Having a bad credit score doesn’t mean your business dreams have to be put on hold. In 2025, several lenders specialize in offering business loans to entrepreneurs with poor or limited credit histories. While interest rates may be higher, many of these lenders provide fast funding, flexible requirements, and even the opportunity to rebuild your credit over time.
This guide will walk you through the best business loan options for bad credit, what to expect, how to qualify, and how to increase your approval odds.
💡 Can You Get a Business Loan with Bad Credit?
Yes. Many alternative lenders and fintech platforms offer business financing even with FICO scores below 600. They typically look at other factors such as:
- Business revenue
- Time in business
- Cash flow
- Collateral
Some loan types are more accessible than others for bad credit borrowers.
🏆 Top Business Loans for Bad Credit in 2025
1. Fundbox – Best for Short-Term Working Capital
- Minimum Credit Score: 600
- Loan Type: Line of credit
- Loan Amount: Up to $150,000
- Repayment Term: 12–24 weeks
- Speed: Funding in as little as 1 day
Pros:
- Fast, automated application
- No prepayment penalty
- Great for recurring cash flow gaps
Cons:
- Higher APR (up to 36%+)
- Not ideal for long-term investments
2. Bluevine – Best for Lines of Credit with Flexible Use
- Minimum Credit Score: 625
- Loan Type: Revolving line of credit
- Loan Amount: Up to $250,000
- Term: 6 or 12 months
- Speed: Same-day approval possible
Pros:
- Only pay interest on what you use
- Quick approval
- Transparent pricing
Cons:
- Not available in all states
- Short repayment terms
3. Credibly – Best for Low Credit Scores (500+)
- Minimum Credit Score: 500
- Loan Type: Working capital, merchant cash advance
- Loan Amount: $5,000 to $400,000
- Time in Business: 6+ months
- Revenue Required: $15,000/month
Pros:
- Very lenient credit requirements
- Multiple loan types available
- Daily/weekly repayments
Cons:
- Expensive fees
- Requires frequent repayment schedules
4. Lendio – Best Loan Marketplace for Bad Credit
- Minimum Credit Score: 500
- Loan Type: Multiple (SBA, short-term, equipment, etc.)
- Loan Amount: $1,000 to $2 million
- Speed: Matches within 24–72 hours
Pros:
- One application = many loan offers
- Works with bad credit lenders
- Dedicated funding advisor
Cons:
- Not a direct lender (broker model)
- Offers vary widely
5. National Funding – Best for Equipment Financing with Bad Credit
- Minimum Credit Score: 600
- Loan Type: Equipment financing & working capital
- Loan Amount: $5,000–$500,000
- Time in Business: 6+ months
Pros:
- Easy to qualify
- Loans based on equipment value
- Early payoff discounts
Cons:
- High factor rates (not traditional APR)
- Requires consistent revenue
📊 Business Loan Comparison Table
| Lender | Min. Credit Score | Loan Type | Max Amount | Funding Time | Best For |
|---|---|---|---|---|---|
| Fundbox | 600 | Line of Credit | $150,000 | 1 business day | Short-term capital |
| Bluevine | 625 | Line of Credit | $250,000 | 24–48 hrs | Revolving credit access |
| Credibly | 500 | Working Capital/MCA | $400,000 | < 24 hrs | Very poor credit |
| Lendio | 500 | Loan Marketplace | $2 million | 1–3 days | Multiple loan offers |
| National Funding | 600 | Equipment/Capital | $500,000 | 24 hrs | Equipment financing |
🤔 What Types of Business Loans Can You Get with Bad Credit?
Here are the most accessible loan types for business owners with poor credit:
✅ Short-Term Loans
- Fixed repayment over 3–18 months
- Higher APR but fast approval
- Good for urgent needs
✅ Merchant Cash Advances (MCA)
- Based on future credit/debit card sales
- Paid back daily from revenue
- Very expensive, but fast
✅ Business Lines of Credit
- Revolving funds
- Interest only on what you draw
- Great for managing cash flow
✅ Equipment Financing
- Loan secured by equipment
- Easier approval, even with bad credit
📉 What’s Considered “Bad” Credit?
| Credit Score Range | Category |
|---|---|
| 300–579 | Very Poor |
| 580–669 | Fair |
| 670–739 | Good |
| 740–799 | Very Good |
| 800–850 | Excellent |
Most lenders consider below 600 as bad credit. Some lenders work with scores as low as 500.
🧠 How to Increase Your Chances of Getting Approved
Even with bad credit, here are tips to improve your odds:
- Show strong cash flow (3+ months of bank statements)
- Offer collateral, such as equipment or invoices
- Apply with a co-signer or guarantor (if possible)
- Improve credit before applying (even 20–30 points helps)
- Limit existing debt and avoid bounced checks
✅ Pros & Cons of Bad Credit Business Loans
| Pros | Cons |
|---|---|
| Accessible to low credit borrowers | High interest rates and fees |
| Fast funding (often within 24–48 hours) | Short repayment terms |
| Alternative qualification criteria | May require daily/weekly payments |
| Can improve business credit when repaid | Personal guarantee often required |
🏁 Final Thoughts: Are Bad Credit Business Loans Worth It?
Yes — when used strategically. If you have strong business revenue but a low credit score, bad credit loans can help you:
- Keep operations running
- Invest in growth
- Cover short-term cash crunches
Just be mindful of costs, terms, and repayment ability. Avoid stacking multiple loans and choose reputable lenders that offer transparency.