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 10 bad credit business loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
Headway Capital - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Fast business loans for bad credit | $100,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Business lines of credit for bad credit | $150,000 | 600 | |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Short-term business loans for bad credit | $250,000 | 625 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 5.0/5 Best for Long-term business loans for bad credit | $250,000 | 570 | |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Startup business loans for bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
AltLINE - Invoice Factoring | 4.5/5 Best for Invoice factoring for bad credit | $10,000,000 | 300 | |
National Funding - Online Term Loan with Fundera by NerdWallet | 4.0/5 Best for Unsecured business loans for bad credit | $500,000 | 600 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Equipment loans for bad credit | $250,000 | 575 | with Fundera by NerdWallet |
Expansion Capital Group Merchant Cash Advance with Fundera by NerdWallet | Best for Working capital loans for bad credit | $300,000 | 500 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for SBA loans for bad credit | $50,000 | 620 | with Fundera by NerdWallet |
Here are 10 bad credit business loans
Best for Fast business loans for bad credit
Best for Business lines of credit for bad credit
Max Amount
$150,000
Min. Credit Score
600
Best for Short-term business loans for bad credit
Best for Long-term business loans for bad credit
Max Amount
$250,000
Min. Credit Score
570
Best for Startup business loans for bad credit
Best for Invoice factoring for bad credit
Max Amount
$10,000,000
Min. Credit Score
300
Best for Unsecured business loans for bad credit
Best for Equipment loans for bad credit
Best for Working capital loans for bad credit
Best for SBA loans for bad credit
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Our pick for
Fast business loans for bad credit
Headway Capital can fund applications within one business day of approval. You’ll need a minimum credit score of 625 to qualify.
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
Business lines of credit for bad credit
A business line of credit may be available from Fundbox if your credit score is at least 600. You only pay interest on the funds you draw from the credit line, giving you more flexibility than a term loan.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
Short-term business loans for bad credit
If your credit score is at least 625, you may be able to qualify for an OnDeck loan of up to $250,000. These short-term business loans are good for specific, one-time purchases.
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
with Fundera by NerdWallet
Our pick for
Long-term business loans for bad credit
Nonprofit lender Accion Opportunity Fund focuses on more than just your credit score when determining eligibility. Repayment terms on their loans range from one to five years.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-24.99%
Our pick for
Startup business loans for bad credit
You may be able to qualify for a loan from Fora Financial with a minimum credit score of 570 and just six months in business.
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan
$1,500,000
Min. Credit score
570
with Fundera by NerdWallet
Our pick for
Invoice factoring for bad credit
AltLINE is an invoice factoring company that will finance unpaid invoices up to $10 million, with no revenue or time in business requirements and no minimum credit score.
AltLINE - Invoice Factoring
Max loan
$10,000,000
Min. Credit score
300
Our pick for
Unsecured business loans for bad credit
National Funding doesn’t require you to put up physical collateral to secure your loan. However, the lender will file a lien on your business assets and require you to sign a personal guarantee.
National Funding - Online Term Loan
with Fundera by NerdWallet
Max loan
$500,000
Min. Credit score
600
with Fundera by NerdWallet
Our pick for
Equipment loans for bad credit
The equipment you purchase with this type of financing serves as collateral on the loan, meaning online lenders, like Triton, may be more flexible with their credit qualifications.
Triton Capital - Equipment financing
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
575
Apr range
5.99-34.99%
with Fundera by NerdWallet
Our pick for
Working capital loans for bad credit
Expansion Capital Group can provide fast access to working capital for borrowers with a minimum credit score of 500. Like all merchant cash advances, however, this product may be expensive.
Expansion Capital Group Merchant Cash Advance
with Fundera by NerdWallet
Max loan
$300,000
Min. Credit score
500
with Fundera by NerdWallet
Our pick for
SBA loans for bad credit
Microloans are offered through nonprofit, community-based organizations, which may be more willing than some other lenders to work with those who have bad to fair 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 picks for the best business loans for bad credit
Headway Capital
Fundbox
OnDeck
Accion
Fora Financial
AltLINE
Triton Capital
Expansion Capital Group
SBA microloans
What is a bad credit business loan?
What is a bad credit score?
Types of bad credit business loans
Short-term business loans
Business lines of credit
Equipment financing
Invoice factoring
Microloans
Merchant cash advances
Pros and cons of bad credit business loans
Bad credit business loans help your business access capital you may otherwise not get to boost operations, grow your business or cover gaps in cash flow.
Making payments on a business loan can also help build and improve your business credit, which can help you qualify for more business funding in the future.
Bad credit business loans offer fast access to capital — some within as little as 12 hours of applying.
Because they are considered higher risk, lenders may not approve high loan amounts on bad credit business loans.
Bad credit business loans typically have higher rates and fees than traditional loans.
You may be asked to pledge collateral on a bad credit business loan to offset some of the lender’s risk.
Where to get a business loan with bad credit
Online lenders
CDFIs
Nonprofit and community lenders
How to get a business loan with bad credit
- Looking for errors on your credit reports and disputing them with the appropriate credit bureau.
- Making debt payments more frequently.
- Paying down or paying off debt.
1. Calculate how much debt you can afford
2. Check your credit score
3. Understand additional eligibility requirements
- How long you’ve been in business.
- What your annual revenue is.
- How strong your cash flow is.
- What kind of collateral you can provide.
4. Research and compare business loan options
5. Consider offering collateral or adding a cosigner
6. Gather your documentation and apply
- Basic information about you and your business.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements.
- Detailed information about your collateral, if applicable.
🤓 Nerdy Tip
Be wary of any lender that tries to rush you through the application process and/or won’t show you terms and rates upfront. Predatory lenders tend to take advantage of businesses that are having trouble getting financing — and they may try to promise guaranteed approval. You should also watch out for red flags such as aggressive phone calls or companies that refuse to answer questions.7. Review your business loan agreement
Alternatives to bad credit business loans
- Small-business grants. Grants provide free access to capital that doesn’t need to be repaid. Grant applications can be competitive, but awarding organizations don’t typically evaluate businesses based on their creditworthiness. You can find business grants from federal and state governments, private corporations and nonprofits.
- Crowdfunding. If your business has a strong customer base or large internet presence, you may be able to leverage your network to get financing. You can use a crowdfunding platform to set up a campaign, providing details about your business and setting a funding goal. Share your campaign with customers, social media followers, friends and family in order to gather donations for your business. In exchange, you typically offer your supporters something in return; you might offer a new product or exclusive access to an event.
- Angel investors. If you have a unique business idea or plan on growing quickly, you might consider looking for investors to finance your company. Angel investors are usually high-net-worth individuals who fund early stage businesses in exchange for equity. These investors often provide business expertise in addition to business capital. You might also find investor companies that allow you to pitch your business with the hope of getting someone in the company’s network to invest. Although these investors may not prioritize your credit score when deciding whether or not to invest, you’ll likely need to be able to show high growth and profitability potential.