Business Loan Poor Credit: Top 8 Lenders to Consider
If you have poor credit and need a business loan, there are several options available to you. Here are some of the best business loans for bad credit:
- Fora Financial – Online term loan
- OnDeck – Online term loan
- Fundbox – Line of credit
- Bluevine – Line of credit
- Accion – Business loans
- Triton Capital – Equipment financing
- Working capital loan
These loans are offered by various lenders and have different requirements, such as minimum credit score and maximum loan amount. Some lenders may also require collateral or a personal guarantee. It’s important to evaluate each loan option carefully and compare interest rates and fees before making a decision. Other types of business financing that may be more accessible to less creditworthy applicants include merchant cash advances and invoice factoring. Additionally, pledging a cash down payment, providing collateral or assets, signing a personal guarantee, or finding a business partner with good credit who can serve as a co-signer can also increase your chances of securing a bad credit business loan.
Understanding Poor Credit Business Loans
A poor credit business loan is essentially a business loan designed for companies or individuals with a low credit rating or a history of bad credit. These loans are a type of alternative finance solution, meant for businesses struggling to secure funding from traditional sources due to their credit history.
“A poor credit business loan is a second chance for businesses, providing them with the financial boost they need to overcome their challenges and achieve their goals.”
Business Loan Types
- Business Equipment Financing: Designed for businesses needing equipment to start or expand their operations.
- Cash Flow Loan: Helps businesses maintain steady cash flow during lean periods.
- Commercial Mortgage: Useful for businesses looking to purchase commercial property.
- Emergency Business Loan: A quick source of funds during financial crises.
what are the typical interest rates for bad credit business loans
Interest rates for bad credit business loans can vary widely based on the lender, the market, and your credit profile. According to, interest rates on bad credit business loans commonly range from 25.00 percent and upward, though it depends on your exact credit risk. The maximum interest rates for bad credit business loans run anywhere from 25.00 percent to 99.00 percent. According to, borrowers with challenged credit can expect low interest rates ranging from 2% to 5% on a term loan. However, this is only true for “stellar” credit. Lenders use your credit score as a measure of creditworthiness — the lower the score, the higher the risk. As a result, business loans for bad credit tend to be more expensive, though shopping around may help you secure a reasonable rate.
The Credit Checking Question
Do business loans check personal credit? The answer is yes. Traditional lenders usually review your personal credit history when you apply for a business loan, especially if your business is new or doesn’t have a robust credit profile yet. However, at SME Loans, we understand that your personal credit history doesn’t define your business’s potential. We offer bad credit business loans specifically for entrepreneurs who’ve struggled with poor personal credit.
Starting a Business with Poor Credit
Can you start a business with poor personal credit? Absolutely! A startup business loan can serve as a lifeline for entrepreneurs with less-than-perfect credit. Even if you have a County Court Judgement (CCJ), you can still access business loans for CCJs. At SME Loans, we look at more than just your credit score when assessing your application, including your business plan, current financial situation, and growth potential.
Business Credit Score: The Bottom Line
What is the lowest business credit score? The answer depends on the credit scoring model used. However, typically, business credit scores range from 0 to 100, with scores below 50 often considered high risk by traditional lenders. Thankfully, alternative lenders like SME Loans and JPM Capital offer business loans for poor credit, providing you with the funds you need to grow your business.
In the world of business, having a low credit score is not a dead end. With alternative finance options like SMELoans and JPM Capital, you can find the financial resources you need to navigate your business to success. Whether you’re dealing with CCJs or a poor credit score, don’t let these hurdles deter you from reaching your business goals.
1. Do business loans check personal credit?
Yes, most lenders do check personal credit, especially if your business is new or doesn’t have a strong credit profile yet. However, there are lenders like SME Loans who offer alternatives for those with poor credit.
2. Can I get a start-up loan with a CCJ?
Yes, it is possible. SME Loans and JPM Capital offer specific loan products for businesses or individuals with a CCJ.
3. Can you start a business with poor personal credit?
Absolutely. There are many finance options for entrepreneurs with poor credit. It’s important to research and find the right lender, like SME Loans, that understands your situation and can offer a tailored solution.
4. What is the lowest business credit score?
Business credit scores typically range from 0 to 100. Scores below 50 are often considered high-risk by traditional lenders. However, alternative lenders are more flexible and consider more than just your credit score.
For more useful information on business financing, check out our blogs. If you are into specific sectors like commercial fishing or construction, consider our commercial fishing loans or construction finance pages.
In the challenging business world, a poor credit score doesn’t have to spell the end of your dreams. With the right financial partner, you can build a successful future for your business.