Bad Credit Business Loans: 6 Best Options

Bad credit, defined by FICO as a score of 300 to 629, is a common reason that banks use to reject small-business loan applications. Alternative lenders provide options for borrowers with a spotty credit history. These companies typically focus more on the strength of your business than on your personal credit score.

Consider these factors before choosing a financing option:

• The lower your credit score, the more likely you’ll have a higher annual percentage rate, which includes your interest rate and all fees, on your loan
• If you have unpaid customer invoices, you can get immediate cash through invoice factoring or financing
• If you could wait and improve your personal credit, you may qualify for more options

HERE ARE OUR RECOMMENDATIONS:

• If you have less than a year in business
• If your personal credit score is 500 or higher
• If your personal credit score is 600 or higher
• If you have unpaid customer invoices

Bad credit business loans: Compare options

Scroll right to see all the lenders.

Funding options for  bad credit	Kabbage	Fundbox line of credit	BlueVine line of credit	StreetShares	Fundbox invoice financing	BlueVine invoice financing

Best for	Short-term working capital	Short-term working capital	Businesses with strong revenue	Working capital loans under $100,000	Businesses with unpaid customer invoices	Businesses with unpaid customers invoices
Loan details
Loan amount	$2,000 to $150,000	$1,000 to $100,000	$6,000 to $150,000	$2,000 to $100,000	$1,000 to $100,000	$20,000 to $2.5 million
APR	24% to 99%	15% to 59%	16% to 62%	9% to 40%	16.4% to 76.5%	17% to 60%
Minimum qualifications
Personal credit score	None	None	600	600	None	530
Annual revenue	$50,000	$25,000	$120,000	$25,000	None	$100,000
Time in business	1 year	6 months	6 or 12 months	1 year	6 months	3 months
	Apply nowat Kabbage	Apply nowat Fundbox	Apply nowat BlueVine	Apply nowat StreetShares	Apply nowat Fundbox	Apply nowat BlueVine

Funding options for  bad credit

Best for
Loan details
Loan amount
APR
Minimum qualifications
Personal credit score
Annual revenue
Time in business

If you have less than a year in business

If your enterprise is less than a year old with little revenue, it’ll be tough to find a loan, no matter your credit.

Here are startup financing options to help you grow your company.

If your personal credit score is 500 or higher

Kabbage and Fundbox both provide fast working capital for business owners who don’t have perfect credit.

Kabbage is a good fit for businesses that need working capital of up to $150,000. It doesn’t require a minimum credit score, but most of its borrowers have a score of at least 500, according to the company. You’ll also need a minimum of $50,000 annual revenue and have to use a business checking or online payment platform.

Fundbox’s line of credit is an option if your business needs working capital of up to $100,000. Qualifying requires a minimum of $25,000 annual revenue, with no personal credit score requirements. (Note: Fundbox’s line of credit is unavailable to borrowers in New York, Connecticut or Georgia.)

Pros:
• Looser qualification requirements than other options
• Fast funding

Cons:
• Costly financing with APRs between 24% and 99%
• Little benefit to early repayment

Read our Kabbage review

Apply nowat Kabbage

Do I qualify?

LINE OF CREDIT

Pros:
• Easier to qualify
• Early repayment flexibility

Cons:
• Costly financing with APRs between 15% and 59%

Read our Fundbox review

Apply nowat Fundbox

Do I qualify?

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If your personal credit score is 600 or higher

StreetShares and BlueVine offer financing of up to $100,000.

Besides offering invoice factoring, BlueVine also has a line of credit for those with just six months of business history and $120,000 in annual revenue. The lender is a good fit for short-term working capital.

StreetShares offers a term loan and line of credit at lower APRs than BlueVine. It also has a longer repayment term of up to three years compared with BlueVine’s six or 12 months.

LINE OF CREDIT

Pros:
• You need just six months of operating history to qualify for a line of credit
• Funding as fast as 24 hours

Cons:
• Costly financing with APRs ranging from 16% to 62%
• Shorter repayment term than StreetShares, at six or 12 months

Read our BlueVine review

Apply nowat BlueVine

Do I qualify?

Pros:
• Low annual revenue requirement at $25,000
• No prepayment penalty

Cons:
• Weekly repayments
• Maximum financing amount is limited to 20% of your annual revenue

Read our StreetShares review

Apply nowat StreetShares

Do I qualify?

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If you have unpaid customer invoices

Fundbox and BlueVine let you turn your unpaid customer invoices into immediate cash. They typically evaluate the strength of your customers, such as whether they pay on time, more than your personal credit.

Consider Fundbox’s invoice financing if you need less than $100,000 in financing. Borrowers pay a median fee of 7% on each invoice advance on a 12-week repayment option and 15.7% on a 24-week option.

BlueVine is a good option for businesses with larger invoices of up to $2 million. BlueVine charges a weekly fee of 0.5% to 1% of the invoice amount. The fee drops by 0.1 to 0.2 percentage point for borrowers whose clients pay their invoices on time.

Pros:
• Fast funding
• No minimum revenue or credit score required
• Fees waived if you repay before 12 or 24 weeks

Cons:
• Costly with APRs ranging from 16.4% to 76.5%
• Maximum funding is $100,000

Read our Fundbox review

Apply nowat Fundbox

Do I qualify?

Pros:
• High borrowing maximum of $2.5 million
• Fast funding

Cons:
• Costly with APRs between 17% to 60%
• Harder to qualify than Fundbox

Read our BlueVine review

Apply nowat BlueVine

Do I qualify