How to Get Business Funding with Bad Credit (No Fluff, Just Real Options)
Published by Speed Credit
Table of Contents
- Can You Really Get Funded with Bad Credit?
- Funding Types That Don’t Rely on Personal Credit
- Top Business Funding Sources for Bad Credit
- How to Increase Your Approval Odds (Even With Low Scores)
- Scam Alert: Funding Offers That Aren’t What They Seem
- Next Up: Business Credit vs. Personal Credit—What Really Matters
Can You Really Get Funded with Bad Credit?
Short answer? Yes. You absolutely can. While bad credit may shut the door on traditional banks, there are other legit ways to get the cash flow your business needs—without sky-high interest or shady lenders. You just need to know **where to look** and **how to apply smart**.
Funding Types That Don’t Rely on Personal Credit
- Revenue-Based Financing – Funders look at how much your business earns, not your credit score.
- Invoice Factoring – Get paid upfront on outstanding invoices (great for B2B).
- Merchant Cash Advances – Funding based on your daily card sales (fast but expensive).
- Microloans – Small loans (under $50k) from mission-driven orgs.
- Grants – Free money, no credit check required.
Top Business Funding Sources for Bad Credit
1. Fundbox
Revenue-based lines of credit up to $150K. Simple app, no hard credit pull. Must have 6+ months of revenue history.
2. BlueVine
Up to $250K line of credit. Looks at business performance, not just credit. Flexible repayment options.
3. Kiva
0% interest microloans up to $15K—crowdfunded and community-based. Great for early-stage or impact-driven businesses.
4. Credibly
Funding based on time in business and monthly deposits. Requires only 500+ credit score.
5. SBA Microloan Partners
Through community lenders. Local nonprofit lenders may offer more flexible underwriting than banks.
How to Increase Your Approval Odds (Even With Low Scores)
- Show consistent monthly business revenue
- Have a business bank account in good standing
- Limit recent overdrafts or NSFs
- Keep personal and business finances separate
- Get EIN + register your business formally (LLC, S-Corp)
And always be ready with a short pitch: what your business does, what the funding will be used for, and how you’ll repay it.
Scam Alert: Funding Offers That Aren’t What They Seem
- “Guaranteed Approval” loans – Big red flag. No lender guarantees legit funding without verification.
- Upfront fees over $100 – Be cautious. Most real lenders don’t charge big fees until after approval.
- Wire transfers or gift cards – Major scam alert. Legit lenders don’t operate this way.
Pro Tip: Always check if a lender is registered with the Better Business Bureau and read reviews on sites like Trustpilot.
Next Up: Business Credit vs. Personal Credit—What Really Matters
Confused about how your personal and business credit work together (or don’t)? Next, we’ll break down the differences and when each matters most in Business Credit vs. Personal Credit: What Really Matters.
