How to Get a Business Loan with Low Credit

Last Updated on June 6, 2017

If you have low a credit score, then be assured you aren’t alone. In fact, nearly one-third of U.S. adults have a credit score under 601, and the proportion is rising each year.

With such a large population of U.S. adults having low credit scores, you’d think that banks would be more accommodating of small business owners with low credit.

Read on to learn everything you need to know about bad credit business loans, and how to get approved for the financing you need, exactly when you need it.

how to get business loans with low credit

Applying for Business Loans with Low Credit at a Bank

However, if you have less than perfect credit, banks will likely deny your application for a loan, which makes it difficult to get a business funding when you need money most. So if you’ve found yourself in a similar situation, keep reading and find out how to get a business loan with low credit.

First off, let’s shed light on why banks are uninterested — to put it mildly — in helping honest and hardworking business owners like you get a business loan with a low credit score. Contrary to what they say or what you’ve been led to believe, it’s not necessarily because you’re deemed a “high risk borrower.”

Banks take risks all the time, and they don’t always reap a reward. Think of condos that take years longer to build, or multi-million dollar loans to enterprises that end up shutting down. In both these projects, the bank is taking on a significant amount of risk.

In spite of this, the notion that banks are all about financial safety and security is part of their brand.

In light of the above, we shouldn’t need to write an article entitled “how to get a business loan with low credit?” — because it shouldn’t be such a widespread problem.

The fact is that banks don’t want to give out small business loans, because the costs to underwrite a loan for $50,000 are equal to those for $2,000,000. With the same costs associated with evaluating collateral and assessing paperwork, it’s no surprise that a bank would rather underwrite high value loans. Because banks couldn’t say this outright, they ratcheted up their requirements and started preaching about the virtue of making safe investments.

So, if the answer to “how to get a business loan without credit” is NOT “head to your friendly neighborhood bank,” then what options do have? Fortunately, you have plenty of choice!

Get Easier Business Loan Alternatives with Bad Credit

At National Business Capital & Services, we regularly approve clients with low credit scores for small business loans, lines of credit, equipment financing and more.

Why? Because we know — just as you do — that a credit score is not the end-all-and-be-all of a person’s credit worthiness or a business’s profit potential.

What matters isn’t what happened in the past, but rather what’s happening now, and what is likely to happen in the future with a timely and appropriate infusion of working capital.

The bottom line? You know that your business is on-track for success. But to continue heading upwards and onwards, you need to overcome a temporary capital shortfall, or make strategic long-term investments or acquisitions.

How to Apply for Bad Credit Business Loans

Contact National today by calling 877-482-3008, and tell a live expert representative that you would like to apply for a business loan for low-FICO borrowers. National will immediately get to work reviewing your options with you that you can easily qualify for, and receive funding from in as little as 24 hours.

Or, get the ball rolling immediately by filling out our 60-second application, online, and an advisor will contact you in minutes to discuss your options moving forward, and tell you how they’ll help find a loan option that’s best for your business needs. 

Learn More About Bad Credit Business Loans

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.