A weaker credit profile narrows your financing options and raises your cost — but it doesn’t shut every door. The trick is to focus on the products that lean less on your credit score and more on other strengths, like revenue or collateral, and to take a few steps that widen your choices over time.
How credit affects your options
Credit is one of several things lenders weigh, and how much it matters depends on the product. An unsecured bank loan leans heavily on credit; a loan backed by an asset or by your sales leans less. So with weaker credit, you’re not out of options — you’re steered toward the options that care about something other than your score.
Realistic options with weaker credit
Secured financing
- Equipment financing — the equipment is the collateral, so approval rests largely on the asset and your ability to repay.
- Invoice factoring — approval leans on your customers’ credit, since you’re selling unpaid invoices.
Revenue-based online lenders
Some online lenders weigh your recent sales more than your credit score. They can be more accessible — but read the cost carefully, and steer clear of the most expensive products.
Community lenders and microloans
Mission-driven CDFIs and SBA microloan intermediaries are built to serve businesses that banks turn away, and they’re often more flexible on credit.
Watch the cost, not just the approval
When credit is weak, the easiest “yes” is often the most expensive — especially merchant cash advances. A fast approval can cost far more than waiting and strengthening your file. Compare the total cost, and see our merchant cash advance guide before signing anything.
How to improve your odds
- Lead with revenue and collateral — give the lender something concrete.
- Keep clean, organized financials — recent bank statements and statements signal reliability.
- Check your credit reports and fix errors; lower your utilization over time.
- Consider a co-signer or secured product if it unlocks better terms.
Our guide to business credit score basics explains what’s actually being measured.
How to compare
Look at a few options side by side, and weigh the total cost, not just whether you’re approved.
Providers that work with a range of credit profiles. Listed alphabetically — not ranked.
| Provider | Type | Often suits | Visit |
|---|---|---|---|
| Fora Financial Working-capital financing for businesses with revenue but thinner credit history. | Online lender | Fast working capital | Visit Fora Financial (opens in a new tab) |
| Lendio A free marketplace that matches one application to 75+ small-business lenders. | Marketplace | Comparing many lenders at once | Visit Lendio (opens in a new tab) |
The bottom line
Bad credit limits your choices and raises your price, but financing is still within reach — usually through secured or revenue-based options and community lenders. Lead with your strengths, avoid the most expensive “easy” money, and keep improving your file so your options widen. Confirm current terms directly with any provider.
Frequently asked questions
- Can I get a business loan with bad credit?
- Often yes, but with fewer options and a higher cost. Lenders offset weaker credit by leaning on other strengths — your revenue, collateral, or unpaid invoices. Secured options like equipment financing and invoice factoring, plus some revenue-based online lenders and community lenders, are the most realistic paths.
- What credit score is too low for a business loan?
- There's no single cutoff — each lender sets its own. Lower scores narrow your choices and tend to raise your cost, but they rarely close every door. Options that rely on collateral or revenue care less about your score than an unsecured bank loan does.
- How can I improve my odds with bad credit?
- Strengthen what a lender can see: show steady revenue, offer collateral, keep your financials organized, and consider a secured product. Fixing errors on your credit reports and lowering your credit utilization over time also helps.
Sources
Loan programs, rates, and eligibility change. We re-check sources on the “updated” date, but always confirm current terms directly with a provider.