Best Bad Credit Business Loans (2026)

Business loan options for owners with credit scores below 650. Compare lenders that look beyond personal credit.

Written by Harvey Brooks, Senior Financial Editor

TL;DR Quick summary

ROK Financial (500+ FICO) and Fora Financial (570+ FICO) are the most accessible for bad credit borrowers. National Funding offers no-collateral loans. Square doesn't disclose a credit minimum. Expect higher costs — alternative lenders charge more to offset credit risk.

Key Takeaways

ROK Financial accepts 500+ FICO — the lowest published minimum among major lenders
Fora Financial accepts 570+ with soft credit pull only
Merchant cash advances and revenue-based financing focus on sales, not credit score
Equipment financing and invoice factoring use assets as collateral, reducing credit importance
Higher cost of borrowing is the tradeoff for bad credit accessibility

A low personal credit score doesn't have to stop your business from getting funded. Several lenders focus on business performance — revenue, cash flow, and time in business — rather than just your FICO score. We compared lenders with the lowest credit requirements and most flexible underwriting.

ROK Financial

3.2/5

From Free/mo BBB: A Free Consultation

ROK Financial (ROKFI LLC) is a business loan broker based in Great River, NY that connects borrowers with lending partners across 11 financing products including term loans, SBA loans, equipment financing, CRE, and MCA, with a minimum credit score of 500.

11 financing products under one roof — term loans, SBA, LOC, equipment, A/R, PO, MCA, CRE, franchise, startup, and middle market

500 minimum credit score is one of the lowest entry barriers in business lending

Startup funding available with just 6 months in business and $120K annual revenue

Read Full Review Visit ROK Financial

National Funding

3.8/5

From Free/mo BBB: NR Free Consultation

National Funding is a San Diego-based direct lender founded in 1999 that has provided over $4.5 billion to 75,000+ businesses, offering small business loans up to $500K and equipment financing up to $150K with 24-hour funding and no collateral required.

No collateral required on small business loans and no prepayment penalty — pay off early without extra cost

24-hour funding on small business loans for fast access to working capital

Equipment financing with 100% financing, no down payment, and Section 179 tax deduction eligibility

Read Full Review Visit National Funding

Rapid Finance

3.1/5

From Free/mo BBB: A+ Free Consultation

Rapid Finance is a Bethesda, MD-based alternative lender offering term loans ($5K-$1M), merchant cash advances, business lines of credit, SBA loans, bridge loans, invoice factoring, and asset-based lending with fast funding and flexible qualification criteria.

$3B+ funded — established track record in alternative lending

Wide product range covering term loans, MCA, LOC, SBA, factoring, and more

Flexible qualification — considers overall business performance, not just credit score

Read Full Review Visit Rapid Finance

Square Financial Services

4.0/5

From Free/mo BBB: NR

Square Financial Services (Block, Inc.) offers invitation-only business loans from $100 to $350,000 with a flat 10-16% fee, instant funding to Square Checking, and daily repayment tied to card sales. $32B+ funded since 2014.

$32B+ funded since 2014 — one of the largest fintech lenders by volume

Flat 10-16% fee is among the most transparent pricing in business lending

Instant funding to Square Checking account — no waiting for bank transfer

Read Full Review Visit Square Financial Services

Frequently Asked Questions

Can I get a business loan with a 500 credit score?

Yes. ROK Financial accepts 500+ FICO. They look at overall business performance, not just credit score. Expect higher rates and factor costs compared to borrowers with 650+ credit.

What is the easiest business loan to get with bad credit?

Merchant cash advances and revenue-based financing are the easiest to qualify for with bad credit. They focus on daily sales volume rather than credit score. Fora Financial (570+) and ROK Financial (500+) have the lowest stated minimums.

Will a business loan affect my personal credit?

Most alternative lenders use soft credit pulls for pre-qualification (no impact). OnDeck, Fora Financial, and Mulligan all confirm soft pulls only. However, a personal guarantee may appear on your credit if you default.

How can I improve my chances of approval with bad credit?

Focus on demonstrating strong business revenue and cash flow. Provide 3-6 months of bank statements showing consistent deposits. Consider equipment financing (equipment is collateral) or invoice factoring (invoices are collateral) to reduce lender risk.

Harvey Brooks

Senior Financial Editor

Harvey Brooks is a consumer finance writer specializing in credit repair, personal lending, and debt management. With over a decade covering the industry, he makes financial literacy accessible to everyday Americans. About our editorial team.

Affiliate Disclosure: CreditDoc may earn a commission when you click links to the services featured on this page. Our editorial team independently evaluates all services. Learn more.