If your credit score falls between 580 and 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.
How we picked these business lenders
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 loan amounts.
Lendio has a network of more than 75 lenders with 11 different financing options. This network gives borrowers the opportunity to compare multiple solutions with a single application, and it accepts credit scores as low as 580. But some of its financing options are pricey, and you may have to pay an origination fee to some lenders. Plus, marketplaces in general can lead to a lot of solicitation.
Loan amount
$1,000 – $5,000,000
APR
Varies by lender
Min. Credit Score
580
Lendio has a network of more than 75 lenders with 11 different financing options. This network gives borrowers the opportunity to compare multiple solutions with a single application, and it accepts credit scores as low as 580. But some of its financing options are pricey, and you may have to pay an origination fee to some lenders. Plus, marketplaces in general can lead to a lot of solicitation.
Pros
Network of 75+ lenders
Wide range of business loan options
Poor credit accepted
Cons
Some loans are expensive
May charge origination fees
May receive marketing material from lenders
Loan amount
$1,000 – $5,000,000
APR
Varies by lender
Min. Credit Score
580
Loan term
3 months to 25 years
Requirements
Operate business in US for 6 months or more, have a business bank account, minimum 580 personal credit score, at least $8,000 in monthly revenue.
Kiva doesn't have a minimum credit score requirement, which makes it a good choice for business owners who may be on the lower end of fair credit. It also doesn't charge interest or fees. But you will need a sizable social network to make the most out of its crowdfunding system. Because of this, it may take over a month to raise your loan funds.
Loan amount
$1,000 – $15,000
APR
0%
Kiva doesn't have a minimum credit score requirement, which makes it a good choice for business owners who may be on the lower end of fair credit. It also doesn't charge interest or fees. But you will need a sizable social network to make the most out of its crowdfunding system. Because of this, it may take over a month to raise your loan funds.
Pros
No interest or fees
No minimum credit requirement
No minimum revenue requirement
Cons
Turnaround of up to 45 days
Low maximum loan amount
Qualifying depends on social network
Loan amount
$1,000 – $15,000
APR
0%
Loan term
6 months to 3 years
Requirements
Have at least ten friends and family members willing to contribute to your loan, live in the US, ages 18+, not in bankruptcy or foreclosure, not under any liens, not engaged in: multi-level marketing, direct sales, pure financial investing or illegal activities
If your credit is fair and your business accepts debit and credit card payments, a merchant cash advance from Rapid Finance may be a good option. It provides funding up to $500,000 and has a flexible repayment structure based on a percentage of your future sales.
But it doesn't list rates or fees on its website, and, in general, MCAs are one of the most expensive forms of business financing. It also doesn't list its revenue and credit requirements, so you may want to call before you apply to be sure you qualify.
Loan amount
$5,000 to $500,000
If your credit is fair and your business accepts debit and credit card payments, a merchant cash advance from Rapid Finance may be a good option. It provides funding up to $500,000 and has a flexible repayment structure based on a percentage of your future sales.
But it doesn't list rates or fees on its website, and, in general, MCAs are one of the most expensive forms of business financing. It also doesn't list its revenue and credit requirements, so you may want to call before you apply to be sure you qualify.
Pinnacle Funding offers term loans of up to $5 million, and it accepts credit scores as low as 525, making it a solid choice for businesses with less-than-perfect credit that need a large influx of capital. It also only requires at least six months in business, there's no hard credit check and you could get funded in as fast as 24 hours. But it doesn't disclose rates and fees on its website, and loan terms are relatively short for such large loans.
Loan amount
$5,000 – $3,000,000
APR
Varies by loan type
Min. Credit Score
525
Pinnacle Funding offers term loans of up to $5 million, and it accepts credit scores as low as 525, making it a solid choice for businesses with less-than-perfect credit that need a large influx of capital. It also only requires at least six months in business, there's no hard credit check and you could get funded in as fast as 24 hours. But it doesn't disclose rates and fees on its website, and loan terms are relatively short for such large loans.
Pros
Loans up to $5 million
Low credit score requirement
No hard credit check
Cons
Doesn't disclose rates and fees
No longer terms offered
Loan amount
$5,000 – $3,000,000
APR
Varies by loan type
Min. Credit Score
525
Loan term
6 months to 2 years
Requirements
6+ months in business, 525+ credit score, $180,000 in annual revenue
Unlike many other lenders, LendingClub only requires businesses to have an annual revenue of $50,000 — or around $4,000 a month. This leniency allows newer businesses with limited revenue to qualify. It provides access to small business loans through its partnership with Accion Opportunity Fund (AOF), up to $250,000, and it's an SBA preferred lender with loans as high as $15 million. But its maximum rate is on the high side, and it may charge origination fees. AOF also requires collateral or a blanket lien on its loans over $50,000.
Loan amount
$5,000 – $250,000
APR
12.15% to 29.97%
Min. Credit Score
580
Unlike many other lenders, LendingClub only requires businesses to have an annual revenue of $50,000 — or around $4,000 a month. This leniency allows newer businesses with limited revenue to qualify. It provides access to small business loans through its partnership with Accion Opportunity Fund (AOF), up to $250,000, and it's an SBA preferred lender with loans as high as $15 million. But its maximum rate is on the high side, and it may charge origination fees. AOF also requires collateral or a blanket lien on its loans over $50,000.
Pros
Only requires $50,000 in annual revenue
Get funds in just a few days
Accepts fair credit
Cons
May charge origination fees
Relatively long turnaround for an online lender
Requires a lien or collateral on loans over $50,000
Loan amount
$5,000 – $250,000
APR
12.15% to 29.97%
Min. Credit Score
580
Loan term
12 to 60 months
Requirements
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
Loan amount
$5,000 – $250,000
APR
12.15% to 29.97%
Min. Credit Score
580
Best for SBA loans
SmartBiz business loans
9
Excellent
SmartBiz speeds up the SBA application process by streamlining the information you need to provide. By working with multiple banks and online lenders, it may take just a week or two to get funding — rather than the normal multi-month waiting period. Prequalification takes just a few minutes, and rates start as low as the prime rate plus 3%.
But you'll need to borrow at least $50,000, and the process isn't free. Smartbiz charges closing costs and a packaging fee, and there's also an SBA guarantee fee if you're approved.
Loan amount
$50,000 – $500,000
APR
Prime Rate, plus 3% to 4.75%
Min. Credit Score
660
SmartBiz speeds up the SBA application process by streamlining the information you need to provide. By working with multiple banks and online lenders, it may take just a week or two to get funding — rather than the normal multi-month waiting period. Prequalification takes just a few minutes, and rates start as low as the prime rate plus 3%.
But you'll need to borrow at least $50,000, and the process isn't free. Smartbiz charges closing costs and a packaging fee, and there's also an SBA guarantee fee if you're approved.
Pros
Compare regular bank loans and SBA loans
May cut weeks out of SBA loan turnaround time
Simplified online application
Cons
Charges packaging fees and closing costs
No loans under $50,000
Funding not as fast as some options
Loan amount
$50,000 – $500,000
APR
Prime Rate, plus 3% to 4.75%
Min. Credit Score
660
Loan term
10 years
Requirements
660+ credit score, 2+ years in business, $50,000+ in annual revenue, no bankruptcies or foreclosures in past 3 years
Bluevine has a business line of credit up to $250,000, and it accepts borrowers with fair credit. The application process is quick and easy, funding is possible as soon as the same day and rates start at a very competitive 7.8%. It also offers term loans and SBA funding through its lending partners.
But rates can get high if your credit isn't the best, and you'll typically have to make weekly payments. Plus, there's a small fee for same-day funding if you don't have a Bluevine business checking account, and loan terms are shorter than some, with a maximum of 12 months.
Loan amount
Up to $250,000
APR
As low as 7.8%
Min. Credit Score
625
Bluevine has a business line of credit up to $250,000, and it accepts borrowers with fair credit. The application process is quick and easy, funding is possible as soon as the same day and rates start at a very competitive 7.8%. It also offers term loans and SBA funding through its lending partners.
But rates can get high if your credit isn't the best, and you'll typically have to make weekly payments. Plus, there's a small fee for same-day funding if you don't have a Bluevine business checking account, and loan terms are shorter than some, with a maximum of 12 months.
Pros
Starting rates are very competitive
Flexible credit and revenue requirements
Same-day funding available
Cons
Rates can be high for fair credit
Short terms of up to 12 months
Typically requires weekly repayments
Loan amount
Up to $250,000
APR
As low as 7.8%
Min. Credit Score
625
Loan term
Up to 12 months
Requirements
1 year in business, corporation or LLC, 625 FICO score, $120,000 in annual revenue, no bankruptcies
We currently don't have that product, but here are others to consider:
How we picked these
What is the Finder Score?
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Some rates can be comparable to those of traditional banks.
Usually have lower credit score requirements than banks.
More lenient approval criteria can make qualifying easier.
Easy to compare multiple lenders since everything happens online.
Banks
Some banks accept fair-credit borrowers — especially if you already have an established credit history.
Examples include Regions and PNC.
Tend to offer lower rates and more personalized guidance.
Often require a checking account or an in-person branch visit to apply.
Stricter eligibility rules compared to online lenders.
Application and approval process is usually slower.
Credit unions
Credit unions offer business loans with competitive rates and more flexible requirements than many banks.
Commonly offer term loans, with some offering additional products.
Still require you to meet a minimum credit score.
Some applications still require visiting a branch, though more are moving online.
Must become a member before you can access most financing options.
How do I get a business loan with fair credit?
You can improve your chances of approval by keeping these points in mind:
Develop a business plan. You should be able to demonstrate why you need funding through a strong business plan. It should show a lender how you will use the funds and the direction of your business.
Check your credit. If there are any mistakes on your credit report, you should have them fixed before applying for a business loan — especially if your payment history is incorrect.
Gather your paperwork. Lenders want to see tax returns and proof of revenue at a minimum. Each application process is different, but you can check with your lenders to ensure you have the documents you need before you apply.
Pick the right time. If you can, apply during your busy season when you have a few months of strong revenue, which will show the lender that your business is doing well.
Prequalify, if possible. Not all lenders offer a prequalification option. But if you can, check your rates with your top choices to avoid a hit to your credit.
Once you have a few prequalification offers, compare the APR, payment schedule and terms to choose the best choice for your business.
6 alternatives to fair credit business loans
These alternatives won’t fault you for having fair credit. But some choices can be expensive for businesses with low revenue.
Short-term business loans. Short-term business loans are an expensive alternative to term loans. However, borrowers with fair credit may qualify for lower rates. So, if you don’t qualify for a traditional term loan, a short-term business loan could be a good alternative.
Rollover for business startups (ROBS). You can invest your retirement funds into your business without penalty — provided you have at least $50,000 in savings. But they’re complicated, so you may want to enlist the help of an experienced professional.
Equity financing. Equity financing involves selling partial ownership of your company to an investor. This can take multiple forms, but if you sell at least 20%, your investor’s good credit could improve your chances of qualifying for a business loan later.
Grants. There are federal, state and private grants available to businesses that work in underserved communities. Your credit score won’t matter since you don’t have to repay your grant funds.
Business credit cards. These can be used to finance smaller purchases if your business can handle the high APR. There are even business credit cards for owners with fair credit that may be easier to qualify for.
Personal loans. As a last resort, personal loans for fair credit may be easier to qualify for than business loans. These won’t offer the best rates, but you can often use them to finance your business.
What should I do if I was denied a business loan?
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 the lender rejected you. 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, consider alternative sources of financing. Short-term business loans, personal loans or business credit cards may be easier to qualify for.
Bottom line
Fair credit won’t stop you from qualifying with a variety of business lenders. But you should still explore the full range of options to ensure you’re making the right financial move for your business.
Frequently asked questions
If your credit is very poor, options like invoice factoring and MCAs are typically easier to qualify for. Lenders that provide those are typically more concerned with your cash flow and other business financials than your credit score.
It depends. Getting a million-dollar business loan can be difficult if you don't have great credit, but it's not impossible. For example, if you have a well-established business with strong revenues, you might be able to qualify even with a lower credit score.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf.
See full bio
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Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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