Business loans with bad credit

Can you get a business loan with bad credit?

Yes, if the business deposits at least $10,000 to $15,000 a month and has been open six months or more. Lenders that focus on revenue care about your bank statements more than your score, and several accept scores down to about 500. If the business has no revenue yet and your credit is poor, the honest answer is no: there is nothing for a lender to underwrite, and you should read startup loans with no revenue instead.

Your odds are good for small amounts, typically up to one month of revenue, and poor for large ones. A score under 600 with recent late payments or a collection is harder than an old bankruptcy with two clean years since. Lenders read the story, not just the number.

Which products will consider you, ranked by fit

Ranked from best fit to worst for a business with revenue and weak credit:

1. Invoice factoring, if you invoice other businesses. The factor underwrites your customers' credit, not yours, so it is the cheapest option on this list.
2. Equipment financing with 10% to 25% down. The equipment is the collateral, so scores in the high 500s are workable.
3. Revenue based financing for businesses with consistent monthly sales, repaid as a share of revenue.
4. Merchant cash advances, the most available and the most expensive, accepted down to about 500 with strong card sales.
5. Secured short term loans from online lenders, usually with a lien on all business assets.

Apply once and let the matching show which of these are open at your score and revenue.

Which products will decline you, so you stop wasting applications

Banks and credit unions will decline most applications under about 680 and nearly all under 650. SBA lenders have no official minimum, but the small loan scoring model they use makes approval under about 640 rare. Unsecured term loans and lines from online lenders usually stop at 600 to 620. Business credit cards are underwritten on your personal score and decline under about 640.

Each declined application can mean another hard inquiry, which lowers the score further. Skip the lenders above until your score crosses their line. Why loans get denied lists the other reasons that stack on top of credit.

How to improve your odds in 30, 90 and 180 days

In 30 days: pull all three personal credit reports and dispute errors, pay every card below 30% of its limit if you can, set up automatic payments so nothing new goes late, and open a separate business bank account if you still mix funds. Stop any new NSF or overdraft days starting today, because lenders read the next three statements.

In 90 days: you now have three clean bank statements, which is the minimum most revenue lenders want. Pay down or pay off any existing advance so your daily remittances drop.

In 180 days: six clean statements and a score that has usually climbed 30 to 60 points open online lines and unsecured term loans at far better pricing. Refinance the expensive debt you took in month one. See refinancing business debt.

What will it cost compared with a standard borrower?

A standard borrower pays roughly 8% to 15% APR on a bank term loan or line. With bad credit you are looking at factor rates of 1.25 to 1.5 on an advance, which works out to 50% to 150% APR or more depending on how fast you repay, and 25% to 60% APR on a secured short term loan. Factoring costs 1% to 4% per 30 days on each invoice, roughly 15% to 40% annualized, which is why it ranks first. Equipment financing with a down payment runs 12% to 25% APR.

Use the MCA true cost calculator before you sign anything, and read APR versus factor rate so you compare offers on the same basis. Borrow the smallest amount that solves the problem.

How to apply

Apply once here with three to six months of bank statements and your basic details, and your application reaches factoring, equipment, revenue based and advance lenders that accept your score. Or connect your AI assistant to our MCP server through the agents hub and let it read your statements, fill the application and submit it. It is free to the business, and offers come back to the same place so you can compare total cost.