Business loans you could get with bad credit

Your credit history doesn't have to lead to a dead end. Find the way forward with a bad credit business loan.

Last updated:

Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

When you apply for a business loan, your personal credit history may be evaluated in addition to your business credit as an indicator of your financial responsibility and performance. So, if you have bad credit it can result in your loan applications being denied. However, this doesn’t eliminate your chances of securing finance altogether.

Our top pick: OnDeck

  • Min. Loan Amount: $5,000
  • Max. Loan Amount: $500,000
  • Requirements: 600+ personal credit score, 1+ years in business, $100,000+ annual revenue
  • Apply in minutes
  • Funds in as fast as 24 hours

Our top pick: OnDeck

A leading online business lender offering flexible financing at competitive fixed rates.

  • Min. Loan Amount: $5,000
  • Max. Loan Amount: $500,000
  • Requirements: 600+ personal credit score, 1+ years in business, $100,000+ annual revenue

Top 3 bad credit business loans you can apply for today

Min. Credit ScoreRequirementsMax. Loan Amount
OnDeckOnDeck Small Business Loans670600+ personal credit score, 1+ years in business, $100,000+ annual revenue$500,000
Go to OnDeck Capital's site
Fora Financial Business LoansFora Financial Business Loans3006+ months in business, $12,000+ monthly revenue, no open bankruptcies$500,000
Go to Fora Financial's site
GoKapitalGoKapitalMinimum of $10,000 average monthly revenue. At least four months of business bank account statements.$5,000,000

What is considered “bad credit” and can I still get a business loan with it?

There’s no one set definition of bad credit, especially when it comes to business loans. Lenders will generally look at the personal credit histories of company heads and if the business is established they may also look at the business’s credit score and credit report.

A bad personal credit score is typically one that’s below 580 (ratings usually range from 300 to 850).

A bad business credit score is typically one that’s below 50 (ratings usually range from 0 to 100).

If you have bad credit, that is, defaulted payments, missed or late payments, multiple credit inquiries or just a low credit score, you may find it difficult to be approved for a business loan, but you have options.
See if a no-credit-check business loan is right for you

How can I get a business loan with bad credit?

Traditional banks may be tough on businesses with bad credit, but alternative financial lenders tend to have more relaxed criteria. You could also apply for a different type of loan or put up business or personal assets as collateral.

  • Secured bad credit business loans

If you apply using assets as collateral, the lender may be more ready to approve your application. Here are a few things to keep in mind when applying for a secured business loan:

  • Assets such as business equipment, vehicles, property and funds in savings accounts can be used as collateral for a secured business loan.
  • These kinds of loans are generally granted by banks. Terms and conditions differ, so it’s a good idea to shop around for the loan that suits your budget.
  • Since your application is secured with collateral, you generally benefit from more competitive interest rates and flexible repayment terms.
  • If you can’t make your repayments, the lender will sell your assets to cover what you owe.
  • Alternative lenders

There has been a growth in the number of alternative lenders offering loans to business owners with less-than-perfect credit or with no collateral required. Alternative providers include non-bank business lenders and peer-to-peer marketplaces. Here’s why many business owners turn to alternative lenders:

  • They offer a selection of small, short-term loan products.
  • Bad credit history isn’t a determining factor, you just need to show that your business is able to repay.
  • Responsible borrowers can be rewarded with better rates the next time they apply for a loan.
  • Loan terms are tailored to what you can afford.
  • Many alternative lenders don’t require security for the loan amount.
  • The application is quick, often with same-day approval.
  • Invoice factoring

If you have outstanding invoices that are locking up your cash flow, you can consider invoice factoring. Invoice factoring involves selling your unpaid invoices for a fee in order to receive the outstanding payments more quickly. This option is becoming increasingly popular amongst business owners because:

  • Bad credit history isn’t a factor.
  • No real estate is required as collateral.
  • You have the option to finance some or all of your invoices.
  • You can enter into an ongoing arrangement with the factoring company.

Even with bad credit history, you can get the cash boost your business needs with terms to suit your financial situation. It’s important to compare your options to find the right type of finance available to your business.

How can I compare my bad credit business loan options?

There are a few options you can consider for your business, here’s how to find the one that will most suit your business needs:

  • Flexibility to fit your business cash flow. Business loans vary in repayment terms, loan amounts and other features. Your cash flow estimates should show when periods of fluctuations occur, and therefore what type of repayment structure and loan type may suit your business.
  • Loan term. While banks tend to offer minimum loan terms of one year with standard business loans, alternative lenders have been offering terms as short as three months, giving you a range of terms to choose from. You also have line of credit loans and overdrafts to add to your comparison – each have no set terms.
  • Features to fit your preferences. Deciding what your business needs out of the loan should help when you’re comparing your options. If you have a startup, you may be unsure of your cash flow projections and may want the ability to add onto your loan in the future. If you’re taking out a loan to buy stock that will be sold in the next six weeks, you’ll likely not want a loan with terms longer than a year.

What’s the difference between a personal and business credit report?

Both your personal and business credit report contain information that helps lenders and creditors determine whether they want to do business with you. Your personal credit report is based on historical information about your credit accounts such as student loans and store credit cards. On the other hand, your business credit report is based only on accounts taken out under your business’s name.

  • Personal credit report. Your personal credit report includes your name and other personal information, details of consumer credit accounts you’ve held, any negative listings such as defaults or missed payments and information on the public record such as bankruptcies and court judgements.
  • Business credit report. Your business’s credit report will include the company’s structure and its shareholders, the company’s credit information including applications and defaults.

Questions we’ve been asked about financing a business with bad credit

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site