How to Get a Business Loan with Bad Credit in 2026
Struggling to secure funding for your small business because of a low credit score? You're not alone—many American entrepreneurs face this hurdle, but in 2026, options like merchant cash advances, alt...
Struggling to secure funding for your small business because of a low credit score? You're not alone—many American entrepreneurs face this hurdle, but in 2026, options like merchant cash advances, alternative lenders, and even SBA-backed loans make it possible to get the capital you need without perfect credit.Bad credit business loans focus more on your revenue and cash flow than your FICO score, opening doors for scores as low as 300.
Whether you're a startup in Texas or an established shop in California, this guide walks you through how to get a business loan with bad credit in 2026. We'll cover top lenders, qualification tips, and strategies to boost your approval odds, all tailored for U.S. businesses.
What Counts as Bad Credit for Business Loans?
A bad credit score typically falls between 300 and 629 on the FICO scale, making traditional bank loans tough to land.[1][2] Lenders like banks prioritize scores above 680, but alternative providers in 2026 are more flexible. For instance:
- 300-499: Very poor—limited options, often no credit check needed.[4]
- 500-619: Poor—merchant cash advances or equipment financing possible.[1][4]
- 620-629: Fair—short-term loans or SBA programs may work.[1][3]
Business credit matters too, but many lenders pull your personal FICO since small business owners often guarantee loans personally.[6] Don't let a past setback define your future—focus on revenue to show lenders you're repayable.
Top Bad Credit Business Loan Options in 2026
Alternative lenders dominate for bad credit borrowers, offering faster funding than banks. Here's a breakdown of standout providers based on 2026 reviews:
Giggle Finance: Best for No Credit Check
Giggle Finance skips personal credit checks entirely, approving based on business revenue.[1] Ideal for new businesses.
- Funding: Up to varying amounts based on revenue.
- Requirements: 3 months in business, $18,000 annual revenue ($1,500/month).
- Funding speed: Fast, often same-day.
- Best for: Gig workers or revenue-stable startups.[1]
Fora Financial and Expansion Capital Group: Low Score Thresholds
Expansion Capital Group accepts scores as low as 500 for merchant cash advances up to $300,000, with daily/weekly repayments tied to sales.[1] Fora Financial offers similar fast funding for scores around 600.[1]
National Funding: Revenue-Focused Approval
Even with scores 300-599, National Funding approves based on cash flow and future potential, not just past credit.[2] Options include short-term loans for scores 500+ and medium-term for 550+.[2]
SBA Loans: A Government-Backed Path
The U.S. Small Business Administration (SBA) doesn't exclude bad credit borrowers outright. Programs like 7(a) loans require "sound credit" but emphasize repayment ability, business purpose, and U.S. operation.[3] Minimums vary by lender, but scores over 620 improve odds. Your business must be legally registered, for-profit, and unable to get funding elsewhere reasonably.[3]
Other Strong Contenders
- Ameris Bank Equipment Finance: Up to $250,000, considers time in business and revenue alongside credit.[5]
- QuickBridge: Startup-friendly with collateral options for poor credit.[6]
- Business Credit Cards: Secured cards for fair credit, no hard pull needed.[4]
| Lender | Min Credit Score | Funding Amount | Time in Business | Annual Revenue Min |
|---|---|---|---|---|
| Giggle Finance | None | Varies | 3 months | $18,000 |
| Expansion Capital Group | 500 | Up to $300,000 | 6 months | $100,000 |
| National Funding | 300+ | Varies | Varies | Cash flow-based |
| SBA Lenders (e.g., Accion) | 620 | Up to millions | Varies | Sound repayment |
Steps to Get a Business Loan with Bad Credit in 2026
Follow these actionable steps to maximize approval:
- Check Your Credit Reports: Pull free reports from Equifax, Experian, and TransUnion via AnnualCreditReport.com. Dispute errors to boost your score quickly.
- Build Your Business Profile: Gather 3-6 months of bank statements showing steady revenue. Lenders like National Funding prioritize cash flow.[2]
- Explore No/Low Credit Check Options: Start with Giggle or merchant cash advances if scores are below 500.[1][4]
- Offer Collateral or Guarantee: Pledge equipment or sign a personal guarantee—common for startups.[6]
- Apply via Marketplaces: Use Nav or Fundera by NerdWallet to match lenders without multiple hard pulls.[1][4]
- Prepare Financials: Provide tax returns, profit/loss statements. For SBA, ensure your business meets size standards (check sba.gov).[3]
Improve Your Odds Before Applying
- Pay down personal debt to lift your FICO.
- Build business credit with vendor accounts or a secured card.[4]
- Show down payments (10-20% of loan) to reduce lender risk.[6]
- Partner with a co-signer if possible.
Expect higher rates (factor rates 1.1-1.5) and shorter terms (3-18 months) with bad credit, but fast funding—as quick as hours—beats waiting.[1][8]
Pros and Cons of Bad Credit Business Loans
Pros:
- Accessible for scores 300+.[2]
- Quick approval and funding.[1]
- Revenue-based repayment flexibility.[1]
- No perfect credit needed.[4]
Cons:
- Higher costs (APRs 20-100%+).[4]
- Shorter terms increase payments.[7]
- Daily/weekly debits can strain cash flow.[1]
- Personal guarantees risk assets.[6]
"Even those with bad credit may qualify for startup funding. The lender will provide a full list of eligibility requirements."[3]
FAQ
Can startups get bad credit business loans?
Yes, options like Giggle Finance require just 3 months in business and revenue proof. Use collateral or guarantees for better odds.[1][6]
What's the lowest credit score for approval?
As low as none (Giggle) or 500 (Expansion Capital Group). Below 500 limits traditional loans.[1][4]
Are SBA loans possible with bad credit?
Yes, if you show repayment ability and meet other criteria like U.S. operations. Scores 620+ help.[3]
How fast is funding?
Same-day or next-day from lenders like Credibly or Fora Financial.[1][8]
Do I need collateral?
Not always, but it boosts approval for equipment loans or startups.[5][6]
Can I improve my score while applying?
Yes—pay bills on time, reduce debt. Lenders value recent positive history.[2]
Next Steps to Secure Your Loan
Ready to fuel your business? Start by checking your credit today, then apply to 2-3 lenders like Giggle Finance or National Funding. Compare offers on terms and costs. For long-term growth, work on credit repair while repaying—aim for SBA eligibility next. Visit sba.gov for free counseling or usa.gov/small-business for resources. With the right prep, your bad credit won't stop your success in 2026.
Sources & References
- 5 Best Bad Credit Business Loans in 2026 - NerdWallet — nerdwallet.com
- Business Loans for Bad Credit | National Funding — nationalfunding.com
- Loans | U.S. Small Business Administration - SBA — sba.gov
- Compare Business Loans for Bad Credit in 2026 - Nav — nav.com
- Bad Credit Business Loans Up To $250K - Ameris Bank — amerisbank.com
- Bad Credit Business Loans | Poor Credit and Start Ups - QuickBridge — quickbridge.com
- Best Bad Credit Business Loans in February 2026 - Bankrate — bankrate.com
- Best Same-Day Business Loans in February 2026 | LendingTree — lendingtree.com
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