Where to Turn: A Look at Established Business and Startup Business Loans with Bad Credit

Have you been looking into how to get a small business loan with bad credit? 

Whether you’re looking for startup business loans with bad credit, or you need business loans for bad credit with your established business, you’re in the right spot.

This list offers some lenders that just might soothe the aches behind your bad credit business loans search.

There’s no substitute for having a healthy credit score. Your credit score is like a fiscal key, and the bigger it is, the bigger and better the doors it can open.

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Award Emblem: Best Bad Credit Business Loan Lenders

So if you don’t have the best credit history, and you’re looking for small business startup loans, bad credit can leave you stranded. There are a number of ways to build your credit score, one of the most paramount being to pay your bills on time.

A history of solid, on-time payments shows lenders that you’re serious about your repayment. Sometimes life events can get in the way, and credit scores can suffer as a result.

It’s time to stop worrying about where to secure startup business loans with bad credit. Review this list of the best six bad credit business loans lenders to see that you do have options for business loans with bad credit.

See Also: Blue Trust Loans Review – What You Should Know! (Loan Reviews)

AdvisoryHQ’s List of the Top 6 Best Lenders of Business Loans for Bad Credit

List is sorted alphabetically (click any of the names below to go directly to the detailed review section for that startup):

FAQ and Definitions

In order to get the most out of this business loans for bad credit article, it’s important to understand a few common terms. This is by no means a comprehensive list of the terms you’ll come across while looking into loans, but it’s enough to get you started.

business loans for bad credit

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Credit Score: This is a 3-digit number formed through an analysis of a few financial factors. The range is typically from 300-850; 300 is very poor and 850 is exceptional. The number shows your creditworthiness and is often used to secure loans, among other things.

Charged Off Account: This is a negative note on your account. It’s made when a lender no longer expects to get the payment from you that you owe. It’s typically issued around the six months delinquent mark.

APR: This stands for annual percentage rate. It is the official way to denote the amount of interest you will pay on a loan, or an outstanding credit card balance, for an entire year.

AdvisoryHQ’s Selection Methodology

What methodology does AdvisoryHQ use in selecting and finalizing the firms, services, and products that are ranked on its various top rated lists?

Please click here “AdvisoryHQ’s Ranking Methodologies” for a detailed review of AdvisoryHQ’s selection methodologies for ranking top rated firms, products, and services.

Best 6 Bad Credit Business Loan Lenders

Bad Credit Lender


Check N’ Gohttps://www.checkngo.com/
PayPal Working Capitalhttps://www.paypal.com/workingcapital/

The above list of “Top 6 Lenders of Business Loans for Bad Credit” is sorted alphabetically.

Detailed Review – Top Ranking Best Bad Credit Business Loans Lenders

Below, please find the detailed review of each lender on our list of bad credit loan services. We have highlighted some of the factors that allowed these services and lenders to score so high in our selection ranking.

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Check N’ Go Review

Check N’ Go started back in 1994. Since then, it has spread its brick-and-mortar reach across many states. It also offers online options for those in need of short-term financial solutions.

In addition to the services it offers its clients, Check N’ Go works to positively affect its community. Over the years, Check N’ Go has distributed over 10,000 child photo ID kits for the National Center for Missing and Exploited Children. A group of employees recently got together to assemble bikes for a national bike-donation campaign. The campaign has donated over 12,000 bicycles to disadvantaged children.

Key Factors That Enabled This Service to Rank as a Top Bad Credit Small Business Loans Lender

Below are primary reasons we selected Check N’ Go to be rated as one of this year’s best lenders for bad credit business loans.

Check N’ Go has a number of quick loan options, which can be used to assist in any urgent financial situation. They have four primary services that could benefit small businesses with subpar credit:

  • Online installment loans
  • Payday loans
  • Cash advances
  • Check cashing services

Online Installment Loans

As the name suggests, these loans require an online application. The good news here is that the application is simple. Not only that, the results are fast too. You don’t need perfect credit to apply. You will, however, need a minimum FICO credit score of 500.

Installment loans have a longer payback period then Check N’ Go’s Payday loan option (which we will discuss below). With installment loans, you’ll be looking at a personalized repayment schedule over a term of 4-8 months. Once you’re approved, funds could be deposited as quickly as the next business day.

A number of loan elements can be customized:

  • Amount of loan
  • Size of installment payments
  • Number of installment payments

The amount of the loan is only partially customizable, as the loan is income-based. This means you will need to provide proof of employment and steady income. Check N’ Go determines the initial loan amount after considering your income amount.

This is a service that could get some small business owners out of a tight spot, but it’s not a solution designed to overcome long-term financial challenges. Currently, online installment loans are only available in the following states:

  • Alabama
  • California
  • Delaware
  • Idaho
  • Illinois
  • Missouri
  • New Mexico
  • Ohio
  • South Dakota
  • Utah
  • Wisconsin

Payday Loans

Like installment loans, Payday loans are available through the online application. Applying online is available 24/7. Check N’ Go claims the payday loan application can be filled out in as little as 5 minutes. Upon approval, funds could be deposited as quickly as the next business day.

Check N’ Go - Bad Credit Small Business Loans

Image Source: BigStock

In order to qualify, you need a few pieces of information:

  • Proof of income
  • Current bank account
  • Approved form of ID

The current bank account is required because the funds will be delivered via direct deposit. The payday loan can be a good solution for a short-term cash problem. For this loan, you’ll have two weeks to pay it back.  A few criteria determine the amount of the loan:

  • Income
  • State of residence
  • Online application versus in-store (may receive more online)

The service fees Check N’ Go charges are dictated by the state in which the borrower resides. Online payday loans are offered in the following states:

  • Alabama
  • California
  • Florida
  • Hawaii
  • Illinois
  • Indiana
  • Kansas
  • Maine
  • Michigan
  • Mississippi
  • Missouri
  • Nevada
  • North Dakota
  • Ohio
  • Oklahoma
  • South Dakota
  • Texas
  • Utah

Cash Advance

The cash advance loan is described by Check N’ Go as essentially functioning like an advance on your next paycheck. The application process is easy and the repayment process is clear; you need to pay a one-time fee when the loan comes due. You’ll be able to borrow between $100 and $1500, but this will vary by state and other factors. Like the other services, cash advances are not available in all states.

Check Cashing

If your bank is closed, you can use a brick and mortar Check N’ Go to cash your check. Check N’ Go performs this check cashing service for a rate as low as 1.99%. You will need a government-issued form of ID. It’s only available in a few select states:

  • Ohio
  • Florida
  • Kansas
  • Kentucky
  • Michigan
  • Missouri
  • Tennessee
  • Texas

Related: Trusted Payday Review – Get All the Facts! (Payday Loan Reviews)

Fundia Review

Fundia was founded in 2014. It is a privately-held company that employs between 11 and 50 people. It is headquartered in Bluffdale, Utah.

Fundia has earned an “A” rating with the Better Business Bureau. Since 2014, it has already gained the trust of thousands of small business owners. In that time, it’s secured millions to help people launch an abundance of small businesses.

Key Factors That Enabled This Service to Rank as a Top Business Loans for Bad Credit Lender

Below are primary reasons we selected Fundia to be rated as one of this year’s best lenders for bad credit business loans.

As you’ll see, Fundia is a great place for small business startup loans, bad credit included.

Acquiring a Loan

Fundia is 100% focused on helping small businesses get the money they need. It provides loans ranging from $20,000 to $200,000. Some small businesses could receive up to $250,000 in a single loan. Fundia puts a little more emphasis on credit score than some of these other small business loan providers. You will need a credit score of at least 680. If not you, then one of your business partners should have a score that’s at least 680. Here’s what you won’t need:

  • Collateral
  • Income documents

Fundia’s loans are unsecured, so you won’t be leveraging collateral against any loan you take out. They also don’t need to see any documentation of steady income. Their online application process takes minutes rather than hours. And in 2 hours, Fundia will send you your decision.

Who Should Apply

The self-proclaimed focus of Fundia is “small business.” Fundia accepts startups as well; the small business does not need a couple years under its belt. In fact, it isn’t mandatory to create an entity before applying for a loan. While it is worthwhile to have the protection that incorporating your business brings, it isn’t necessary to secure a loan with Fundia.

Kabbage Review

Kabbage started back in 2009; however, it didn’t begin lending until 2011. While it’s based out of Atlanta, Georgia, as it grew, it opened a San Francisco office, and then moved abroad into the United Kingdom.

Kabbage - business loans with bad credit

Image Source: Kabbage

Backed by an A+ rating from the Better Business Bureau, they’ve funded over 1.6 billion dollars to help grow small businesses. In 2014 and 2015, Forbes named Kabbage as one of America’s 100 most promising companies. Let’s take a look to see if this small business lender is right for you and your business.

Key Factors That Enabled This Service to Rank as a Top Bad Credit Business Loans Lender

Below are some of the elements we found compelling enough about Kabbage to name it one of this year’s best bad credit business loan lenders.

Acquiring a Loan:

There is no application fee to apply for a loan. It can be done in as little as five minutes online. The verdict will be returned to you shortly after that. Kabbage looks at more criteria than just your credit score. Instead, it looks at your actual business account.

You link your business account from one of the following sites to your Kabbage profile for review:

  • eBay
  • Square
  • Etsy
  • And more

This allows Kabbage to make decisions in minutes instead of days. In order to apply successfully to Kabbage, your business needs to hit two criteria:

  • Your business has been operating for at least one year
  • Your business generates over $50,000 dollars annually

Loan Amounts

Kabbage offers credit lines ranging from $2,000 to $1000,000. Credit lines are different from typical loans because you only draw the amount you need to use.

If Kabbage approves you for $45,000 dollars, you are able to draw from that as often as once a day, for as much as you need. If you only need $30,000 dollars from Kabbage to expand to your new small business space, for example, then you only owe Kabbage that $30,000, plus interest.

Of course, there is no penalty for using the whole amount they approved you for.

When it’s time to repay the loan, the fee can range from 1.5 to 12 percent of your monthly amount. Kabbage has a six-month repayment plan and an optional 12-month plan. Let’s go back to our $30,000 dollar example.

You used $30,000, and you picked a 6-month plan. Each month you must pay back 1/6th of the loan amount, plus the fee (which varies based on business performance data and credit history). Using Kabbage’s payback calculator with our example, you’d pay a total of $33,600, or $5,600 a month for six months.

There are no extra fees for paying off your Kabbage loan ahead of schedule.

Popular Article: Avant Reviews – Get All the Facts Before Getting an Avant Loan

OnDeck Review

OnDeck started in 2007. Since that time, they’ve earned an “A+” rating with the Better Business Bureau. It’s no wonder then, that they’ve loaned $5 billion dollars to small business in less than a decade.

OnDeck favors the performance of your business over your credit score when it comes to approving loans. This has contributed to their higher-than-average approval rate compared to certain competitors. Forbes has listed OnDeck on their list of the 100 most promising companies.

Key Factors That Enabled This Service to Rank as a Top Lender of Small Business Loans for Bad Credit

Below we’ve compiled a list of some of the most compelling reasons OnDeck has made our list of this year’s top rated bad credit business loan lenders.

Acquiring a Loan

In order for Ondeck to consider you for a loan, you need to have been in business for at least a year. You also need to demonstrate that your business generates a minimum of $100,000 in gross annual revenue. If your business hits those parameters, you can apply in five minutes on OnDeck’s website, or over the phone. OnDeck considers your applications in minutes, rather than hours or days.

Loan Amounts

OnDeck offers credit lines and business loans. The minimums and maximums are different for both.

  • Line of credit minimum: $6,000
  • Line of credit maximum: $100,000
  • Business loan minimum: $5,000
  • Business loan maximum: $500,000

OnDeck has repayment terms that range from 3 to 36 months. Once approved, funding becomes accessible in as little as 1 business day. Loan specialists are available for support six days a week, from 8am to 8pm.

PayPal Working Capital Review

PayPal has been around since 1998. In its almost 20 years of service, it has strived to provide customers with better ways to handle monetary transactions from a business and a personal standpoint. PayPal has grown to accommodate 188 million active customer accounts.

PayPal is a global payment platform:

  • It’s available in 202 countries
  • Customers can be paid in over 100 currencies
  • Funds can be withdrawn to bank accounts in 56 currencies
  • PayPal account balances can be held in 25 currencies

PayPal has its corporate headquarters in San Jose, California, and worldwide operations headquarters in La Vista, Nebraska. In 2015, PayPal handled $282 billion dollars in total payment volume. That figure spans its entire platform. For specifics on its Working Capital offering, look below.

Key Factors That Enabled This Service to Rank as a Top Lender of Bad Credit Business Loans

Below are some of the most significant reasons we selected PayPal Working Capital as one of the year’s top lenders of business loans for bad credit.

Acquiring a Loan

The application time for a PayPal Working Capital loan is 5 minutes. The funding time is less than 1 minute for your small business loan, and bad credit is not an issue. The PayPal Working Capital loan is based on the PayPal sales of your business. This means there’s no credit check and no hard inquiries affecting your credit score. It also means you need a PayPal account for your business, and you need to have a decent PayPal sales history.

The PayPal loan has some restrictions:

  • The loan amount will not exceed 18% of your annual PayPal sales
  • The loan amount will not exceed $97,000

In order to be eligible, you need to meet the following criteria:

  • Process at least $20,000 in PayPal sales annually on a premier account
  • Process at least $150,000 in PayPal sales annually on a business account
  • Pay off any outstanding PayPal Working Capital loans
  • Have a PayPal business or PayPal premier account for at least 3 months

Cost of a Loan

PayPal Working Capital charges one affordable, fixed fee. They structure repayment in a way that lets you pay as your business grows. It is a flexible system that lets you put a certain percentage of your day’s sales toward loan repayment.

However, 10% of the total of the original loan amount is due every 90 days. This can last for 540 days or until the loan is paid in full, whichever comes first.

PayPal Working Capital has a sample fee calculator to help illustrate how repayment works. You can choose 10% to 30%, in increments of five, for your daily repayment percentage. If you borrow $10,000 (for the sake of this example, your loan is valued at $9,000, and your fixed fee is valued at $1,000), you are required to pay $1,000 (10%) every 90 days thereafter.

There is no penalty for a day without sales. Instead, you just have to make sure you hit the 10% mark every 90 days. This accounts for natural variance in sales from day to day. Repayment starts the day after you make a sale. There is no early repayment penalty, either.

PersonalLoans.com Review

PersonalLoans.com differs slightly from other companies reviewed on this list. Rather than providing the loans itself, PersonalLoans.com links users with potential lenders. It has made the list for a number of reasons, one of them being that it boasts one of the largest networks of lenders.

For 15 years, PersonalLoans.com has been helping people secure loans. Since its beginning, PersonalLoans.com has been used by over 500,000 people. Let’s take a look at the customer-first approach and loan options offered by PersonalLoans.com.

Key Factors That Enabled This Service to Rank as a Top Lender of Bad Credit Business Loans

Below are some of the critical reasons we were able to name PersonalLoans.com as one of this year’s top bad credit business loans lenders.

PersonalLoans.com offers loans from $1,000 to $35,000. As we mentioned earlier, PersonalLoans itself does not offer any loan. Rather, it connects clients to potential lenders from its large lender network.

Acquiring a Loan

You can file a loan application online, which consists of a three-step request system. To find out if you qualify, you need a few pieces of information:

  • How much money you’d like to borrow
  • The reason for your loan
  • Basic personal information (age, government-issued ID, residency status)
  • Banking information (in most cases, lenders will require a valid checking account)
  • Income information
  • Your credit type

You do not necessarily need excellent or even good credit in order to qualify for a loan. PersonalLoans.com will look to see that you have demonstrated a pattern of responsibility when it comes to making payments on time. This means you cannot have any accounts that are over 60 days late. Here are other elements that could bar your access to a loan:

  • Any active or recent bankruptcies
  • Late payment patterns
  • Debt that cannot be covered by your current income
  • Any recently charged-off accounts

Once you’re approved by PersonalLoans.com, it will connect you to an affiliate lender’s loan agreement. After you agree to the terms on that affiliate agreement, you’ll receive the money in 1 to 5 business days.

Loan Options

PersonalLoans.com offers three different loan types:

  • Peer-to-peer loans
  • Personal installment loans
  • Bank personal loans

Peer-to-Peer Loans

Peer-to-peer loans link you directly with an investor. The investor is likely either a person or a company, as opposed to a traditional lender like a bank. It only takes a few minutes to request a peer-to-peer loan, or P2P loan, online. Here’s a quick breakdown:

  • Credit score: 600+
  • Minimum income: $2,000 per month (verifiable)
  • Income source: employed or self-employed
  • Loan range: $1,000 to $35,000 (depending on credit type)

P2P lenders typically collect origination fees. This fee is usually on the lower side, usually landing somewhere in the 1 to 5% range. This amount is deducted from the loan amount given to you, the borrower.

Personal Installment Loans

Personal installment loans are affected by state laws. Each state has its own rules and regulations regarding personal loans, which will affect the total loan amount as well as the rate. Loan amount, APR, and loan length can depend on factors that lenders use, so credit score and repayment history will be weighed differently by different lenders. In addition, different lenders will have different repayment processes. It’s important to look at all the information presented to you when you’re linked with a lender. Here’s the breakdown for this type of loan:

  • Credit score:  580+
  • Minimum income: $2,000 per month
  • Income source: employed, self-employed, or benefits
  • Loan range:  $1,000 to $35,000

You can request a loan online by providing basic personal and financial information. PersonalLoans.com will link you with lenders that can provide you with loan agreements tailored to your specific financial needs. Upon receipt of an offer and acceptance of that offer, the loan gets deposited directly into your bank account.

Bank Personal Loans

Bank-personal loans are exactly what they sound like: a loan from a local bank. PersonalLoans.com will connect you to a bank in your area, at which point the bank will become your primary source of contact. In most cases, you’ll need to apply for a bank loan in person or over the phone. In some cases, you may be able to start the application for the loan with the bank online. Here are the numbers:

  • Credit score: 580+
  • Minimum income: $3,000 per month
  • Income source: employed or self-employed
  • Loane range: $1,000 to $35,000

You can discuss the terms and repayment options at the local branch of the bank. Typically, bank personal loans use fixed rates for repayment. It’s possible with some banks to get funds deposited on the same day if your application is approved before noon.

Read More: CashAdvance.com Review – What You Should Know Before Using CashAdvance.com

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Conclusion – Top 6 Bad Credit Business Loans Lenders

When it comes to business loans for bad credit, you have options — solid options. While it’s important to repair your credit and maintain good credit, sometimes things happen in such a way that your credit takes a hit. Life is full of unpredictable events.

The good news: acquiring small business loans with bad credit is not some distant dream. Several of these loan facilitators look at more than just your credit score, if they look at your score at all. Despite your bad credit, business loans are possible.

Whether you need a loan for an existing business or you are looking for startup business loans with bad credit, the six lenders on this list offer some of the most flexible options for business loans for bad credit. Flexibility in a bad credit situation is certainly a luxury. There are places to turn when you don’t have quite enough money; bad credit shouldn’t be the end of your small business goals.

Related: Blue Trust Loans Review – What You Should Know! (Loan Reviews)

AdvisoryHQ (AHQ) Disclaimer:

Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.

Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.