A closer look at our top bad credit business loans
Fundible: Best for startups
Overview: Fundible is an online lender that can fund loans within just a few hours. As it has fewer approval requirements and an adjusted underwriting process, it can typically approve more applicants than traditional banks. Fundible offers lines of credit up to $250,000.
Why Fundible is the best for startups: Fundible is a good option for startups because it only requires six months in business and has minimal annual revenue requirements through its network of partners. You only need to supply three recent bank statements to be considered. Fundible also doesn’t penalize businesses for paying off debt sooner than scheduled, allowing startups to eliminate their loan fast without incurring fees.
Who Fundible is good for: Startups and business owners with bad credit can be good candidates for Fundible loans. Its website states you only need a personal credit score of 500 (a spokesperson said it will consider a score of 450) and an average monthly revenue of $8,000 to be considered for approval.
Backd: Best for short-term loans
Overview: Backd is an online lender offering business lines of credit, working capital loans and buy now, pay later loan (dubbed BackdPay). It streamlines the online application process, preapproving loans in mere minutes and funding within 24 hours. Backd grants up to $750,000 for its line of credit and $2 million for its working capital loan, which are large amounts for an online lender.
Why Backd is the best for short-term loans: Even though repayment terms are shorter than other lenders, Backd weaves standout repayment features into each of its short-term loan options. Its working capital loan offers terms up to 16 months with flexible daily, weekly or semi-monthly payments. Get unlimited terms on a business line of credit, and repay in six or 12 months. And its unique buy now, pay later loan lets you make purchases without cash on hand and pay for them across 12 months.
Who Backd is good for: Backd works well for businesses looking for fast, short-term funding. Take advantage of flexible repayments, depending on the loan you choose.
Credibly: Best for fast prequalification
Overview: Thanks to its partner lenders as well direct lending, Credibly offers many types of business loans to help small and medium-sized businesses quickly get the cash they need. Loan options include working capital loans, merchant cash advances, equipment loans and invoice factoring.
Why Credibly is the best for fast prequalification: Credibly is more accessible than other lenders. Some loans accept personal credit scores as low as 550. And you're able to prequalify without any impact to your credit score, with funds arriving in your account in as little as 24 hours if approved.
Who Credibly is good for: While Credibly has relaxed eligibility requirements, your chances of approval are best if you have a personal credit score of 675, annual revenue of $540,000 and three years' time in business. Top industries for Credibly include restaurants, contractors, electrical work, repair shops and offices/clinics of health practitioners.
OnDeck: Best for flexible repayment terms
Overview: OnDeck is an online lender that has been around since 2006. The company has term loans and lines of credit with limited application requirements. To be considered, businesses need a FICO score of just 625 and one year in operation.
Why OnDeck is the best for flexible repayment terms: Many bad credit business loans have short terms between six to 18 months, but OnDeck lets you choose terms up to 24 months. This allows businesses to stretch out their loan schedule and lower their monthly payment.
Who OnDeck is good for: This bad credit business loan is good for businesses who have been around for at least one year and have at least $100,000 in annual revenue. It can accommodate a wide variety of loan amounts, offering funding for between $5,000 and $250,000.
Triton Capital: Best for low payments
Overview: Started in 2008, Triton Capital offers working capital, equipment financing and SBA loans to businesses across all 50 U.S. states. It can approve some loans within hours and funding often occurs within one to two business days.
Why Triton Capital is the best for low payments: Triton Capital helps business owners achieve manageable payments through its Lowest Payment Guarantee. It promises to offer the lowest payment on an approved working capital or equipment loan and will pay $250 if you find a lower payment made by another nonbank finance company. You also get the convenience of choosing a payment term that fits your schedule best. For example, its equipment financing loan offers monthly, quarterly, annual, semi-annual and seasonal payments.
Who Triton Capital is good for: Triton Capital is ideal for established businesses needing to cover expenses from $10,000 to $500,000. But you’ll need at least two years’ experience and steady revenue of at least $350,000 to get approved.
BusinessLoans.com: Best for flexible repayments
Overview: BusinessLoans.com’s website is light on details, but a spokesperson confirmed with us it offers several types of loans, including term loans, lines of credit and merchant cash advances. Depending on the loan, you may be able to qualify with a personal credit score of 550, an annual revenue of $100,000 and only six months of time in business.
Why BusinessLoans.com is the best for flexible repayments: BusinessLoans.com offers a fast term loan of up to $100,000 that can be funded in as little as 24 hours. This is a short-term loan with up to 36 months to repay, which is 12 months longer than many other short-term loans that only have repayment terms of 24 months or less.
Who BusinessLoans.com is best for: If you need a business loan for bad credit or can’t qualify for a loan with other lenders, BusinessLoans.com’s lender network may be able to help.
Funderial: Best for alternative financing
Overview: Funderial is a direct lender and online marketplace of 40 lenders, offering several types of traditional and alternative business loans. Its options include term, asset-based and accounts receivable financing. Existing customers can also add a line of credit if you qualify. Imperial Advance’s specialty is working with businesses of all risk and credit levels. You can leverage up to 250 percent of your gross monthly sales.
Why Funderial is the best for alternative financing: Funderial works to match you with the lender and loan option that fits your business’s risk level. Its website touts that it works with any credit history. It accepts personal credit scores as low as 500, which is lower than most online lenders. Depending on the type of loan you choose, you can receive funding as fast as 48 hours or up to five days for conventional loans.
Who Funderial is good for: Imperial Advance works well for bad credit businesses, especially if you don’t qualify for traditional loan types. It may also be a good option if you need fast funding and a hands-off, one-page online application.
Fundbox: Best for line of credit
Overview: Fundbox is an online lender that focuses on helping businesses with working capital issues by offering lines of credit. That focus on a single type of loan lets it streamline the application process and improve the borrower experience. Its online application takes as little as three minutes, and it can fund within the next day.
Why Fundbox is the best for line of credit: Fundbox offers accessible lines of credit starting at $1,000 and goes up to $150,000. You won’t get penalized for repaying your loan early — and you can bypass the rest of the weekly fees by doing so. Plus, you can quickly access funding through its user-friendly online dashboard or app connected to your business bank account. Keep in mind that the maximum credit limit is low compared to other credit lines that go up to $250,000.
Who Fundbox is good for: Fair-credit borrowers who need fast financing and can pay off their loans quickly may get the best value. Fundbox also makes approvals easy for startup businesses with a personal credit score of 600 and a minimum time in business of six months. But the lender’s amortized weekly fees could add up to higher borrowing costs compared to other lines of credit.
Bank of America: Best for secured credit building
Overview: Bank of America is one of the largest U.S. banks with nearly 4,000 bank branches. Not all its loans will work for bad credit borrowers. But it does offer a cash-secured line of credit that can automatically convert to an unsecured line of credit as your business grows and builds credit.
Why Bank of America is the best for secured credit building: Bank of America's cash-secured line of credit requires a minimum deposit of $1,000. It keeps the line accessible to new businesses under two years old, unlike most traditional banks’ loan products. To help establish a positive payment history, Bank of America keeps the credit limits low and manageable from $1,000 to $50,000. It starts reviewing whether you’re eligible for an unsecured line of credit after 12 months.
Who Bank of America is good for: Small business owners with at least $50,000 in annual revenue and six months in business are eligible to apply. This can be a good fit for anyone that doesn't need immediate financing but instead wants to build business credit. Doing so can improve their chances of getting approved for more affordable loan options in the future.
Kiva: Best for microloans
Overview: Kiva is a non-profit entity that offers microloans to entrepreneurs across the globe. It’s a unique combination of a crowdfunding and peer-to-peer lending platform. It allows you to apply for financing and then raise funds through your personal network before submitting the loan to other individual investors.
Why Kiva is the best for microloans: Kiva offers microloans in the U.S. between $1,000 and $15,000 while charging zero interest. And since it doesn't have an annual revenue requirement, it's an inexpensive way for business owners to find a startup business loan with no money. Because it’s not technically a lender, it accepts brand new businesses and borrowers with poor or no credit. Repayment terms are relatively short, going up to 36 months.
Who Kiva is good for: Because Kiva relies on community donations and investment, it’s ideal for businesses with strong community support. It also approves startup businesses with little-to-no credit history. Its loans rely more on “social credit,” your reputation for repaying the loan within the community rather than your formal credit history.
PayPal Working Capital: Best for no credit requirements
Overview: PayPal offers a working capital loan that acts similar to a merchant cash advance. When getting the advance, business owners can choose the percentage automatically deducted from their future sales for repayment. The exact percentage and expected sales determine the repayment timeline.
Why PayPal Working Capital is the best for no credit requirements: PayPal’s working capital loan takes an alternative approach to approving businesses based on creditworthiness and cash flow. You’ll be approved for a loan based on your volume of sales processed through PayPal. You’ll need at least $15,000 in sales with a PayPal Business account and $20,000 with a Premier account. But instead of an annual percentage rate (APR), PayPal charges a single fixed fee. You’ll have to apply to see the exact borrowing cost.
Who PayPal Working Capital is good for: PayPal’s loans work well for business owners with low revenue who are okay with fast repayment terms. Businesses must have a PayPal Business or Premier account for at least 90 days.
Accion Opportunity Fund: Best for low-interest loans for bad credit
Overview: Accion Opportunity Fund is a non-profit with a focus on offering microloans to disadvantaged communities. It provides educational opportunities in addition to financial funding. Term loans can extend up to 60 months.
Why Accion Opportunity Fund is the best for low-interest business loans: This lender advertises interest rates as low as 7.49 percent, a rare benefit for borrowers with bad credit. On the high end, interest goes up to 24.99, which is far lower than other types of business loans accessible to borrowers with bad credit. You can request as little as $5,000, a manageable sum to pay off quickly and build better credit.
Who Accion Opportunity Fund is good for: The majority of Accion Opportunity Fund’s customers are women, people of color and people in low-to-moderate income brackets. It’s good for people in marginalized communities who need a loan between $5,000 and $250,000 and may not have a long time in business or perfect credit.
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