Mar 1 2020

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Find loans for bad credit


Bad Credit? Where to Find Small-Business Loans

Bad credit, defined by FICO as a score of 300 to 629, is a common reason that lenders reject small-business loan applications. Borrowers with a poor credit score are considered at higher risk of defaulting on a loan. Still, even with bad credit, you have financing options.

Bad credit business loans: Summary of options

Line of credit

No minimum credit score

• 3+ months in business

• $50,000+ annual revenue

550+ credit score

• 1+ year in business

• $200,000+ annual revenue

560+ credit score

• 1+ year in business

• $50,000+ annual revenue

600+ credit score

• 1+ year in business

• $75,000+ annual revenue

Line of credit

600+ credit score

• 6+ months in business

• $100,000+ annual revenue

Invoice financing

No minimum credit score

• 6+ months activity in online accounting or bookkeeping software

• No minimum annual revenue

Invoice factoring

530+ credit score

• 3+ months in business

• $100,000+ annual revenue

• $20,000 to $5 million

How do you get a business loan with bad credit?

Alternative lenders provide options for borrowers with a spotty credit history. Most of these lenders require a minimum personal credit score ranging from 500 to 650. A few lenders have no minimum credit score requirement.

Other factors that may be considered include your annual revenue, time in business and whether you’ve had recent bankruptcies.

Borrowers should consider the following before choosing a financing option:

Best bad credit business loans

Best for new businesses: Business credit cards and secured personal credit cards.

If you have less than a year in business

If your enterprise is less than a year old with little revenue, it’ll be tough to find a loan, no matter your credit. Here are startup financing options to help you grow your company.

Potential options include business credit cards, which typically provide borrowing amounts up to $50,000. However, approval is based on your personal credit score, and you’ll need a minimum credit score of 630 to qualify for most cards.

If you need to improve your credit score, consider getting a secured personal credit card first. These cards require a cash security deposit when you open the account. However, use the card responsibly, and you’ll improve your personal credit and get back your deposit.

If your personal credit score is 500 or higher

Fundbox, Kabbage and Quarterspot provide short-term cash for working capital.

Fundbox’s line of credit is a good fit for businesses that need working capital of up to $100,000. No minimum credit score is required, although you’ll need a minimum of $50,000 annual revenue and three months in business.

Kabbage provides working capital loans of up to $250,000. It requires a minimum credit score of 560 to qualify. You’ll also need a minimum of $50,000 in annual revenue and a year in business, and you have to use a business checking or online payment platform.

  • 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.

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

If you need higher borrowing amounts and have strong annual revenue, Quarterspot provides financing of up to $250,000. The company requires a minimum credit score of 550 and does a soft credit pull, so applying won’t hurt your credit score.

  • Loan amount: $5,000 to $250,000.
  • APR: 30% to 70%.
  • Loan term: 6, 9, 12, 15, or 18 months.
  • Approval time: As fast as 24 hours.
  • Read our QuarterSpot review.

If your personal credit score is 600 or higher

StreetShares and BlueVine offer financing up to $250,000.

BlueVine offers a six and 12-month line of credit for short-term working capital. Qualifying for the 12-month option requires higher revenue and a longer time in business thank the six-month line of credit.

StreetShares offers a term loan and line of credit at lower APRs than BlueVine. It also has a longer repayment term of up to three years compared with BlueVine’s six or 12 months.

  • Loan amount: $2,000 to $250,000.
  • APR: 9% to 40%.
  • Loan term: 3 to 36 months.
  • Funding time: 1 to 5 days.
  • Read our StreetShares review.

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.

If you have unpaid customer invoices

Fundbox and BlueVine let you turn your unpaid customer invoices into immediate cash. They typically evaluate the strength of your customers, such as whether they pay on time, more than your personal credit.

Consider Fundbox’s invoice financing if you need up to $100,000 in financing. You can get 100% of the value of the invoices that you’re waiting for your customers to pay, and then repay it over a 12- or 24-week period.

BlueVine is a good option for businesses with larger invoices of up to $5 million. You get 85% to 95% of the invoice amount upfront, and the rest when a customer pays you, minus fees.


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