Home › Funding guides › Business Loans for Bad Credit

Business Loans for Bad Credit

Dated October 14, 2026

Business loans for bad credit are financing options for owners whose credit score keeps them from qualifying for a traditional bank loan. Instead of relying mainly on your score, these lenders put more weight on how your business is doing now, such as its revenue, cash flow, and time in business.

Why bad credit doesn't always mean no

Banks lean heavily on credit scores. Many alternative lenders look at other things, including:

• Steady deposits in your business bank account
• How long you've been operating
• Unpaid invoices from customers
• Card sales volume
• Equipment or other assets the financing would be tied to

Options owners with bad credit often look at

• Merchant cash advance. It's repaid from future card sales.
• Invoice factoring. It's based on your customers' credit, not yours.
• Equipment financing. The equipment itself secures the financing.
• Short-term working capital loan. Approval leans on recent revenue.
• Secured business loan. It's backed by collateral.

Ways to improve your chances

• Have recent business bank statements ready.
• Know your monthly revenue and existing debt.
• Clear up any errors on your credit report.
• Be clear about what the money is for.

Start with the free check