Bad Credit Business Loans
Short answer: It depends on the product. SBA and bank loans typically want 680+. Revenue-based and working-capital funding can approve scores as low as 500 when your business revenue is strong and consistent.
Bad credit doesn’t disqualify your business — it just changes which products say yes. Fundmerica matches owners with FICO scores as low as 500 to revenue-based funding, where your monthly deposits carry more weight than your credit history. Checking your options uses a soft credit pull only, so it never lowers your score.
See what you qualify for — it takes about 2 minutes
No obligations and no hard credit pull. Decisions in as little as 24 hours.
Apply Online → or call (888) 490-3126
What Counts as “Bad Credit” for a Business Loan
| Personal FICO | What banks say | What’s still available |
|---|---|---|
| 720+ | Most products, best rates | Everything |
| 650–719 | Most alternative products | Lines of credit, working capital, SBA (case-by-case) |
| 580–649 | Banks usually decline | Working capital, revenue-based, equipment |
| 500–579 | Banks decline | Revenue-based funding, merchant cash advance |
Below ~650, traditional banks decline most applications — but that’s exactly the gap a funding marketplace fills by matching you to non-bank funders who underwrite on revenue. The gap is real across the board: in the Federal Reserve’s 2026 Small Business Credit Survey, only 42% of applicants received the full financing they sought, and the share applying to online lenders rose from 17% in 2020 to 29% in 2025.
How Funders Look Past Your Credit
When credit is weak, approval hinges on signals you can actually influence:
- Monthly revenue — consistent deposits are the strongest yes signal.
- Time in business — 6+ months opens far more doors than under 6.
- Deposit frequency — daily or weekly deposits beat one lumpy monthly wire.
- Existing debt — already carrying two advances? That hurts more than the score itself.
A business with a 540 score and $40K/month in steady deposits is more fundable than one with a 660 score and erratic, thin revenue.
Your Options by Situation
- Need it fast, weak credit: working capital or revenue-based funding — 24–48 hours.
- Want flexibility: a business line of credit you draw from as needed.
- Buying equipment: equipment financing uses the asset as collateral, easing the credit bar.
- Already denied by a bank: see what to do after a denial.
Improve Your Odds Before You Apply
- Pull together 3–6 months of business bank statements.
- Pay down or pause new debt — don’t stack advances.
- Apply for the smallest amount that solves your problem.
- Be honest about existing obligations; hidden debt sinks more deals than low scores.
See what you qualify for with no FICO impact, or call (888) 490-3126.
Frequently Asked Questions
What credit score do I need for a business loan?
It depends on the product. SBA and bank loans typically want 680+. Revenue-based and working-capital funding can approve scores as low as 500 when your business revenue is strong and consistent.
Can I get a business loan with a 500 credit score?
Yes. At 500, your options narrow to revenue-based funding and merchant cash advances, where monthly deposits matter more than FICO. Expect higher rates, shorter terms, and a focus on your bank statements.
Will checking my options hurt my credit?
No. Fundmerica uses a soft credit pull to match you, which has no impact on your score. A hard inquiry only happens if you accept an offer that requires one.
Do I need collateral if my credit is bad?
Not always. Many bad-credit options are unsecured and revenue-based. Equipment financing and some larger amounts may use the asset or a personal guarantee instead of relying on credit.
How can I get a better rate with bad credit?
Show 6+ months of steady deposits, lower your existing debt load, avoid stacking multiple advances, and apply for the smallest amount that solves the problem. Stronger revenue is the fastest lever you control.
See
Options
Compare your options with one application and a soft credit pull — no impact to your score. Call (888) 490-3126 or apply now.
Get Your Free Funding Quote
See what you qualify for in minutes — soft credit pull, no FICO impact. $10K–$500K, funded in 24–48 hours from 75+ sources.
- Soft pull only
- $10K–$500K
- 24–48 hr funding
- No obligation
Prefer to talk? Call (888) 490-3126 — no obligation.