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Here are 7 small-business loans for women with bad credit
| Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
|---|---|---|---|---|
Fora Financial - Online term loan with Fundera by NerdWallet | 4.8/5 Best for startups | $1,500,000 | 570 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for lines of credit | $150,000 | 600 | Read Review |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for equipment loans | $250,000 | 575 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for SBA loans | $50,000 | 620 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 4.9/5 Best for short-term loans | $250,000 | 625 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 4.8/5 Best for minority women | $250,000 | 600 | Read Review |
AltLINE - Invoice Factoring | 4.7/5 Best for invoice factoring | $5,000,000 | 300 | Read Review |
Here are 7 small-business loans for women with bad credit
Best for startups
Best for lines of credit
Best for equipment loans
Best for SBA loans
Best for short-term loans
Best for minority women
Best for invoice factoring
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Our pick for
startups
Businesses may be able to qualify for a term loan offered by Fora Financial with just six months in operation, making it a good fit for startups.
Fora Financial - Online term loan
Max loan amount
$1,500,000
Min. credit score
570
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
Fora Financial - Online term loan
Max loan amount
$1,500,000
Min. credit score
570
Businesses may be able to qualify for a term loan offered by Fora Financial with just six months in operation, making it a good fit for startups.
Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
Qualifications:
- In business for at least six months.
- At least $20,000 per month in revenue.
- No open bankruptcies or dismissed bankruptcies within the past year.
Our pick for
lines of credit
Fundbox offers a business line of credit to businesses that have minimum credit scores of 600 and have been operating for at least three months.
Fundbox - Line of credit
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly -- accepts borrowers with a minimum of three months in business.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
May fund quickly
Fundbox - Line of credit
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Fundbox offers a business line of credit to businesses that have minimum credit scores of 600 and have been operating for at least three months.
Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly -- accepts borrowers with a minimum of three months in business.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum annual revenue: $30,000.
May fund quickly
Our pick for
equipment loans
For established businesses that need equipment and have a minimum credit score of 580, Triton Capital has equipment loans that can be funded within one to two business days.
Triton Capital - Equipment financing
4.0
NerdWallet rating with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
575
Est. APR
6.50-34.99%
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Triton Capital - Equipment financing
NerdWallet rating
4.0/5
Max loan amount
$250,000
Min. credit score
575
Est. APR
6.50-34.99%
For established businesses that need equipment and have a minimum credit score of 580, Triton Capital has equipment loans that can be funded within one to two business days.
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Qualifications:
- Minimum credit score: 580.
- Minimum time in business: Two years.
- Minimum annual revenue: $150,000.
Our pick for
SBA loans
SBA microloans are offered through nonprofit intermediary lenders who set their own credit requirements which may make them easier to qualify for.
SBA Microloan
Max loan amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%
Pros
- Can be used for a variety of funding purposes.
- Designed to finance traditionally underserved businesses.
- Startups and business owners with bad credit may be able to qualify.
- Competitive interest rates, low fees and long repayment terms.
- Intermediaries typically offer business training and educational resources.
Cons
- Loan amounts max out at $50,000.
- Can’t be used to pay existing debt or purchase real estate.
- Collateral is likely required.
- Slow funding timeline.
SBA Microloan
Max loan amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%
SBA microloans are offered through nonprofit intermediary lenders who set their own credit requirements which may make them easier to qualify for.
SBA microloans are small-sized loans funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders.
Pros
- Can be used for a variety of funding purposes.
- Designed to finance traditionally underserved businesses.
- Startups and business owners with bad credit may be able to qualify.
- Competitive interest rates, low fees and long repayment terms.
- Intermediaries typically offer business training and educational resources.
Cons
- Loan amounts max out at $50,000.
- Can’t be used to pay existing debt or purchase real estate.
- Collateral is likely required.
- Slow funding timeline.
Qualifications:
- Be a U.S. business.
- Show your ability to repay the loan.
- Personal guarantee and collateral likely required.
- Specific financial qualifications determined by individual lender.
Our pick for
short-term loans
If you have a credit score of at least 625 and have been in business for a year or more, OnDeck offers term loans with repayment periods of up to two years.
OnDeck - Online term loan
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Requires business lien and personal guarantee.
May fund quickly
OnDeck - Online term loan
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
If you have a credit score of at least 625 and have been in business for a year or more, OnDeck offers term loans with repayment periods of up to two years.
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Requires business lien and personal guarantee.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: One year.
- Minimum annual revenue: $100,000.
- Must have business bank account.
May fund quickly
Our pick for
minority women
Accion Opportunity Fund, a nonprofit lender that works with women, minorities and other underserved entrepreneurs, requires a minimum credit score of 570 for working capital loans.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan amount
$250,000
Min. credit score
600
Est. APR
8.49-24.99%
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared to online lenders.
- Not available in all U.S. states.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan amount
$250,000
Min. credit score
600
Est. APR
8.49-24.99%
Accion Opportunity Fund, a nonprofit lender that works with women, minorities and other underserved entrepreneurs, requires a minimum credit score of 570 for working capital loans.
Accion is a good option for businesses that haven't been able to secure traditional financing. The lender targets its funding efforts toward minority, women and low-to-moderate-income entrepreneurs.
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared to online lenders.
- Not available in all U.S. states.
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: 12 months.
- Minimum annual revenue: $50,000.
Our pick for
invoice factoring
AltLINE is an invoice factoring company that will buy your unpaid invoices at a discount and doesn’t have minimum credit score or time in business requirements.
AltLINE - Invoice Factoring
Max loan amount
$5,000,000
Min. credit score
300
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
AltLINE - Invoice Factoring
Max loan amount
$5,000,000
Min. credit score
300
AltLINE is an invoice factoring company that will buy your unpaid invoices at a discount and doesn’t have minimum credit score or time in business requirements.
AltLINE offers fast invoice factoring with competitive factoring rates.
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
Qualifications:
- All credit scores may be accepted (ranging from 300 to 850).
- No minimum time in business requirement.
- No minimum annual revenue requirement.
- Must be a B2B business.
A closer look at the best small-business loans for women with bad credit
Fora Financial
Best for startups
Who should consider it: New entrepreneurs who are struggling with personal credit, but have healthy business revenue.
Fora Financial is an online lender that will approve borrowers with credit scores as low as 570; however, be careful to avoid taking on too much debt just because you qualify. The high loan maximums and relatively short terms can put you in a bad debt cycle if your business doesn’t earn enough to cover payments.
Fundbox
Best for lines of credit
Who should consider it: Small businesses with poor credit that could benefit from a revolving source of capital.
Fundbox offers lines of credit up to $150,000 and fast funding. The lack of prepayment penalties, account maintenance fees and inactivity fees make this line of credit a flexible option that allows you to make the best decisions for your business, even with poor credit.
Triton Capital
Best for equipment loans
Who should consider it: Businesses that need large equipment or vehicles.
Triton Capital can offer financing up to $250,000, even if you have a personal credit score as low as 575. The flexible terms that range from 12 to 60 months and no prepayment penalties allow you to make the best decision for your business’s growth.
SBA Microloan
Best for SBA loans
Who should consider it: Business owners who don’t need large loan amounts.
SBA loans are guaranteed by the federal government and, therefore, offer competitive interest rates and terms; however, most SBA loans require fair to good credit. SBA microloans offer funding in smaller amounts, and have more flexible credit score requirements. If your capital needs are $50,000 or below, SBA microloans may be a fit.
OnDeck
Best for short-term loans
Who should consider it: High-revenue businesses that can support higher weekly or daily payments.
OnDeck is an online business lender that offers loans up to $250,000 with maximum repayment terms of two years. It is fairly lenient with its qualification requirements and can offer fast funding, but make sure your business can support fairly high weekly or daily payments before you commit to anything.
Accion Opportunity Fund
Best for minority women
Who should consider it: Businesses that could benefit from a hands-on loan experience and additional business counseling.
Accion is a nonprofit CDFI, that specifically helps women- and minority-owned businesses access capital when traditional barriers may stand in their way. Even with a low credit score, women entrepreneurs may be able to qualify for competitive rates and terms.
AltLINE
Best for invoice factoring
Who should consider it: B2B businesses with a lot of cash tied up in unpaid customer invoices.
A company like AltLINE can help women-owned businesses by freeing cash that may be tied up in unpaid customer invoices. There are no specific credit score, time in business or revenue requirements, making this a good option if your business is in a growth stage and can’t fall back on strong personal credit.
What is a bad credit score?
A bad credit score usually falls between 300 and 629 (on a scale of 300 to 850), according to the most common credit score models, like VantageScore and FICO. Personal credit scores ranging from 630 to 689 are typically considered fair credit.
A low credit score can reflect missed payments or bankruptcies, but it can also be due to the overall age of your credit accounts and the variety of credit account types on your report.
Business lenders may have their own criteria to define what they consider an acceptable credit score, however, loans marketed as bad-credit business loans typically target borrowers with credit scores below 630.
Where to get a business loan for women with bad credit
Traditional lenders, like banks and credit unions, are unlikely to issue loans to borrowers facing credit challenges. The alternative sources below, however, may be willing to work with women-owned businesses that don’t meet the credit requirements of traditional banks.
Online lenders
Online lenders tend to have flexible minimum credit score requirements, ranging from 500 to 660. Some of these lenders don’t set a credit requirement at all — and instead focus more heavily on cash flow or collateral when evaluating your application.
Online lenders typically offer easy approvals and fast funding, especially compared with more traditional lenders. As a result, however, online business loans usually have higher interest rates and shorter repayment terms.
Although there are numerous reputable lenders in the online market, there are also predatory lenders who try to take advantage of borrowers who are having trouble qualifying for funding. Be wary of any lenders offering no credit check loans or guaranteed approval.
CDFIs
Community development financial institutions (CDFIs) are banks and credit unions that receive government funding to provide banking access to low-income and underserved communities — including women, veterans and minority groups.
Unlike other traditional lenders, CDFIs tend to have flexible qualification requirements and are more amenable to working with startups and businesses with bad credit.
Accion Opportunity Fund, for example, is flexible with its credit score requirements and only looks for a minimum of
12
months in business. The lender also states that over 90% of its borrowers are women, people of color and/or low-to-moderate-income individuals.CDFI loans offer competitive interest rates and repayment terms, but funding may be slower than online lenders.
Nonprofit lenders
Like CDFIs, nonprofit lenders focus on offering business loans to borrowers who can’t qualify for traditional financing, such as those with limited or poor credit histories. Many of these lenders provide free or low-cost coaching and business training.
Some nonprofit lenders are also SBA microlenders. These lenders receive government funding, but administer their own loans. Microlenders can set their own standards for interest rates, repayment terms and qualifications — subject to SBA guidelines.
Justine Peterseon, for instance, is a St. Louis-based nonprofit microlender that offers SBA microloans up to $50,000. Typical interest rates range from 7.25% to 11%.
How to get a business loan for women with bad credit
1. Evaluate your credit
When you’re looking to get a business loan, start by checking your credit score. You can get a free credit score on NerdWallet, and also pull your personal credit report from the three major reporting bureaus for free at AnnualCreditReport.com.
Once you have your reports, it may be possible to improve your credit before applying for financing. Look for any errors on your credit report and dispute them with the appropriate credit bureau. Making more frequent payments or paying off debt can also help build your credit score.
2. Gather other business criteria
Next, evaluate your other business criteria — annual revenue, time in business, cash flow, available collateral — to determine the type of funding you can qualify for. You’ll want to look for the areas where your business is the strongest, maybe you have excellent cash flow, for example, and highlight these strengths on your loan application.
3. Research and compare lenders
Once you have a sense of your qualifications, you can begin researching and comparing lenders. You'll want to consider factors like borrowing costs, repayment terms, funding speed and lender reputation when choosing the right option for your needs.
Alternative funding options for women with bad credit
Here are some alternative financing options where a low credit score may not hurt you:
- Asset-based funding. With asset-based financing, you receive money from a lender to purchase products for your business. The product you’re looking to purchase, such as inventory or equipment, serves as collateral on the loan. Because this type of financing is self-collateralized, lenders are often more willing to work with credit-challenged borrowers.
- Small-business grants. Business grants offer free funding that you don’t have to repay. Grant providers typically don’t use your credit score to evaluate your application, although application windows can be narrow and the process can be competitive. Some companies offer specific business grants for women.
- Crowdfunding. With crowdfunding, you put your business on an online platform and advertise your financing goal. People can donate money to your business — usually in exchange for equity or some type of perk or benefit. Crowdfunding can be a good option for product-based businesses with an internet following.
Last updated on August 20, 2024
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
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