Best Business Loans for Bad Credit - In Depth Review
Let’s now take a closer look at the best business loan for bad credit. Our experts in the field have put together the following overview of the top business loans for businesses with bad credit.
Credibly offers an array of loan options. They are well-known for their working capital loans, long-term business loans, lines of credit, and SBA loans. Credibly’s working capital loans are determined based on a business’s current assets minus current liabilities.
Pros | Cons |
- Lowest credit score on list (500+)
- Loan value of up to $400,000
- Fast application processing time
| - 2.5% origination fee
- Daily/weekly payments
- Interest rate of 9.99%
|
Features
Loan amounts vary from $5,000 - $4000,000. Most entrepreneurs can get funding within 48 hours (however it might take 5 days). You can select from a range of loan products, such as:
- Merchant cash advance - upper limit is $400,000 and 3- to 18-month terms
- Working capital loan - upper limit is $400,000 and 6- to 18-month loan terms
- Business expansion loan- upper limit is $250,000 and 18- or 24-month loan terms
- Business line of credit - upper limit is $250,000 and differing loan terms
Credibly is also a SBA loan provider. As a federally-backed option for financing, SBA requirements can be quite stringent. In general, the application process has tougher qualifying criteria than those demanded by other loan types. Yet, with low APRs and a broad range of usage options, SBA funding programs are worth exploring as a means to start or grow your business.
Final thoughts
Credibly offers a greater variety of loans than most other loan providers. As long as your business meets their application credentials, you will likely find a loan that fits your business needs with Credibly. Read full Credibly review.

Fundbox has two types of business loans: lines of credit and term loans. For both loan types, a business is given a down payment of money, which they will need to repay with interest. However, term loans have set repayment rates and an intended last payment, whereas lines of credit loans generally stay open with a financial institution indefinitely. Fundbox integrates with accounting software, allowing for easy tracking of loans.
Fundbox Line of Credit:
Pros | Cons |
- Low minimum credit score of 550
- 30-day period to accept the loan
- Good way to get quick cash
| - Short term periods of either 12 weeks or 24 weeks
- Smaller loan amount
|
Fundbox Term Loan:
Pros | Cons |
- 24-week or 52-week repayment period
- 30-day period to accept the loan
- No origination fee
| - 18% interest rate on 52-week repayment
|
Features
Fundbox’s lines of credit are designed for B2B businesses that tend to experience gaps in cash flow from unpaid invoices.
Fundbox does not charge interest on its lines of credit, but rather it takes a fixed, weekly fee, which you are required to pay with each withdrawal. You can gain an estimate of the minimum total fees associated with a withdrawal and minimum weekly payments by making use of a calculator of Fundbox’s website. However, note that this calculated amount will provide you with the lowest amount Fundbox charges for these terms.
Final thoughts
A Fundbox line of credit is suitable for small businesses that are not able to qualify for a bank loan - or for businesses that don’t have time to apply for traditional loans. Read full Fundbox review.

Founded in 2013, BlueVine has provided over $9 billion in financing to over 200,000 of its clients. This lender tailors its loans to small businesses. It has invoice factoring with credit lines of up to $5 million and business lines of credit of up to $250,000.
BlueVine offers two main sources of funding for businesses: invoice factoring and lines of credit.
Pros | Cons |
- Fast loan approval rating
- Quick turnaround
- Low approval qualifications
- Direct access to a large amount of money ($250,000)
| - 10-15% of revenue is taken on top
- Service is on pause, in favor of PPP loans
- Service typically is only available in the US and Canada
|
Features
BlueVine has invoice factoring - a kind of business financing option for business to business (B2B) businesses, whereby unpaid invoices are sold at a discounted rate. If your business doesn’t process invoices, BlueVine also has traditional lines of credit.
BlueVine has simplified and streamlined the process of invoice financing. With BlueVine you have more control over which invoices you select to finance (when compared with traditional invoice financing services) and you won’t need to pay a lot of extra fee or sign any long-term contracts.
BlueVine’s Business line of credit or invoice factoring could be suitable for your business if you need cash quickly, have B2B clients who don’t pay on time, or if you don’t fulfill the credit requirements specified by other lenders.
Final thoughts
BlueVine’s fee can be slightly expensive, however, BlueVine provides transparent services that are simple to qualify for, and helpful for businesses who experience cash flow issues.
Read full BlueVine review

Kiva allows entrepreneurs and small business owners from across the globe to post a crowdfunding link on their website. Kiva, is a nonprofit organization and takes no direct interest or stake in your business. However, Kiva can’t guarantee funding for your business. Kiva also sets a cap of $15,000 for loan amounts.
Pros | Cons |
- Extremely approachable loans for social causes
- Interest rate of 0%
- Loaning process done under an NGO
| - You can only raise up to $15,000
- Only specific types of businesses get full funding
|
Features
Kiva provides microfinance loans via a crowdsourcing platform, These loans are interest-free up to $15,000 and are repayable over a 36-month period. Microlending is based on the concept that businesses in need are funded by many lenders whose finances are collectively gathered together to meet the financial requirements of an individual borrower.
Microfinancing loans are suitable for businesses that require a short term infusion of capital. Kiva offers microfinance loans of up to $15,000 with rates starting from 0.00% for the duration of the loan.
Final thoughts
Kiva offers the most accessible small business loans for minorities with bad credit and small business loans for women with bad credit. In our expert opinion, Kiva fits a very specific type of business and you’ll often know if your business fits that description once you place your business on their platform. Read full Kiva review.

OnDeck offers flexible loan rates. OnDeck has two types of loans: term loans and lines of credit. Each of these loan types have their advantages. You will need to consider which stage your business is at when deciding which type of loan will best suit your business needs.
OnDeck Term Loan:
Pros | Cons |
- Multipurpose
- No origination fee
- 12-Month repayment term, which resets after every withdrawal
- Pay interest on only what you use
| - Repayment of up to 18 months
- High interest rate of 35% (annual)
- No services are allowed in Nevada, North Dakota, and South Dakota
|
Features
OnDeck assesses business performance according to several performance factors, and not just the personal credit history of the business owner. OnDeck offers up to $5000,000 in term loans with maximum terms of 36 months and lines of credit of up to $100,000 with a maximum repayment period of 12-months.
Final thoughts
OnDeck is a solid funding option for businesses that have fair to average credit score, require cash quickly, and have unsteady cash flow or unseen expenses. Read full OnDeck review.

Key Features of the Best Business Loans For Bad Credit
There are many different types of small business loans for people with bad credit. Each type of loan has its own advantages. Here is a summary table of the best business loans for bad credit available in 2022.