Business Loans for Bad Credit
Get funded even with a low credit score — options starting at 500 FICO
- Lenders who evaluate revenue, not just credit score
- Options available from 500+ FICO — apply free
- Funding as fast as same business day
At a Glance
Business Loans for Bad Credit
A low personal credit score doesn't have to be the end of the road for your business financing. Many lenders in Approvd's network evaluate your business's revenue, cash flow, and growth potential — not just your credit score. If your business generates consistent revenue, you may qualify for significant financing even with bad credit.
Best Loan Options for Bad Credit
We match you to the right product based on your specific situation — not just credit score.
Revenue-Based Financing
Lenders focus on your monthly revenue, not credit score. Approvals available from 500+ FICO with strong revenue.
Business Term Loan
Some term loan lenders work with credit scores as low as 530 — especially for businesses with 1+ years of revenue history.
Business Line of Credit
Secured lines of credit or revenue-based revolving credit can be accessible with scores under 600.
Debt Consolidation
If high debt is affecting your credit, consolidation may improve your score and reduce monthly payments simultaneously.
Tips to Improve Your Approval Odds
Focus on Revenue, Not Score
Lenders offering bad-credit loans care most about consistent monthly bank deposits. 12+ months of stable revenue goes a long way.
Reduce Existing Debt First
If possible, pay down revolving credit balances before applying. Even getting utilization from 80% to 50% can meaningfully boost your score.
Clean Up Your Bank Statements
Avoid NSF fees and maintain a positive average daily balance for 3 months before applying — lenders review these closely.
Consider a Secured Option
Offering collateral (equipment, inventory, or a personal asset) can help you qualify for better terms despite a lower credit score.
Minimum Requirements
General requirements across our lender network. Actual requirements vary by product and lender.
See Your Options — Free
Our free 5-minute application matches you with lenders who specialize in your situation.
- No hard credit pull to check options
- Specialized lenders for your situation
- 75+ lenders reviewed at once
- Free, no-obligation process
Frequently Asked Questions
What credit score do I need for a business loan?
Through Approvd's network, some lenders work with personal credit scores as low as 500. The minimum score depends on the loan type: revenue-based financing often accepts 500+, term loans typically require 530+, and SBA loans generally require 650+.
Can I get a business loan with a 500 credit score?
Yes. Revenue-based financing and certain merchant cash advance products are available to business owners with 500+ credit scores, provided your business generates consistent monthly revenue of $10,000 or more.
Does applying affect my credit score?
No. Approvd uses a soft credit pull to match you with lenders — this does not affect your credit score. Only accepting a final offer from a lender may result in a hard inquiry.
How can I get a business loan with bad credit and no collateral?
Revenue-based financing is your best option — it requires no collateral and focuses on your business's cash flow. Approval is based primarily on consistent monthly revenue of $10,000+ and at least 6 months in business.
Will a bad credit business loan hurt my score further?
Responsible use of a business loan — making on-time payments — can actually improve your credit score over time. Missing payments will harm it. Be sure to choose a loan with payments your business can comfortably handle.
Rate Disclosure: APR and total cost of capital vary by lender, loan type, credit profile, and other factors. Rates shown are representative examples only and do not constitute an offer. Actual rates are determined by lenders at the time of application. Applying does not guarantee approval or any specific rate or term.
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