8 Best Business Loans for Bad Credit for 2023

Clarify Capital is a broker with over 75 lenders in its network. It has a low credit score requirement of 500, making it our pick as the best overall for multiple loan options.

It offers many different types of loans. This includes business lines of credit, invoice factoring, Small Business Administration (SBA) loans, equipment financing, working capital loans, and MCAs.

Qualification requirements and terms can vary depending on the type of loan you choose. In general, its best rates for well-qualified businesses start at around 10%. You can get up to $5 million in funding, and repayment terms for as long as three years. At a minimum, you’ll need to also have at least three months’ time in business and $10,000 of monthly revenue to qualify.

To apply or get a quote, you can submit an online application in under two minutes. The provider can also issue loan decisions and funding within 24 hours.

Fora Financial offers term loans with a repayment length of up to 15 months. Although that is far from the longest on our list, it provides large loan amounts and competitive rates, making it a good option for businesses that prefer to pay off loans more quickly. These characteristics also earned it a spot on our list of the best MCA companies for getting a lump-sum advance payment on your receivables.

When you apply for a loan with Fora Financial, you’ll get one-on-one service with a specialist. This partnership is designed to get you the best loan by understanding your business needs and goals. While this provider does have a minimum credit score requirement of 500, it also considers other aspects of your business in determining whether it can issue a loan.

Fora Financial offers small business term loans and a revenue advance loan. There are no prepayment penalties, and you can borrow additional funds once you’ve paid back 60% of the original loan amount. Loans can be used for any business-related purpose, and you will not be required to pledge collateral to get funding.

Submitting an application is a simple process that can be completed online. After applying, a team member from Fora Financial will contact you to discuss your needs. Loan decisions can be completed in as fast as four hours, with funding to occur within another 48 to 72 hours.

Fundbox offers a small business line of credit with a minimum credit score requirement of 600. It has a quick application process, has consistently high customer ratings, and was also selected as one of our top-recommended working capital loans. This makes it a good option if you want the flexibility of drawing funds on an as-needed basis.

It offers rates as low as 4.66%, typically found on its shorter 12-week repayment plan. Its 24-week loans usually have rates that start at 8.99%. One thing to keep in mind, however, is that the best rates require businesses to have excellent credit. So although this provider can issue loans to those with lower credit scores, you may not qualify for its best rates.

Other features of this lender include a program called Fundbox Flex Pay, which gives you an additional three business days to make your payments without being penalized with fees. To take advantage of this, you’ll need to have a Fundbox line of credit and allow vendors to debit your Flex account. Once that occurs, you’ll be given three additional days to satisfy the required payment on the account.

If you’re interested in applying, you can complete an online application in only minutes. Qualified businesses can receive a loan decision in as little as three minutes, with funds being made available as soon as the next business day.

National Funding is a provider that excels in providing high levels of customer service. It keeps a majority of its loans in-house rather than brokering them out to other lenders. You’ll also get paired with a loan specialist to discuss your needs in finding the type of loan best suited for you.

Businesses that typically get approved through National Funding are companies that are performing well and looking to get more funding to continue growing. It requires a minimum credit score of 600, but it’s recommended that you have compensating factors to increase your chances of approval. Some examples include having business revenue that exceeds the minimum requirements or a larger down payment if you’re seeking an equipment loan.

The benefits of working with National Funding include an early repayment discount. On a working capital loan, you can receive a 7% discount on the remaining balance if the loan is paid in full within the first 100 days. Equipment financing customers can receive a 6% discount.

You can visit the National Funding website to learn more about the products or call the provider’s toll-free number to speak with a representative. You can also submit an online application to get the process started.

If you are an investor who has completed at least three property rehabs in the past 36 months, it’s possible to get a rehab loan with Baselane with a credit score as low as 575. This provider also offers other types of loans, including long-term rental loans and portfolio loans. However, they may be more difficult to get with bad credit as they carry higher credit score requirements of 660 or more.

Baselane’s rehab loans allow you to get up to 85% loan-to-cost for a purchase, 100% loan-to-rehab budget, and up to 70% of the after-repair value. Interest-only monthly payments can be made for up to 12 months, with an additional 12-month extension available. To qualify, you’ll be required to have between one and 12 months of interest reserves.

With Baselane, you can get an online quote in under one minute without needing to provide any personal information. In addition to rates, you’ll also be given a preliminary figure on expected fees and figures for required interest reserves and other qualification requirements.

Baselane also offers business checking and other products to help landlords organize and manage properties. We selected it as one of the best banks for real estate investors. We recommend checking it out if you’re looking for an all-in-one solution to help with things like rent collection, bookkeeping, and reporting services.

You can visit the Baselane website to learn more, get a quote, or submit a loan application.

If you’re looking for equipment financing, Smarter Finance USA is an excellent option. It has the easiest qualification requirements on our list with no minimum credit score, time in business, or revenue.

With that being said, if you have a credit score of at least 600, it will be easier to get approved. Applications are reviewed on a case-by-case basis, and having compensating factors can help. For example, a business with a low credit score can have an easier time getting approved with a track record of strong business finances. Similarly, having a larger down payment can improve the odds of approval if you are a startup with low revenue and a low credit score.

Smarter Finance is a broker with over 37 lenders in its network. This means that you could get multiple loan options and also have a better chance of getting approved. Another advantage of working with a broker like this is you won’t have to apply separately to different lenders, saving you time and money.

You can submit an online application, a process that should take no more than five to 10 minutes.

For borrowers with bad credit, Lendio can help you with commercial mortgages and business acquisition loans. Minimum qualification requirements include a credit score of 600, six months’ time in business, and $8,000 in monthly revenue.

Depending on the type of loan you’re getting, rates start as low as 4.5%. However, businesses with lower credit scores are unlikely to get the lowest advertised rates. Loan amounts range from $5,000 to $5 million, and repayments can be made for up to 25 years.

Lendio is a company that we also selected as one of the leading business loan brokers. It has a network of over 75 lenders, which means you’ll not only have more chances to get approved but also at a lower rate.

It also offers other types of loans with varying qualification requirements. These other financing options include accounts receivable financing, small business lines of credit, SBA loans, term loans, cash advances, and equipment financing

To apply, you can complete the provider’s online application. Be sure to also check your email for additional instructions on the required documents you must provide, as your application is not considered finished until that step is completed.

Credibly is a good option if you need an MCA. It requires a credit score of 500 and offers fast approvals and large financing amounts. It was also selected for our list of the top merchant cash advance companies for being more willing to work with borrowers with lower credit scores.

Credibly has factor rates as low as 1.11 for well-qualified businesses. However, with a lower credit score, it’s unlikely you’ll qualify for the lowest advertised pricing, and you could see factor rates as high as 1.45 or greater.

This provider only requires six months’ time in business to qualify, so it’s startup-friendly. However, the monthly revenue requirement of $15,000 is among the highest on our list. Additionally, MCAs are inherently an expensive form of financing, so you may want to explore other financing options before making any final decisions.

Other products offered by Credibly include working capital loans, business lines of credit, equipment financing, SBA loans, invoice factoring, and more.

You can complete an online application in less than 10 minutes and receive a response within four hours.

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.