Online lenders provide small-business loans for borrowers with bad credit.
Rates may be higher than bank loans.
Borrowers with poor credit scores are considered at higher risk of defaulting on a loan.
Still, even with bad credit, you have financing options, including online loans.
Can you qualify for a small business loan with bad credit?
With a score over 650, you might be able to qualify for a Small Business Administration loan, too. Owners with a credit score over 700. If your credit score is over 700, you’re likely in a good position to qualify with most lenders, including direct and alternative lenders as well as the Small Business Administration.
Can I get a business loan with a 500 credit score?
If your personal credit score is 500 or higher
Fundbox, Kabbage and Quarterspot provide short-term cash for working capital. No minimum credit score is required, although you’ll need a minimum of $50,000 annual revenue and three months in business. Kabbage provides working capital loans of up to $250,000.
What credit score is needed for a small business loan?
Personal credit scores usually range between 300 and 850. To qualify for most kinds of small business loans, you likely need a credit score of at least 550.
Can you get a business loan with no credit?
It should come as no surprise, then, that business loans through banks require a credit check. If you don’t qualify to receive a bank loan, you do have other options. The most affordable loans, such as Small Business Administration loans, have more flexible requirements than bank loans but do require a credit check.