How to Get Business Funding with Bad Credit
Revenue-based products such as merchant cash advances focus mainly on your business's bank deposits, so owners with credit scores under 600 can still qualify if the business shows consistent monthly revenue and at least 6 months of history.
What lenders look at besides your score
Average monthly deposits, the number of deposits, average daily balance, negative or overdraft days, existing funding payments, and time in business. Clean, steady bank statements can outweigh a low score.
Options that work with lower credit
Merchant cash advances, revenue-based financing, and equipment financing (where the equipment secures the deal) are the most accessible. Bank loans and SBA loans generally require stronger credit.
How to strengthen your application
Keep business and personal finances separate, avoid overdrafts in the months before applying, deposit all revenue into your business account, and be upfront about existing advances.
Know the trade-off
Lower-credit funding usually costs more. Borrow only what a specific purpose requires, and make sure the payment fits your cash flow. If you don't qualify yet, an advisor can tell you what to work on.
This article is general education, not financial or legal advice. Terms vary by product and business.