Have A Low Credit Score? Compare the Best Bad Credit Loans Online.

Many hardworking business owners have a low credit score for reasons beyond their control.  For this reason, Upwise Capital offers the best bad credit business loan solutions to grow your small business. We help those with less than perfect credit history and understand the challenges of running a business.Â
What is a Bad Credit Business Loan? ​
A bad credit business loan is a type of loan typically accessed by borrowers with lower than a 600 FICO credit score. There are a number of products your business may qualify, depending on how low your credit score actually is and what the reason is for it dropping.  A popular funding choice for those business owners with low credit, is the merchant cash advance (MCA). With this product, you are advanced cash for a percentage of your monthly revenue. Bad credit business loans can be a quick and easy way to get capital with no need for collateral. They are designed to provide enough cash flow to expand, keep your business running, pay off existing debts or cover expenses. The amount and repayment structure are specifically chosen to make the loan easy to pay back. Â
Business Loan with Bad Credit Details
$5K - $5M
3 - 18 Months
1.10 - 1.45
As Fast As Same Day
Bad Credit Loan Pros vs Cons
PROS
- Weekly & Monthly Payments
- Only Pay Interest on the Funds you Draw
- Capital is Available Whenever You Need It
- Suitable for a wide range of business purposes
- Excellent Way to Help Build Your Credit Score
- Save on Interest by Paying Back Early
CONS
- May Need to Provide Updated Documents Before Each Draw
- Higher Rates for Lower Credit Scores
- Can Require Collateral or Personal Guarantee
- Must have 1+ Years in Business
- No More Than 3 Negative Days in your Bank Account
- Lower Approval Amounts When Compared to Other Products
Can you get a business loan with bad credit?
The short answer is yes. It’s definitely possible to get a business loan with a low credit score. In addition to your FICO score, the 2 major factors depend on the product you’re applying for, and the lender you apply with.  Each lender has different qualifications, however here’s a few things you can guarantee each one will consider when reviewing your file:Â
- Your Monthly & Annual Revenue
- Time in Business (TIB)
- The Business Cash Flow & Debt
- What Industry You Are In
It’s important to remember, a bad credit business loans direct lender will also look into the reason your score has dropped.  If you’ve recently defaulted on another loan or filed for a bankruptcy then this may influence their decision to not approve your loan.Â
Who Qualifies for a Bad Credit Business Loan?
Anyone with low credit score can apply for a bad credit business loan. As long as your business has a steady cash flow, a poor credit score should not prevent you from getting approved. If your small business has strong sales, this can help to decrease the effect that bad credit has on the loans terms and cost. Â
A common use for bad credit business loans are to pay off existing debts. There are many lenders who do not allow you to use the funds to pay off existing debts, so this is a huge advantage.Â
Small Business Loans with Bad Credit Requirements
Over $100K
Over 500+
6+ Months
Positive Payment History
* Note: These requirements are based on previous Upwise customers and is just an average.
What do Bad Credit Business Loans Cost?
Bad Credit business loans are paid off quickly, most likely with daily or weekly payments.
Where you source the capital, will determine your cost. Make the Wise decision with Upwise. Â
These loans also often come with factor rates instead of interest rates: a factor rate is a number that, when multiplied by your total loan amount, tells you how much you’ll be paying back.
A factor rate is a set cost of capital of the given term approved by the short term loan lender such as Upwise.
See the below example of a sample Upwise short term advance. Â
Bad Credit Short-Term Business Loans & Factor Rates
Some lenders will structure the contract as a purchase and sale of your future receivables.. Â
Say you’ve taken out a $100K short-term business loan and the Upwise offer has a 1. 18 factor rate.
1.18 multiplied by $100K will determine the total amount you’ll need to pay back to maturity = $118K.
For this specific customer, underwriting approved this file for a 12 month term, which is a common approved term amongst small business owners searching for short term business loans.
Given that there are 21 payment days or business days in a month, since payments are taken Monday through Friday, never on weekends or holidays. That equals 252 payments per year on a daily payment program.Â
To calculate your payment, divide the number of payments (252) by the total payback to maturity $118k.
The amount of each of those business day payments would be $486.25. Â
Payments are broken down into micro daily or weekly payments. You’re paying a higher rate than a longer term loan for the quick and easy approval and funding process.
If you wish to begin preparing your Bad Credit Business Loan application, you can click the link below to start the application or reach out to one of our funding advisors at (646) 837-5522 or email [email protected] to get started.Â
How to get a Business Loan with Bad Credit
We make it easy, simply apply online and we’ll be in touch to go over your options.


Safe & Secure
Documents You'll Need to Apply
- Completed Application
- Driver’s License
- Voided Business Check
- Business Bank Statements (Last 6 Months)
- Credit Score
You may also be requested to provide the following for larger dollar amounts over $100K:
- Balance sheet
- Profit & Loss Statements
- Business Tax Returns
- Personal Tax Returns
- Account Receivables Report (if securing AR)
- Inventory List (if securing inventory)
*See above for small business loan with bad credit requirements.Â
Bad Credit Business Loans

Unlike traditional products, business loans for those with bad credit are structured so you can make all your payments on time, without putting too much stress on your cash flow.