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Best bad credit business loans in June 2025

Updated: April 21, 2025

What to know first: It can be challenging for business owners to secure a business loan with bad credit, especially from traditional banks. But even though your options are limited, it’s possible to find a lender that will approve you with a little research.

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Backd: Bankrate 2025 Award Winner Best lender for short-term business loans
4.6
Loan amount
$5k-$750K
Term: 6 - 12 months
Interest rate
Starting at 30.00% APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Fundible: Bankrate 2025 Award Winner Best small business lender for bad credit
4.7
Loan amount
$5k-$5M
Term: 12 - 120 months
Interest rate
6.00- 19.99%
APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

OnDeck: Bankrate 2025 Award Winner Best lender for startups
4.5
Loan amount
$5k-$250K
Term: 3 - 24 months
Interest rate
Starting at 27.30% APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Triton Capital: Best for low payments

4.4
Loan amount
$10k-$500K
Term: 12 - 60 months
Interest rate
Starting at 5.99% APR
Fastest funding
1 business day
Read our reviewArrow Right

on Bankrate

Credibly: Best for fast prequalification

4.6
Loan amount
$5k-$600K
Term: 3 - 15 months
Interest rate
1.11 factor rate
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Fundbox: Best for line of credit

4.3
Loan amount
$1k-$150K
Term: 3 - 6 months
Interest rate
Starting at 4.66%
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Bank of America: Best for secured credit building

4.3
Loan amount
Starting at $1k
Interest rate
Varies
Fastest funding
1 business day

Kiva: Best for microloans

4.3
Loan amount
$1k–$15k
Term: 1 - 36 months
Interest rate
N/A
Fastest funding
5 business days

PayPal: Best for working capital

4.2
Loan amount
$1k-$300K
Interest rate
Not disclosed
Fastest funding
1 business day
Accion Opportunity Fund: Bankrate 2025 Award Winner Best CDFI for small business loans
4.1
Loan amount
$5k-$250K
Term: 12 - 60 months
Interest rate
8.49- 24.99%
Fastest funding
Not disclosed

Businessloans.com Best for flexible payments

4.2
Loan amount
$5k-$1M
Term: 6 - 36 months
Interest rate
1.03 - 1.52 Factor Rate
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

A closer look at our top bad credit business lenders

Before you sign on the dotted line of a new loan, compare options from multiple lenders. Some loans are better for startups with no or bad credit, while others are a better fit for companies with higher monthly revenue. Bankrate takes a deeper dive into the lenders from above to help you find the best bad credit business loan.

Badge Icon

Bankrate 2025 Award Winner Best lender for bad credit: Fundible

Fundible offers a wide variety of financial products, many of which cater to the needs of small businesses with bad credit. And they only require a minimum personal credit score of 580 to qualify. With reasonable interest rates and fast funding, it’s easy to see why Fundible is our 2025 award winner for best small business lenders for those with bad credit.

Fast funding
Low interest rates
Rating: 4.7 stars out of 5
4.7
Est. APR
6.00%–19.99%
Max loan amount
$5k–$500k
Min credit score
580
Time in business
6+ months

Pros and cons

Pros
  • No prepay penalties
  • Fast funding
  • Low personal credit score requirement
× Cons
  • May use a hard credit pull
  • May charge an origination fee of up to 3%
  • Loans secured by UCC-1 filing
Badge Icon

Best for flexible payments: Businessloans.com

With a personal credit score of just 550 or above, you can qualify for a loan through Businessloans.com with the potential to borrow up to $1 million in as little as one business day. And you can also compare loan offers and information from within the same window.

Fast funding
Low interest rates
Rating: 4.2 stars out of 5
4.2
Est. APR
Not disclosed
Max loan amount
$5k–$1000k
Min credit score
550
Time in business
6+ months

Pros and cons

Pros
  • Compare loans from multiple lenders
  • Relaxed eligibility requirements
  • Quick online application
× Cons
  • Limited information on its website
  • Potentially high fees
Badge Icon

Bankrate 2025 Award Winner Best lender for short-term business loans: Backd

Backd offers a streamlined application process and funding in as little as one business day. And if you have bad credit, the lender only requires a personal credit score of at least 600. If you qualify, you may be able to borrow as much as $750,000 with Backd.

Fast funding
Rating: 4.6 stars out of 5
4.6
Est. APR
Not disclosed
Max loan amount
$5k–$750k
Min credit score
600
Time in business
12+ months

Pros and cons

Pros
  • Fast funding
  • Flexible repayment terms
  • Soft credit check
× Cons
  • Potentially high fees
  • Relatively new lender
  • Requires a business bank account
Badge Icon

Best for fast prequalification: Credibly

Credibly offers quick prequalification for prospective borrowers. This, along with favorable terms and easier qualification terms, make Credibly a highly attractive option. 

Fast funding
Rating: 4.6 stars out of 5
4.6
Est. APR
Not disclosed
Max loan amount
$5k–$600k
Min credit score
500
Time in business
6+ months

Pros and cons

Pros
  • Potential early repayment discount
  • Prequalify in as little as 10 minutes
  • Funds in as little as one day
× Cons
  • Unavailable in 13 states
  • High minimum revenue requirement
  • High minimum borrowing amount
Badge Icon

Best for lines of credit: Fundbox

If you are seeking a line of credit and have poor credit, Fundbox could be a compelling choice for you. The company requires a personal minimum credit score of just 600. They also have a quick application process that can give you a credit decision in as little as three minutes.

Fast funding
Low interest rates
Rating: 4.3 stars out of 5
4.3
Est. APR
Not disclosed
Max loan amount
$1k–$150k
Min credit score
600
Time in business
6+ months

Pros and cons

Pros
  • Fast access to funds
  • Minimum credit score of 600
  • Only $100,000 in annual revenue required
× Cons
  • Short repayment periods
  • Can’t build business credit
  • May come with high rates
Badge Icon

Bankrate 2025 Award Winner Best lender for startups: Ondeck

OnDeck is our 2025 award winner for best lender for startups because of their fast funding, variety of repayment terms and relaxed eligibility requirements. In fact, applicants can get approved for a loan with OnDeck with a minimum credit score of just 625.

Fast funding
Rating: 4.5 stars out of 5
4.5
Est. APR
Not disclosed
Max loan amount
$5k–$250k
Min credit score
625
Time in business
12+ months

Pros and cons

Pros
  • Same-day funding
  • Early repayment incentives
  • Helps build business credit
× Cons
  • High APRs
  • Loan origination fees
  • Requires personal guarantees
Badge Icon

Best for low payments: Triton Capital

While its time-in-business and revenue requirements are higher than other lenders on our list, Triton Capital offers large loans to businesses with poor credit. In fact, the company only requires a minimum business credit score of 600. 

Fast funding
Low interest rates
Rating: 4.4 stars out of 5
4.4
Est. APR
Not disclosed
Max loan amount
$10k–$500k
Min credit score
600
Time in business
24+ months

Pros and cons

Pros
  • Fast access to funds
  • Low starting rates
  • Offers Lowest Payment Guarantee
× Cons
  • High maximum rates
  • High annual revenue requirement
  • Potentially high fees
Badge Icon

Best for microloans: Kiva

Kiva is a lender that specializes in microloans, offering loans as low as $1,000. As long as you operate in an approved industry, Kiva can approve a wide range of different companies and financial situations.

Rating: 4.3 stars out of 5
4.3
Est. APR
Not disclosed
Max loan amount
$1k–$15k
Min credit score
Not specified
Time in business
Not specified

Pros and cons

Pros
  • No interest charges in U.S.
  • No credit score requirements
  • No additional fees
× Cons
  • Loans only go up to $15,000
  • Must have community support
  • Slow funding process
Badge Icon

Best for working capital: PayPal

The popular consumer payment app also offers a wide range of products for small businesses, including loans. In fact, small businesses can borrow up to $300,000 in as quickly as one business day if they are approved. Best of all, they only require small businesses to have a minimum annual revenue of at least $15,000 to qualify.

Fast funding
Rating: 4.2 stars out of 5
4.2
Est. APR
Not disclosed
Max loan amount
$1k–$300k
Min credit score
Not specified
Time in business
3+ months

Pros and cons

Pros
  • Fast funding
  • No credit score requirement
  • Open to new business owners
× Cons
  • Short repayment terms
  • Only available to PayPal users
  • Not available in every state
Badge Icon

Bankrate 2025 Award Winner Best CDFI for small business loans: Accion Opportunity Fund

Accion Opportunity Fund specializes in serving companies based in underserved communities. In addition to fair lending terms, the company also offers business coaching and networking with other businesses in your community.

Low interest rates
Rating: 4.1 stars out of 5
4.1
Est. APR
8.49%–24.99%
Max loan amount
$5k–$250k
Min credit score
Not specified
Time in business
12+ months

Pros and cons

Pros
  • Low interest rates
  • Helps minority businesses
  • Mentoring and educational support
× Cons
  • Not available to new businesses
  • Only offers loan amounts up to $250,000
Badge Icon

Best for secured credit building: Bank of America

Bank of America requires a higher personal credit score than other lenders on our list. However, it also carries the benefit of being a large traditional bank with physical locations in most of the country. Therefore, you can get in-person help with your loan application that you can’t get with online-only options.

Fast funding
Rating: 4.3 stars out of 5
4.3
Est. APR
Not disclosed
Max loan amount
Starting at $1k
Min credit score
670
Time in business
6+ months

Pros and cons

Pros
  • Good variety of loan products
  • Low interest rates
  • Free business credit report
× Cons
  • Limited options if you have poor credit
  • Limited information on website
  • Slow application process

What is a bad credit business loan?

Bad credit business loans are designed for companies with bad or limited personal or business credit. Eligibility requirements are more relaxed: Some lenders offer loans to small businesses with personal credit scores as low as 500. Minimum time in business and required annual revenue may also be lower. Keep in mind that bad credit business loans tend to have higher interest rates and fees, since the lender is taking more risk. They may also come with personal guarantee requirements. Bankrate’s list of lenders can help you get a quick look at the requirements and get an idea of which lender is best for you.

What is a bad credit score? 

A bad credit score depends on the credit scoring model the lender uses. Most small business lenders look at your personal score rather than your business credit score, especially if you haven’t been in business for long. 

For personal credit, a FICO score of 300 to 579 is considered bad credit. However, even if you have fair credit (FICO score of 580 to 669), you may still have to rely on a bad credit business loan.

Having a bad credit score can be caused by multiple factors, such as previous bankruptcies, missed loan or bill payments and multiple hard credit checks in a short period of time. 

Lenders may also consider business credit scores, especially if you’re pursuing an SBA loan. Depending on the scoring model, business credit scores may range from 0 to 100, with scores of 0 to 49 indicating a high-risk borrower. 

How does a bad credit business loan work?

Business loans for bad credit borrowers work similarly to any other loan. You submit an application and any documentation requested by the lender. Once approved, you can use the loan funds for business purchases. You then repay the bad credit business loan over a set time period with interest rates and fees. 

Depending on the lender, underwriting for a bad credit business loan may take longer, and the lender is more likely to ask for supporting documentation that shows your ability to repay the loan. If you opt for a secured loan over an unsecured loan, you’ll need an asset of value as collateral, such as equipment or real estate. Unsecured loans don't need collateral but are aimed at companies with strong credit. 

Requirements for a bad credit business loan:

  • Revenue. The more your business makes, the easier it is to get a loan. Some lenders have minimum revenue requirements of $100,000, though you can find lower revenue requirements like $30,000 with specific lenders. 
  • Business plan. The business plan shows the lender how you expect to grow your business sustainably over time. It explains your expected revenue, your business model and how it stands out in the competition, your marketing strategy and key measurements you’ll use to gauge your success. Not all lenders require a business plan, but it can help you get approved by showing that you’ve done your homework on growing your business.
  • Credit history. Though these loans are aimed at companies with bad credit, the lender will still look at your credit report. Some especially negative factors, like a recent bankruptcy, could block you from getting a loan.
  • Time in business. New companies are risky propositions for lenders. Many lenders won’t offer loans until your company has been around for at least six to 24 months. 
  • Collateral: Business loans with bad credit often require collateral to be used as repayment because the collateral mitigates the lender's risk in the event of default.
  • Personal guarantee. Many business loans require you to sign a personal guarantee, which secures the loan with your personal assets. Most lenders require it in addition to collateral or a down payment. 
  • Existing business debt. The lender will consider your existing debts and whether you have enough financial strength to cover repayments on a new loan.

You’ll also need to provide documentation for the lender when you apply for a bad business loan. These documents include:

  • Profit and loss statements
  • Business formation documents
  • Recent bank statements
  • Business license and operating agreement
  • Employer identification number (EIN)
  • Recent personal and business tax returns
  • Balance sheets
  • Proof of business insurance
  • Payroll records
  • Expected revenue
  • Driver’s license
  • Lease agreement
  • List of accounts payable and accounts receivable
  • Business loan documents
Improving your business credit score requires considerable adherence to strict financial decisions. You need to take a close look at all the factors impacting your credit score and make a conscious effort to improve them. This includes your payment history, length of credit history, amount of debt, amount of new credit and more. In practice, pay your bills on time, keep your credit utilization low, ask vendors to report payments, and always monitor your credit score.
Bankrate logo Emmanuel Nyame, CEO of Twelvenets

How to get a small business loan with bad credit

Getting a small business loan with bad credit can take more time and effort than applying for one with good credit. Here’s what it involved. 
 
1. Figure out how much funding you need.

Calculate how large of a business loan you need to borrow with Bankrate’s loan calculator. Make sure to account for origination and other fees that the lender will add to that amount. Aim for an amount that will cover your needs without asking for more well above your needs. This way, the lender is more likely to approve you for the full amount.

2. Check your credit score.

Look at your personal and business credit reports to identify anything you can improve in the short term. For example, you might ask for a correction on your credit report if you spot an error. You will also use your credit score to determine if you meet a lender’s eligibility criteria. You can  request one free credit report a week from all three credit bureaus through AnnualCreditReport.com

3. Find lenders.

Look for bad credit business lenders that are willing to work with business owners who have poor credit and narrow down your options based on eligibility requirements, interest rates and fees. Many online lenders will post their minimum requirements on their websites. If you have questions about a lender’s requirements or other loan features, you can contact the lender for more information. Bankrate lists lenders and loans for small businesses that can help you determine which one is right for you. 

4. Apply for the loan.

Now that you’ve narrowed down your options, you can apply for the loan or multiple loans. Many online lenders let you prequalify, which helps you see what you’re eligible for without a hard pull on your credit. Make sure you have any necessary business loan documents ready to help speed up the process.

5. Compare loan options.

Once you receive the loan offers from lenders, look at the rates, fees and loan terms to find the best deal. Bankrate’s expert ratings can help you select the best lender for you based on your criteria. Choose a loan offer based on the best bad credit business loan that fits your needs.

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Bankrate Insight

Many business loans for bad credit borrowers charge factor rates like 1.10 or 1.40 instead of interest rates. These factor rates get applied to the entire loan upfront and often convert into high interest rates

For example, a factor rate of 1.30 converts to a 20 percent annual percentage interest rate (APR) for an 18-month loan. For a $50,000 loan repaid over 18 months with a factor rate of 1.30, you’d end up paying $15,000 in interest versus about $8,287 for the same loan with interest charged as an APR.

Types of bad credit business loans

There are many types of business loans for borrowers with bad credit. Some of these loans are secured or have automated repayment plans, which may make them easier to qualify for than unsecured loans.

Pros and cons of bad credit business loans

As with any type of financing, business loans with bad credit have benefits and drawbacks to consider.

 

Pros:

  • Flexible eligibility criteria. Lenders offering business loans to credit-challenged borrowers typically have more leniency than you’ll find with traditional banks. 
  • Access to fast cash. You can get the money your company needs quickly as some lenders offer rapid funding — sometimes the same day or in just a few business days.
  • Helps build credit. If account activity is reported to the credit bureaus, your payment history could improve, and your score will likely increase as you repay the loan. The improved score will help you get more favorable terms if you apply for more financing in the future.

Cons:

  • Loan limits. The amount you qualify for could be far less than what you need since the cap on business loans for bad credit borrowers may be lower. 
  • Borrowing costs. Expect higher interest rates and fees, as bad credit business loans are riskier for lenders due to the elevated chance of default.
  • Collateral requirements. Borrowers may have to put up collateral. If you take out a secured loan, you could lose the collateral you put up if you fall behind on the loan payments.

Can you get a business loan with no credit check?

While most lenders won’t offer you a traditional business loan with no credit check, some lenders offer loans with no credit check in the form of a merchant cash advance, invoice factoring or buy-now-pay-later (BNPL) financing. 

These financing options allow you to get funding without a credit check by relying on future revenue streams, or by offering fairly small loans. With a merchant cash advance or invoice financing, you promise to pay back a certain portion of the future sales and invoices you make, along with fees and interest. 

While this allows you to access funding without a credit check, lenders typically charge a much higher interest rate than traditional loans, and often have higher revenue requirements. It will also limit your revenue for the immediate future. 

BNPL financing can also offer funding with no credit check. Some lenders and merchants allow you to take out a small loan for a short term, with weekly or monthly interest-free payments. These loans tend to be fairly limited in availability, and generally offer under $50,000 in funds. As well, missing payments can incur high fees and interest rates. However, if you pay back the loan on time, you can avoid a credit check and paying interest. 

If you’re looking to avoid getting a hard credit check when applying for a business loan, some lenders offer pre-approval using a soft credit check, which doesn’t impact your credit score. However, the lender will eventually run a hard credit check when you officially apply, which means you can’t avoid a credit check if you decide to go through with the loan. 

 
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Bankrate Insight

When you’re getting any type of loan, especially one for businesses with poor credit, you should be on the lookout for scams, malicious actors and bad deals.
 
Some red flags to keep an eye out for are:
 
  • Time pressure. Be wary of any lender advertising time-limited deals that encourage you to get a loan before you have time to think about it.
  • Guaranteed approval. No good lender will approve every application it sees, so if you see this promise, be wary.
  • Upfront fees. Be careful of online lenders that ask for upfront fees, such as application fees. If the lender is a scammer, you might pay the fee and never hear back.

Where to get a bad credit business loan

Many lenders offer business loans for bad credit. The right one for you will depend on the type of loan you need and who offers the best rates, terms and features. Make sure to shop around before accepting any offer. 

  • Online lenders. Online lenders often specialize in fast approval and funding. Many also work with bad credit borrowers, but their interest rates and fees can be quite high.
  • SBA lenders. These lenders are approved by the Small Business Administration to fund SBA loans. Each lender sets its own requirements, usually wanting a solid credit history. But business owners with bad credit may qualify through community-based lenders or for specialized loans like SBA microloans.  
  • Community Development Financial Institution (CDFI). A CDFI is a lender that specifically aims to serve low-income and other underserved communities. There are nearly 1,500 CDFIs in the US, according to the New York Federal Reserve Bank. They can be a good source of low-cost funds if you plan to start a company in an underserved area.
  • Minority Depository Institutions (MDI). An MDI is an institution that is either mostly owned by minority individuals, or its board members are mostly minority individuals. They typically specialize in lending to minorities more than traditional banks, especially offering SBA loans.
  • Invoice factoring companies. These companies buy unpaid invoices from businesses, advancing cash the business can use for expenses. Some factoring companies also lend other business loans, while others specialize in invoice factoring.
  • Microlenders. You can often find microlenders online, through nonprofits or through business groups in your area. They might take longer to fund your loan but can be a good way to get small amounts of cash at reasonable rates.
  • Banks. Many traditional banks offer better rates and fees but may have strict requirements. If you have bad credit, your best chance of qualifying with a traditional bank is likely with the one you use for your business checking account.

Alternatives to bad credit business loans

If you aren't sure that a bad credit business loan is right for you, consider these alternatives:

Frequently asked questions about bad credit business loans

How Bankrate chooses our best bad credit business loan lenders

Bankrate's trusted small business loan industry expertise

57

years in business

30

lenders reviewed

22

loan features weighed

770

data points collected

To choose the best business loans for bad credit, we ensured all loans featured offered eligibility with a credit score below 630 and are broadly available across the United States. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, required time in business, minimum annual revenue and fees.
 
When evaluating lenders, we use a 22-point scale to measure quality in five key areas: