Wondering how to get money to start a small business with bad credit? There are options - and not all of them have late-payment penalties that involve cement overshoes.
For the best options in bad credit business loans, start here. We have compiled a list of our top picks using a unique evaluation methodology. Evaluate your needs, check out the options, and you’re in business. Let’s get started.
If you’ve been in business six months or longer and have a credit score of 600-plus, Fundbox is ready to talk to you. It’s one of the bad credit loan providers with the most transparent funding requirements on our list. The company offers 24-hour funding of up to $150,000 on a 12-, 24-, or 52-week repayment plan. Read Review
- ⦿Easy-to-meet loan requirements
- ⦿Revolving line of credit
- ⦿Low APR
Whether you are looking for business loans for startups or you already operate a small or medium-sized business, Kabbage is a solid choice. With a low credit score requirement of just 560, you can qualify for a bad credit loan of $1,000 to $150,000 on a six-, 12-, or 18-month repayment plan. Read Review
- ⦿Quick funding
- ⦿Low revenue requirement
- ⦿Flexible repayment terms
LoanBuilder is one of the best companies when it comes to long-term business loans for bad credit. The company offers a lot of flexibility with repayment terms. As long as you meet the 550 minimum credit-score requirement, you can draw funds of up to $500,000 on plans that range from 13 weeks to one year. Read Review
- ⦿Low revenue requirement
- ⦿Wide range of terms
- ⦿Very high maximum loans
BlueVine offers a wealth of options for loans. Here we’ve selected a term loan option for people who want to get a loan with a bad credit score - but they also offer invoice factoring and lines of credit. With a credit score of at least 530 for invoice financing and 600 for term loans, you can draw on funds ranging from $5,000 to $5,000,000 ($250,000 if you have bad credit) on a six- or 12-month repayment plan. Read Review
- ⦿Lots of options
- ⦿Low requirements and high loan amounts for invoice factoring
- ⦿Excellent customer support
With a credit requirement of 600, OnDeck is not the best option on our list if you need loans for very bad credit scores. However, the company offers repayment terms of up to three years, making it one of the providers on our list with the longest terms. You can draw anywhere from $5,000 to $500,000 on the term loan and up to $100,000 on the line-of-credit option. Read Review
- ⦿Long term loans
- ⦿Term loan and line-of-credit options
- ⦿Fantastic customer support platform
Credibly is a Michigan-based online lender that offers bad credit business loans such as term loans and merchant cash advances. Its low credit-rating requirements make it well suited to the needs of small businesses, but it requires higher monthly revenues than most of the lenders on our list. With a credit score of at least 560 and monthly revenue of at least $15,000, you can get a loan ranging from $5,000 to $400,000. The company offers six-, 12-, and 18-month repayment plans. A UCC-1 filing is required only for loans over $100,000. Read Review
- ⦿Low credit rating requirements
- ⦿Easy application process
- ⦿Prepayment discounts
Accion is a global nonprofit organization that started in Venezuela. It now offers loans for businesses across the US. Relaxed loan qualifications make them perfect for startups and minority business loans with bad credit ratings. If your small business is older than 12 months and generates at least $50,000 annually, you can qualify for Accion Opportunity Fund’s small business loans that range from $5,000 to $100,000. Repayment terms vary from six months to five years, the longest of any lender on our list. Read Review
- ⦿Longest repayment terms
- ⦿Easy borrower qualifications
- ⦿Good choice for startups and minority business loans
Securing a loan for your small business or startup might seem very difficult, especially if you've had credit problems in the past. Investment loans, startup loans, government small business loans, crowdfunding… There are many options.
Small business loans with no credit check requirements are about as common as unicorns on the Ark. To make things worse, most have unfavorable terms - especially if you have less-than-stellar credit.
Jokes aside, we have gathered here a list of providers that offer the best poor credit loans for your business. Some of them have qualifications that are easier to meet, while others offer lower fees and interest rates or longer repayment terms. Either way, they all have bad credit loan options.
Before we dive into the nitty-gritty, let’s take a look at our selection criteria so you can see how we chose our favorites.
The most crucial information you need to know when looking to get a loan with a bad credit score is what requirements you need to satisfy to be eligible for the loan.
This may seem straightforward, but many factors can affect your eligibility for credit loans. Does the lender look at your credit score? What is the minimum credit score that makes you eligible? If not, what other factors does the vendor evaluate when considering your application?
How many years do you have to run your business to be eligible for a loan? How much does the business have to earn on an annual basis? Many lenders don’t require your business to be turning a profit, but it sure couldn’t hurt - chances are it will be a major factor in earning you favorable terms. Doubly so if you’re looking for business loans with a bad credit score.
Credit providers evaluate loans according to specific requirements, so this is the most important category to consider when starting your search for a credit loan online.
Loan Terms and Conditions
Another crucial consideration if you’re wondering how to get a business loan with a bad credit score is what conditions the loan provider offers. How much money can you borrow? How quickly can you access the funds? How long is the term? What loan types are available? Are there any special terms and conditions? Hidden costs? This category gives us an in-depth look into the core operating principles of loan providers so you can choose the best bad-credit lenders for your needs.
This category is closely related to the previous one. Here we examine all of the ongoing costs related to your loan. This includes the interest rate on the loan, your actual costs (represented by the annual percentage rate or APR), as well as origination, cancellation, late-payment, and other fees. We consider all the additional costs your loan may incur during its lifetime.
The final consideration when evaluating any business, including poor credit loan providers, is the company’s relationship with customers. We look at Better Business Bureau ratings and online customer reviews.
We also evaluate the customer-service options lenders who deal with bad credit loans offer to borrowers - phone support, email, live chat. Whether you’re looking to apply for a loan or to get information about your existing loan, being able to get the right information and get it quickly is a crucial aspect of good customer service.
Best Bad Credit Business Loans
Best Bad Business Loans Reviews
- ⦿ Requires no personal collateral
- ⦿ Charges no origination fee
- ⦿ APR starts at 10.1%
Founded in 2013, Fundbox is a financial technology company based in San Francisco. The company’s primary service is a flow-optimization tool that advances money against a company’s outstanding invoices, helping small businesses keep operating while waiting for accounts receivable invoices to be paid.
Fundbox is very easygoing when it comes to loan eligibility requirements. In fact, it’s one of the least restrictive loan providers on our list. Fundbox used to be the only lender offering business loans with no credit check. However, they’ve altered their offer, now requiring a FICO score of 600 points and $100,000 in annual revenue. You also need at least three months of invoicing history with supported accounting software such as QuickBooks, FreshBooks, or Xero. If you’re wondering how to get a business loan with bad credit and no collateral requirements, Fundbox has you covered.
Fundbox doesn’t require a personal guarantee for lower credit limits or collateral for small loans with a bad credit rating. This means you’re not held personally responsible for repayment if your business fails to repay a loan, and there is no need to pledge physical assets as a security measure. This is a huge boon to small and startup businesses, as their owners often don’t have the assets to cover traditional collateral agreements.
Loan Terms and Conditions
Fundbox currently provides two funding options: term loans and lines of credit. The company’s loans for people with bad credit scores start at $1,000 and go up to $100,000. This can be a problem for people needing larger amounts, but remember - it’s not easy getting six-digit loans with a poor credit score. There are 12- and 24-week repayment options, and both feature a weekly repayment schedule. Credit funding is typically approved within an hour, and you can get access to funds as fast as the next business day - as long as you make your application before noon (Pacific time) on a weekday.
The best loans for bad credit ratings are those with low APR and low origination fees - or better still, no origination fee at all.
Fundbox has no origination fee, and APRs on invoice financing can range from 10.1% to 78.6%. The rate is lower if you take the shorter repayment option (12 weeks) and can be further reduced by paying it off early. If you’re looking for a line of credit for a bad credit score, the APR on those ranges from 10.1% to 79.8%. The interest rate on a line of credit for poor credit is 4.66% of the draw amount for 12 weeks and 8.99% of the draw amount for 24 weeks.
Having a revolving line of credit allows you to withdraw additional funds after repayment, mitigating the need to apply for a new loan. This is good because every time you apply for a loan, a hard credit check is performed by the lender, which can reduce your overall credit score.
So far, we’ve established that Fundbox is a pretty good option for low credit loans. But how good is their customer support? What do people say about their services? The situation is pretty good here as well. Fundbox has several support channels, including phone and email, and a support center that is basically an in-depth FAQ section. Waiting times are fairly short, customers say, and the customer support staff is helpful and knowledgeable. This was our experience as well, so top marks in this section for Fundbox.
When it comes to getting a business loan for bad credit score owners, Fundbox is certainly one of the better options.
With easy-to-meet loan requirements and a wealth of loan options, Fundbox is an easy recommendation for those wondering how to get a loan with bad credit. The approval time is also short, fees are low, and the customer support team is both knowledgeable and responsive. The only disadvantages are the short repayment period and the weekly repayment requirement.
- ⦿ Loans as low as $1,000
- ⦿ 0.25% to 3.5% monthly fee instead of an interest rate
- ⦿ Easily-achievable annual revenue requirement of $50,000
Kabbage is an online fintech company formed in 2009 in Atlanta, Georgia. It has been providing loans for low credit rating businesses since 2011 when it launched its financial services data and technology platform. The company was acquired by American Express in April 2021.
If you’re looking for relatively easy business loans in terms of setup and entry requirements, Kabbage has you covered. Lending terms are a bit stricter than Fundbox’s. You need at least a 560 credit rating, and your business needs to be at least 12 months old. You also need to have previously been approved for Kabbage funding, or have an AmEx business card with a minimum two months account history.
Loan Terms and Conditions
Looking for a loan for bad credit? Wondering how to get a business loan with bad credit and not get ripped off in the process? By making sure you pick the right loan company and reading the terms and conditions carefully, of course.
Kabbage is very upfront about costs and terms. It offers only line-of-credit financing, and you can borrow anywhere from $1,000 to $150,000. Repayment terms are six, 12, or 18 months, with payments required monthly. The initial funding for business loans for bad credit is typically approved within a few hours, and the first funds start arriving the following business day, with ongoing financing available within 24 hours of your application.
You do need to make a personal guarantee, however, and a bad business defaulting on the loan can lead to a Blanket UCC filing on your business assets.
Kabbage has no origination fee. APRs range from 24% to 99%. This is higher than you’ll find at some other companies, but Kabbage gives you a lot of flexibility when applying for a small business loan.
If you’re trying to get a business loan with bad credit, you have to pay special attention to interest rates. Kabbage charges a monthly fee instead of a standard interest rate, which ranges from 0.25% to 3.5% of the principal loan amount. Just like at Fundbox, you have the option of paying the loan off early to save money.
Kabbage has a presence on major social networks such as Facebook, Instagram, Twitter, and LinkedIn. You can also reach the company on its toll-free telephone number and through email.
The Kabbage website has a robust resources section and a help center. Customer support is generally rated well by the community, and we found them to be helpful and reasonably quick to respond to any queries.
Whether you’re looking for startup business loans for bad credit companies or are wondering how to get a small business loan for your startup, Kabbage is an attractive option.
With relatively low qualification requirements and loans ranging from as little as $1,000 to as much as $150,000, Kabbage can cover the needs of a wide variety of entrepreneurs: from fledgling startups to medium-sized businesses. Customer support is also top-notch. If we were to complain about something, it would be that there are no additional funding options besides a line of credit. The APR is also one of the highest on our list.
- ⦿ Offers some of the highest loan amounts - up to $500,000
- ⦿ Flexible repayment terms from 13 to 52 weeks
- ⦿ No origination and repayment fee nor interest rate - just a one-time Total Loan fee
LoanBuilder is a service offered by PayPal, a giant in the online payments business. It was established in 2008 to help small businesses with bad credit get business loans quickly and easily. Originally a product of Swift Capital, a small business financier, it joined the PayPal brand when the company acquired Swift in 2017.
LoanBuilder is one of the most lenient loan providers on our list when it comes to online loans for bad credit scores. It has a 550 credit score requirement but requires only $42,000 in annual revenue, and your business must be at least nine months old.
Loan Terms and Conditions
Whether you are searching for new business loans with a bad credit score or simply want to get some extra funds for your already established business, it’s essential to be familiar with every detail of your loan contract. LoanBuilder offers a wide variety of options when it comes to loan amounts and repayment schedules.
Loans can be anywhere from $5,000 to $500,000, which easily covers medium-sized businesses and small business start-up loans. There is a lot of flexibility in terms of the repayment schedule, which can be 13, 15, 25, 40, or 52 weeks. Longer periods bring smaller payments but a higher fixed-interest fee. Payments are due every week no matter which plan you choose. Unlike bank loans for bad credit, LoanBuilder requires a legally binding personal guarantee but no other collateral to secure your loan. That means you don’t have to worry about losing your business or personal assets should things go south.
LoanBuilder has no origination fee, and the APR varies from 12% to 136%. The starting interest rate varies from 2.9% to 18.72%. Both depend on factors such as the size of your loan and its repayment speed. The downside to these loans for bad credit is that they have a fixed fee applied as a percentage of your total loan amount. This means that, unlike Fundbox and Kabbage, there are no benefits to repaying your loan early.
Whether you want to ask how to apply for a business loan with bad credit or you’re already a client and have a question regarding your loan, LoanBuilder has a dedicated customer support team waiting to respond by phone or email. They are also very active on social networks and have a well-organized FAQ on the website. Loanbuilder reviews are generally positive. The company has a healthy rating on TrustPilot, with only a couple of negative reviews in the past few years.
Overall, LoanBuilder is a very solid and competitive provider of poor credit loans. As the name suggests, they offer a very flexible loan system based on building your own personalized loan. There is a lot of leeway in choosing the right loan amount for your business, and you have several options when it comes to the length of the repayment period. Whether you are looking for a large or small loan and have bad credit, there is something LoanBuilder can do for you.
The biggest disadvantages are the fixed interest rates, the relatively high minimum loan amount ($5,000), and the relatively short maximum repayment term.
- ⦿ Invoice financing up to $5 million
- ⦿ Free automated clearing house processing
- ⦿ Only six months in business required
BlueVine Capital is an online small-business lending company with headquarters in Redwood City, California. It was established in 2013 and launched its first invoice factoring product the next year. In 2016, BlueVine entered a partnership with Intuit, allowing QuickBooks users easy access to a line of credit.
BlueVine’s requirements depend on the type of loan you want. For small business loans with bad credit ratings, we’ll be looking at the term loan option. The requirements here are similar to those of Fundbox, Kabbage, and LoanBuilder. You need a minimum FICO credit score of 600. You also need proof of at least six months of business activity and an annual income of $100,000 (3 months and 530 credit score for invoice factoring).
Loan Terms and Conditions
There are many options for getting an online loan with a bad credit rating these days. BlueVine offers fairly standard terms compared to the competition, with term loans and lines of credit ranging from $5,000 to $250,000 and invoice financing going up to $5 million. Their financial loans for bad credit have fairly short repayment terms of either six or 12 months. In either case, payments are made on a weekly basis, which can be problematic for new businesses. Invoice financing is clearly superior here both in terms of the requirements and maximum loan amounts available, but you need to have B2B or B2G invoices to benefit from this service if you have bad credit. Financing is secured by a general lien on the assets of the business and backed by a personal guarantee. In other words, no personal assets are required as collateral.
BlueVine has no origination fee, and the APR for term loans varies from 15% to 78%. The interest rate on term business loans for poor credit is a fixed fee starting at 4.8% and going up to 47.1%. The fee is fixed, so even though there are early payment options you don’t save money on interest as you would with Fundbox or Kabbage.
There is also a $15 bank wire transfer fee if you want quicker access to your funds (automated clearing house processing is free). Late fees occur after two weeks and start at 2% of the loan amount.
BlueVine offers a wide variety of customer support options. If you're looking for bad credit startup business loans or just want to inquire about your existing loan, you can reach them on a toll-free phone number from Monday to Saturday. They also offer email support and are very active on social networks such as Facebook and Twitter. Their FAQ is also very detailed. Overall, borrowers are pretty pleased with BlueVine’s customer service.
Overall, BlueVine is a great choice if you’re after invoice factoring, with low credit requirements and the highest max loan of all competitors on our list.
Term loans are not as competitive. The main disadvantages are that the fees are a bit high and require weekly payments with fairly short repayment terms (12 months at most).
- ⦿ Origination fees get smaller with subsequent loans
- ⦿ Up to three years repayment period
- ⦿ 24/7 access to funds
OnDeck Capital is a global online small-business lending company providing services for those looking to get startup business loans with bad credit. They were founded in 2006 in New York City and these days have offices across the US, in Canada, and even in Australia.
If you want to get a business loan with bad credit, OnDeck has the same requirements as BlueVine. Whether you want a term loan or a line of credit, you need to have a FICO credit score of at least 600. Your business also needs to be operational for at least one year, and it has to be earning $100,000 or more annually.
Loan Terms and Conditions
When it comes to bad credit business loans, OnDeck offers both term loans and lines of credit, with very similar conditions.
The key difference is that the maximum amount of money you can access from a line of credit financing is $100,000, while term loans are available in amounts ranging from $5,000 to $250,000. The repayment period is the largest draw here, as the company offers options from three months to three years, which is one of the longest repayment terms on our list. The payments are made on a weekly basis. Their credit loans also require a personal guarantee and a blanket UCC filing on business assets as collateral.
OnDeck’s small business loans with bad credit are term loans that have an origination fee between 2.5% and 4% of the total loan amount when taking out your first loan. It drops to 1.25% to 3% for your second and 0% to 3% on subsequent loans. They charge you a fixed fee called total interest percentage, which doesn’t compound but also doesn’t incentivize early repayment, as there are no benefits. The APR ranges from 35.9% to 61.9% for term loans and 35% to 63% for lines of credit.
OnDeck’s customer service agents are available by phone, email, or live chat. You can also get in contact with the lender via Facebook or Twitter, or consult the FAQ located on the website. You are paired with a single account representative for the duration of your loan, which helps to create a personalized experience for borrowers.
If you need money now and have bad credit, OnDeck is a solid option. Terms of up to three years are the longest of any lender on our list, and they offer a phenomenal and personalized customer support platform. The disadvantages are having origination and fixed interest fees, which drive up the price while not providing any benefits to repaying the loan early. The weekly payment requirement might also pose a problem for businesses with variable income. However, considering the generous payment terms available, this is not as much of a problem as it would be for some other competitors.
- ⦿ Fixed interest rate starting off at 4.8%
- ⦿ Loan amounts up to $400,000
- ⦿ UCC-1 filing only for loans over $100,000
Credibly was founded as RetailCapital in Troy, Michigan, in 2010. It now operates across the US, offering easy business loans for bad credit-rating business owners and merchant cash advances for those looking to expand their business.
Whether you have a small business or are looking for startup business funding with bad credit, Credibly is a bit of a mixed bag. The 560 minimum credit score should be achievable by most startup and small-business owners, and so should the annual revenue requirement of $50,000 (a bit over $4k per month). It’s certainly on par or less than what the competitors require. You need only six months of running a business before applying for a loan.
Loan Terms and Conditions
Credibly doesn’t offer no-credit business loans, but the minimum credit requirements are low enough to accommodate most small-business owners. You can borrow anywhere from $5,000 to $400,000, and there are six-, 12-, and 18-month repayment plans. Payments can be made on a daily or weekly basis. Credibly requires a personal guarantee but no collateral for the term loans and a UCC-1 blanket lien for the business expansion loans.
Credibly has an origination fee of 2.5% and a fixed interest fee starting at 4.8%. The APR starts at around 23.70% and can potentially go as high as 274.50%, making it the highest on our list. There is also a $25 fee every time your payment bounces.
The upside is that Credibly lets you save money by repaying your loan early. You can save serious money on interest costs if you’re able to make extra payments along the way.
Whether you want to find out about guaranteed loans for bad credit, have an issue with your existing loan, or just want to chat with someone about your options, you can contact Credibly support staff through the live chat on the website or by phone.
The quick response times and generally knowledgeable staff are cited as the high points of people’s experience doing business with Credibly.
If you’re wondering how to get a small business loan with bad credit, Credibly is a solid choice. The main benefits are the easy qualification requirements, the quick and easy application process, and the excellent customer support. The disadvantages are the high fees and an above-average APR, leading to potentially high repayment costs. You can, however, reduce that cost significantly by paying off your loan early.
- ⦿ You need to own only 20% of the business to apply
- ⦿ APR from 7% to 34%, lower than with most competitors
- ⦿ Low bar for applying
Accion is a global nonprofit organization that was formed as a grassroots movement in Venezuela in 1961. It began offering small-business and startup loans for bad credit in the US in 1991. Accion offers loans for a variety of purposes, but your state and location will determine which loans you can get access to.
Accion has some of the most relaxed loan requirements on our list. You need a 575 credit score for their standard loan, which is higher than Credibly or Kabbage but lower than OnDeck.
Your business needs to be operational for at least 12 months before getting the loan. Also, it does need to meet a $50,000 revenue goal every year, in order to qualify for the loan. However, these are easily achievable requirements, meaning that Accion loans are great start up business loans for bad credit, as startups usually struggle with starting revenues and often require funding before they have actually started conducting business.
Loan Terms and Conditions
Accion offers a wide variety of loan options with different repayment terms and conditions. If you’re wondering how to start a business with no money and bad credit, well… Don’t do it. But if you have at least 20% of total costs invested and a business plan, your startup might be eligible for anywhere between $5,000 and $100,000 on an Accion Small Business Loan. Repayment terms vary from six months to five years. Payments are made on a monthly basis. Accion doesn’t really offer start up business loans with bad credit and no collateral, as you need a personal guarantee, and your assets may be used depending on the loan terms.
We’ve had some trouble finding out Accion’s interest and APR rates. The low requirements make them seem like a great loan company for bad credit, whether you are a small business or a startup. The origination fee varies from 3% to 5%. There are no fees for prepayment, but additional processing or closing fees may apply. You can, however, save money by paying your loan off early. The APR goes between 7% and 34%, while the interest rate starts at 5.99%.
Accion offers chat, phone support, and a lot of resources on its websites. It has educational articles, webinars, and videos, all designed to help borrowers understand how loans work. There are even online mentoring programs. In addition to live chat and phone support, you can contact Accion through social media accounts on Instagram, Twitter, and YouTube.
Overall, Accion is an excellent company for bad credit small business loans. They have easy loan requirements and the longest potential repayment terms that we could find while offering fairly competitive fees. Their website and customer support staff are also very helpful. The downside is that they are somewhat opaque about some of the fees.
Most companies require a credit score of at least 560, and the better your credit score, the better your terms will likely be.
Yes. The SBA application process is exhaustive, and SBA loans for bad credit are especially difficult to get. The reason for this is that they offer the lowest interest rates and longest repayment terms available while also offering funding for amounts more substantial than borrowers might otherwise find.
You usually need to have a minimum credit score of 560 and have a business running for some time, and earning a certain amount of monthly revenue (varies from lender to lender).
Getting start up business loans with no credit check isn’t possible with any of the lenders from our list. Lenders generally tend to check your credit score, and you need a score of at least 560 for LoanBuilder, the lowest-requirement provider we could find.
Your best bet is the service industry, as the initial costs are much lower than those of a product-based business. Make a solid business plan and consider potential operating costs while working on networking with people. You should then look at crowdfunding platforms and loan providers.
Yes. Many companies offer bad credit business loans, but you have to be aware that the terms are generally far less favorable than those available to people with higher credit ratings. All of the companies on our list offer options for entrepreneurs with bad credit ratings.