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Bad Credit Business Loans for 2025

A low credit score doesn't lock you out of financing — it just changes where you look. We've identified the lenders most likely to approve business owners with credit scores from 580 and up.

Best Options for Bad Credit — 2025

Reviewed and updated March 2025 by the Cheddar Capital editorial team

⭐ Editor's Pick — Bad Credit

StartupBoost

✓ Best for Low Credit Scores (580+)
24–79%APR range
$2K–$250KLoan amount
24 hoursFunding time
580+Min. credit score
580+ credit accepted 3 months in business OK Fast decisions Revenue-based approval
⭐⭐⭐⭐
4.0 / 5
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QuickFund

✓ Best for Speed (600+ credit)
29–99%APR range
$5K–$500KLoan amount
Same dayFunding time
600+Min. credit score
Same-day funding Soft pull to apply 5-minute application
⭐⭐⭐⭐⭐
4.8 / 5
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GrowthLine

✓ Best Revolving Credit (625+)
15–45%APR range
$6K–$200KCredit limit
Instant drawsFunding time
625+Min. credit score
Revolving credit Fair credit OK Pay only what you use
⭐⭐⭐⭐½
4.4 / 5
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CapitalBridge

✓ Best for Rebuilding Credit History
18–65%APR range
$25K–$500KLoan amount
1–2 daysFunding time
640+Min. credit score
Reports to business bureaus Dedicated advisor Path to better rates
⭐⭐⭐⭐½
4.5 / 5
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FederalPath

✓ Best Rates if Score is 650+
9–12%APR range
Up to $5MLoan amount
2–10 daysFunding time
650+Min. credit score
Lowest rates available Great once credit improves Long repayment terms
⭐⭐⭐⭐
4.2 / 5
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Getting a Business Loan with Bad Credit

A credit score below 620 doesn't disqualify you from business financing — but it does change your options and your costs. Here's an honest look at what's available, what it will cost you, and how to make the most of a difficult situation.

What "Bad Credit" Actually Means to Lenders

Most online business lenders use a tiered system. A score of 720+ unlocks the best rates with the most options. A score of 650–719 is solid for most mainstream online lenders. Below 620 is where options narrow and rates climb — but they don't disappear.

Critically, many alternative lenders weight your business revenue more heavily than your personal credit score. If your business brings in $20,000+ per month consistently and you've been operating for at least 6 months, a 590 credit score may not be the deal-breaker it would be at a traditional bank.

Your Realistic Options with Bad Credit

Revenue-Based Financing

Funding tied to your monthly revenue — no fixed payment, just a percentage of sales. Revenue matters more than credit score. Higher cost but accessible.

Short-Term Online Loans

Lenders like StartupBoost and QuickFund approve applicants at 580–600 scores. Terms are typically 3–18 months and APRs are high (24–99%), but funding is fast.

Secured Business Loans

Pledge assets (equipment, real estate, receivables) to offset your credit risk. A strong asset position can unlock better rates than your score alone would suggest.

Microloans

Nonprofit CDFIs and SBA microloan programs are designed for underserved borrowers. Typically under $50,000, flexible underwriting, lower rates. Slower process.

Invoice Financing

If you have outstanding invoices, use them as collateral regardless of your credit score. The lender cares more about your customers' creditworthiness than yours.

Equipment Loans

The equipment itself is collateral, which lowers lender risk. Some equipment lenders approve credit scores in the 580–600 range if the asset has solid resale value.

What You'll Pay for Bad-Credit Financing

Honesty matters here: financing with a poor credit score is significantly more expensive than financing with a good score. A business owner with a 720 score might pay 18–25% APR for a term loan. The same loan with a 580 score might carry 60–79% APR — or come with daily repayments that effectively cost even more.

Before accepting any offer, calculate the total cost of the loan, not just the payment. If you're borrowing $20,000 and repaying $28,000 over 12 months, that's $8,000 in interest and fees. Ask yourself: does the use of this capital generate more than $8,000 in additional profit? If yes, it may be worth it. If the answer is uncertain, wait until you can qualify for a better rate.

Building Credit While You Borrow

The smartest move for a business owner with bad credit isn't just "get whatever loan you can" — it's to use this period strategically to build both personal and business credit profiles. Here's how:

  • Take on a small loan you can definitely repay, and repay it on time every time
  • Open a business credit card and use it for routine expenses — pay it off monthly
  • Ask lenders (like CapitalBridge) whether they report to business credit bureaus
  • Check your personal credit report for errors — disputing inaccuracies is free and can yield quick score gains
  • Lower your credit utilization on existing cards to under 30%

Many business owners with 580–600 scores find that 12–18 months of responsible borrowing pushes them into the 640–680 range — at which point their cost of capital drops dramatically.

Check Options for Your Score

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By Credit Score

  • 🔴 Below 580: Very limited — try microloans or CDFIs
  • 🟠 580–619: StartupBoost, revenue-based options
  • 🟡 620–649: QuickFund, GrowthLine
  • 🟢 650–679: Most lenders, decent rates
  • ✅ 680+: Full access, best rates

Related Pages

Bad Credit Business Loan FAQs

What is the minimum credit score to get a business loan?
The lowest minimum we've found among reputable lenders is 580, which is StartupBoost's threshold. Most mainstream online lenders start at 600. Traditional banks and SBA programs typically want 650 or higher. Below 580, your best options are nonprofit microloans, CDFIs, or revenue-based financing that doesn't rely heavily on credit scores.
Will applying for a bad credit business loan hurt my credit score further?
Checking your options through a comparison platform like Cheddar Capital uses a soft inquiry and has no impact. If you formally apply with a lender, they'll typically do a hard pull, which can lower your score by 2–5 points temporarily. Multiple hard pulls within a 14–45 day window (depending on the scoring model) are usually treated as a single inquiry, so it's better to compare and apply within a concentrated timeframe.
My business revenue is strong but my personal credit is poor — can I still qualify?
Absolutely. Revenue-focused lenders put significant weight on cash flow, not just credit scores. If your business consistently brings in $15,000–$20,000 per month, many lenders will approve you even with a personal score in the 580–600 range. Be prepared to provide several months of bank statements to demonstrate the strength of your revenue.
Are there guaranteed approval business loans?
No legitimate lender offers guaranteed approval — any lender claiming this should be treated as a red flag. All reputable lenders perform some form of underwriting. That said, some lenders have very high approval rates for businesses that meet their minimum criteria. Focus on matching your profile to the right lender rather than seeking a "guaranteed" product.
How can I improve my chances of approval with bad credit?
Several things help: showing strong, consistent revenue in your bank statements; providing collateral (equipment, receivables); having a co-signer with stronger credit; presenting a clear plan for how the funds will be used; and applying to lenders whose minimum credit requirements match your score. Avoid applying to lenders where you clearly don't meet the minimum — rejections on record don't help.
How long does it take to rebuild business credit?
With consistent effort — on-time payments, low credit utilization, opening trade lines — most business owners see meaningful improvement within 6–18 months. Personal credit recovery works similarly. The key is consistency: even one missed payment can undo months of progress, so only take on loans you're confident you can repay on schedule.