Getting a business loan when your credit score is less than ideal can feel like an uphill battle. But the reality is, more lenders are recognizing the potential of small businesses with imperfect credit. If you’re searching for the best lenders for small business loan with low credit, you’re in the right place. This article explores top lenders that work with low-credit entrepreneurs, outlines what they look for, and shares tips to improve your approval odds.
Understanding Low Credit in Business Lending
“Low credit” typically refers to a personal or business credit score below 600. While traditional banks may be quick to decline applications with such scores, many alternative lenders now offer funding options tailored specifically to this group. Instead of just relying on credit scores, they consider business revenue, time in operation, and cash flow trends.
Best Lenders for Small Business Loan with Low Credit
Here are some of the most reputable lenders offering small business loans to borrowers with poor or fair credit:
1. Fundbox
- Minimum Credit Score: 600
- Loan Type: Line of Credit
- Loan Amount: Up to $150,000
- Speed: Same-day decisions; funding in 1–3 days
Fundbox is an excellent choice for businesses with steady revenue but low credit. They place more emphasis on your business activity—like your bank account history and invoicing—than your credit score.
2. BlueVine
- Minimum Credit Score: 625
- Loan Type: Line of Credit & Invoice Factoring
- Loan Amount: Up to $250,000
- Speed: Funding within 24 hours after approval
BlueVine offers working capital to low-credit businesses and is ideal for B2B companies that invoice clients. They offer flexible weekly payments and a streamlined application process.
3. OnDeck
- Minimum Credit Score: 625
- Loan Type: Term Loans & Lines of Credit
- Loan Amount: Up to $250,000
- Speed: Approvals within hours; funding as fast as 1 business day
OnDeck is a leading name in small business lending and offers fast access to capital even for borrowers with lower credit. They do require at least one year in business and $100,000 in annual revenue.
4. Lendio (Marketplace)
- Minimum Credit Score: 500+
- Loan Type: Various (Term Loans, Lines of Credit, SBA Loans, etc.)
- Loan Amount: Up to $5 million
- Speed: Varies, but pre-approval in minutes
Lendio is not a direct lender but a loan marketplace that matches you with lenders willing to work with your credit profile. It’s one of the best lenders for small business loan with low credit if you want to compare multiple offers at once.
5. Credibly
- Minimum Credit Score: 500
- Loan Type: Working Capital Loans & Merchant Cash Advances
- Loan Amount: Up to $400,000
- Speed: Approval in 24 hours; funding shortly after
Credibly is tailored to business owners with weak credit but strong cash flow. They offer high approval rates and fast access to funds, though repayment terms may be shorter.
6. Kiva (for Microloans)
- Minimum Credit Score: No minimum
- Loan Type: Microloans
- Loan Amount: Up to $15,000
- Speed: Varies; based on crowdfunding
Kiva is a nonprofit platform offering 0% interest loans to entrepreneurs. While it takes time to raise funds through their crowdfunding model, it’s a good choice for those with no or bad credit who need a small amount of capital.
What These Lenders Look For
Even if your credit isn’t great, these lenders may approve your loan if you can demonstrate:
- Consistent Revenue: Most require at least $50,000 to $100,000 in annual revenue.
- Time in Business: Typically at least 6 months to 1 year.
- Business Bank Account Activity: Lenders like Fundbox assess your cash flow and transaction history.
- Purpose of Loan: Showing a solid plan for how you’ll use and repay the loan increases your credibility.
Tips to Increase Approval Odds
- Separate Personal and Business Finances: Use a business bank account and get an EIN.
- Be Honest and Transparent: Disclose debts and explain how you plan to manage repayment.
- Add a Co-Signer: If possible, a co-signer with good credit can boost your chances.
- Apply During a Revenue Upswing: Apply when your monthly revenue is strong and stable.
- Limit Credit Pulls: Multiple hard inquiries can lower your score—apply to lenders you’re confident about.
Final Thoughts
Finding the best lenders for small business loan with low credit requires research, preparation, and a willingness to explore nontraditional options. While banks may say “no,” online lenders, fintech platforms, and microloan providers say “yes” to thousands of business owners every year—even those with poor credit.
The key is to present a strong case: demonstrate steady income, have a clear repayment plan, and apply through the right channels. With persistence and the right lender, your business can still secure the funding it needs to grow, even if your credit isn’t perfect.
