Bad Credit Business Loans
- Less than perfect credit history, no problem.
- Finance expenses, purchases, improvements, upgrades & more.
- You can gain quick access to capital with little documentation.
Take advantage of an 85% approval rate - act now!
What is a Bad Credit Business Loan?
The simple answer is yes. 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 for, depending on how low your credit score actually is and what the reason is for it dropping. Â
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
3 - 18 Months
As Fast As Same Day
$5K - $20M
1.10 - 1.45
Bad Credit Pros vs Cons
PROS
Only Pay Interest on the Funds you Draw
Capital is Available Whenever You Need It
Save on Interest by Paying Back Early
CONS
Need to Provide Updated Documents Before Each Draw
Higher Rates for Lower Credit Scores
No More Than 3 Negative Days in your Bank Account
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:
- 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.
Types of Business Loans for Bad Credit
There are various types of bad credit business loans available to entrepreneurs, providing opportunities for those with less-than-perfect credit histories. One option is bad credit business start-up loans, which are designed specifically to assist new ventures with limited credit history or a low credit score. These loans offer capital to help cover initial expenses, such as equipment, inventory, or marketing efforts, giving entrepreneurs a chance to establish and grow their businesses.
Another type of bad credit business loan is a bad credit business line of credit. This form of financing provides a revolving credit line that business owners can tap into as needed. It offers flexibility and convenience, allowing businesses to access funds for various purposes, such as managing cash flow, purchasing inventory, or covering unexpected expenses. Despite having poor credit, entrepreneurs can still secure a line of credit to support their ongoing operational needs.
Business acquisition loans for bad credit are specifically tailored to entrepreneurs with less-than-ideal credit scores who are looking to acquire an existing business. These loans provide the necessary financing to facilitate the purchase of a business, enabling entrepreneurs to take advantage of growth opportunities or enter new markets. Despite having a poor credit history, entrepreneurs can still access the funding they need to pursue their acquisition goals. These business acquisition loans for bad credit may come with specific terms and conditions, but they offer a viable solution for individuals with bad credit who are determined to make strategic purchases and drive their entrepreneurial ambitions forward.
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 500+
positive payment history
over $100K
6+ months
* Note: These bad credit small business loans are based on previous Upwise customers and is just an average.
Don't let bad credit hold you back. Reach out to us now and unlock your business's full potential.
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
Apply for a Business Loan with Bad Credit.
- Don't let outstanding invoices hold you back.
- Tired of waiting for customers to pay? Get a boost!
- Upwise A/R Financing can provide you with instant liquidity.
Stop waiting for payments - take advantage today!
Document You'll Need to Apply
Driver’s License
Voided Business Check
Business Bank Statements (Last 4 Months)
Account Receivables Report for net 90 days
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
In the realm of small business ownership, unforeseen obstacles are bound to arise, regardless of thorough planning. The capacity to adapt quickly and discover prompt resolutions can be the decisive factor between flourishing and falling behind competitors.
With our low credit score business loans, time is of the essence. We offer a swift response, delivering the necessary financing within just 24 hours. Seize the moment and ensure that time and opportunities do not slip away – take immediate action to secure the financial support that will sustain the growth and success of your business.
Why Upwise for Bad Credit Business Loans
Quick & easy application
Our simple 15-minute application gets you on your way to funding quickly. Most applicants receive a fast decision within hours of applying. Then just choose your loan terms and you could have funds deposited into your account as soon as 24 hours.
Ensure you make the wise choice
Every Upwise applicant gets a dedicated funding advisor who takes the time to understand your business and it's unique needs. We are here for your support throughout the entire funding process.
Access multiple financing options
Upwise has an extensive product suite and a network of 100+ lenders. This means you're more likely to find the best match for your funding needs.
