Business loan

Bad Credit Small Business Loans

Funding for Borrowers with Bad Credit

Get a business loan even with ConsolidationNow terrible credit. It is less crucial than your company’s overall financial situation. Lenders demand a 500 credit score and a $40,000 annual salary.

These small company loans:

  • MCA (merchant cash advance)
  • Factoring
  • Credit line
  • Cash flow
  • Business growth
  • Equipment loans
  • SBA loans

Bad credit company owners might anticipate higher fees and interest rates. Some loans, such as invoice factoring or merchant cash advances, rely on future sales or unpaid invoices.

We compared 19 small business loan providers to find the best solutions for those with terrible credit. Our evaluations included appropriate loan conditions and rates. Review genuine customer feedback, credit score criteria, and loan amounts.

The Best Bad Credit Business Loans for 2022

1. OnDeck

OnDeck is the most acceptable poor credit small business loan lender since it offers same-day financing and accepts credit scores as low as 600. You may qualify for a loan if you’ve been in the company for a year, have a business bank account, and make at least $100,000 annually.


  • 600 credit score
  • Funding on the same day
  • Payback half of your previous debt and apply for additional.


  • Loan prepayment does not save money
  • Payable daily or weekly
  • Cannot lend to Nevada, North Dakota, and several industries

OnDeck, founded in 2006, is an online and phone-based small business loan. This is the most excellent overall small business lender for poor credit since you just need a 600 credit score to qualify for a loan. You may get your money the same day you were approved for a loan and get more after paying down half of it.

You may borrow from $5,000 to $250,000 and get a line of credit for $6,000 to $100,000. Your company’s income determines the loan amount.

3–36 month term loans, 12-month line of credit loans. If you have a term loan and have paid half of it back, you may apply for fresh money and not pay any interest on the old loan. Unlike most lenders, OnDeck makes daily or weekly payments based on your company statistics.

The APR for term loans is 11.89 percent, and lines of credit are 10.99 percent. Defaulting on debt may result in a waiver of the outstanding interest. A blanket lien on corporate assets and a personal guarantee are required.

2. PayPal

We picked PayPal LoanBuilder as the topOncerm loan since it provides loans on a term 13-52 week period. A loan with a credit of 550 or above may be funded the following business day.


  • APR 550
  • 13-52 week loan conditions
  • Get paid the following business day


  • Must have at least $42,000 in annual income
  • We paid early, with no financial gain since the entire fee was owed upon payback.
  • Not for startups

LoanBuilder is a new service from PayPal, an online payment system. It’s the same loan as a PayPal Business Loan. Swift Financial LLC handles lending. The maximum duration is 52 weeks, and you need a 550 credit score to qualify.

An online or phone loan application takes five to ten minutes, and approval is quick. They are receiving financing of $5,000 to $500,000 the following working day after approval.

A blanket lien and a personal guarantee are both needed for a loan. Weekly payments are deducted from your company bank account. You can’t change the payback frequency, but you may choose the day of the week. If a settlement fails, there is a $20 NSF charge.

If you pay on time, you won’t incur any costs, save a one-time borrowing charge of 2.9 percent to 18.72 percent of the entire loan amount. Paying off the debt early won’t save you any money.

3. Lendio

Consider a Lendio small company line of credit for flexible funding. This means you won’t be charged for any dollars you don’t utilize. Many individuals think of a line of credit as a safety net.


  • The credit score of 560
  • Pay interest only on cash used
  • Application time: 15 min.


  • Must earn $50,000 or more annually
  • Funding takes 1–2 weeks.
  • One-to-two-year loan terms

Lendio is a small company loan platform founded in 2011 that connects companies with over 75 lenders. We don’t originate loans, so you get multiple offers and may choose the best one. This is the most acceptable line of credit for small company owners with adverse credit since you don’t have to utilize all of your assets. Plus, excess money is tax-free.

Lines of credit applications take 15 minutes and are ideal for firms with a minimum yearly income of $50,000. Business owners must have a credit score of 560 and wait up to two weeks for finance. The loan period is one to two years.

To borrow against a line of credit, you must not exceed the credit limit. Borrow between $1,000 and $500,000 at 8% to 24% APR. Depending on the lender, a personal guarantee may be required.

The ultimate lender determines your payback amount and frequency. With experience and a good credit score, your payments are reduced.

4. Rapid Finance

Rapid Finance allows you to borrow up to $1 million with terms up to 60 months. When deciding whether or not to finance your company, this lender will consider more than just your personal or business credit score.


  • 60-month loans
  • Examines more than simply a company’s credit score
  • Approved funds available within hours


  • Paying back debts daily or weekly
  • Instead of an APR
  • Non-applicable to sole proprietorships in Pennsylvania or Oklahoma.

Rapid Finance, a Quicken Loans affiliate, provides small and medium-sized business loans. It boasts some of the most excellent ratings of all the lenders we looked at, a minimum credit score of 500, and a 60-month term (most lenders are two years or less). It is the ideal long-term poor credit small business loan alternative. Plus, most loans are approved and funded within hours after application.

Your company must be three to six months old for many of its small business loans. However, most of its short-term loans need two years of company experience. It’s a blanket lien.

Your company bank account is debited daily, weekly, or monthly. Instead of an APR, you pay a monthly charge of 9%-31% of the loan amount. Pay an origination charge ranging from 0% to 2.5%, depending on the loan product.

There is no minimum credit score. However, a better score means a reduced monthly price. After six months, you reapply for a loan if your credit score prevented it. Otherwise, you have 30 days to reapply.

5. Credibly

Credibly requires a monthly income of at least $15,000 to qualify for a small company loan. The minimal credit score is 500.


  • a credit score of 500
  • Businesses six months or older may apply.
  • Offers up to $400,000 with same money day


  • Minimum monthly income of $15,000
  • APR up to 45%

Credibly, founded in 2010, it has one of the lowest credit score requirements (500). This makes it ideal for small enterprises with substantial monthly revenue—at least $15,000 and six months. Fees will be greater than other lenders.

Choose from many small business loans:

  • A/C loan
  • a loan for growth
  • The business credit line
  • SBA loan
  • MCA (merchant cash
  • Equipment loans
  • Factoring
  • SBA PPPs

Depending on the Credibly loan program, you may borrow up to $400,000 over 24 months. Chiropractors may get up to $5 million in business development loans.

Credibly adds a 2.5% origination fee to your factor rate. This factor rate ranges from 1.15 to 1.45. For a $10,000 loan with a 1.15 factor, the cost is $1,500. On a $10,000 loan, a factor rate of 1.45 means a $4,500 price plus a 2.5 percent origination fee.

FAQs: Questions & Answers

What is a Personal Guarantee?

A personal guarantee implies the business owner takes the obligation if the company cannot pay it. This protects the lender in case of default and helps a firm qualify for a loan that they would not have otherwise.

What Is the Minimum SBA Credit Score?

The SBA does not define the minimum credit score necessary to get an SBA loan. Lenders of SBA loans may have minimal credit score requirements. This is usually 620-640. The higher your score, the more likely you will be approved.

Are Bad Credit Business Loans Possible?

Yes, a negative credit business loan is doable. In place of a minimal credit score, some lenders assess the company’s overall health. If you have terrible credit, you might anticipate higher costs and APR.