Business Loan Companies For Bad Credit Businesses

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  2. Business Loan Companies For Bad Credit Businesses

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If you’re looking for a business loan with bad credit, you’re in for a challenge. Banks can be strict with who they work with. But so can all lenders. Business loan companies often won’t lend money to those with credit scores below 600. So, let’s look at what you can do if your credit score is too low for business loans.

Let’s first look at your options. Then, let’s go over a few lenders that can give you a loan if your credit score is below 600.

Bad Credit Business Loan Companies

Broadly speaking, bad credit business loans are fast loans with bad rates that are available to borrowers with bad credit. So, if your credit score is below 560, you have dipped below the “fair” credit range according to Equifax. Once you fall that low, it’s hard to get approved by most business lenders. Also, the lenders that will approve your applications will usually offer bad rates.

When your credit score is less than fair, you may even want to resort to business payday loans or other extreme measures. These options are very bad ideas, though. Also, there are still a few options that you can consider.

Bad Credit-Friendly Business Loan Companies

Here are a few business loan companies that will give loans to bad credit borrowers.

Kabbage

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$50,000/yr 1 year 560+ See if you qualify

Kabbage is a business lender that offers simple business loans to less profitable businesses. They also consider creditworthiness a bit less than most of their competition.

If you’re looking for transparency and fair treatment, Kabbage is a good option. They’re also very fast. The “Six-minute lender” can make an approval decision in a matter of minutes.

As long as your credit score is 560 or higher, you should qualify for a loan. The only other requirements are 3 months in business and $50,000 in annual revenues.

PayPal LoanBuilder

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$42,000/yr 9 months 550+ See if you qualify

PayPal, the massive online loan platform founded by Elon Musk, has a lending service.

LoanBuilder has some of the clearest pricing and standards you will find from alternative lenders. They can lend you from $5,000 to $500,000. But they only offer short repayment terms of 13 to 52 weeks.

The good thing about LoanBuilder is how clearly you can see any deals you are thinking of taking. You can build your own loan using the LoanBuilder Configurator. You simply set a few sliders and see if they can offer you the loan you want.

LoanBuilder loans are available to business borrowers with credit scores of 550 or more. You also need an annual revenue of $42,000 to qualify. This is one of the laxest revenue requirements you will find for the rates they offer.

So, even if you have “poor” credit, you can get a loan. They also offer competitive rates, with one borrowing fee set between 6.49% and 19.31%.

FundBox – for businesses with Invoices

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$25,000/yr 3 months 500+ See if you qualify

FundBox is especially lenient with their business loans provided you invoice your customers. They provide installment loans and lines of credit to business borrowers with credit scores of at least 500.

Like most alternative lenders, FundBox is very fast. You typically receive your funding the first business day after you get approved. You can then repay early to save on interest expenses if you’d like.

Main Street Finance Group

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$10,000/mo 1 year n/a See if you qualify

If you have higher revenues ($10,000+ per month) but bad credit, Main Street Finance Group is one of the better business loan companies available. They have no stated minimum credit score.

You can get cash advances from Main Street Finance Group easily, as long as you:

  • Make $10,000 per month in revenues
  • Have at least one year’s experience in business

They offer plans with repayment terms ranging from 2 to 18 months. Furthermore, you get to choose daily or weekly ACH repayments. There are also no penalties for repaying early, a strange penalty you’ll find with many other MCA providers.

Other Business Loan Companies To Compare

Compare these lenders and see which one has the best bad credit loans for your business:

Lender Minimum Revenue Time in Business Minimum Credit Next Steps
$50,000/yr 1 year 560+ See if you qualify
$100,000/yr 1 year 600+ See if you qualify
$25,000/yr 3 mo. 500+ See if you qualify
$42,000/yr 9 mo. 550+ See if you qualify
$75,000/yr 2 years 620+ See if you qualify
$10,000/mo 3 mo. n/a See if you qualify
$10,000/mo 1 year n/a See if you qualify
$15,000/mo 6 mo. n/a See if you qualify
Varies Varies Varies See if you qualify
$100,000/yr 1 year 500+ See if you qualify
$100,000/yr 6 mo. 600+ See if you qualify
$10,000/mo 6 mo. 550+ See if you qualify
$10,000/mo 3 mo. n/a See if you qualify
$10,000/mo 6 mo. 550+ See if you qualify
$15,000/mo 6 mo. 500+ See if you qualify

SuperMoney

If none of the direct lenders we’ve gone over cut it for you, check out SuperMoney. SuperMoney is a business lending platform that has no minimum credit score requirement. So, while they can’t guarantee that you’ll find a loan on their platform, you have a strong chance of finding one through them.

How To Increase Your Credit

If you have bad credit, the best thing you can do in the long run is try to improve it. It can be a hard task, but fortunately, there are a few tools you can use to do it.

Stay on top of your credit reports with the three major credit bureaus. They are obliged to give you a free report once every 12 months.

Credit Karma

If you’d like more than just a free annual credit report, check out Credit Karma. They can provide monthly score updates with one credit bureau for free. If you apply for a paid subscription, you can get comprehensive support for improving your credit score.

Not sure where to go for a business loan? Read these quick & helpful guides:
Check out our preferred marketplace lenders.

Lender Minimum Revenue Time in Business Minimum Credit Next Steps
$10,000/mo 6 mo. 550+ See if you qualify
$10,000/mo 3 mo. n/a See if you qualify
$10,000/mo 3 mo. n/a See if you qualify
$75,000/yr 24 mo. 620+ See if you qualify
Varies Varies 560+ See if you qualify

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