Business Funding with Low Credit Score: Explore Your Options

A low personal credit score can feel like a significant barrier when your business needs capital. Many business owners in this situation assume traditional bank loans are their only option and get discouraged when turned down. However, a low credit score does not mean funding is impossible. Alternative lenders and specialized funding platforms exist that evaluate your entire business profile, not just a single number. This page explains how business funding works with a low credit score and outlines a clear, straightforward way to explore potential offers from a network of lenders.

Understanding Business Funding with a Low Credit Score

When you apply for business funding with a low credit score, lenders are assessing perceived risk. A lower score typically signals higher risk to traditional institutions. To manage this, alternative lenders who work with lower scores often use different criteria and offer different types of financial products.

It is important to understand that funding obtained with a lower credit score often involves different structures and terms. Costs may be higher, and repayment schedules might be tied directly to your business’s revenue. The key is to find an offer with terms that your business’s cash flow can comfortably support.

Many funding denials stem from similar underwriting factors. If you’re unsure why your application was declined, review our breakdown of business loan rejection reasons.

How Lenders Evaluate Applications with Low Credit

• Business Revenue & Cash Flow: Lenders will closely examine your business’s bank statements and monthly revenue. Consistent, strong cash flow can significantly offset concerns about personal credit.
• Time in Business: A track record of operation—typically at least 6 to 12 months—demonstrates stability and reduces perceived risk.
• Collateral or Future Sales: Some funding options are secured by collateral or are repaid via a percentage of your future credit card sales or revenue.

Potential Funding Pathways to Explore

Several types of funding are known for having more flexible credit requirements. The right choice depends on your business’s specific financial health and needs.

Revenue-Based Financing / Merchant Cash Advance (MCA)
This option provides an upfront sum of capital. Repayment is made through a fixed percentage of your daily credit card sales or monthly revenue. Lenders primarily focus on your recent and projected sales volume rather than your personal credit score.

Short-Term Business Loans
These loans typically have faster funding times (sometimes within 24 hours) and a simpler application process than traditional bank loans. They may use automated underwriting that considers a broader set of criteria, but often carry higher annual percentage rates (APRs) to offset the lender’s risk.

Equipment Financing
If you need to purchase specific equipment, this can be a viable option. The equipment itself often serves as collateral for the loan, which can make lenders more flexible on credit requirements.

How to Check Your Funding Options Efficiently

Manually applying to multiple individual lenders can be time-consuming and may result in multiple hard inquiries on your credit report. A more efficient method is to use a service that can connect you with multiple potential lenders through a single application process.

This approach allows you to:

1. Submit one application with basic details about your business and funding needs.
2. Get matched with offers from a network of lenders who actively work with businesses across the credit spectrum.
3. Review and compare terms such as the funding amount, repayment schedule, and cost of capital.
4. Choose the offer that you decide best fits your business’s situation. You are under no obligation to accept any offer presented.

See What Offers You May Qualify For

If you are ready to explore potential funding options, you can begin the process below. Checking offers involves a soft credit inquiry, which does not affect your credit score.

Important Information for Applicants

• Checking potential offers through our partner service involves a soft credit check, which does not impact your credit score.
• Providing your information does not guarantee you will qualify for or receive any financing offers.
• All funding offers, rates, fees, and terms are determined solely by the matched lenders based on their underwriting criteria.
• We may receive compensation from our partner if you are matched with a lender and accept a funding offer.

For established businesses looking to raise significantly larger amounts, requirements differ. Our overview of how to get a $2 million business loan explains those expectations.