Best Bad Credit Business Loans of 2021

Running a business isn’t easy, and it’s possible that your credit score isn’t perfect. If your credit score is less than 630, you have poor credit by FICO standards. However, that shouldn’t stop you from getting a loan to boost cash flow

When you have a low credit score, it can feel like a business loan is impossible, but thankfully, there is help out there. We used our exclusive SimpleScore methodology to rate and review the best bad credit business lenders of 2020, taking into account interest rates, terms and loan amounts.

Lending Partner
APR Range
Loan Amount
  • Bluevine
    APR Range
    Loan Amount
    Up to $250,000
    Check Rates
    on lender’s secure website
  • OnDeck
    Logo for OnDeck
    APR Range
    Up to 12 months
    Loan Amount
    Check Rates
    on lender’s secure website
In this article

    The 4 best bad credit business loans of 2021

    Bad credit business loans at a glance

    LenderAPRLoan AmountTermsEligibility Criteria
    OnDeck 16.9%–99.4%$5,000–$500,000Up to 12 months1 year in operation; 600 credit score; $150,000 annual revenue
    Funding Circle5.49%-27.79%$5,000–$500,0003 months – 10 years2 years in operation; 600 credit score; $100,000 annual revenue
    BlueVine0.25%/week$5,000–$250,0006 or 12 months3 months in operation; 600 credit score; $100,000 annual revenue
    Street Shares 9%–40%$2,000–$100,0003 months–3 years1 year in operation; 600 credit score; $25,000 annual revenue

    Best for new businesses – OnDeck

    OnDeck is a reliable partner in crime with flexible eligibility requirements, but be prepared to pay for that flexibility.

    APR Range
    Loan Amount
    Up to 12 months
    3.4 / 5.0
    SimpleScore OnDeck 3.4
    Max APR 5
    Loan Amount 2
    Product Variety 2
    Resources 5
    Fees 3

    No assets are required for OnDeck’s business loans with same-day turnaround.

    You can receive funding in as little as one business day with several options for financing, despite your credit. OnDeck can give you up to $250,000 is small-business loans or $100,000 for a line of credit. Just make sure you aren’t within the industries OnDeck doesn’t serve, or you’ll find yourself out of luck.

    OnDeck Disclosure

    *There are some industries we cannot serve (see list of restricted industries), as well as some industries and states impacted by the Coronavirus to which we are temporarily not lending. In addition, OnDeck does not lend to businesses in Nevada, North Dakota or South Dakota. OnDeck is no longer accepting new Paycheck Protection Program (PPP) loan applications. Registration terms and conditions apply. Instant Funding registration and withdrawals are currently supported from your desktop and the OnDeck mobile website. They are not currently supported in the OnDeck mobile app. Occasionally, transfer may take up to 30 minutes to complete due to potential Visa & bank processing lags. This benefit is available at no additional cost with a vast majority of major banks participating. Instant Funding is available for transactions between $1K-$10K.

    Best for SBA loans – Funding Circle

    Funding Circle isn’t for the new kid on the block, but if you’ve got two years of business and $150,000 annual revenue, you could benefit from these low rates.

    APR Range
    Loan Amount
    3 months–10 years
    3.6 / 5.0
    SimpleScore Funding Circle 3.6
    Max APR 5
    Loan Amount 4
    Product Variety 1
    Resources 5
    Fees 3

    This is an SBA loan that’s best for businesses with at least two years of operations under their belt.

    Funding Circle is a peer-to-peer lender that offers a different take on the average business loan. Choose from Paycheck Protection Program loans, or opt for an SBA 7 loan that can give you up to $5 million in funds backed by the Small Business Administration. It’s no chump change when you need funds for your growing business.

    Best for invoice factoring – BlueVine

    Skip the fees and benefit from quick cash, but be ready to pay it back ASAP.

    APR Range
    Loan Amount
    Up to $5 million
    1 fee
    N/A / 5.0
    SimpleScore BlueVine N/A
    Max APR N/A
    Loan Amount N/A
    Product Variety N/A
    Resources N/A
    Fees N/A

    Bluevine is a great option for new businesses to get a small loan but beware of high rates.

    BlueVine not only gives you quick access to funds, but it also offers a fully online application process for added convenience. You only have to be in operation for three to six months, an eligibility requirement not commonly seen among most lenders. Businesses can secure an invoice factoring loan that extends up to 90% of the outstanding invoices — meaning your business can get paid without waiting 30–45 days for customers to pay.

    Note: BlueVine is only offering Paycheck Protection Loans to businesses at the moment and is not originating term loans.

    Best for veterans – StreetShares

    If you have stellar sales in your first six months of business, your new business could be eligible for up to $100,000 from StreetShares.

    APR Range
    Loan Amount
    3 months–3 years
    4 / 5.0
    SimpleScore StreetShares 4
    APR 4
    Max Credit Line Amount 5
    Draw Period 4
    Resources 5
    Fees 2

    This peer-to-peer lender won’t give you the higher loan amounts of other lenders, but its flexible eligibility requirements and attractive APRs make it a great choice for veteran business owners needing funding in one to five days. Requirements are flexible, with $25,000 for businesses of one year or $100,000 if you have just six months of operation.

    Note: Street Share is only offering Paycheck Protection Loans to businesses at the moment and is not originating term loans.


    What is a bad credit business loan?

    When you have a low credit score, it can be tough to qualify for a business loan when you need one. When lenders see a low credit score, they assume that you have difficulty repaying what you borrow. Bad credit business loan providers extend funding to businesses that have bad credit or to business owners with bad credit, despite the credit history of the borrower. You may see higher interest rates on long-term and short-term bad credit business loans, but it’s the price you pay.

    However, if you pay back the loan on time with no missed payments, your credit score will improve and you may be eligible for better loans in the future.

    How do bad credit business loans work?

    When you need extra capital for your business, a bad credit business loan could be the right solution for you. However, a business can easily do some damage to your credit score, and you may find yourself with worse credit than you would like when you need to take out that loan.

    When you apply for a loan, a lender will use your credit score and credit history to determine how likely you are to repay what you borrow. You are considered a “high risk” candidate when you have a low credit score and inconsistent payment history.

    Every lender is different with its borrowing requirements. The use of a co-signer or collateral can help increase your chances of approval and earn you more favorable terms on your bad credit business loan. Business owners with bad credit are more common than you might think, and it is big business to give these business owners a loan.

    [Read more: Small Businesses Can Apply For PPP Loans Again Thanks to a Second Round of Funding]

    SBA loans

    The Small Business Administration (SBA) is a government agency that oversees the loans given to small business owners. While the SBA does not lend directly to companies, it does set regulatory guidelines and works with lenders to provide small business owners with options when they need extra funds. By guaranteeing loans, lenders feel more secure in issuing loans to business owners who may or may not be able to pay them back. SBA loans usually carry more favorable terms than the traditional loan with better rates and lower fees, and there can be lower down payments and sometimes even no collateral. There is also additional support available in the form of counseling and educational resources.

    Credit scores

    There is a big difference between your personal credit score and your business credit score. It is possible to be a business owner with excellent credit and have a business with bad credit. These are considered two separate entities because while a personal credit score is a reflection of your creditworthiness, your company’s credit score is based on your business’ ability to repay its debts. If your company fails to make its other payments on time, lenders have little faith that it will repay them, too.

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    How to choose the best bad credit business loan for your business

    1. Check your credit report. It’s always a good idea to check your credit score, so you know where you stand before you apply for a loan. This way, you don’t risk further damage to your score and don’t waste your time on loans that definitely will not work for you.
    2. Shop different lenders. There are many different lenders out there that you can choose from, but not all of them may be the right fit for you. Some bad credit business loan providers may be better suited toward certain borrowers than others. There are also specific lenders that are better suited for particular types of borrowers — for example, StreetShares has special incentives for members of the military.
    3. Use collateral. Collateral can be a great way to become approved and gain better rates on your loan. You should not use personal assets like your home, which can be lost if you default on your loan for any reason. Instead, you should consider using assets from your business, such as equipment or savings accounts.
    4. Consider a cosigner. If you do not have collateral, you may also want to consider using a cosigner who can guarantee the loan. Find someone that you trust who has a good credit score and is willing to support the loan. This can significantly improve your chances of approval and earn you a far better rate.

    Bad credit business loan FAQs

    You might be able to get a business loan even if your business is still new. Many lenders, such as a few of the ones included here, will still offer you a loan if you are able to meet the eligibility requirements. Most banks require a certain minimum amount of sales each month and require that you have been in business for about a year, although we certainly see more and less. A cosigner or collateral are also great ways to show the lender that you have alternate ways to guarantee your loan.

    If you know that you will need a loan soon, you should pay any outstanding credit card balances as much as possible. If the lender sees that you have too much debt, you could be rejected for the loan. You can ask family or trusted friends if you can be added to their accounts as an authorized user, so you can piggy-back off their good financial habits.

    There are a few options that may work for you if you are having trouble getting approved for a loan because of bad credit. A business credit card is one of the most traditional methods of financing, but it may not work for you if you are looking for a larger loan. There are also short-term loans, but these usually need to be repaid quickly. Finally, there are short-term lines of credit, which work on a revolving basis to steadily provide you with funds over an extended period of time.

    We welcome your feedback on this article and would love to hear about your experience with the business loans we recommend. Contact us at with comments or questions.



    We’ve created the SimpleScore to help you objectively compare products and services here at The Simple Dollar.

    Our editorial team:

    • Identifies five factors to compare across each brand
    • Determines the rating criteria for each factor
    • Calculate an average of those five factor scores to get one SimpleScore™

    We break down each of these five factors and their rating criteria for our review of the best auto loan companies of 2020.


    Why do some brands have different SimpleScore on different pages?

    Some brands offer a variety of financial products, which is why they have different SimpleScores on different pages. We rate individual products that brands offer — not the brand as a whole. 

    For instance, in our American Express personal loans review we rated the company a 4.25 out of 5 based on rates, loan amount, customer satisfaction, customer support and fees. In our review of the best small business loan rates, American Express earned a 3.4 out of 5 SimpleScore based on its business loan product. By tailoring our SimpleScore to each financial solution, we’re able to give you a more accurate view of each brands’ services and how they compare to competitors’ products.

    Median APR

    Lenders with a lower median APR are awarded higher scores — because even if you’re APR is average, your business is not.

    Maximum loan size

    Lenders that dole out loans with high maximums are also rewarded with higher scores. It takes money to run a business, and businesses need access to as much capital as it takes.

    Product variety

    Need more than just a business loan? Lenders that offer more than one type of financial product for businesses score higher than others that don’t.

    Educational Resources

    We gave out higher scores to lenders that have the following subjects covered in their blogs: loans, marketing, employee and staff, and credit or finance resources.


    Fees can add up fast and eat into operating costs –– that’s why we give a higher score to lenders that have fewer fees.

    Lena Borrelli

    Contributing Writer

    Lena Borrelli is a Tampa-based freelance writer who has worked with leading industry titans, such as Morgan Stanley, Wells Fargo, and Simon Corporation. Her work has most recently been published on sites like TIME, ADT, Fiscal Tiger, Bankrate and Home Advisor, as well as many other websites and blogs around the world.

    Reviewed by

    • Courtney Mihocik
      Courtney Mihocik
      Loans Editor

      Courtney Mihocik is an editor at The Simple Dollar who specializes in personal loans, student loans, auto loans, and debt consolidation loans. She is a former writer and contributing editor to,, and elsewhere.