Can I Get A Business Loan With Bad Credit

How much do you need?

We’ll begin by asking you a quick questionnaire to better understand the particular requirements of your company.

When we find your unique matches, our staff will talk with you about the next steps in the process.

Here are 10 bad-credit business loans

IM INTERESTED IN:

Your eligibility for an OnDeck loan up to $250,000 may depend on your credit score, which must be at least 625. These short-term business loans are good for specific, one-time purchases.

OnDeck – Online term loan 0

• Cash can be available within the same business day.
• Accepts borrowers with a minimum credit score of 625.
• Streamlined application process with minimal documentation required.
• Can be used to build business credit.

• Not available in Nevada, North Dakota or South Dakota.
• Requires frequent (daily or weekly) repayments.
• Interest rates can be high compared with traditional lenders.
• Requires business lien and personal guarantee.

Qualifications:

• Minimum credit score: 625.
• Minimum time in business: One year.
• Minimum annual revenue: $100,000.
• Business bank account.

May fund quickly 5.0

35. 40-99. 90% of OnDeck’s loans are short-term, fast-term loans intended for small business owners with subpar credit who wish to grow.

• Cash can be available within the same business day.
• Accepts borrowers with a minimum credit score of 625.
• Streamlined application process with minimal documentation required.
• Can be used to build business credit.

• Not available in Nevada, North Dakota or South Dakota.
• Requires frequent (daily or weekly) repayments.
• Interest rates can be high compared with traditional lenders.
• Requires business lien and personal guarantee.

• Minimum credit score: 625.
• Minimum time in business: One year.
• Minimum annual revenue: $100,000.
• Business bank account.

Fundbox may be able to offer you a business line of credit if your credit score is at least 600. Compared to a term loan, you have more flexibility with a credit line because you only pay interest on the money you use.

Fundbox – Line of credit 0

• Financing available within one business day after approval.
• Simple application with minimal documentation required.
• Startup-friendly: takes borrowers who have been in operation for at least six months.
• Low minimum credit score requirement.
• No prepayment penalties, account maintenance fees or inactivity fees.

• Rates are high compared with traditional banks.
• May require personal guarantee.
• Repayments must be made every week for a brief period of time (up to 24 weeks).

Qualifications:

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $100,000.

May fund quickly 5.0

36. 00-99. A business line of credit is provided by 00%%20Fundbox%20to close a cash flow gap, and qualifying is simpler than with other lenders.

• Financing available within one business day after approval.
• Simple application with minimal documentation required.
• Startup-friendly: takes borrowers who have been in operation for at least six months.
• Low minimum credit score requirement.
• No prepayment penalties, account maintenance fees or inactivity fees.

• Rates are high compared with traditional banks.
• May require personal guarantee.
• Repayments must be made every week for a brief period of time (up to 24 weeks).

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $100,000.

In as little as 24 hours, Bluevine can approve applications and provide financing. You’ll need a minimum credit score of 625 to qualify.

Bluevine – Line of credit 0

• Cash can be available within 12 to 24 hours.
• Multiple term lengths for different financing needs.
• Low minimum credit score requirement.

• May require weekly repayments.
• Requires personal guarantee.
• Not available in North Dakota, South Dakota or Nevada.
• Rates can be high compared to traditional lenders.

Qualifications:

• Minimum credit score: 625.
• Minimum time in business: 24 months.
• Minimum annual revenue: $480,000.
• No bankruptcies in the past three years.

May fund quickly 5.0

20. 00-50. 0% of the Bluevines Credit Line offers quick working capital for short-term borrowing needs.

• Cash can be available within 12 to 24 hours.
• Multiple term lengths for different financing needs.
• Low minimum credit score requirement.

• May require weekly repayments.
• Requires personal guarantee.
• Not available in North Dakota, South Dakota or Nevada.
• Rates can be high compared to traditional lenders.

• Minimum credit score: 625.
• Minimum time in business: 24 months.
• Minimum annual revenue: $480,000.
• No bankruptcies in the past three years.

A minimum credit score of 625 may be required for you to be eligible for a line of credit from Headway. The lender offers a streamlined application and other flexible qualifications.

Headway Capital – Line of credit 0

• Flexible qualification requirements.
• No prepayment penalties.
• Funds available by next business day after approval.

• Most borrowers are subject to a 2% draw fee.
• Not available in all U.S. states.

Qualifications:

• Minimum credit score: 625.
• Minimum time in business: Six months.
• Minimum annual revenue: $50,000.

5.0

35. 00-80. 00% Headway Capital provides a quick and adaptable credit line to borrowers who might not be eligible for more conventional options.

• Flexible qualification requirements.
• No prepayment penalties.
• Funds available by next business day after approval.

• Most borrowers are subject to a 2% draw fee.
• Not available in all U.S. states.

• Minimum credit score: 625.
• Minimum time in business: Six months.
• Minimum annual revenue: $50,000.

A working capital loan might be available to you if your credit score is 500 or above. Fora Financial loans can be used for managing cash flow gaps, making payroll, or buying inventory.

Fora Financial – Online term loan 5

• Cash can be available quickly.
• Get a discount for prepaying.
• No collateral required.
• Low minimum credit score requirement.

• imposes a factor rate that makes comparing prices with other lenders more challenging.
• Can’t build business credit.
• Longest loan term is 15 months.

Qualifications:

• In business for at least six months.
• At least $15,000 per month in revenue.
• No open bankruptcies or dismissed bankruptcies within the past year.

4.5

For those who might not be eligible for traditional bank financing or for newly established small businesses seeking quick funding, 500 Fora Financial may be a suitable option.

• Cash can be available quickly.
• Get a discount for prepaying.
• No collateral required.
• Low minimum credit score requirement.

• imposes a factor rate that makes comparing prices with other lenders more challenging.
• Can’t build business credit.
• Longest loan term is 15 months.

• In business for at least six months.
• At least $15,000 per month in revenue.
• No open bankruptcies or dismissed bankruptcies within the past year.

Invoice factoring company AltLINE will finance overdue invoices up to $10 million; no minimum credit score is required, and there are no requirements for revenue or time in business.

AltLINE – Invoice Factoring 5

• Capital available within 24 to 48 hours.
• No collateral required.
• Manages payment collection from your customers.
• Accepts startups and businesses with bad credit.

• The longer it takes your clients to pay, the more expensive your fees may become.
• Comparing factoring costs to other business loan options is challenging.

Qualifications:

• Any credit score between 300 and 850 is acceptable.
• Minimum time in business: No minimum.
• Minimum annual revenue: No minimum.

4.5

300 AltLINE offers fast invoice factoring with competitive factoring rates.

• Capital available within 24 to 48 hours.
• No collateral required.
• Manages payment collection from your customers.
• Accepts startups and businesses with bad credit.

• The longer it takes your clients to pay, the more expensive your fees may become.
• Comparing factoring costs to other business loan options is challenging.

• Any credit score between 300 and 850 is acceptable.
• Minimum time in business: No minimum.
• Minimum annual revenue: No minimum.

To secure your loan, National Funding does not require you to provide tangible collateral. However, the lender will demand that you sign a personal guarantee and place a lien on your company’s assets.

National Funding – Online Term Loan 0

• Funding in as little as 24 hours.
• Prepayment discounts available.
• Offers loans to startups and borrowers with bad credit.
• No collateral or down payment required.

• imposes a factor rate that makes comparing prices with other lenders more challenging.
• Short-term loans require daily or weekly repayment.
• Requires higher annual revenue than other online lenders.
• Misleading website marketing.

Qualifications:

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $250,000.

4.0

600 Borrowers seeking quick access to capital who are ineligible for more conventional loan options may want to take a look at National Funding.

• Funding in as little as 24 hours.
• Prepayment discounts available.
• Offers loans to startups and borrowers with bad credit.
• No collateral or down payment required.

• imposes a factor rate that makes comparing prices with other lenders more challenging.
• Short-term loans require daily or weekly repayment.
• Requires higher annual revenue than other online lenders.
• Misleading website marketing.

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $250,000.

When assessing eligibility, nonprofit lender Accion Opportunity Fund considers factors other than your credit score. Their loan terms vary in length from one to five years.

Accion Opportunity Fund – Small Business Working Capital Loan 0

• Loan amounts from $5,000 to $250,000.
• Customized loan terms.
• No prepayment penalty.

• Slower processing speed compared to online lenders.
• Not available in all U.S. states.

Qualifications:

• Minimum credit score: 570.
• Minimum time in business: 12 months.
• Minimum annual revenue: $50,000.

4.0

7. 49-29. For 67% of businesses that haven’t been able to secure traditional financing, accion is a good option. The lender focuses its financing efforts on women, people of color, and low-to-moderate income business owners.

• Loan amounts from $5,000 to $250,000.
• Customized loan terms.
• No prepayment penalty.

• Slower processing speed compared to online lenders.
• Not available in all U.S. states.

• Minimum credit score: 570.
• Minimum time in business: 12 months.
• Minimum annual revenue: $50,000.

With this kind of financing, the equipment you buy acts as collateral for the loan, so online lenders like Triton might be more lenient when it comes to credit requirements.

Triton Capital – Equipment financing 0

• Can fund within one to two business days.
• No prepayment penalty.
• Flexible repayment options: monthly, quarterly, annually or semiannually.

• Typically requires a personal guarantee and UCC lien.
• Requires high minimum annual revenue.

Qualifications:

• Minimum credit score: 575.
• Minimum time in business: Two years.
• Minimum annual revenue: $250,000.

4.0

5. 99-34. 99% Triton Capital provides quick equipment loans up to $250,000 for companies across a variety of industries.

• Can fund within one to two business days.
• No prepayment penalty.
• Flexible repayment options: monthly, quarterly, annually or semiannually.

• Typically requires a personal guarantee and UCC lien.
• Requires high minimum annual revenue.

• Minimum credit score: 575.
• Minimum time in business: Two years.
• Minimum annual revenue: $250,000.

Nonprofit, neighborhood-based organizations provide microloans, and they might be more inclined than some other lenders to work with borrowers with poor to fair credit.

• Less strict eligibility requirements than other government loans.
• Available from nonprofit lenders.

Qualifications:

8. 00-13. 00% SBA microloans are small-sized loans funded by the U. S. Small Business Administration and distributed via authorized middlemen, usually community and nonprofit lenders

• Less strict eligibility requirements than other government loans.
• Available from nonprofit lenders.

How Much Do You Need?

Loan type	Overview	Use cases
Short-term loan	Lump sum of capital you borrow from a lender and repay, over a set period of time, with interest. Online lenders tend to have flexible qualification requirements.	Short-term expenses, specific projects or purchases.
Line of credit	Gives you access to a set amount of funds, which you can draw from as needed. Lines of credit are also available from online lenders with flexible requirements.	Working capital, cash flow gaps, seasonal slows, emergency funding.
Equipment financing	Asset-based financing where the equipment you purchase serves as collateral on the loan. You may not need to rely as heavily on traditional eligibility criteria because equipment secures the loan.	Purchasing equipment and machinery for your business.
Invoice factoring	Unpaid invoices are sold to a factoring company at a discount in exchange for a cash advance. Lenders can be lenient with qualifications because your invoices provide security.	Business-to-business companies that have cash tied up in unpaid invoices.
Merchant cash advance	Company gives you an upfront sum of capital that you repay using a percentage of your debit and credit card sales, plus a fee. MCA companies tend to focus on sales and cash flow when evaluating applications.	Businesses that have substantial debit and credit card sales. However, MCAs can have extremely high APRs, so they should be used as a last resort option.
Revenue-based financing	Loans are underwritten to future revenue, and payments are a percentage of monthly revenue. Revenue-based loans rely less on personal credit and finances because your payments are guaranteed by monthly revenue.	High-revenue businesses that are experiencing cash flow shortages, or are looking to scale and grow.
Microloan	Small-dollar loans, typically available in amounts up to $50,000. Issued by nonprofit and community organizations who often have flexible qualification requirements.	Day-to-day expenses associated with starting and/or growing a business. Can be a good option for traditionally underserved businesses.

Where to get a business loan with bad credit

• How long you’ve been in business.
• What your annual revenue is.
• How strong your cash flow is.
• What kind of collateral you can provide.

Prepare to bolster your application

• Available loan types.
• Interest rates and fees.
• Repayment terms.
• Funding speed.
• Qualification requirements.
• Lender reputation and customer service.

Alternatives to bad-credit business loans

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FAQ

Can I get a business loan with a 500 credit score?

Yes. Owners of businesses with credit scores as low as 500 are accepted by certain lenders.

What is the minimum credit score for a business loan?

Lenders frequently set minimum credit score requirements for both personal and business loans, even though the Small Business Administration does not officially mandate a minimum credit score for SBA loans. Typically, to be eligible, one must have a personal score of 620 to 640 or an SBSS of 140 to 160.

Can I get a business loan if my personal credit is bad?

A small business loan can be obtained even if your FICO score is below 670. But even if you technically have fair credit, you might wind up having to settle for high interest rates or a bad credit business loan.

Can you get a business loan with a 450 credit score?

“Bad credit” is defined as a personal FICO score of less than 670. If your company is still relatively young, lenders might place more emphasis on your personal credit history. A personal credit score of 500 or above is normally required for bad credit business loans.

Read More :

https://www.nerdwallet.com/best/small-business/bad-credit-business-loans
https://www.lendingtree.com/business/business-loans-for-bad-credit/