Best Startup Business Loans For Bad Credit Of 2024

Biz2Credit is a digital funding platform that provides three funding options—term, revenue-based financing and commercial real estate (CRE) loans—ranging from Up to $1M+. It only takes a few minutes to apply.

Biz2Credit can connect business owners with revenue-based financing Up to $2M+ and term loans Up to $1M+. Revenue-based financing payments are flexible based on business performance, with a right to reconcile against actual business receipts while term loans are repaid through weekly, bimonthly or monthly payments over the course of 12 to 36 months. Biz2Credit also offers interest-only CRE loans from Up to $2M+ with terms between 12 and 36 months; payments are due monthly.

In the event that Biz2Credit cannot provide a financial product, it may present third-party options to qualified prospective borrowers. However, Biz2Credit confirms that “in the vast majority of cases, [it] will make a financing decision without referral to any external party.”

Eligibility

Eligibility varies based on the financing option you choose.

Term loan

• Minimum credit score: 650
• Time in business: 18 months
• Minimum revenue: $250,000 per year

Revenue-based financing

• Minimum credit score: 575
• Time in business: 6 months
• Minimum revenue: $10,000 per year

Turnaround time

Biz2Credit does not disclose the turnaround time for its financing options.

Similar to Funding Circle, Biz2Credit emerges as a more balanced alternative and functions as a platform to offer a wide range of loans. Due to the more thorough underwriting process, the qualification requirements are more restrictive than other business lenders and funding may not be as quick.

— Abid Salahi, co-founder and CTO, FinlyWealth

QuickBridge provides small business loans to business owners nationwide. Applying is quick and funding can happen within 24 hours, but you need fair to excellent credit to qualify.

Interest on loans from QuickBridge is expressed as a factor rate. To determine the cost of borrowing, multiply your desired loan amount by the factor rate. For example, if you borrow $30,000 at a factor rate of 1.10, you would owe $33,300 in total with $3,300 in interest. With a loan term of six months, your interest rate would be 22%, but that doesn’t include any fees the lender can tack on.

Eligibility

• Minimum credit score: 600
• Time in business: Six months
• Minimum revenue: $250,000 per year

Turnaround time

You can apply and receive a decision from QuickBridge on the same day.

QuickBridge, which operates as an alternative lender, provides small businesses with funding within a matter of days. Its thorough approval process involves looking at your business as a whole, more than just your credit score. However, for approval, there’s a minimum credit score requirement of 600 and an annual revenue requirement of $250,000, which isn’t the lowest in the industry.

While the speedy lending process may seem attractive, QuickBridge charges interest as a factor rate starting at 1.10 plus an origination fee in the range of 1% to 5%, making the loans quite pricey.

— Abid Salahi, co-founder and CTO, FinlyWealth

Fundbox is an AI-powered business lending platform that speeds up the application, decision-making and funding process. It offers decisions within three minutes and funds as soon as the next business day.

Prospective borrowers have two business financing options through Fundbox. Business owners can apply for revolving business lines of credit up to $150,000 with repayment terms of 12 or 24 weeks. Your available credit goes back up as you repay your line of credit.

Eligibility

• Minimum credit score: 600
• Time in business: Six months
• Minimum revenue: $100,000 per year

Turnaround time

With a business line of credit from Fundbox, you can receive your funds as soon as the next business day.

The approval process is quick and Fundbox is available for the credit-challenged business. Credit approvals are usually small, so this [typically] isn’t an option for larger purchases. I had a small business client that had Fundbox integrated with her Stripe dashboard, which made it convenient.

— Herman Thompson, Jr., advisory board member

Rapid Finance is an online lender that has funded over $2 billion in business financing across a variety of industries. Business owners looking for unsecured loans can access a wide variety of options, including term loans, lines of credit, merchant cash advances and invoice factoring.

Rapid Finance unsecured loans range from $5,000 to $1 million with terms from three to 60 months, depending on the specific type of loan. However, business owners with bad credit typically won’t receive the largest loan amounts. What’s more, borrowers are required to meet daily or weekly repayment schedules.

To apply, applicants will need a form of identification, business bank account number and routing information, and their last three months of business bank statements.

Eligibility

• Minimum credit score: 550
• Time in business: At least six months
• Minimum monthly revenue: $5,000

Turnaround time

Rapid Financing says it funds 90% of its loans within 24 hours, but it can take up to two days in some cases.

Credibly offers a wide range of business loans for bad credit—working capital loans, business lines of credit and merchant cash advances, specifically. What’s more, new businesses may also find it easier to secure financing because Credibly only requires businesses to be in operation for at least six months.

Working capital loans of up to $600,000 are available with terms between 6 to 24 months; payments are due daily or weekly. If a business owner should choose a business line of credit, they can access credit lines up to $250,000. Lastly, Credibly offers merchant cash advances (MCAs) up to $600,000 with terms between 3 to 24 months.

Eligibility

• Minimum credit score: 500
• Time in business: At least six months
• Minimum revenue: At least $15,000 in average monthly bank deposits

Turnaround time

Credibly offers same-day approvals and same-day funding once approved.

Kiva is a microlender that offers a unique crowdfunding platform for a wide variety of prospective borrowers. Compared to traditional financing, Kiva utilizes your personal network and its own network of 1.6 million investor lenders to crowdfund loans up to $15,000 with terms up to 36 months.

Business owners who apply directly through Kiva’s website may receive 0% interest. Kiva refers to these as Direct Loans, which are only available to businesses in the U.S. and social enterprises internationally. However, if a prospective borrower applies through a Kiva Field Partner—local organizations working in communities to vet borrowers, provide services and administer loans—they will likely pay interest to the partner in some form, which varies by partner.

Loan funds are distributed and repaid through PayPal or Kiva’s Field Partners.

Eligibility

Because Kiva uses a crowdfunding method, it’s able to offer less stringent qualification requirements. Although Kiva loans don’t require a minimum credit score, cash flow documents or collateral, borrowers are vetted or endorsed by either a local Field Partner, Trustee or members of the community.

Turnaround time

After you submit your application, a Kiva representative will get back to you within 10 to 15 business days. Kiva suggests that “submitting a great photo and business story will help your application make it through the review process more quickly.”

Once you’re approved for fundraising, you have 15 days to raise funds from your own network, and then 30 days to publicly fundraise with Kiva’s network of lenders.