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Best Bad Credit Business Loan Lenders in 2025
If you have bad credit (or a challenged credit history) and are looking for business funding in 2025, your options are more limited—but not nonexistent. Many lenders now specialize in or accommodate “riskier” borrowers by focusing on cash flow, alternative underwriting, or higher-cost loan types. Below is a guide to the best bad-credit business loan lenders in 2025, what to expect, and tips to boost your chances of approval.
✅ What to Expect When Borrowing With Bad Credit
Before diving into lender names, it helps to understand the tradeoffs:
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Higher interest rates and fees compared to prime loans
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Shorter repayment terms
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Smaller loan amounts
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More frequent monitoring or stricter covenants
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Greater reliance on collateral, personal guarantees, or cash flow metrics
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Lenders may rely heavily on bank statements, sales history, or revenue-based underwriting instead of credit scores
According to LendingTree, personal credit scores of 500 or higher are often the floor for “bad credit business loans.” LendingTree And per Bankrate, even “bad to fair” borrowers (FICO 300–669) can sometimes access business funding, though with more restrictive terms. Bankrate
⭐ Top Lenders to Consider (Bad Credit Business Loans in 2025)
Here’s a list of lenders and loan types that tend to accept lower credit or use alternative criteria:
| Lender / Platform | Focus / Product | Why They’re Good for Bad Credit | Things to Watch / Limits |
|---|---|---|---|
| OnDeck | Short-term loans, lines of credit | Widely cited as a top bad-credit option for short-term business funding LendingTree | Rates can be high; short terms |
| PayPal Working Capital | Advances based on PayPal sales | Doesn’t require a credit check — underwriting is based on PayPal account performance NerdWallet | Only for merchants with a PayPal account; fees factored in |
| Square Loans / Square Capital | Advances for Square sellers | Approves based on Square processing history; minimal credit emphasis NerdWallet | Only works if your business processes payments via Square |
| Giggle Finance | Merchant cash advances / small advances with minimal credit review | Accepts applicants based on bank statements or payment history instead of credit score NerdWallet | Small loan amounts; funding comes with high factor rates |
| AltLINE / Invoice Factoring | Invoice factoring / advances | No minimum credit score, underwriting based on your clients’ invoices NerdWallet+2Metrobi+2 | You’re selling invoices rather than borrowing; costs can be high |
| Swoop | Marketplace for high-risk business loans | Aggregates lenders willing to fund businesses with poor credit Swoop UK | Lender network—terms vary widely; watch fees and conditions |
🎯 Tips to Improve Your Chances with Bad Credit
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Use strong bank statement history
If you've got consistent deposits and stable cash flow, many lenders will weigh this heavily—even more than credit score. -
Offer a personal guarantee or collateral
It reduces lender risk and helps get your foot in the door. -
Limit loan amount and term
Request a small amount and shorter term to reduce perceived risk. -
Diversify and shop around
Apply to multiple lenders. Some marketplaces specialize in matching high-risk borrowers to lenders. -
Strengthen your business credit profile
Over time, paying off debts, making payments early, and building authorized user status can help. -
Be transparent and prepare documentation
Have your business plan, financials, bank statements, tax returns ready—even for “bad credit” lenders.
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