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Best Small-Business Loans for Women With Bad Credit

By Randa Kriss
Last updated on August 20, 2024
Edited bySally Lauckner
Fact checked and reviewed
Online and nonprofit lenders can provide business loans for women with bad credit, but interest rates can run high.

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Women-owned businesses are more likely to be denied financing than businesses owned by men — even if they have strong credit. And for women with a rocky credit history, it can be even more challenging to get a small-business loan.
Although banks and credit unions don’t typically offer loans to borrowers with poor credit, female entrepreneurs may be able to get funding from online or nonprofit lenders.
Below, compare some of the best business loans for women with bad credit — defined by FICO as a score between 300 and 629 — and learn more about how to qualify for financing.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are 7 small-business loans for women with bad credit

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

Fora Financial - Online term loan

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4.5/5

Best for startups

$1,500,000570

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Fundbox - Line of credit

Read Review
4.9/5

Best for lines of credit

$150,000600
Read Review

Triton Capital - Equipment financing

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4.1/5

Best for equipment loans

$250,000575

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SBA Microloan

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Best for SBA loans

$50,000620

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OnDeck - Online term loan

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4.7/5

Best for short-term loans

$250,000625

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Accion Opportunity Fund - Small Business Working Capital Loan

Read Review
4.6/5

Best for minority women

$250,000600
Read Review

AltLINE - Invoice Factoring

Read Review
4.4/5

Best for invoice factoring

$5,000,000300
Read Review

Here are 7 small-business loans for women with bad credit

Best for startups

Fora Financial

Max Amount

$1,500,000

Min. Credit Score

570

Best for lines of credit

Fundbox

Max Amount

$150,000

Min. Credit Score

600

Best for equipment loans

Triton Capital

Max Amount

$250,000

Min. Credit Score

575

Best for SBA loans

U.S. Small Business Administration

Max Amount

$50,000

Min. Credit Score

620

Best for short-term loans

OnDeck

Max Amount

$250,000

Min. Credit Score

625

Best for minority women

Accion

Max Amount

$250,000

Min. Credit Score

600

Best for invoice factoring

AltLINE

Max Amount

$5,000,000

Min. Credit Score

300

I'M INTERESTED IN:

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

Read Review

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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

NerdWallet rating 
4.5/5
Max loan amount
$1,500,000
Min. credit score
570

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

Read Review
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

NerdWallet rating 
4.9/5
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
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

4.1
NerdWallet rating 

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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 
4.1/5
Max loan amount
$250,000
Min. credit score
575
Est. APR
6.50-34.99%

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

Read Review

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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%

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

Read Review

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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

NerdWallet rating 
4.7/5
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
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

Read Review
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

NerdWallet rating 
4.6/5
Max loan amount
$250,000
Min. credit score
600
Est. APR
8.49-24.99%

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

Read Review
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

NerdWallet rating 
4.4/5
Max loan amount
$5,000,000
Min. credit score
300

How Much Do You Need?

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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.

Fundbox

Best for lines of credit
Who should consider it: Small businesses with poor credit that could benefit from a revolving source of capital.

Triton Capital

Best for equipment loans
Who should consider it: Businesses that need large equipment or vehicles.

SBA Microloan

Best for SBA loans
Who should consider it: Business owners who don’t need large loan amounts.

OnDeck

Best for short-term loans
Who should consider it: High-revenue businesses that can support higher weekly or daily payments.

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.

AltLINE

Best for invoice factoring
Who should consider it: B2B businesses with a lot of cash tied up in unpaid customer invoices.

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.

See Your Loan Options