to $100,000$5,000 to $500,000$20,000 to $2 million$2,000 to $100,000
APR16.4% to 76.5%24% to 99%9% to 99%17% to 60%9% to 40%
Minimum qualifications
Personal credit scoreNone
None500530600
Annual revenueNone$50,000$100,000$120,000$25,000
Time in business6 months 1 year1 year3 months1 year
Apply now at Fundbox
Apply now at Kabbage
Apply now at OnDeck
Apply now at BlueVine
Apply now at StreetShares

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Need more options?

If none of these works for you, or if you’d like to compare your loan options, NerdWallet has curated a list of small-business loans best for business owners. All of our recommendations are based on the lender’s market scope and track record and on business owners’ needs, as well as rates and other factors, so you can make the right financing decision.

Steve Nicastro is a staff writer at NerdWallet, a personal finance website. Email: Steven.N@nerdwallet.com. Twitter: @StevenNicastro.

This article was updated March 29, 2017.