Bad Credit
Bad Credit Business Loans
Funding when banks say no.
Bad credit business loans approve borrowers with FICO scores as low as 500 by underwriting based on revenue and bank deposits. Simply Approved Business Loans funds businesses with damaged credit from $5,000 to $500,000 in as little as 24 hours when monthly revenue is $35,000+.
Best for
- Owners with FICO below 600
- Past tax liens or judgments (resolved)
- Strong monthly revenue, weak credit
- Businesses turned down by banks
Key features
- Approvals down to 500 FICO
- Revenue-based underwriting
- Tax liens and judgments OK if resolved
- Build business credit through on-time payments
How Bad Credit works
Bad-credit business loans aren't a separate product — they're a credit-tier underwriting approach. Lenders shift weight from FICO to bank deposits, time in business, and industry. A 510-FICO restaurant with $50k/mo deposits is a better risk than a 720-FICO startup with $5k/mo deposits, and revenue-based lenders price accordingly.
The dominant products at this credit tier are merchant cash advances, working capital loans, and equipment financing (where the equipment itself secures the loan). Lines of credit and term loans require 600+ FICO; SBA needs 680+.
On-time payment performance can rebuild credit. Many borrowers move from MCA at 1.40 factor to working capital at 14% APR within 12–18 months by demonstrating clean payback.
Qualifications
| Time in business | 6+ months |
| Min FICO | 500 |
| Min monthly revenue | $25,000 |
| Documents | App + 3 months bank statements |
Pros
- Approval down to 500 FICO
- Free pre-qualification at application
- 24-hour funding
- Path to better-rate refinance with on-time payments
Cons
- •Higher rates than prime credit (effective 30–90% APR on MCAs)
- •Smaller dollar amounts than top-tier programs
- •Daily debits stress slow weeks
- •Confession-of-judgment clauses still common
Common mistakes to avoid
- Stacking advances to compensate for low approval size
Two MCAs at $50k each is far worse than one MCA at $100k. Stacking is the leading cause of MCA defaults.
- Not building toward a refi
Plan to refinance into lower-cost capital after 6–12 months of clean payments. Stay in high-cost products longer than necessary and you'll bleed margin.
- Hiding tax liens
Lenders will find them in due diligence. Disclose up-front with a payment plan; most lenders fund despite resolved or in-plan tax liens.
Real-world scenarios
A 3-year operator with $90k/mo deposits and a 520 FICO funded $80k on a 9-month working capital loan after a 2018 tax lien on a payment plan.
A retailer started at 1.42 factor MCA, made 12 months of clean payments, and refinanced into a 14% APR 24-month term loan — saving $24k vs renewing the MCA.
When another product is a better fit
- Merchant Cash Advance →
If you have strong card deposits and want remittance flexed to sales.
- Equipment Financing →
If the use case is a specific revenue-generating piece of equipment.
- Invoice Factoring →
If your business is B2B and customers have stronger credit than you do.
How to apply
- 01
Quick pre-qualification
- 02
Submit 3 months bank statements
- 03
Same-day approval
- 04
Funds in 24 hours
Bad Credit vs. other funding options
Side-by-side comparison of Bad Credit against the most common alternatives. Use this to decide which structure fits your business stage, cash flow, and use of funds.
| Product | Amount | Term | Speed | Best for |
|---|---|---|---|---|
| Bad Credit This page | $5,000 – $500,000 | 3 – 24 months | Funded in 24 hours | Owners with FICO below 600 |
| MCA → | $5,000 – $2,000,000 | 3 – 18 months | Funded in 24 hours | Restaurants & retail with daily card sales |
| Working Capital → | $5,000 – $1,000,000 | 3 – 24 months | Funded in 24 hours | Bridging seasonal slow periods |
| Factoring → | $10,000 – $10,000,000 | 30 – 90 days per invoice | Funded same day | B2B businesses with net-30/60/90 terms |
FAQs about Bad Credit
Lead-gen pre-check
See if you qualify for Bad Credit
$5,000 – $500,000 · Funded in 24 hours. Pre-qualification is free and doesn't affect your credit.
Free pre-check
Eligibility checker
No credit pull. No data stored. Instant answer.
Underwriting disclaimer: The eligibility checker is a self-reported pre-qualification tool. It does not constitute an offer of credit or a guarantee of approval. Every funded file goes through full underwriting — including bank statement analysis, business verification, and a credit inquiry whose type (soft or hard) is disclosed before you sign. Final terms, rates, and amounts depend on underwriting and the specific lender or program.
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Free to apply. No upfront fees. Real underwriters review every file.
Related products
Merchant Cash Advance
Fast capital based on future receivables
- Amount
- $5,000 – $2,000,000
- Speed
- Funded in 24 hours
Working Capital Loans
Cover payroll, inventory, and day-to-day expenses
- Amount
- $5,000 – $1,000,000
- Speed
- Funded in 24 hours
Invoice Factoring
Turn unpaid invoices into immediate cash
- Amount
- $10,000 – $10,000,000
- Speed
- Funded same day
Get funded in as little as 24 hours
$5,000 to $25,000,000. Free pre-qualification. No upfront fees. Same-day decisions for clean files.