Yes, it’s possible to get a business loan—even with bad credit. While a low credit score can close some doors, it doesn’t slam them all shut. The key is understanding your options, knowing what lenders are looking for, and positioning your business the right way.
Let’s explore how you can still access business funding—even with bruised credit.
💳 What Is Considered Bad Credit?
Generally, a personal credit score below 580 is considered “bad” by most traditional banks. But business lenders often use other metrics, including:
- Your monthly revenue
- Time in business
- Industry risk
- Business credit (EIN-based) scores
So even if your personal FICO score is struggling, your business performance could help you qualify for capital.
💡 5 Funding Options for Bad Credit Business Owners
Here’s what you can still tap into—no 700+ score required:
✅ 1. Microloans from Nonprofits
Community-based lenders offer microloans (typically $500 to $50,000) designed for underserved entrepreneurs.
Top Sources:
- Accion Opportunity Fund
- Kiva
- Local SBA-backed microloan providers
They focus more on your business idea, mission, and repayment plan than just your credit score.
✅ 2. Revenue-Based Financing
If your business makes steady income, some lenders offer loans based on your monthly deposits, not your credit score.
Requirements usually include:
- 6+ months in business
- $5,000–$10,000/month revenue
- Bank statements showing consistency
Platforms to explore:
- Fora Financial
- Credibly
- Fundbox
✅ 3. Merchant Cash Advances (MCAs)
This is fast money based on your future credit card sales. You repay with a percentage of daily revenue.
Pros:
- Fast approval (24–48 hours)
- Bad credit OK
Cons:
- Higher fees
- Daily repayments
Best used as a short-term bridge, not a long-term solution.
✅ 4. Use a Co-Signer or Business Partner
If you have a partner or friend with good credit, they can co-sign or apply for the loan under the business name. This improves your chances without going it alone.
Be sure to have clear agreements to protect your relationship and business.
✅ 5. Repair First, Then Apply
One of the smartest moves?
Spend 30–60 days repairing your credit, then go for funding.
At Thick AF Credit, we help entrepreneurs:
- Remove collections and charge-offs
- Build EIN-based business credit
- Increase scores to 650+ quickly
📌 Book your free credit and funding game plan
🛠️ Bonus Strategy:
Use Your EIN (Not SSN) Once you build strong business credit, you can apply for lines of credit and vendor accounts without using your personal credit at all.
Check out our blog: How to Build Business Credit Without a Personal Guarantee for that full roadmap.
Final Thoughts
A bad credit score is a setback—not a stop sign. By understanding alternative lending sources, leveraging your business performance, and doing a little repair work, you can unlock real capital.
Don’t let a low score limit your high-impact vision.
Let’s help you get funded, Thick AF style.
✅ Need a customized funding path?