Can you get a business loan with bad credit?

Yes, but the options narrow and the cost rises. Almost 45% of applicants to TopFunders.ai put their credit below 600, so you are not unusual. No one can tell you your approval odds from a score alone. Low credit usually arrives with low revenue, and the combination decides what is realistic.

What applicants with credit under 600 report

Based on more than 1,000 funding applications to TopFunders.ai, here is the profile of applicants who place their own credit below 600:

The first line is the one that matters. Across all applicants, 53.4% report under $10,000 a month. Among those with credit under 600, it is 60.8%. Low credit and low revenue tend to come together, and lenders read them together. A 580 score with $40,000 a month in deposits is a very different application from a 580 score with $6,000.

What is the easiest business loan to get approved for?

We do not publish approval odds, and no honest source can give you yours from a score. What we can tell you is which products typically ask the least of your credit, and what that costs.

Revenue-based financing and merchant cash advances typically have the loosest credit requirements, because they are repaid from your sales rather than underwritten on your credit history. They are also the most expensive money in business lending: priced in factor rates, they can work out equivalent to 40% to 350% APR. Easy to qualify for and cheap are not the same thing.

Equipment financing is often the most realistic lower-cost route with weak credit, because the equipment secures the loan. The lender's risk sits in the asset as much as in your score. Nearly a third of applicants in this group are borrowing for equipment.

Online term loans are the middle ground. Many online lenders work with scores from around 600, so the 550 to 599 band is at the edge rather than outside it. They typically run 15% to 45% APR.

What you will likely qualify for, and what you will not

Be realistic about where you stand. Many online business lenders look for at least 6 months in business, $10,000 or more in monthly revenue, and a personal credit score of 550 or higher.

Likely within reach if your credit is 550 to 599, you report $10,000 a month or more, and you have been trading at least six months. Online term loans, equipment financing and revenue-based products all consider profiles like this.

Hard to reach if your credit is under 550. That is 29.6% of this group, and it sits below what most of our partners consider. Revenue-based products are usually the only route, and at the price above.

Hard to reach if you report under $10,000 a month. That is most of this group. Most online lenders look for $10,000 a month or more before they will consider an application, and a low score does not make up for it.

Not realistic in most cases: bank term loans and SBA 7(a) loans. Bank lending generally starts around a 680 score, and SBA lenders typically want two or more years in business.

Before you apply anywhere

1. Check your actual score. Applicants choose a range and self-report it. Know the number a lender will see before one pulls it.
2. Lead with revenue if you have it. If your deposits are strong, your application is stronger than your score suggests.
3. Price the money. If the only offer is revenue-based, work out what it costs per dollar borrowed before you sign. What business loans actually cost sets out typical ranges by product.
4. Do not stack applications. Each lender you formally apply to may run a hard inquiry, and several in a short window can lower the score the next lender reads.

How TopFunders.ai fits

TopFunders.ai is not a lender and not a loan broker. We compare what you tell us against what our vetted funding partners will consider, and introduce you to the partners ready to make your business an offer. Which partners you are put in front of is decided using real approvals from businesses like yours. Checking your options doesn't affect your credit, and we never ask for your Social Security number or Tax ID to match you.

Being matched is an introduction, not an approval. The partner reviews your application, sets any amount, rate and terms, and decides whether to fund you. A match is not guaranteed, and with credit under 550 it is less likely. How we match explains the process.

See what your business qualifies for

If your credit is 600 to 649, our fair credit guide covers your band in more detail.

Frequently asked questions

What credit score do I need for a business loan?

There is no single minimum. Most of our funding partners look for 550 or higher. Many online lenders work from around 600, and bank lending generally starts around 680. Revenue and time in business count as much as the score.

Can I get a business loan with a 500 credit score?

It is difficult. A score under 550 sits below what most of our partners consider, and revenue-based financing is usually the only route. It is also the most expensive, so compare the total cost before you accept.

Will checking my options hurt my credit?

No. Checking your options doesn't affect your credit. A lender may run its own check later, but only if you choose to apply with them.

Does bad credit mean I will pay more?

Usually, yes. Lower credit pushes you toward revenue-based products, which can cost the equivalent of 40% to 350% APR. Equipment financing is often cheaper because the equipment secures the loan.

Is my score or my revenue more important?

Both, and together. Among applicants with credit under 600, 60.8% also report under $10,000 a month. A lender weighing a low score will look hard at your deposits.

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Figures in the table are shares of applicants who placed their own credit under 600, from more than 1,000 funding applications to TopFunders.ai. They are self-reported and not verified, and they describe businesses that applied, not businesses that were approved or funded. The overall figures and method are in our small business funding study; this page cuts the same applications to one group. Market rates and requirements are typical ranges, not any lender's published terms.