The best bad credit business loans can approve you with a score as low as 600. While you’ll typically need excellent credit to get the best rates, these loans will still offer competitive rates compared to many other lenders. You’ll also get a combination of good customer service, an easy application process, and fast approval and funding speeds.
Since the best type of loan will depend on your specific business needs, we’ve selected lenders with a wide range of loan types. Some examples include term loans, credit lines, merchant cash advances (MCAs), equipment financing, and real estate loans.
Here are our picks for the eight best business loans for bad credit:
Best Brokers for Bad Credit Business Loans:
- Clarify Capital: Overall best loan broker for multiple loan options
- Smarter Finance USA: Best for vehicle and equipment financing
Best Providers for Bad Credit Business Loans:
- National Funding: Overall best provider for customer service and custom loan options
- SBG Funding: Best for high approval rates and multiple loan types
- QuickBridge: Best for easy paperwork requirements
- Credibly: Best individual provider for multiple loan types
- Fundbox: Best credit line for fast approval and funding speeds
- Baselane (powered by Lendency): Best for experienced investors seeking to renovate property
Need funding for your business? Unsure where to turn for trusted solutions? Fill out our secure online application in minutes to access custom financing options. | ||
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Need funding for your business? Unsure where to turn for trusted solutions? Fill out our secure online application in minutes to access custom financing options. |
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Best Bad Credit Business Loans At a Glance
Minimum Credit Score | Annual Revenue Requirement | Minimum Time in Business | Maximum Loan Amount | Estimated Starting Annual Percentage Rate (APR) | Maximum Repayment Term | |
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 Broker | 550 | $120,000 | 6 months | $750,000 | Varies | 24 months |
 Broker | None | None | $1 million | 7% | 5 years | |
 Provider | 600 | $250,000 | 6 months | $400,000 | Varies | 5 years |
 Provider | 500 | $250,000 | 6 months | $5 million | Varies | 7 years |
 Provider | 600 | $250,000 | 6 months | $400,000 | Varies | 18 months |
 Provider | 500 | $180,000 | 6 months | $400,000 ($10 million for equipment) | Varies | 15 months |
 Provider | 600 | $100,000 | 6 months | $150,000 | 10% | 24 weeks |
 Provider | 575 | None | $5 million | 10.5% | 12 months | |
Clarify Capital: Best Loan Broker for Multiple Loan Options
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Rates & Terms | |
Starting Interest Rate | Varies |
Estimated APR | Varies |
Loan Amount | $10,000 to $750,000 |
Repayment Term | 6 to 24 months |
Repayment Schedule | Varies |
Funding Speed | As fast as 24 hours |
Loan Type | Short-term business loan, business line of credit, invoice financing, equipment loan, MCA, and Small Business Administration (SBA) microloan |
Qualifications | |
Credit Score | 550 |
Time in Business | 6 months |
Revenue | $120,000 annually |
Why We Like Clarify Capital
When you apply with Clarify Capital, you’ll get access to its network of over 75 lenders. You’ll be paired with a funding specialist, who will work with you to match you to the best loan option. With such a large network of lenders, this means you’ll also have more chances to get approved.
With Clarify Capital, you can get approved with a credit score as low as 550. Other minimum qualification requirements include $120,000 in annual revenue and six months’ time in business. Clarify Capital offers a wide range of loan types to suit your needs, each with varying loan terms and eligibility criteria that may be stricter than the minimums listed above.
One downside of working with a broker like Clarify Capital is that you may not know the terms and exact qualification requirements until after you apply. However, you won’t typically have to wait long. The application process is quick and can be completed in under two minutes, and the company says that decisions can be issued as fast as 24 hours.
Visit the Clarify Capital website to learn more and to apply.
Smarter Finance USA: Best for Vehicle and Equipment Financing
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Rates & Terms | |
Starting Interest Rate | Varies |
Estimated APR | 7% to 20%+ |
Loan Amount | $10,000 to $1 million |
Repayment Term | 2 to 5 years |
Repayment Schedule | Weekly, monthly, seasonal, and deferred |
Funding Speed | 1 to 4 days |
Loan Type | Equipment financing |
Qualifications | |
Credit Score | None, but 600 is recommended |
Time in Business | None |
Revenue | None |
Why We Like Smarter Finance USA
Smarter Finance USA specializes in financing a variety of vehicles for business purposes. This includes excavators, cranes, bulldozers, and trucks. It is a broker with over 37 lenders in its network and has no minimum requirements for credit score, time in business, or revenue.
With that said, it is recommended that you have a credit score of at least 600. However, that shouldn’t discourage you from applying, as Smarter Finance reviews each application on a case-by-case basis in an attempt to issue as many approvals as possible. Applicants with credit scores below 600 can improve approval odds by making a large down payment or by demonstrating strong business finances.
Loan amounts of up to $1 million are available, and you can expect APRs to range from 7% to 20%. Smarter Finance also has flexible repayment terms, including options for making payments on a weekly, monthly, seasonal, and deferred basis.
To apply, visit the Smarter Finance website. Applications can generally be completed within 10 minutes, and you could get funded within 1 to 4 days.
National Funding: Overall Best Provider for Customer Service & Customized Loan Options
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Rates & Terms | |
Starting Interest Rate | Factor rates as low as 1.11x |
Estimated APR | Varies |
Loan Amount |
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Repayment Term |
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Repayment Schedule |
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Funding Speed | As fast as 24 hours |
Loan Type | Term loan, working capital, and equipment financing |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months (2 years for equipment financing) |
Revenue | $250,000 annually |
Why We Like National Funding
We chose National Funding as the best option for providing high levels of customer service and custom loan options. It retains the majority of its loans in-house and pairs you with an advisor upon applying, something that’s done so its team can learn more about your business needs to give you the best financing option available.
With National Funding, you can get business loans and equipment financing. It’s important that you have a minimum credit score of at least 600 as exceptions are rarely issued. You’ll need annual revenue of $250,000 and at least six months’ time in business to get approved.
It’s highly recommended that you have strong business finances before applying with National Funding. Meeting its minimum qualification requirements won’t guarantee an approval, so you may need to demonstrate other strengths to your loan application to get approved.
Instead of a traditional interest rate, this provider charges factor rates as low as 1.11x for businesses with excellent credit. If you don’t qualify for the best pricing due to a lower credit score, you can still save some money as National Funding offers early payment discounts of up to 7% on certain loans.
To learn more or to apply, you can visit the National Funding website.
SBG Funding: Best for High Approval Rates and Multiple Loan Types
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Rates & Terms | |
Starting Interest Rate | Varies |
Estimated APR | Varies |
Loan Amount |
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Repayment Term |
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Repayment Schedule | Biweekly, weekly, and monthly |
Funding Speed | As fast as same day |
Loan Type | Term loan, line of credit, equipment financing, and invoice financing |
Qualifications | |
Credit Score | 500 |
Time in Business | 6 months |
Revenue | $250,000 annually |
Why We Like SBG Funding
SBG Funding, one of our top working capital loans, is selected as the best pick for high approval rates and loan types because it has a low credit score requirement of 500, along with an 85% loan approval rate. It also offers competitive rates and multiple loan options including credit lines, term loans, equipment financing, and invoice financing.
Other requirements to qualify include at least six months’ time in business and annual revenue of $250,000 or more. However, the specific requirements may vary slightly depending on the type of loan you’re getting. Rates also vary depending on the loan you’re getting but, generally, start as low as 1.75% per month for those with excellent credit.
Applying with SBG Funding will not negatively impact your credit score. You can explore financing options with a quick online application and receive a decision in as little as 24 hours. Depending on your loan type, you may also qualify for early payoff discounts. Getting a loan and making timely payments with SBG Funding can also improve your business credit so that you can qualify for even better rates and terms in the future.
SBG Funding works with businesses in a wide range of industries. This includes those in healthcare, construction, automotive services, retail, transportation, restaurants, and more. Visit the SBG Funding website to learn more or to apply.
QuickBridge: Best for Easy Paperwork Requirements
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Rates & Terms | |
Starting Interest Rate | Factor rates as low as 1.11x |
Estimated APR | Varies |
Loan Amount | $10,000 to $400,000 |
Repayment Term | 4 to 18 months |
Repayment Schedule | Daily and weekly |
Funding Speed | As fast as 24 hours |
Loan Type | Term loan |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Revenue | $250,000 annually |
Why We Like QuickBridge
QuickBridge is an excellent option if you’re looking for an easy application and approval process. It also offers a similar loan product to National Funding, although it has shorter repayment terms and does not offer monthly payment options.
Compared to other lenders, you won’t generally need to provide as much documentation to get approved. Common documentation requirements with other lenders include tax returns, bank statements, profit and loss statements, balance sheets, loan statements, lease agreements, and more. Depending on the bank, you may also be expected to provide several months or several years’ worth of paperwork. With QuickBridge, documentation is kept to a minimum.
QuickBridge shares the same minimum eligibility criteria as National Funding, You’ll need a credit score of 600, $250,000 in annual revenue, and six months’ time in business. To apply, you can visit the QuickBridge website.
Credibly: Best Individual Provider for Multiple Loan Types
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Rates & Terms | |
Starting Interest Rate | Factor rates as low as 1.11x |
Estimated APR | Varies by loan product |
Loan Amount |
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Repayment Term |
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Repayment Schedule | Varies by loan product |
Funding Speed | As fast as same day |
Loan Type | Working capital, MCA, line of credit, equipment financing, and invoice factoring |
Qualifications | |
Credit Score |
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Time in Business | 6 months but 1 year is recommended |
Revenue |
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Why We Like Credibly
As an individual lender and not a broker, Credibly offers the largest variety of loans on our list. As a result, you have a high chance of finding a loan well-suited for your needs and goals. Available loan types include term loans for working capital, MCAs, credit lines, and equipment financing,
Qualification requirements will vary depending on the loan you apply for. MCAs have credit score requirements as low as 500, while credit lines will require 650. Other requirements for time in business and revenue can vary, but you’ll generally need at least six months and $180,000, respectively.
Factor rates for well-qualified businesses start as low as 1.11x. With bad credit, you should expect to see rates between 1.30x and greater.
To learn more about which type of loan may be best for you, visit the Credibly website. There, you can submit an online loan application within 10 minutes and receive a decision as quickly as the same business day.
Fundbox: Best Credit Line for Fast Approval and Funding Speeds
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Rates & Terms | |
Starting Interest Rate | 4.66% |
Estimated APR | 10% to 79% |
Loan Amount | Up to $150,000 |
Repayment Term | 12 or 24 weeks |
Repayment Schedule | Weekly |
Funding Speed | As fast as 24 hours |
Loan Type | Line of credit |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Revenue | $100,000 annually |
Why We Like Fundbox
Fundbox offers a small business line of credit with fast application, approval, and funding speeds. You can complete its online application in as little as five minutes, receive a decision within three minutes, and have access to funding as soon as the next business day.
To get a credit line with Fundbox, you’ll need at least a credit score of 600. Rates for its most qualified businesses start as low as 4.66% for its 12-week repayment terms and 8.99% for its 24-week repayment terms. No other repayment options exist, so it’s important to note that Fundbox may only be a good fit if you need short-term financing.
Another item to take note of is the fact that you’ll be required to make weekly loan payments. Making frequent weekly payments, as opposed to making them monthly, could negatively impact your business cash flow.
When you get a credit line with Fundbox, you may also have the option to use its Flex Pay product, a way for you to pay your vendors while getting an additional three business days to satisfy the balance fee-free. Vendors charge your Flex Pay account, after which, any balances you do not pay within the three-day period will be reflected as a draw against your line of credit.
Baselane (Powered by Lendency): Best for Experienced Investors Seeking to Renovate Property
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Rates & Terms | |
Starting Interest Rate | 9.99% |
Estimated APR | 10.5% and up |
Loan Amount | $50,000 to $5 million |
Repayment Term | 12 months |
Repayment Schedule | Monthly |
Funding Speed | As fast as 5 days from full file receipt |
Loan Type | Rehab loan |
Qualifications | |
Credit Score | 575 |
Time in Business | None, but must have 3 or more prior rehabs in the last 36 months |
Revenue | None |
Why We Like Baselane
If you have at least three completed property rehabs in the last 36 months, you could qualify for financing with Baselane with a credit score as low as 575. Financing is available for up to $5 million, with rates as low as 9.99%.
You can get a rehab loan for a purchase or refinance. Loans must be paid within 12 months and are structured as interest-only balloon payments. In other words, at the end of the 12-month period, you’ll be required to pay the loan balance in full. This is something typically done with a subsequent refinance.
Other requirements include a minimum debt service coverage (DSCR) ratio of 1.2x and a down payment that meets the following criteria:
- Loan-to-cost (LTC): 85%
- Loan-to-value (LTV): Up to 70%
You can learn more about the figures above in our guides on what LTC is and what LTV is.
Baselane also offers other tools for property managers and landlords. This includes banking products to help you stay organized and track cash flow among different properties. We selected it as one of the best banks for real estate investors. Visit the Baselane website to learn more or to apply.
How We Chose the Best Business Loans for Bad Credit
We considered the following characteristics when selecting the best bad credit business loans:
- Minimum credit score requirement
- Other qualification requirements such as time in business and revenue
- Interest rates and estimated APRs
- Loan amount and repayment terms
- Documentation requirements
- Application, approval, and funding speeds
- Types of loans offered
- Customer reviews and ratings
Alternatives to Bad Credit Business Loans
If you are still having trouble getting approved for a loan or are looking for ways to get funding at lower interest rates, you can consider alternatives. However, we recommend first reading our guide on how to get a small business loan for tips on improving your approval odds as well as getting more favorable rates and terms.
- Rollover for business startups (ROBS): A ROBS is a way for you to access funds in your retirement accounts tax- and penalty-free. It’s not a loan, so you won’t be paying any interest charges. It is a complex transaction with the potential for fines and penalties if done incorrectly though, so we recommend using the services of one of the best ROBS providers to walk you through the process.
- Loans from friends and family: If you can’t get approved for a loan, you could bypass the traditional lending requirements of a bank by asking friends or family for funding. Another benefit of this method is the possibility of securing a more competitive rate. See our guide on how to ask friends or family to fund your business.
- Angel funding: With angel funding, you’ll be required to give up a portion of your ownership interest in exchange for funding. It’s not a loan that needs to be repaid, so it’s a way to avoid paying interest fees. Read our guide on what angel funding is to help you decide if it’s right for you.
Frequently Asked Questions (FAQs)
Yes, it can be difficult to get a business loan with bad credit. Lenders view borrowers with low credit scores as being more likely to miss payments and default on a loan. You can improve your chances of getting approved with compensating factors, such as having a larger down payment or demonstrating a track record of strong cash flow.
Many providers can issue a business loan with a credit score as low as 500. Some lenders may not even have a credit score requirement depending on the type of loan you choose. In addition to the credit score, lenders may look at the details of your credit history, such as late payments, bankruptcies, and collections.
You’ll typically see higher rates and fees if you have a lower credit score. However, you can mitigate this if you can document other strengths of your business, such as strong revenue and cash flow.
Bottom Line
Although you won’t qualify for a lender’s lowest advertised rates, you’ll still have plenty of options even with bad credit. The lenders we’ve selected offer many different types of loans with easy qualification requirements. Before you make any final decisions, we recommend shopping rates with at least a handful of lenders.
