LendingClub business loans
Finder score
Loan amount | $5,000 – $500,000 |
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APR | 12.15% to 29.97% |
Min. Credit Score | 580 |
If your credit score falls between 580 to 669, your business loan options are slightly more limited than those with good or excellent credit. However, these lenders offer clear terms and a wide variety of loans to help you finance the next phase of your business.
These lenders represent some of the more flexible and transparent options available to borrowers with fair credit. To compile our list, we considered the loan types available, minimum and maximum APR, repayment terms and the loan amount.
LendingClub business loans
Finder score
Loan amount | $5,000 – $500,000 |
---|---|
APR | 12.15% to 29.97% |
Min. Credit Score | 580 |
Lendio business loans
Finder score
Loan amount | $1,000 – $5,000,000 |
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APR | Starting at 3% |
Min. Credit Score | 500 |
SmartBiz business loans
Finder score
Loan amount | $30,000 – $500,000 |
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APR | Prime Rate, plus 2.75% to 3.75% |
Min. Credit Score | 650 |
Bluevine business lines of credit
Finder score
Loan amount | $5,000 – $250,000 |
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APR | Starting at 6.2% |
Min. Credit Score | 625 |
Kiva business loans
Finder score
Loan amount | $1,000 – $15,000 |
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APR | 0% |
LendingClub | Fair or better | Businesses with low annual revenue | ★★★★★
4.5 / 5.0 | Small businesses don’t need to meet strenous revenue requirements to qualify. |
Lendio | 560 | Comparing lenders | ★★★★★
4.75 / 5.0 | A large network makes it easy to find a suitable lender with competitive rates. |
Smartbiz | 650 | Finding an SBA lender | ★★★★★
4.3 / 5.0 | Streamlined SBA loan process for established businesses. |
BlueVine | 600 | Same-day funding | ★★★★★
4.45 / 5.0 | No waiting period for funding — for a small $15 fee. |
Kiva | None | Microloans | ★★★★★
3.70 / 5.0 | No credit score requirement and 0% APR — provided you have a large social network. |
Select your loan amount, annual revenue, time in business and Fair on the table. Then click Show loans to view your results.
If you have fair credit, you may be able to qualify for a business loan from a variety of lenders.
Lenders that operate online offer a wide range of loans for borrowers with fair credit. These include standard term loans and lines of credit — with rates comparable to banks — and short-term options like invoice financing, invoice factoring and merchant cash advances.
Because of all the options available, it’s important to compare lenders carefully. Fortunately, online lenders typically have lower credit requirements and are more lenient than banks, which can make it easier to qualify for a loan with fair credit.
Some banks, like Regions and PNC, accept business owners with fair credit — provided they have an established credit history. Rates at banks are generally lower, and you may have access to experienced bankers that understand your industry.
But most banks require you to have a checking account or visit a branch to apply. You’ll also need to meet other strict requirements to qualify, so expect the process of applying with a bank to take longer than an online lender.
Local and regional credit unions generally offer term loans to business members, although you may find other options with your credit union. Requirements tend to be more lenient than banks, but you will still need to meet a minimum credit score to apply.
And like banks, you may need to fill out your paperwork at a branch — though more and more credit unions are moving their initial application process online. Rates are also competitive, but you will need to become a member to qualify for most financing options.
Alternative lenders should be used as a last resort if you or your business are unable to qualify for a loan from another source. Because of the fixed-fee structure, alternative loans require daily repayments and may be much more expensive than other loan options. You should consider an alternative business loan carefully before borrowing.
You can improve your chances of approval by keeping these points in mind:
Once you have a few prequalification offers, compare the APR, payment schedule and terms to choose the best choice for your business.
These alternatives won’t fault you for having fair credit. But some choices can be expensive for businesses with low revenue.
Your lender should provide information on why you weren’t approved for a loan. Revisit your application and ensure neither you nor your lender made any mistakes. If everything is correct, review the reason you were rejected. Even if you meet a lender’s minimum credit requirements, your business’s revenue and financial history may not meet the lender’s standards.
Rework your application and business plan to suit the feedback you received. If the problem is with your revenue, sales or other metrics, it may be better to consider alternative sources of financing — including short-term business loans, personal loans or business credit cards — which may be easier to qualify for.
Fair credit won’t stop you from qualifying for one of these top business loans. But you should still explore your full range of options to ensure you’re making the right financial move for your business.
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