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Best Business Loans For Bad Credit December 2024

Bad credit shouldn't stop you from expanding your business. We help businesses of all types and sizes find the right source of financing for them. Browse our list of the best bad credit business loan providers to learn more about business financing for your specific need. Whether you need new equipment, instant cash flow, a line of credit, or anything else, there is an option for any business.

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Age Of Business
Annual Revenue
  • 36000
  • 2000000
Loan Amount
  • 5000
  • 3000000
Credit Score
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Key Facts

  • Credit Score: 570
  • Age of business: 12 months
  • Monthly revenue: $20,000
  • Origination fee: 3%

Pros

pros iconSuccessful applications receive funding in less than 72 hours

pros iconDiscounts available for early repayment of loans

pros iconLow credit threshold for loan eligibility

pros iconGood customer service and A+ BBB rating

Cons

cons iconUses factor rating instead of APR, which makes comparing with other loan offers difficult

cons iconOnly short-term loans are available

cons iconMinimum age of business to qualify is 12 months

Fora Financial provides business capital, including business loans and Revenue Based Financing, directly and through a network of unaffiliated third-party funding providers. Business loans are offered by Fora Financial Business Loans LLC or, in California, by Fora Financial West LLC, a licensed California Finance Lender, License No. 603J080. Fora Financial Advance LLC offers Revenue Based Financing. Business capital is also made available through US Business Funding, a sister company of Fora Financial. The products and amounts offered vary by state.

  • $5K-$1.5M Loan Amount
  • 570 Min Credit
  • $20K Monthly Revenue
  • 12+ Months Time in Business
Trusted Choice
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Key Facts

  • Credit Score: 550
  • Age of business: Minimum 12 months
  • Monthly revenue: Varies
  • US citizenship: Required for all owners
  • Term length: Varies

Pros

pros iconMultiple financing options designed to help businesses grow and succeed

pros iconConvenient shop and comparison tool

pros iconFree service

pros iconMatched with experienced Funding Advisor who helps every step of the way

Cons

cons iconLoan terms and conditions not disclosed until after completing an application

cons iconOnce deciding upon a product, you’ll work with the lender instead of Fundera

cons iconPotentially high interest rates and eligibility requirements

LIMITATION OF LIABILITY AND WARRANTY DISCLAIMER. 10.1 Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL FUNDERA (OR OUR SUPPLIERS) BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY LOST PROFITS, LOST DATA, COSTS OF PROCUREMENT OF SUBSTITUTE PRODUCTS, OR ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES ARISING FROM OR RELATING TO THESE TERMS OR YOUR USE OF, OR INABILITY TO USE, THE SITES OR SERVICE, EVEN IF FUNDERA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ACCESS TO, AND USE OF, THE SITES OR SERVICE IS AT YOUR OWN DISCRETION AND RISK, AND YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE TO YOUR DEVICE OR COMPUTER SYSTEM, OR LOSS OF DATA RESULTING THEREFROM. TO THE MAXIMUM EXTENT PERMITTED BY LAW, NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, OUR LIABILITY TO YOU FOR ANY DAMAGES ARISING FROM OR RELATED TO THE SERVICE OR THESE TERMS OF SERVICE (FOR ANY CAUSE WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, DAMAGES ARISING FROM YOUR FAILURE TO PROVIDE FUNDERA WITH ACCURATE INFORMATION OR TO CORRECT INACCURATE VERIFIED DATA, OR A THIRD PARTY’S FAILURE TO CORRECTLY VERIFY SUCH INFORMATION, AND REGARDLESS OF THE FORM OF THE ACTION), WILL AT ALL TIMES BE LIMITED TO A MAXIMUM OF ONE HUNDRED US DOLLARS (U.S. $100). THE EXISTENCE OF MORE THAN ONE CLAIM WILL NOT ENLARGE THIS LIMIT. YOU AGREE THAT OUR SUPPLIERS WILL HAVE NO LIABILITY OF ANY KIND ARISING FROM OR RELATING TO THESE TERMS OF SERVICE. SOME JURISDICTIONS DO NOT ALLOW THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU. 10.2 No Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THESE TERMS OF SERVICE, THE SITES AND THE SERVICE PROVIDED HEREUNDER BY FUNDERA IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, AND FUNDERA (AND OUR SUPPLIERS) EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES AND CONDITIONS OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, QUIET ENJOYMENT, ACCURACY OR NON-INFRINGEMENT. WE (AND OUR SUPPLIERS) MAKE NO WARRANTY THAT THE SITES AND THE SERVICE WILL MEET YOUR REQUIREMENTS, WILL BE AVAILABLE ON AN UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE BASIS, OR WILL BE ACCURATE, RELIABLE, AND/OR FREE OF VIRUSES OR OTHER HARMFUL CODE, COMPLETE, LEGAL, OR SAFE. IF APPLICABLE LAW REQUIRES ANY WARRANTIES WITH RESPECT TO THE SITE AND THE SERVICE, ALL SUCH WARRANTIES ARE LIMITED IN DURATION TO NINETY (90) DAYS FROM THE DATE OF FIRST USE. NO ADVICE OR INFORMATION PROVIDED BY FUNDERA SHALL CONSTITUTE ANY WARRANTY WITH RESPECT TO YOUR USE OF THE SERVICE. FUNDERA DOES NOT GUARANTEE OR ASSUME ANY RESPONSIBILITY FOR ANY SERVICE ADVERTISED OR OFFERED BY ANY THIRD-PARTY SERVICE RELATING TO EITHER FUNDERA OR ANY FUNDING PROVIDER. FUNDERA MAKES NO GUARANTEE AS TO THE NUMBER OF FUNDING PROVIDERS WITH WHOM YOU MAY BE MATCHED USING THE SERVICE, NOR DOES FUNDERA GUARANTEE THAT YOU WILL BE ABLE TO OBTAIN BUSINESS FUNDING IN ANY AMOUNT USING THE SERVICE, INCLUDING FROM ANY FUNDING PROVIDER FOR WHOM YOUR VERIFIED INFORMATION PROVISIONALLY PREQUALIFIES YOU FOR SUCH FUNDING. YOU UNDERSTAND AND AGREE THAT FUNDERA IS NEITHER A FUNDING PROVIDER NOR A FINANCIAL ADVISOR, AND NOTHING ON THE SITES IS INTENDED TO BE A SUBSTITUTE FOR PROFESSIONAL FINANCIAL ADVICE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. SOME JURISDICTIONS DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU. 10.3 Not a financial planner, investment adviser or tax advisor. NEITHER FUNDERA NOR THE SERVICES ARE INTENDED TO PROVIDE LEGAL, TAX, INVESTMENT OR FINANCIAL ADVICE. FUNDERA IS NOT A FINANCIAL OR TAX PLANNER, AND DOES NOT OFFER LEGAL ADVICE TO ANY USER OF THE SERVICE. ALTHOUGH THE SERVICE MAY PROVIDE DATA, INFORMATION, OR CONTENT RELATING TO INFORMATIONAL SERVICES FOR U.S. BASED SMALL BUSINESS OWNERS INCLUDING INFORMATION AND REFERRALS FOR CERTAIN FINANCIAL SERVICES, YOU SHOULD NOT CONSTRUE ANY SUCH CONTENT AS TAX, LEGAL, FINANCIAL, OR INVESTMENT ADVICE.

  • $5K-$5M Loan Amount
  • 550 Min Credit
  • $11K Monthly Revenue
  • 12+ Months Time in Business
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Key Facts

  • Eligibility: Businesses with less than 500 employees
  • Max loan amount: $10 million
  • Interest rate: 0.5%
  • Loan forgiveness for: payroll, mortgage interest, rent, utilities

Pros

pros iconFlexible on credit score. Getting approved is based more on strong balances and revenue.

pros iconVariety of loan types available

pros iconSoft credit check for the initial application

pros iconSave time with offers from multiple lenders

Cons

cons iconApplication process is a bit long for a marketplace because it requires 3 bank statements

cons iconSince Lendio is not a direct lender, the terms only become clear after applying for a loan

  • $1K-$5M Loan Amount
  • 500 Min Credit
  • $8K Monthly Revenue
  • 6+ Months Time in Business
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Key Facts

  • Line of credit: $5,000 to $250,000
  • Min annual revenue: $120,000
  • Delivered over $14B in working capital
  • Bluevine Line of Credit is issued by Celtic Bank

Pros

pros iconFast approvals and funding

pros iconNo origination or prepayment fees

pros iconFair credit accepted

pros iconFlexible credit limits

Cons

cons iconHigh estimated interest rates

cons iconNot available in all states

cons icon$10,000 monthly revenue to qualify

cons iconTerm loans are managed by partner lenders, not Bluevine

Bluevine is a financial technology company, not a bank. Banking Services provided by Coastal Community Bank, Member FDIC. Bluevine accounts are FDIC insured up to $3,000,000 per depositor through Coastal Community Bank, Member FDIC and our program banks. The Bluevine Business Debit Mastercard® and Bluevine Business Cashback Mastercard® are issued by Coastal Community Bank, Member FDIC pursuant to a license from Mastercard International Incorporated and may be used everywhere Mastercard is accepted. Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.

Mastercard, Mastercard Easy Savings, Mastercard Airport Concierge, Priceless Surprises and the circles design are registered trademarks and Mastercard ID Theft Protection is a trademark of Mastercard International Incorporated.

Application is subject to approval. No monthly or maintenance fees. Card Replacement Fees and Wire Transfer Fees may apply.

Banking Services for payments made via ACH or wire from the Bluevine Business Checking Account are provided by Coastal Community Bank, Member FDIC. Certain Bill Pay funds are temporarily held during payment processing by Silicon Valley Bank, a division of First-Citizens Bank & Trust Company. Money transmission services for International Payments are provided by a third party and are also subject to their applicable terms and conditions.

The Bluevine Line of Credit is issued by Celtic Bank and is serviced by Bluevine. Applications are subject to credit approval. Rates, credit lines, and terms may vary based on your creditworthiness and are subject to change. Additional fees apply. Other commercial credit products are offered by a variety of Bluevine’s third party partners. Bluevine is not involved in the issuance or servicing of these products. Offerings and eligibility requirements vary by partner.

Certain financing may be made or arranged pursuant to California Financing Law-License No. 6054789.

All other product names, logos, brands, trademarks, and registered trademarks are property of their respective owners. All company, product, and service names used in this website are for identification purposes only. Use of these names, trademarks, and brands does not imply endorsement.

® 2024 Bluevine Inc. All Rights Reserved. “Bluevine” and the Bluevine logo are registered trademarks of Bluevine Inc.

  • $5K-$500K Loan Amount
  • 625 Min Credit
  • $10K Monthly Revenue
  • 12+ Months Time in Business
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Key Facts

  • Multiple types of funding, nationwide
  • Get help from a loan representative
  • Highly rated customer support

Pros

pros iconEasy way to compare business loans from over 35 lenders

pros iconPartners with large, established lenders such as US Bank, Bluevine, OnDeck and CDFI banks

pros iconLoan decisions are made quickly after an easy application process

Cons

cons iconNo transparency of loan terms readily available

cons iconLoan funding can take up to one week, which is longer than competitors

cons iconCollateral is required from some of BusinessLoans.com’s lending partners

BusinessLoans.com allows users to obtain information about certain loans, financial products, and services offered through third-party service providers and advertisers. BusinessLoans.com is not an agent or advisor to you or any other third party.

You acknowledge and agree that our website is solely an intermediary to connect users with service providers to obtain information about certain financial products and services. You acknowledge and agree that we are not a financial institution, credit card issuer, or other financial service provider and that any information or advice made available through the Services is for informational purposes only.

We do not, and will not, create any coverage or credit decision with any service provider that may be referred to you through our Services. We do not (i) validate the licensing, certification, or other qualifications of Service Providers that you may encounter through our Services, (ii) guarantee the terms or rates offered by any third party through or on our Services, or (iii) issue credit cards or any other financial products.

We are not responsible for the conduct or policies of the service providers. The terms and rates provided by any service provider will be subject to the applicable terms and conditions of the products and services offered by the service providers.

  • $5K-$3M Loan Amount
  • 640 Min Credit
  • $20K Monthly Revenue
  • 12+ Months Time in Business
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Key Facts

  • Funding possible in as little as 24 hours.
  • More than 12 years of industry experience.
  • Funding solutions from $10,000 to $5,000,000

Pros

pros iconStraightforward application process

pros iconFunding possible in as little as 24 hours

pros iconGood track record of serving small businesses

pros iconProvides access to a range of trustworthy lenders

Cons

cons iconDoesn't provide too many details on eligibility standards

cons iconThe origination fees can sometimes be high

Advancepoint Capital offers a variety of financial solutions for businesses, including loans, lines of credit, cash advances, SBA loans, equipment financing, invoice factoring, and other
revenue-based financing options. These services are provided through a network of independent third-party funding providers. Approval for these offers is contingent upon meeting prequalification and/or underwriting criteria, which encompass factors such as business and personal credit history, time in business, cash flow, revenue consistency, and industry-specific underwriting regulations.

  • $10K-$5M Loan Amount
  • 620 Min Credit
  • $15K Monthly Revenue
  • 6+ Months Time in Business
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Key Facts

  • Automated analysis matches businesses with financing products
  • Direct lender and marketplace expands loan options
  • Gives feedback if declined to enhance chance of future eligibility

Pros

pros iconFunding possible within 24-72 hours of a signed and approved contract.

pros iconVariety of financing options available from Biz2Credit and other participating lenders.

pros iconFree online application and free use of business tools.

pros iconDedicated support from financing experts.

Cons

cons iconMay be an expensive option due to closing fees.

cons iconFinancing options may differ from state-to-state.

cons iconNo live chat option on their website.

cons iconUndisclosed interest rates and fees

Biz2Credit Disclosure: By accessing or applying for Business Finance Services from Biz2Credit relating to your potential business funding or other business financing products, you expressly accept and agree to both our Terms of Service and the Business Finance Services Terms & Conditions. The rates and terms and conditions here in are not a commitment or guaranty by Biz2Credit Inc. or any of its affiliates to provide financing, and are subject to change at any time. Not valid in all states. All products and services are subject to eligibility and other conditions and restrictions. Biz2Credit Inc. is not a lender. All terms and conditions and credit decisions are at the sole discretion of the lender. Offered for commercial uses to businesses only. Other terms, conditions, fees and restrictions may apply.

You acknowledge that you do not own the account you use to access the Service, nor do you possess any rights of access or rights to data stored by or on behalf of Biz2Credit on Biz2Credit servers. You agree that Biz2Credit has the absolute right to manage, regulate, control, modify and/or eliminate any such data as it sees fit in its sole discretion, in any general or specific case, and that Biz2Credit will have no liability to you based on its exercise of such right. All data on Biz2Credit’s servers are subject to deletion, alteration or transfer. Notwithstanding any value attributed to such data by you or any third party, you understand and agree that any data, account history and account content residing on Biz2Credit’s servers, may be deleted, altered, moved or transferred at any time for any reason in Biz2Credit’s sole discretion, with or without notice and with no liability of any kind. Biz2Credit does not provide or guarantee, and expressly disclaims, any value, cash or otherwise, attributed to any data residing on Biz2Credit’s servers.

  • $25K-$6M Loan Amount
  • 575 Min Credit
  • $21K Monthly Revenue
  • 12+ Months Time in Business

Standout options

December 2024

Most Recommended
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Key Facts

  • Credit Score: 570
  • Age of business: 12 months
  • Monthly revenue: $20,000
  • Origination fee: 3%

Pros

pros iconSuccessful applications receive funding in less than 72 hours

pros iconDiscounts available for early repayment of loans

pros iconLow credit threshold for loan eligibility

pros iconGood customer service and A+ BBB rating

Cons

cons iconUses factor rating instead of APR, which makes comparing with other loan offers difficult

cons iconOnly short-term loans are available

cons iconMinimum age of business to qualify is 12 months

  • $5K-$1.5M Loan Amount
  • 570 Min Credit
  • $240K Annual Revenue
  • 12+ Months Time in Business
View Details arrow

Key Facts

  • Credit Score: 550
  • Age of business: Minimum 12 months
  • Monthly revenue: Varies
  • US citizenship: Required for all owners
  • Term length: Varies

Pros

pros iconMultiple financing options designed to help businesses grow and succeed

pros iconConvenient shop and comparison tool

pros iconFree service

pros iconMatched with experienced Funding Advisor who helps every step of the way

Cons

cons iconLoan terms and conditions not disclosed until after completing an application

cons iconOnce deciding upon a product, you’ll work with the lender instead of Fundera

cons iconPotentially high interest rates and eligibility requirements

  • $5K-$5M Loan Amount
  • 550 Min Credit
  • $130K Annual Revenue
  • 12+ Months Time in Business
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Key Facts

  • Credit score: depends on lender
  • Age of business: min. 12 months
  • US citizenship: required
  • Repayment terms: depends on lender
  • Term length: varies

Pros

pros iconMultiple business financing options available, ranging from small business loans to commercial real estate loans to lines of credit

pros iconStreamlined, intuitive application process with lender comparison option

pros iconTime to funding could be within 24 hours

pros iconTop-notch customer service team of finance professionals

Cons

cons iconAs a marketplace, specific terms, rates, and fees are not indicated until you apply with a partner lender

  • $5K-$5M Loan Amount
  • 500 Min Credit
  • $240K Annual Revenue
  • 12+ Months Time in Business

Bad Credit Business Loans Explained

Business owners will often need to get some financial help to keep going or expand their business further. The financing options available to owners can make or break a business, so it is crucial for owners to understand them.

Many quality lenders are available in the space today and can be pretty flexible with their offerings. If a business has bad credit, there is still hope. This guide will showcase how business owners can get business loans even with bad credit.

What is Bad Credit?

It is not just individuals that get a credit score. Businesses also have their own credit score that is built up over time, depending on their financial behavior. Much like our personal credit score, companies can get bad credit when they fail to pay their creditors on time. These creditors can range between utility companies, banks, and inventory suppliers.

If a business has a poor credit score, it might experience difficulty getting a loan at favorable rates. Lenders will look at other aspects of a business to judge if they are creditworthy and not just rely on the credit score.

Types of Bad Credit Loans

If a business is struggling to get a standard type of business loan, then there are a few options that they might then need to consider. A business might vitally need financing in order to continue operations, so this is something that is a necessity.

Merchant Cash Advance

This sees a business getting an upfront cash payment from a lender that will be based on the sales volume of the company.

Business Collateral Loan

One of the most effective ways a business can bypass a bad credit score will be to provide some sort of fixed asset as collateral. This means that if the borrower defaults, the lender will be able to recoup their money by selling the fixed asset.

Private Loan

A private loan is very similar to a traditional type of business loan. However, it sees repayments being made on a daily basis rather than on a monthly basis. It means that there will be a lower risk for the lender.

Equity Line of Credit

For those companies that might have a good level of equity in financial statements but poor credit, this could be a good option. The business will be using equity as collateral in order to get a cash advance.

The sum will then gradually be paid back over time in intervals. If there is a default on the loan, then the lender would be able to have a claim on this business and try to sell it to recoup its money.

How to Repair Bad Credit

If a business has bad credit and is looking to improve this situation, then a few different things can be done. It can take time, but some powerful strategies can be used to eventually repair a poor credit score.

The easiest thing is to ensure that you make all of your repayments on time. If this is not possible, then you should try to pay off the most significant invoices first. You might also be able to negotiate better terms with your creditors or negotiate payment terms on past-due accounts. Finally, you might be able to reduce the businesses’ utilization rate through various means.

Important Information to Provide When Seeking a Bad Credit Business Loan

When you are applying for many different types of loans, you will need to provide pertinent information to the prospective lender. This allows them to figure out if they want to extend credit and decide on what the terms should be.

Here are some common types of information you need to provide to lenders when trying to get a loan for your business:

  • Financial statements
  • Bank statements
  • Business and personal tax returns
  • Reasoning for the loan
  • Personal background
  • Business plan and projections
  • Possible collateral
  • Legal business documents

Applying for a Bad Credit Business Loan

You’ll see that there are plenty of viable lenders when you seek some bad credit loan. There are traditional types of lenders and then those companies that will be more online-focused. Once you decide on which lender is best for you, then you can proceed with getting a loan.

You will have to provide the relevant information and documents so the lender can figure out if the loan makes sense. As this is a bad credit loan, even more scrutiny will be put on the information that has been provided. Business owners might need to go above and beyond what a business would have to if they were getting a regular type of business loan.

The exact times it takes to get approval for a bad credit business loan depends on the lender. The same goes for the length of time you have to wait to get your hands on the funds.

Conclusion

Even if your business has bad credit, there are still ways that you can get financing. While it might be a bit more confined, you are not going to be short of choices. With many top-quality lenders out there catering to this niche type of loan, you’ll have plenty of great options.

*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
**All businesses are unique and are subject to approval and review.