Bad credit doesn’t mean your business dreams are over. In 2025, there are legit lenders that offer small business loans for bad credit, even with scores as low as 500. Let’s break down how to get funded — fast.
Can You Really Get a Business Loan with Bad Credit?
Yes — but you’ll need to:
- Show strong business cash flow
- Offer collateral (sometimes)
- Accept higher interest rates
- Consider non-traditional lenders
Top 9 Small Business Loans for Bad Credit (2025)
1. Fundbox
- Min credit score: 600
- Loan type: Line of credit
- Decision in minutes
- Draw what you need, only pay for what you use
Best for: Fast access to working capital
2. BlueVine
- Credit score: 625+
- Up to $250K in lines of credit
- Funding in 24 hrs
- No prepayment penalties
Best for: Businesses with steady revenue
3. Lendio
- Marketplace of 75+ lenders
- Accepts scores as low as 500
- Loan types: Term, line of credit, SBA
- One application, many offers
Best for: Comparing multiple bad-credit loan options
4. Credibly
- Score: 500+
- Daily or weekly repayment
- Up to $400K
- Minimum 6 months in business
Best for: High-volume businesses like restaurants or salons
5. OnDeck
- Score: 625+
- Same-day funding
- Loans + lines of credit
- Reports to business credit bureaus
Best for: Building business credit while borrowing
6. Torro
- No hard credit pull
- Works with poor credit
- Focus on monthly revenue
- Fast approval, lenient underwriting
Best for: Online-based or e-commerce businesses
7. PayPal Working Capital
- No credit check
- Based on PayPal sales
- Auto-repay from daily sales
- One fixed fee
Best for: PayPal merchants with low credit
8. Shopify Capital
- Invite-only
- Repayment via % of daily sales
- Zero credit check
- Great for Shopify stores
Best for: E-commerce with Shopify
9. SBA Microloans (via nonprofits)
- Credit score flexible
- Loans up to $50,000
- Community-based lenders
- Low interest and long terms
Best for: Startups and underserved founders
Tips to Boost Your Loan Approval Odds
- Separate personal and business credit
- Show bank statements and revenue
- Pay down existing debts
- Add a co-signer or collateral
- Apply during high-revenue months
Final Thoughts
Even with bad credit, your business can get funded in 2025. Choose lenders that work with low scores, present strong revenue docs, and apply smart. A small loan now can unlock big moves later.