Bad Credit Business Loans - Our Top 8 Picks in 2023

Established in 2007, Biz2Credit has accrued over 1.6 million users and over 200,000 small businesses funded. Biz2Credit is headquartered in New York City.

If you're still wondering: “Can you get business loans with bad credit?” Biz2Credit might provide an answer - and funds.

Loan Requirements

Lending money to borrowers with bad credit scores is risky; as a result, loan companies tend to have more conditions to be met before they're willing to lend. Biz2Credit has strict and rather high requirements for minimal annual revenue - at least $250,000.

To be eligible for a Working Capital Loan through Biz2Credit, small businesses must operate for at least six months, and their owners must have a minimum credit score of 575.

Getting small-business loans for bad credit through Biz2Credit can be done by applying for a Term Loan and CRE loan, too. Applicants must be in business for at least 18 months and have a credit score of at least 660 to be eligible.

Loan Terms and Conditions

The platform offers tailored funding products, which means the interest rate and terms of your loan will vary depending on creditworthiness, time in business, revenue, and cash flow. In general, Biz2Credit offers amounts from $25,000 to $6 million and terms from one to three years.

If you’re wondering how to get small-business loans with bad credit, opt for a Working Capital loan. You'll be able to take up to $2 million to cover one-time business expenses. You'll get approved within 24 hours, get the funds in 72 hours, and repay in daily, weekly or bi-weekly installments.

Another option is a Term Loan, which allows you to borrow up to $500,000 to grow your business. You'll be able to repay the loan within 12 to 36 months, and the interest rates will start from 7.99%, depending on your credit score and other factors.

Finally, if you need to access the capital secured by commercial real estate, you should apply for a CRE loan. Even though no-credit-check business loans are not available with this company, the CRE loan allows you to take up to $6 million in funding with rates from 10%.

Ongoing Costs

With Biz2Credit, there aren't any registration, application, or submission fees. However, the platform does charge an underwriting fee if you're approved for funding and upon closing your financing transaction.

Depending on the loan size, you'll be charged anywhere between $250 and $400. Using financial calculators or other business tools on the site is free.

Unfortunately, there are no startup business loans for bad credit with guaranteed approval, and providers will charge a higher interest rate to offset the risk. With Biz2Credit, rates go from 3% to 30%, depending on the loan type. Term Loans rates, for example, start from 7.99%.

Biz2Credit charges APR from 4% to 36% - that's quite the span and something you should be aware of before applying for a loan there.

Customer Satisfaction

To better cater to its users, Biz2Credit has a dedicated customer support team available Monday through Friday from 9 a.m. to 6 p.m. EST. You can reach out to the team by submitting a ticket, via phone, or email.

To get the most out of your bad credit business loans, you can take advantage of a range of business toolkits available on the site, including financial calculators, a glossary, and BizAnalyzer. 

You can also use the extensive educational resources that include the FAQ section, How-Tos, blog posts, guides, e-books, webinars, and much more.

Biz2Credit is one of the leading online small-business lenders in the United States. According to Trustpilot reviews, the platform has a 4.6-star rating, with most customers rating it as Excellent or Great.

Summary

If you're looking for small startup business loans with bad credit, Biz2Credit might be a good option. The platform offers tailored funding, which means the interest rate and loan terms will vary depending on factors including creditworthiness, time in business, revenue, and cash flow.

With decent customer support, competitive fees and interest rates, flexible payment terms, and a wide range of business toolkits available, Biz2Credit is worth considering.

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.

Loan Requirements

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.

Ongoing Costs

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.

Customer Satisfaction

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.

Summary

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.

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.

Loan Requirements

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.

Ongoing Costs

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.

Customer Satisfaction

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. 

Summary

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.

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.

Loan Requirements

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.

Ongoing Costs

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. 

Customer Satisfaction

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.  

Summary

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.

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.

Loan Requirements

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.

Ongoing Costs

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.

Customer Satisfaction

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.

Summary

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). 

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.

Loan Requirements

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.

Ongoing Costs

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.

Customer Satisfaction

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.

Summary

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.

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.

Loan Requirements

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. 

Ongoing Costs

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.

Customer Satisfaction

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. 

Summary

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.