How to get business funding with bad credit
Under 600? Here is what still approves, what it costs, and the 90-day plan that moves you into cheaper products.
Updated September 2026.
What approves under 600
| Product | Realistic floor | Why they say yes |
|---|---|---|
| Revenue-based advance | ~500 | underwritten on deposits, not credit |
| Equipment financing | ~550 with 10–20% down | the equipment is collateral |
| Invoice factoring | your credit barely matters | underwritten on your customers |
| Secured business card or line | any, with a deposit | your cash is the collateral |
| CDFI / microloan | 550–600 | mission lenders, human underwriting |
| Personal loan with a cosigner | depends on cosigner | not business credit at all |
What does not approve
SBA loans, bank lines, and most online term loans. Do not burn hard inquiries applying; the decline is predictable.
Price it honestly
Bad-credit products are expensive because the funder is taking the risk your score describes. A 1.40 factor advance is roughly a 120% APR. That can still be rational for a fast, certain return; it is never rational for covering a structural loss. Run any quote through the advance calculator first.
The 90-day plan
- Pull all three personal reports (free at annualcreditreport.com) and dispute errors. Errors are common and fixes are fast.
- Pay revolving balances below 30% utilization. This is the fastest legitimate score lift.
- Open a business bank account if you have not, and stop overdrafts completely. Funders read six months of statements.
- Get one secured or starter business card that reports to business bureaus.
- Take the smallest advance or equipment loan that solves a real problem, and pay it flawlessly. Many funders re-offer better terms after one clean cycle.
- At day 90, re-run the match. A 40–60 point improvement often moves you from advances into lines of credit.
Red flags in the bad-credit market
Upfront “processing” fees, guaranteed approval, and lenders who will not put the payoff amount in writing. See how to spot funding scams.
Frequently asked questions
What is the minimum credit score for a business loan?
There is no single number. Banks and SBA lenders generally want 680+. Online term lenders start around 600–620. Revenue-based advances and equipment lenders approve at 500–550 when deposits or collateral are strong.
Does business credit help if my personal credit is bad?
Somewhat. A strong business credit file (Dun and Bradstreet, Experian Business) helps with vendor terms and some lenders, but almost every small-business lender still checks the owner’s personal score and requires a personal guarantee.