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Best Business Loans for Bad Credit

Only the lenders that fit "best business loans for bad credit", every offer converted to a true APR on the same terms.

for bad credit

Accion Opportunity Fund (Nonprofit CDFI lending) - A nonprofit lender built for businesses the market underserves — real APRs under 25%, free coaching, and no minimum revenue wall Tested Aug 2026 by Team RankingRight

APRs capped at 24.99% — less than half what the fast online lenders charge for similar borrowers
Publishes the full APR range openly, which most non-SBA lenders do not
Free business coaching and mentoring alongside the loan

Very Good 8.7 Visit Site

$0 · checked Sep 11 8.49%–24.99% $5,000–$250,000

52 people visited this site this week 2

Lendio (Marketplace) - One application sent to 75+ lenders — the fastest way to see what the market will actually offer you without filling in eight forms Tested Aug 2026 by Team RankingRight

One form, one soft credit pull, offers from a panel of 75+ lenders
Covers term loans, lines of credit, equipment finance and SBA
Free to the borrower — lenders pay the commission

Good 8.3 Visit Site

$0 · checked Sep 11 Varies by lender, 6%–60%+ $1,000–$5,000,000

OnDeck (Term loan and line of credit) - Lends where the cheaper lenders will not — one year in business and a 625 score — with money the same day and rates to match the risk Tested Aug 2026 by Team RankingRight

Same-day funding is real, not a marketing line
Accepts a 625 score and one year of trading
Reports to business credit bureaus, which builds your file

Good 8.3 Visit Site

$0 · checked Sep 11 From 27.3%, commonly 35%–60% $5,000–$250,000

Fundbox (Line of credit) - The lowest bar in the ranking — six months trading, a 600 score, $30,000 revenue — with a decision in minutes off your accounting or bank data Tested Aug 2026 by Team RankingRight

Six months in business and $30,000 revenue — the lowest requirements here
Connects to your accounting software or bank and decides in minutes
No fee to keep the line open when you are not drawing

Good 8.2 Visit Site

$0 · checked Sep 11 About 35%–70% APR equivalent Up to $150,000

National Funding (Equipment financing) - Finances the machine and secures the loan against it, so credit requirements are softer than an unsecured loan of the same size Tested Aug 2026 by Team RankingRight

The equipment itself is the collateral, so a 600 score can still finance a $100,000 machine
Up to $150,000 for equipment with no separate down payment on some deals
Early payoff discounts on working capital loans

Fair 7.8 Visit Site

$0 · checked Sep 11 Roughly 20%–50% APR equivalent Up to $500,000

What separates the best business loans for bad credit?

Cost is the first split. Accion Opportunity Fund publishes 8.49%–24.99% APR and caps the top of that range at 24.99%. OnDeck starts at 27.3% APR, and its APRs commonly land between 35% and 60%. Fundbox quotes from 4.66% for 12 weeks, but as a weekly fee percentage rather than an APR. National Funding quotes factor rates from 1.10, so you have to convert before you can compare it to anything else.

Qualification is the second split. Fundbox asks for six months in business, a 600 score and $30,000 revenue. OnDeck wants a 625 score and one year of trading. National Funding wants $250,000 minimum annual revenue, though the equipment itself is the collateral, so a 600 score can still finance a $100,000 machine. Accion Opportunity Fund has no minimum revenue wall. Lendio is free to use and sends one application to a panel of 75+ lenders.

Speed is the third. OnDeck funds the same day. Fundbox decides in minutes off your accounting or bank data. Accion Opportunity Fund takes two to four weeks, so it is not an emergency option.

What should you check before you apply?

The scoring puts 30 points on true cost of borrowing and 25 on who can qualify, so those two decide most of the ranking. Work through this before you hand over any documents:

Convert the quote to an APR. Fundbox and National Funding both quote something other than an APR. Do the conversion before you sign.
Check the repayment schedule. OnDeck debits daily or weekly from your bank account. Fundbox gives you a maximum 24 weeks to repay.
Check availability. Accion Opportunity Fund is not available in every state.
Check what the loan reports. OnDeck reports to business credit bureaus, which builds your file for the next application.
Check the collateral. National Funding secures equipment loans against the machine, which is why the credit bar is lower.

Accion Opportunity Fund

For borrowers who can wait two to four weeks and want the lowest published APR range here, plus free business coaching alongside the loan.

Lendio

For anyone who wants to see what the market will offer without filling in eight forms. One soft credit pull, offers from a panel of 75+ lenders, no cost to you.

OnDeck

For a business with one year of trading and a 625 score that needs money the same day and can handle daily or weekly debits.

Fundbox

For the newest business here — six months trading, a 600 score, $30,000 revenue — that needs a fast decision and can repay inside 24 weeks.

National Funding

For a business buying equipment, where the machine secures the loan and a 600 score can still finance a $100,000 purchase.

Accion Opportunity Fund suits borrowers who can wait two to four weeks for the lowest published APR range here. Lendio suits anyone who wants offers from a panel of 75+ lenders from one application at no cost. OnDeck and Fundbox suit businesses that need a fast decision, and National Funding suits equipment buyers who can put the machine up as collateral.

Questions about best business loans for bad credit

What is a factor rate and why does it matter?

Short-term lenders and merchant cash advance providers quote a factor rate — borrow $100,000 at 1.25 and repay $125,000. That looks like 25%, but if you repay it over six months rather than a year the true annual cost is far higher, often above 60% APR, because you never have the full sum for the full year. Always convert to APR before comparing. A lender that refuses to state an APR is telling you it is high.

What do I need to qualify?

Most online lenders want six months to two years in business, $100,000 to $250,000 in annual revenue and a personal credit score of 600 or better. SBA loans ask for more paperwork and a stronger profile but carry far lower rates. Under six months in business, almost nothing here will lend to you; a business credit card or a personal loan is usually the realistic route.

Is an SBA loan worth the paperwork?

Usually yes if you can wait. SBA 7(a) rates are capped relative to the prime rate and run far below online lenders, with terms up to 10 years for working capital and 25 for property. The trade is weeks rather than days, and a document pack most owners find tedious. On $100,000 the interest difference over the term is commonly tens of thousands of dollars.

How do you assess lenders?

We take each lender's published rates, fees and eligibility, and convert every offer to an APR on an identical $100,000 over 24 months including origination and draw fees. We record the stated minimum credit score, revenue and time in business, walk the public application to the point of a credit pull, and note whether rates are visible before applying and whether a personal guarantee or blanket lien is required.

*Scores: True cost of borrowing 30 · Who can qualify 25 · Speed & process 15 · Terms & flexibility 15 · Transparency 15; score = Σ ÷ 10. Prices shown were checked on the date beside each and may change. Affiliate links are added only after a score is locked and can never change it. How we rank.

#1 Accion Opportunity Fund8.7 · $0

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