5 Best Business Loans for Bad Credit in 2021

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Having bad credit can make it challenging to secure a business loan that has reasonable terms and fees. If you are currently struggling with bad credit, hope is not lost. Thankfully, you do have some options available to you that are worth considering. If you’re wondering how this is possible, a lot of it boils down to lenders having a more open mind. Instead of solely focusing on your credit score, lenders are now taking into account more aspects of your business to determine whether you qualify for a loan. In this guide, we’ll show you which lenders offer the best rates and terms for bad credit so you can make the best decision concerning your business loan. Keep in mind that you will have to pay more in interest fees in the long run, but at least you have some viable options.

The 5 Best Business Loans for Bad Credit

Seek Capital 

You read that right -- we’re more than just your friendly neighborhood finance experts, we actually do business financing, too.  Whether it’s for company vehicles, advertising costs, payroll, or just unexpected emergencies, our financial experts right here at Seek Capital can get you funding between $5,000 and $500,000.  It’s always free to apply, no collateral is required, and we even fund start up businesses who haven’t even had their first tax return yet. Best of all, seeing your funding options and getting pre-approved only takes a couple of minutes, and it won’t affect your credit score.  We know that whether it’s bad credit, unexpected expenses, or just trying to get your business off the ground, business funding is tough to get, so we’re here to use our financial expertise to help business owners like you get the funding you need. Possibly best of all, we’re here for before you even fill out an application. Seek Capital also offers business services such as business plan creation to get you ready not just for funding application, but to help set you up for success long after you’ve gotten those funds direct deposited.  Ready to get started? Apply online now by clicking here , or you can apply by phone at (844) 374-3550.


Lendio works with a network of bad credit lenders to help you find a reasonable loan for your business. They are notable for considering low credit scores and may be able to help you secure the finances you need. What’s more, they have many types of loans available, ranging from short- to long-term. They can also help you with opening a line of credit or getting a merchant cash advance.  Since Lendio has so many lenders in its network, credit scores as low as 550 may be accepted. Requirements vary from lender to lender, but Lendio’s services are free, so the only thing it will cost you is your time. Lendio lets you compare rates from several lenders, too, so you can clearly see which one is the best for your budget. If you are approved for a short-term loan with Lendio, it’s usually for less than a year. As such, you will need to make repayments on your loan either every day or every week.  If you are unable to make payments this often, a longer-term loan will serve to let you spread out your repayments to either weekly or monthly. It’s worth noting that whenever you are approved for a loan through Lendio, you don’t have to worry about interest rates. Instead, you are simply charged a flat fee. This might be appealing to some business owners. There are some basic requirements that you will need to meet, however. These include being in business for at least six months, monthly revenue of at least $10,000, and a personal credit score of at least 550.


If your credit score is lower than 550 , you might want to give Fundbox a try. It’s quick and easy to apply with Fundbox to see whether you qualify for a loan, as they rely on algorithms to determine eligibility. Are you a new startup with little time under your belt? All the more reason to look into Fundbox. You just have to show that you have a minimum of two months’ activity with specific accounting software. These include the following brands:

  • QuickBooks Desktop
  • QuickBooks Online
  • FreshBooks Classic
  • FreshBooks New
  • InvoiceASAP
  • SageOne
  • Harvest
  • Kashoo
  • eBillity
  • Jobber
  • Zoho 
  • Xero
  • Clio

If you can’t verify that, you may instead submit three months of business transactions from a business bank account. Business owners with low credit scores will definitely want to check out Fundbox. This company will consider people credit as low as 500. You just need to be able to show that your business will make at least $50,000 a year. You can choose between a business line of credit and net terms. Fundbox’s line of credit works like a credit card. If approved, you will receive a set amount that you can draw from. When you do this, you will get cash that you can use for whatever purposes you see fit. In addition, you only start paying interest on your line of credit when you draw out money from it. Keep in mind, however, that you will need to pay this back in a relatively quick period of time. Fundbox’s line of credit is typically either 12 or 24 weeks. As such, you need to be sure that you only borrow what you know you can pay back in the allotted time. Elsewise, you risk damaging your credit even more. Fundbox’s other option, net terms, might be a better fit for you. This option operates on a business-to-business model (B2B). Transactions that are made get trade credit. As such, Fundbox pays a business and then gets payments from customers later.  This is a good option for businesses that don’t necessarily need cash on hand. You can get the materials and goods you need for your business without having to worry about exchanging money with your lender. The downside to Fundbox is that credit limits are low, as they max out at $100,000. If your business needs dictate that you require more than $100K, you’ll want to look into a different lender.


Credibly has some really easy requirements that you might want to take advantage of if you’re in a tight spot. Unlike some of the competition, Credibly only requires you to have been in business for three to six months. Whether you need working capital, merchant cash advances, or business expansion loans, Credibly is a viable resource that might be able to get you the funding you need.  If you have bad credit, you aren’t out of options. Credibly accepts credit scores as low as 500 and even gives discounts to customers who pay off their loans early. You can potentially secure funding as much as $400,000. If you are approved for a short-term loan, you will be required to make repayments on it either every day or every week. Credibly’s short-term loans are usually less than a year, so you’ll need to be able to pay it off fairly quickly. If this is an issue, you’ll want to see if you qualify for a medium-term loan. This will give you a little more breathing room in terms of when you need to make your repayments. Generally, you will be required to repay your loan either once a week or once a month. Please be aware that Credibly isn’t offered in all states. You will need to show that your business makes at least $15,000 a month to be considered.


LoanBuilder is unique in that they let you customize your business loan. As such, you can make adjustments to your loan after you’ve been approved. This allows you to fine-tune it to where you are satisfied with the terms and rates. You will be able to see what your repayment requirements are as you adjust your loan. This makes it easy to ensure that you get a loan you are comfortable with.  There are a few requirements that you’ll need to meet first to be considered by LoanBuilder. For starters, you will need to have been in business for at least nine months. You will also need to show that your business makes at least $42,000 a year in revenue. And lastly, you must have a personal credit score of 550 or greater.  LoanBuilder is a service of PayPal, so you can trust that you’re getting a loan through a reputable company. Although it’s not ideal for new business startups, LoanBuilder has a commendable model that makes it easy to apply for a loan. It’s worth mentioning that you don’t need a PayPal account to take advantage of LoanBuilder’s services. As long as your business is based in the United States, you are good to go.


If you are struggling to keep your business afloat or you need capital to grow your operation, securing a business loan may provide the financing you need to see your needs through.  Just remember that you can expect to pay higher interest rates and fees based on your lower credit score. To avoid these costly charges, we encourage you to explore ways to improve your credit score . In doing so, you will be able to work with lenders that offer much more reasonable terms and rates.  Here at Seek Capital, we specialize in helping small business owners secure funding to improve their businesses. Once you have built your credit up, we invite you to contact our specialists. We will be happy to assist you in your future endeavors.  In the meantime, please be sure to explore our extensive articles catalog . There, you will find a compilation of our recommendations and advice for business owners. From starting a business to accounting practices, we have you covered. If you have a question about something that isn’t mentioned in one of our articles, please feel free to contact us at any time. We would love to help you in any way that we can! Sources https://www.lendio.com/ https://fundbox.com/ https://www.credibly.com/

Did You Know?
We've funded over $400 million for small business owners since 2015