We evaluated ten lenders and selected the six best business loans for bad credit (personal credit score of owners under 600) borrowers. The lenders we selected are ranked by their credit score requirements, total costs, borrowing limits, and qualification requirements. These bad credit business loans can all get you funded in one to three days.
Top 6 Bad Credit Business Loans 2019
| Fundbox | (Best overall) Businesses needing $100K with no minimum credit score. |
| OnDeck | Businesses needing three-year repayment on up to $500K. |
| LoanBuilder | Business owners needing up to $500K with flexible terms. |
| Kabbage | Business owners that need monthly payments for up to $250K. |
| BlueVine | Businesses with outstanding invoices needing funding up to $5 million. |
| National Funding | Businesses with regular credit card transactions needing up to $250K. |
How We Evaluated the Best Business Loans for Bad Credit Borrowers
When evaluating the best loans for businesses with bad credit, we put the most emphasis on credit requirements and total cost, while also considering which loans are most flexible in their terms and requirements. Business owners who are unable to obtain traditional financing due to their credit score need options that are convenient, inexpensive, quick, and flexible.
Based on the needs of bad credit business loan borrowers, the criteria we used to evaluate the best loans include:
- Credit Score Requirements – Loan approval is based on the personal credit score of the owner(s) of the business. Providers were selected if they had a minimum personal credit score requirement lower than 600, or if they had no stated minimum at all.
- Total Cost (APR) – How much the bad credit business loan will cost you.
- Loan Terms – We considered loan terms to see which loans provided the most options for borrowers as it relates to the amount you could borrow, the term of the loan, and repayment options available.
- Qualification Requirements – What factors, in addition to credit score, the provider considers when qualifying you, such as time in business, annual revenue, collateral, and personal guarantee requirements.
Taking these factors into consideration, we are confident in recommending Fundbox as the best business loan for bad credit borrowers who have been in business for more than six months. Fundbox has no minimum credit score requirement, offers next day funding up to $100,000 with a 26% starting APR, and terms up to 24 weeks.
Fundbox: Overall Best Business Loan for Bad Credit
Fundbox offers a no minimum credit score line of credit that you can draw against, without having to reapply. Funding is available in 24 hours for up to $100,000 at 26% to 100% APR. Additionally, Fundbox only requires six months in business, which allows small businesses with a variety of circumstances to qualify for financing.
Fundbox Costs
Fundbox does not provide a range for their fees, stating only their lowest rates on their website. Based on the weekly fee, the starting costs for a Fundbox loan are $600 for 12 weeks and $1,680 for 24 if you borrow $10,000. Like Kabbage, Fundbox gives you the opportunity to repay your loan early and save some money.
The total costs for a Fundbox loan are:
- Total Fee: 4.66% of the draw amount for 12 weeks and 8.99% of the draw amount for 24 weeks
- Effective Weekly Fee: 0.5% to 0.7%
- Estimated APR: 26% to 130%
- Origination Fee: None
Fundbox does not disclose rates before they fill out a loan application, and we were unable to get any more rate information when we reached out to them. Only their lowest rates are available on the site, which means that the top range of their APR is estimated based on other providers.
Fundbox Terms
Fundbox lines of credit have repayment terms of 12 or 24 weeks with weekly payments. Although Fundbox’s terms are shorter than other providers, they offer a line of credit like Kabbage that allows you to draw on additional funds after repayment. This is important for poor credit borrowers because it reduces the number of hard credit checks, and avoids needing to apply for a loan again.
General terms for a Fundbox line of credit are:
- Loan Amount: $1,000 – $100,000
- Repayment Term: 12 or 24 weeks
- Repayment Schedule: Weekly
- Collateral: Unsecured with a potential blanket UCC filing
- Personal Guarantee: Not required for smaller limits; possible for larger limits
- Speed to Funding: 10 minutes to apply with a decision in as few as three minutes; ongoing funding within 24 hours
By offering two options for repayment, business owners are able to tailor their loan amounts more closely to their needs. With a maximum loan amount of $100,000, and the flexibility to draw as much as needed, the Fundbox line of credit can help businesses that qualify with short-term financing.
Fundbox Qualifications
There is no minimum credit score requirement with Fundbox and you can qualify if you have been in business for at least six months. Fundbox will perform a custom-built business health assessment to determine your qualifications. This potentially makes Fundbox one of the least restrictive lenders in our comparison.
General qualifications for a Fundbox line of credit are:
- Credit Score: No minimum
- Minimum Annual Revenue: No minimum, but ideally $50,000+
- Time in Business: Six+ months
When evaluating lenders, we put emphasis on the required qualifications to ensure that we recommended the lenders that addressed the needs of the widest range of borrowers. Besides their lack of credit score minimum, Fundbox also stands out because they prefer to fund businesses with ideally $50,000 in annual revenue, which allows smaller businesses to qualify for financing.
What Fundbox Is Missing
The largest downside with Fundbox is their $100,000 maximum loan amount. This might be plenty of financing for many businesses, but others will need larger loans. In addition, the weekly payments could be difficult if your business has cyclical cash flow, whereas Kabbage might be a better fit because they offer monthly payments.
Fundbox Reviews
We determined Fundbox has mostly positive ratings. Positive Fundbox reviews said the company had a helpful customer service team. Critical Fundbox reviews came from users who wished they could increase their repayment terms to longer periods. Read more on our Fundbox reviews page!
How to Apply for a Fundbox Loan
Fundbox can get you financed for up to $100,000 based on outstanding customer invoices. Fees start at 4.66% and 8.99% of the total draw for 12 or 24 weeks, respectively. The application process can easily be completed within minutes and you can get funded in just one day.
OnDeck: Best Bad Credit Business Loan with Terms up to Three Years
OnDeck offers short-term loans to small businesses with poor credit (500+) for up to $500,000. They offer terms up to three years, which is three times as long as LoanBuilder. This makes them the best bad credit business loan for long-term projects, with starting rates of 9% and funding available in one to three business days.
OnDeck Costs
OnDeck is very transparent with their rates, offering information on weighted average rates for borrowers which were 49% in the quarter ending in June 2018. The APR for OnDeck loans ranges from 10% to 100%, which we found to be comparable to similar lenders like Kabbage, with a lower credit score requirement.
Some OnDeck Capital term loan rates and fees are:
- Starting Interest Rates: As low as 9% simple interest for term loans up to 12 months and 9.99% AIR (annualized interest rate) for term loans up to 36 months
- Expected APR: 10% – 100%
- Origination Fee: 0% – 4% of your loan amount
You will have to pay between $1,000 and $10,000 in interest on a one-year, $10,000 loan with OnDeck. You don’t have the option to save money if you repay early like with Kabbage. However, OnDeck offers the longest loan term (three years) we evaluated.
OnDeck Terms
With an OnDeck loan, you can borrow up to $500,000 with repayment terms between three and 36 months. Depending on your credit profile, you can repay your loan with daily or weekly payments. The opportunity to repay loans over 36 months with OnDeck, compared to Kabbage’s 12-month maximum, makes them the best business loan for poor credit borrowers who have long-term capital needs.
The loan terms you can expect from OnDeck for its term loan include:
- Loan Amount: $5,000 – $500,000
- Repayment Term: Three – 36 months
- Repayment Schedule: Daily or weekly
- Collateral: Blanket UCC filing on business assets
- Personal Guarantee: Required
- Time to Funding: One to three business days
The quick funding from OnDeck is similar to the other loans we evaluated in our search for the best business loans for bad credit borrowers. Most of the loan options also have comparable collateral and personal guarantee requirements to OnDeck, which allows them to offer less restrictive qualifications than traditional lenders.
OnDeck Qualifications
OnDeck qualifications are stricter than Fundbox’s, but their credit score requirement of 500+ is the lowest of all lenders, with LoanBuilder coming in closest at 550+. If you have a high enough credit score, have been in business for at least one year, and have $100,000+ annual revenues, then you’ll meet the qualifications for funding.
General qualifications for an OnDeck loan are:
- Credit Score: 500+ (check your credit score for free)
- Minimum Annual Revenue: $100,000+
- Time in Business: One+ year
- Personal Guarantee Required: Yes
The OnDeck line of credit is a viable alternative to our recommended bad credit business loan. The minimum required credit score is 600, with all the other requirements being equal.
What OnDeck Is Missing
While there are no prepayment penalties with OnDeck, you do not benefit from paying off your loan early. This is because the amount you owe is determined at the time your loan is originated. You will owe the full interest charge if you pay early, unlike Kabbage and Fundbox, which allow you to reduce your overall cost with early repayment.
OnDeck Reviews
OnDeck generally has positive ratings. Users who gave OnDeck Capital positive reviews cited their professional and friendly customer service, along with its quick loan process. Users who gave critical OnDeck Capital reviews said its fees were costly compared to other similar lenders. Read more on our OnDeck reviews page!
How to Apply for an OnDeck Loan
To apply for an OnDeck loan, fill out their online application, which takes about 10 minutes. You’ll know if you qualify within one day and get a business loan with bad credit for up to $500,000 for a term of up to three years.
LoanBuilder: Best Bad Credit Business Loan with Flexible Terms
LoanBuilder is the best poor credit business loan if you need the flexibility of 13 to 52-week terms on loans up to $500,000, at a similar cost to OnDeck with APRs starting at just 12%. With a 550+ credit score and more than $100,000 in annual revenue, LoanBuilder can fund you in one to three business days.
LoanBuilder Costs
LoanBuilder does not disclose their rates before borrowers fill out an application and get qualified. Once approved, you will be able to select the loan amount, term, and receive a corresponding rate. We estimated their APR to be in line with similar providers, ranging from 10% to 130%.
The typical LoanBuilder costs are:
- Expected APR: 10% – 130%
- Origination Fees: None
LoanBuilder charges a fixed fee for their loans, rather than interest over time. Based on the fee you are offered, your overall cost of capital would be your fee times the loan amount. For example, a $10,000 loan with a 25% fee would cost you roughly $2,500 in interest. Repaying your loan early doesn’t have any additional benefit before the loan is fixed, but LoanBuilder makes up for this by offering the term flexibility that allows businesses to plan their repayment ahead of time.
LoanBuilder Terms
You can borrow $5,000 to $500,000 from LoanBuilder with repayment terms from 13 to 52 weeks in just 24 hours. LoanBuilder automatically deducts loan payments weekly and you can choose to pay off your loan early without additional penalties.
Terms for a LoanBuilder loan include:
- Loan Amount: $5,000 to $500,000
- Repayment Term: 13 – 52 weeks
- Repayment Schedule: Weekly
- Collateral: Blanket UCC filing on business assets
- Personal Guarantee: Required
- Speed to Funding: 10 minutes to complete its online application with approval in days; ongoing funding within 24 hours of request
In our evaluation, LoanBuilder received high marks for the flexibility they offer when selecting a loan. Once approved, you will be able to select a loan amount that will have a corresponding term and interest rate that fits your business needs. However, you will need to make weekly payments on the loan, which is more frequent than a provider like Kabbage, which offers monthly payments.
LoanBuilder Qualifications
Minimum qualifications for a LoanBuilder loan are among the lowest of short-term business loan providers. You must have a credit score of 550+, have been in business for at least nine months, and have $42,000+ in annual revenue.
The minimum qualifications for a LoanBuilder loan are:
- Credit Score: 550+ (check your credit score for free)
- Minimum Annual Revenue: $42,000+
- Time in Business: Nine+ months
The annual revenue requirement was the lowest among comparable lenders that have the requirement, and the minimum time in the business of nine+ months was roughly average compared to other options we evaluated.
What LoanBuilder Is Missing
Similar to OnDeck, paying back your line of credit early does not provide you with any cost savings. This is because the total interest you are responsible for paying is calculated at origination. In addition, newer businesses may find the nine-month time in business requirement too restrictive and may be better served by Fundbox, which only requires six months in business.
LoanBuilder Reviews
We compiled LoanBuilder user reviews from around the web. In so doing, we determined LoanBuilder generally has positive ratings. Customers who provided positive reviews cited the quick and efficient process. Customers who provided negative LoanBuilder reviews said its pricing was too expensive. Read more on our LoanBuilder reviews page!
How to Apply for a LoanBuilder Loan
You can apply for a loan up to $500,000 with LoanBuilder online in about 10 minutes. If approved, your rates and terms will be customized to fit your business. You can expect to make weekly payments for 13 to 52 weeks, with an APR ranging from 20% to 140%.
Kabbage: Business Loan for Bad Credit with Monthly Payments
Kabbage is a short-term working capital lender that offers a business line of credit of up to $250,000. It is the best option if you’re looking to repay your loan monthly instead of daily or weekly, like OnDeck and Fundbox. Qualifications are higher than some others we evaluated, with a minimum 550 credit score.
Kabbage Costs
The Kabbage line of credit APR, which includes all interest rates and fees, ranges between 18% and 120%. This includes a loan fee rate of 1.5% to 10%, which puts Kabbage in line with OnDeck’s overall costs. A Kabbage loan will cost between $1,800 and $12,000 over the course of a year if you borrow $10,000.
Total costs for a Kabbage loan include:
- Interest Rates: 1.5% – 10% per month (average fee is 4% for a six-month term and 3% for a 12-month term)
- Expected APR: 18% – 120%
- Origination Fee: None
Kabbage is very transparent about their terms, going as far as mentioning both their highest and lowest rates and providing a calculator to borrowers on their website. The fee is charged on a monthly basis, so early repayment does allow you to save some money and potentially reduce the overall cost of the loan.
Kabbage Terms
Kabbage offers up to $250,000 in funding, with repayment terms of six or 12 months and a monthly repayment cycle. There are no prepayment penalties with a Kabbage loan, so you can pay your loan off early and save on monthly fees, similar to Fundbox.
General terms for a Kabbage loan are:
- Line of Credit Amount: $2,000 – $250,000
- Draw Amount: $500 – $250,000, or any size with the Kabbage Card
- Repayment Term: Six months or a year (no prepayment penalties)
- Repayment Schedule: Monthly (1/6 or 1/12 of loan balance + interest)
- Collateral: Blanket UCC filing on business assets
- Personal Guarantee: Required
- Speed to Funding: 10 minutes to complete its online application and approval within 10 minutes to a few hours; initial funding as soon as the next business day
The terms offered by Kabbage stand out due to their monthly repayment options. This gives an option to businesses that collect payments, or simply have some seasonality to their cash flows. Furthermore, the flexibility of borrowing amounts give businesses that qualify some great options for financing.
Kabbage Qualifications
The minimum qualifications are a 550+ credit score, at least one year in business, and a minimum of $50,000 in annual business revenue. Compared to LoanBuilder and OnDeck, their minimum qualifications are slightly stricter, requiring over a year in business and a 550+ credit score. This makes Kabbage a good option to consider for their monthly payments and lower minimum annual revenue requirements.
General qualifications for a Kabbage loan are:
- Credit Score: 550+ (check your credit score for free)
- Minimum Annual Revenue: $50,000+ (or $4,200+ per month for the past three months)
- Time in Business: One+ year
The credit score requirement for Kabbage is definitely higher than some other options that we evaluated. However, if you are unsure of how much you need to borrow and can meet the qualifications, receiving a line of credit can prepare your business to meet financing needs when they come up.
What Kabbage Is Missing
The longest term offered by Kabbage is only 12 months, whereas, with OnDeck, you can get up to 36 months to repay. Also, while low at 550+, Kabbage has a minimum credit score requirement, which Fundbox does not have.
Kabbage Reviews
Kabbage has mostly positive ratings. Users who gave positive reviews said its customer service provided clear explanations. Although some Kabbage reviews highlighted high interest rates and short repayment terms, these are disclosed up front. Read more on our Kabbage reviews page!
How to Apply for a Kabbage Loan
It takes about 10 minutes to complete Kabbage’s online application. Its line of credit is up to $250,000, at an APR of 18% to 120% with monthly payments. You can receive funding in as soon as 24 hours after applying and receiving approval.
BlueVine: Best Bad Credit Loan for B2B Invoicing Businesses
BlueVine is a great option for businesses with outstanding B2B or B2G invoices over $5,000 due in the next 90 days. They require a 530+ credit score and three months in business to be considered. Their invoice factoring has the highest loan limit we evaluated at $5 million and lowest starting APR at 13%.
BlueVine Costs
BlueVine invoice factoring costs start at 0.25% per week, which is potentially the least expensive option available if your invoices are maturing very soon. They will advance 85% to 90% of each invoice upfront, and once the customer pays off the invoice, they will pay you whatever remains after their fees are taken out.
The typical BlueVine rates and fees for invoice factoring are:
- Discount Rate: 0.25% – 1.35% per week
- Estimated APR: 13% – 70%
- Origination Fees: None
BlueVine was very transparent about their fees when we called, reporting their highest rates to be 1.35% per week on invoice factoring. Factoring $10,000 in invoices will cost from $320 to $1,700 over the course of 90 days. Compared to OnDeck, BlueVine offers shorter terms but allows for much higher borrowing limits.
BlueVine Terms
BlueVine will typically finance poor credit borrowers for one funding event at a time. When your customers pay off your financed invoices, you can get additional financing. This is less flexible than the line of credit offered by Fundbox, which is also based on your invoices. Also, unlike Fundbox, BlueVine requires your customer relationships to be assigned to them, which can be difficult for some businesses.
General terms for a BlueVine loan are:
- Loan Amount: $5,000 – $5,000,000
- Advance Rate: ~85% to 90% on invoices with face values of $500+ to B2B customers
- Repayment Term & Schedule: Advances are repaid as customers pay their invoices
- Personal Guarantee: Required
- Initial Approval Speed: 10 minutes
- Time to Funding: One to three business days
Compared to other loans we evaluated, the loan amounts for BlueVine stood out. One of the downsides is the B2B and B2G invoicing requirement, making the loan inaccessible for some small businesses. However, for qualified businesses with a high volume of invoices, the $5,000,000 maximum is the highest loan amount on our list.
BlueVine Qualifications
BlueVine only requires a minimum 530 credit score, $100,000+ in annual revenue, and three+ months of business history to qualify for invoice financing. You need to invoice creditworthy B2B or B2G customers, since their repayment pays off the loan.
The qualifications BlueVine will use to evaluate you for invoice factoring include:
- Credit Score: 530+ (check your score here for free)
- Time in Business: Three+ months
- Annual Revenue: $100,000+
The annual revenue requirements to qualify for BlueVine invoice factoring are tied for highest on our list with OnDeck. However, in our evaluation, the relatively short amount of time in business and low credit requirements make BlueVine a great option for businesses with numerous invoices that need financing.
What BlueVine Is Missing
While BlueVine offers great funding options, you need to have B2B or B2G invoices to benefit from this service if you have bad credit, which is not necessary with the others on our list. The benefit, however, is that you can qualify for a significantly higher loan amount up to $5 million.
BlueVine Reviews
We considered BlueVine reviews by users from around the web. In so doing, we determined it generally has positive ratings. Positive BlueVine reviews came from customers who were impressed with its helpful customer support team. Critical BlueVine reviews came from businesses unhappy about being denied financing. Read more on our BlueVine reviews page!
How to Apply for a BlueVine Loan
You can apply to BlueVine via its online application in just 10 minutes. When approved, you can get funded as soon as the next day for invoice factoring up to $5 million with an 85% to 90% advance rate at an estimated APR of 13% to 70%.
National Funding: Alternative for Bad Credit Borrowers Who Accept Credit Cards
National Funding‘s merchant cash advance (MCA) working capital loan is a good solution for businesses with poor credit that accept credit cards and need financing up to $250,000. Compared to the other options we evaluated, an MCA is an expensive (35% to 230% APR) funding source and should only be used as a last resort.
National Funding Costs
National Funding merchant cash advances are designed for high-risk borrowers that are unable to get access to credit anywhere else. To get a rate for your business, you need to contact them directly for a customized quote because they are not transparent about their rates. Our evaluation showed they are the most expensive option on the list, with a top range of APR exceeding 200%.
The typical National Funding merchant cash advance costs are:
- Estimated APR: 35% – 230% APR; customized for each borrower.
- Origination Fees: None
Regardless of the loan term, with National Funding you can expect to pay between $1,500 and $4,100 for a $10,000 loan, based on the fees charged by competing MCA providers. Although this cost may seem low, the relatively short repayment terms and inflexibility of payments may make an MCA much more expensive in terms of APR.
National Funding Terms
In the case of National Funding merchant cash advances, terms are customized based on the needs of each business. Your advances and ultimate repayment will be based on the level and type of credit card payments you accept.
The loan terms on merchant cash advances you can expect from National Funding include:
- Loan Amount: Up to $250,000
- Repayment Term & Schedule: Automatically deducted based on a set percentage of your credit card sales each time they are batched
- Collateral: Unsecured (blanket UCC filing on business assets is likely)
- Personal Guarantee: Likely required
- Speed to Funding: Quick online application with approval as soon as the same day and funding in as few as 24 hours
The speed of approval for National Funding is comparable to the other loans we evaluated, and the repayment terms are typical for a merchant cash advance. However, borrowers who can qualify for other options before trying National Funding should exhaust those options first.
National Funding Qualifications
Qualifying for National Funding is easier than most of the other lenders we checked, requiring no minimum credit score and one year of operations. However, you need to have at least $3,000 per month in credit card sales for this to be an option.
When evaluating you for a merchant cash advance, National Funding considers:
- Credit Score: No minimum requirement
- Time in Business: One+ years
- Annual Revenue: No requirement, but you must have monthly credit card transactions over $3,000
- Required Documentation: Credit card statements for four months
The largest hurdle for many businesses will be their time in business requirement. However, for established businesses with poor credit, National Funding provides an opportunity to build a relationship and receive their other products as your credit improves.
What National Funding Is Missing
A National Funding merchant cash advance provides a financing option for businesses with poor credit that have been operational for at least a year. This means it is really only an option for established businesses. If you are a newer business with poor credit, you should take steps to improve your personal credit score.
National Funding Reviews
We determined that National Funding has a mix of positive and negative ratings. Customers who gave positive National Funding reviews said the application process was quick and easy. Customers who gave negative National Funding reviews complained about the interest rates and hidden charges. Read more on our National Funding reviews page!
How to Apply for a National Funding Loan
With National Funding, you can apply online and receive the same or next day approval for up to $250,000. Due to the high cost of merchant cash advances, they are only recommended if your other options are exhausted.
Alternative Bad Credit Business Loans
Some business loans that are available to bad credit borrowers have very specific requirements based on how you receive payments from your customers. For example, Square Capital and PayPal Working Capital both offer to finance you if you use their services to process payments, and neither one requires a credit check.
Two additional bad credit business loan alternatives you can consider are:
Square Capital
If you process payments with Square, you can get a loan up to $100,000 with Square Capital. You’ll pay starting rates between $1,000 and $1,600 per $10,000 borrowed with repayment terms of up to 18 months, and there is no minimum credit requirement and no credit check.
PayPal Working Capital
Likewise, if you process your customer payments through PayPal, you can leverage that partnership to get funded through PayPal Working Capital. You can borrow up to 5% of your annual PayPal sales at an APR of 15% to 120%.
Bottom Line
Business owners with poor credit shouldn’t be discouraged if they are rejected for a traditional bank loan because there are a number of good options worth considering. Depending on what your personal and business situation is, you may find any of the options in this article a good fit to get financed quickly.
Our recommended bad credit business loan provider is Fundbox. They offer up to $100,000 of financing without a minimum credit requirement. Your loan eligibility will be based mostly on your recent business history. There’s also no minimum revenue requirement in order to qualify, and they’ll typically get you funded in as quickly as one day.
Beatrice n nyoro
Do you lend to business people in other countries
Laura Handrick
Hi Beatrice,
Sorry, we do not lend money. We are an educational website that helps small businesses find resources and information they need.
Best!
Laura, staff writer
Sherry Wallace
Hi My name is Sherry Wallace and I am trying to get start up funds for my business. My credit score is over 600 but under 650. The only problem That I have are 3 or 4 companies that are in collections due to a divorce and 2 deaths in my family that I had to take care of. The accounts are over 1 or 2 years old. One of the accounts are over 6 months old but they did the charge off Aug 2016. It’s hard to find anyone to approve you with start up funds. Can you give me some in site on what I need to do and if Behalf can help me.
Ian Atkins
Hi Sherry,
Lenders of all kind will be very hesitant to lend money if there are accounts outstanding that are in collections, but here are a couple options:
1: Inventory financing: if you have a track reccord selling a product and the product is non perishable, then consider getting funding from Kickfurther.
2: Invoice financing: if you are B2B or B2G and invoice your clients, invoice financing with a company like Fundbox can extend lines based on outstanding invoices.
3. Short term alternative loans: a lender like Kabbage may be able to work with you.
You may want to consider working with a credit repair company like My Credit Group. Read our full buyers guide here to see why we think they are the best. Until your credit is cleaned up, any borrowing you do will be very expensive.
Regards,
Ian
Ken Dawson
I had a horrible experience with OnDeck. I have spent nearly 21 years in credit and collections with much of that time as a chief credit officer for the consumer lending group of a top 5 bank. I actually helped in the selection of the sample of accounts that my bank provided in the development in the latest FICO models, and I was given 35 seconds to talk with a “loan specialist”. This “loan specialist” actually disconnected the call while I was in mid-sentence because when he asked what my monthly gross revenue was, my response was $500/month too low. So, that ended our conversation. I tried calling back, but it was pointless. OnDeck doubled down on their shaky turn down, and somehow came up with a credit score for me for that day in a letter that followed that was 90 points lower than the Equifax site reported to me 10 minutes prior to my call to OnDeck. I do not trust their business practices. Others may feel differently, but they certainly did not give me a shot. And, they used incorrect information.
Ian Atkins
Hi Ken,
Sorry to hear you weren’t satisfied with your experience at OnDeck. My experience with alternative / online lenders is that they don’t have much in the way of wiggle room. You either meet their credit score / revenues / time in business requirements or you do not. In most cases, their underwriting team doesn’t have the options of looking at other factors that might make you an acceptable risk. OnDeck has very flexible credit score requirements but is compensates for that by having very strict revenue requirements. ($500/month = $6k/year). None of that excuses poor customer service or a rude salesperson.
Two places that have lower revenue requirements are Kabbage and Fundbox.
I hope you have better luck there. Feel free to email me directly if you have questions/concerns.
Best,
Ian
Dewayne
Where can you go to get Start-Up Capital to Purchase A Closed Business and Lease A Second With Option To Purchase After Three Years With Bad Credit Below 500 currently. These Two Will Net About 15,000 a month.
Priyanka Prakash
Hi Dewayne,
Thanks for your question. With a credit score under 500, it’s very difficult to get a loan to buy or lease a business. Your best bet may be to use retirement funds (if you have some saved up in a retirement account) or to borrow money from family and friends. Once you’ve owned the business for a few years, more options may open up to you. Also, by increasing your credit score, you can expand your financing options.
Best of luck!
Regards,
Priyanka
Mark Cooper
I think this article need to be updated to show that Behalf DOES run a personal credit check:
Behalf’s email reply to me after I applied for business funding / invoice financing:
Mark –
Thanks for contacting us at Behalf.
In response to your inquiry, because you created an account with us to seek to use our financing service for vendor purchases, we run a customer evaluation. << – (My words here – AKA ** Personal ** Credit Check )
Further information about this is disclosed in our Terms of Use, which you accepted when you opened your account with Behalf (https://www.behalf.com/terms):
10. Due Diligence
If you create or access an online account through this website you authorize Behalf to conduct background, onsite and financial examinations. You authorize Behalf to conduct background and financial examinations of you, which may include, but is not limited to, address verifications for up to ten (10) years; querying a commercial and consumer credit history and score from any credit bureau, searches of any and all relevant publically available information hosted on the world wide web; and a search for bankruptcies, liens or judgments in all jurisdictions where you have conducted business. You authorize Behalf, at its sole discretion, to report your personal and business credit to credit bureaus.
Thank you for your interest in Behalf.
Priyanka Prakash
Hi Mark,
Thanks for the information! I have updated the article to clarify that Behalf does conduct a credit check. Based on my research, they do not have a specified minimum, at least not one that they disclose publicly. They also check other factors, such as online and social media data, in deciding whether to approve a business for a loan.
Best,
Priyanka