Best Business Loans For Bad Credit & 8 Tips To Ensure That You Get The Capital Your Business Needs


Best Business Loans For Bad Credit & 8 Tips To Ensure That You Get The Capital Your Business Needs

Small business loan assistance possible

Finding business loans for bad credit (i.e. credit score of 619 or below) seems close to impossible, without robbing a bank.

However, as the saying goes, “when there’s a will there’s a way”, and there are countless, legitimate ways to build a successful enterprise without the headache of hiring an accountant or being turned away from various banks. Therefore, to help entrepreneurs who are feeling demoralized, we will be giving you all a few tips on how to build your business, despite your bad credit.

Apply For a Loan:


Minimum credit score: 600

Established in 2006, OnDeck offers credit, short-term loans, and an SBA PPP loan (Small Business Administration Payment Protection Program) to all eligible business owners. And if you need help choosing your loan, a reliable loan advisor is available 6 days a week to make sure you get a loan that best suits you and your business needs.


Minimum credit score: 600

While a younger loan company than OnDeck, BlueVine (est. 2013) this entrepreneurial lender does well by focusing on small businesses and providing them with $250,000 in credit in as fast as 24 hours, as well as accepting applicants that have been in business for less than a year.

Rapid Finance

Minimum credit score: 550

While not a bank lender, Rapid Finance gives eligible business owners various mediums of capital, including credit, merchant cash advances, and bridge loans ranging from $5,000 to $1 million from the Small Business Administration.

However, receiving this loan, like any loan, comes at a price. In addition to paying off the interest on your debt, you may also be required to pay an origination fee or other fees that add to the cost.


Microlenders are usually non-profit organizations that provide underserved entrepreneurs (personal FICO scores as low as 575) with capital. Loan amounts are not particularly large, with it capping out at several thousand dollars. The U.S. Small Business Administration (SBS) Microloan Program only goes up to $50,000. 

Kiva is a great microlender that deserves to be on this list; it gives business owners in the U.S. 0% interest loans for up to $15,000 credit. However, business owners must crowdfund their loans from the individuals who lend on Kiva’s platform.

What To Do If You’re Denied a Loan:

Improve Your Credit Score

When applying for a loan, make sure your finances look appealing. For those with a bad credit score, you can increase your score by making payments on time, fixing delinquencies, and paying down balances when possible. And if you notice any errors, dispute them, as soon as possible. 

Decrease Loan Amount

You may need to work with a smaller loan than you had anticipated. If it comes to this, rethink your business plan and find areas where you can lessen expenses.

Develop Creative Solutions

One up Kiva and consider asking friends, family members, private investors, and potential customers to invest in your business. There are multiple crowdfunding platforms out there to help you get started: GoFundMe, Kickstarter, and Indiegogo.

Add Business Partners

If you’re a ‘lone wolf’ and aspire to have your own business, then this may not be the option for you. Nonetheless, adding business partners can redeem the creditworthiness of your business, since lenders can then recognize the combined personal income and collateral of all owners.

Apply For Grants:

BIPOC Small Business Grant by Annuity Payment Freedom

Annuity Payment Freedom provides micro-grants and marketing grants to small businesses. The latter helps to bring traffic to small businesses.

 You can apply for this grant at any time, since these grants are awarded on a rolling basis, with winners announced on the last day of each month.

Black Founder Startup Grant

The Black Founder Startup Grant program was established to provide up to $10,000 to black and mulitracial female and non-binary entrepreneurs in need of capital. The program also accepts entrepreneurs with a legally registered business who plan to seek investor financing to scale.

Applications are accepted on a rolling basis.

Women-Owned Small Business (WOSB) Federal Contracting Program

Each year, the federal government awards 5% or more of federal contracting dollars to women-owned small businesses to support female entrepreneurs by providing them with business management training, counseling, federal contracts, and access to credit and capital. The program was developed to equalize the playing field for all women in business.

Business Warrior Small Business Loans

Business Warrior supports those struggling to get access to capital and offers a combined total of $5 million to small business owners. The program will provide between $5,000 to $50,000 in loans without any high rates, so you can put your energy into building your business, rather than paying off your loans.

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