Business Funding Options for Owners with Bad Credit

Last Updated on April 20, 2016

For business owners, a low FICO score translates to banks that your personal finances may have been mismanaged during your working life. In their judgment, that makes you and your business a potential credit risk.

It is still possible to receive business funding with bad credit, however. At National Business Capital & Services, there are several options which depend on individual circumstances, business requirements, business revenue, and, we consider not just your credit score.

business funding options for owners with bad credit

Requirements for Business Funding with Bad Credit

Generally, one or more of the following criteria are required to qualify for business funding, such as a term loan or business line of credit:

  • A credit score of 500 or higher
  • Potential borrower has posted $120,000 or higher in gross annual revenue
  • Business has been in business 6 months or more

As stated above, banks will deny almost all financing applications for bad credit. However, the alternative financing industry, which has grown significantly over the last decade, generally has less stringent underwriting criteria. We have a financing approval rate of over 90%.

How to Qualify for Business Funding with Low FICO

Tips that will assist business owners to qualify for business funding despite having a low FICO score:

  • Regular Bank Deposits help demonstrate having cash flow AWG note: Please provide any additional documents needed by our Business Consultants. Have all paperwork in order.
  • Quickly provide any additional information the underwriter may ask for
  • Be prepared to have a conversation with the underwriter about what you are looking to accomplish with funding

These are helpful tips to obtain business funding with bad credit. There are numerous other ways for small business owners to gain access to financing without perfect credit or the lengthy and involved timeline associated with traditional business funding.

How to Get Business Financing with Bad Credit Today

National Business Capital is a leading alternative financing company. Over 90% of our clients had been denied financing by their banks prior to contacting our Business Consultants – only to get approved almost immediately.

If you have questions about how to obtain financing despite a low FICO, please give us a call at (877) 482-3008 for a free consultation.

Or, fill out a 1-minute application online to receive funds from your business loan or credit line in as little as 24 hours.

Learn More About Bad Credit Business Loans & Lines of Credit: Free eBook

Also, be sure to check out our FREE eBook on how to get business funding when banks say no:

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.