Guide · Bad credit
Business Loans for Bad Credit
Bad credit doesn't close the door to business funding — it changes which doors are open. Here's an honest look at what you can actually qualify for, what it'll cost, and how to build a path to better terms.
Options that work with lower credit
Revenue-based financing
Repayment scales with monthly revenue. Lenders weight bank deposits over FICO.
Merchant cash advance (MCA)
Fast cash repaid from a slice of daily card sales. Expensive but accessible.
Equipment financing
The equipment serves as collateral, which softens credit requirements.
Invoice factoring
Your customers' creditworthiness matters more than yours.
Secured term loans
Pledging collateral (equipment, real estate, receivables) can unlock better pricing.
Build the path to cheaper capital
Many owners start with revenue-based financing, build a payment history, and refinance into a cheaper term loan or line of credit 6–12 months later. Treat the first deal as the bridge, not the destination.
Check what you qualify for
Pre-qualifying with BizKred is a soft pull — it won't impact your credit score.
Frequently asked questions
Can I get a business loan with a 500 credit score?
Yes — revenue-based products and merchant cash advances often fund FICOs in the 500s if monthly revenue is consistent.
Will I pay more with bad credit?
Yes. Expect higher factor rates or APRs to offset lender risk. The trade-off is access and speed.
Can I get an SBA loan with bad credit?
Generally no — SBA programs want 680+ FICO. Focus on revenue-based or secured options first, then refinance to cheaper capital later.
Does the business have its own credit score?
Yes. Lenders also check business credit (Paydex, Intelliscore), but personal credit usually carries more weight for small businesses.
How can I improve my odds?
Stack 3+ months of clean bank statements, avoid NSFs and negative days, and apply for an amount in line with your monthly revenue (typically 80–125%).