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Small-Business Loans for Women With Bad Credit 2019

Sept. 24, 2019
Small Business, Small Business Loans
Business Loans for Women With Bad Credit
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There are many small-business financing options available for women entrepreneurs, from Small Business Administration 7(a) loans, to online lenders and invoice financing. Women with a bad personal credit score (300 to 629 FICO) have fewer options and will likely pay higher rates on such loans, but securing a small-business loan is still possible.

If you have bad credit and need a loan, online lenders are a good place to begin your search. Compare your options below.

Best small-business loans for women with bad credit

Best for startups

Best for business owners with a credit score of less than 500: Fundbox

Best for business owners with a credit score between 500 to 600: Kabbage and BlueVine

Best for business owners with a credit score between 600 to 650: StreetShares, OnDeck and BlueVine

Summary of options

If you own a startup

Startups face unique challenges. Many lenders are not keen on financing new companies that don’t have a track record, but other sources of startup funding, such as microloans, nonprofit lenders and personal business loans, can help get you going.

If your personal credit score is less than 500

These can be expensive loans and should only be considered if you need cash right away and don’t have time to work on building your credit score before sending out loan applications.

Before applying, it may also be worth checking to see if you’re eligible for any federal, state or local small-business grants for women.

If you need cash for your business now, here are some options.

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

  • Pros: You can qualify with bad credit and gain access to funds as fast as the next business day.
  • Cons: High cost, and only suitable for short-term financing.

Line of Credit

  • Loan amount: $1,000 to $100,000
  • APR: 10.1% to 79.8%
  • Loan term: 12 weeks
  • Funding time: As fast as next business day
  • Read our Fundbox review
Apply now At Fundbox

Invoice financing: If your business has unpaid customer invoices, you can turn those invoices into fast cash while you wait for customers to pay. Fundbox’s invoice financing option advances 100% of the invoice value upfront, and you make equal repayments over a 12- or 24-week period.

  • Pros: Fast funding. No personal credit score or minimum revenue required to qualify.
  • Cons: High cost, and only suitable for short-term financing.

Invoice financing

  • Loan amount: $1,000 to $100,000
  • APR: 10.1% to 68.7% for 12 weeks; 11.4% to 78.6% for 24 weeks
  • Loan term: Equal repayments over a 12- or 24-week period
  • Funding time: As fast as the next business day
  • Read our Fundbox review
Apply now at Fundbox

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.

  • Pro: Kabbage weighs your average monthly revenue and years in business more heavily than your personal credit score.
  • Cons: High annual percentage rates compared with other options, and paying off the loan early does not save you on interest.
  • Loan amount: $2,000 to $250,000.
  • APR: 24% to 99%.
  • Loan term: 6, 12 or 18 months.
  • Funding time: A few minutes to several days.
  • Read our Kabbage review.
Apply now at Kabbage

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

  • Pro: Access to funds within 24 hours.
  • Cons: High cost of borrowing. Strong minimum annual revenue required.

Invoice Factoring

  • Loan amount: $20,000 to $5 million.
  • APR: 15% to 68%.
  • Loan term: 1 to 13 weeks
  • Funding time: 1 to 3 days.
  • Read our BlueVine review.
Apply now at BlueVine

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.

  • Pros: Low minimum annual revenue requirement. Fast funding.
  • Con: Funding capped at 20% of your annual revenue.
  • Loan amount: $2,000 to $250,000 for term loans; $5,000 to $250,000 for standard line of credit; Up to $5 million for invoice factoring and government contract financing
  • APR: 8% to 39.99%; 1% to 5.5% for select products
  • Loan term: 3 to 36 months
  • Funding time: 0 to 5 days
  • Read our StreetShares review
Apply now at StreetShares

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.

  • Pro: Loans are funded as fast as 24 hours.
  • Cons: Costly loans, and paying back the loan early does not save you on interest.
    • Loan amount: $5,000 to $500,000 for term loans; up to $100,000 for lines of credit.
    • APR: 9% to 99% for term loans; 13.99% to 63% for lines of credit.
    • Loan term: Term loans repaid daily or weekly for 3 to 36 months; lines of credit are repaid weekly.
    • Funding time: As fast as 24 hours but typically a few days.
    • Read our OnDeck review.

    *APRs change quarterly

    Apply now at OnDeck

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.

  • Pros: Fast funding, newer businesses can qualify for its six-month line of credit.
  • Con: High rates.

Line of Credit

  • Loan amount: $5,000 to $250,000.
  • APR: 15% to 78%.
  • Loan term: Repaid over 6 or 12 months.
  • Funding time: As fast as 24 hours.
  • Read our BlueVine review.
Apply now at BlueVine

Business loans for women with bad credit: Summary of options

Funding optionsMinimum credit scoreLoan amount & APR
fundbox

Line of credit


Apply now at Fundbox
• None required. • $1,000 to $100,000
• 10.1% to 79.8%
fundbox

Invoice financing


Apply now at Fundbox
• None required. • $1,000 to $100,000
• 10.1% to 78.6%
Kabbage_Logo_150x40
Apply now at Kabbage
• 560+ • $2,000 to $250,000
• 24% to 99%
bluevine

Invoice factoring


Apply now at BlueVine
• 530+ • $20,000 to $5 million
• 15% to 68%
Street Shares
Apply now at StreetShares
• 600+• $2,000 to $250,000 for term loans; $5,000 to $250,000 for lines of credit
• 8% to 39.99%
ondeck
Apply now at OnDeck
• 600+
• $5,000 to $500,000 for term loans; up to $100,000 for lines of credit
• 9% to 99% for term loans; 13.99% to 63% for lines of credit
bluevine

Line of credit


Apply now at BlueVine
• 600+ (six-month line of credit); 620+ (12-month line of credit) • $5,000 to $250,000
• 15% to 78%

Find and compare the best small-business loans

If you’re still on the hunt for 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.

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