Jun 20, 2011

Can I Get a Business Loan with Bad Credit?

The fact is that if you have bad personal credit, you are severely limited when it comes to finding business financing. However, it is not impossible to get business loans with bad credit. There are three things you have to have to get a small business loan with bad credit:

Credit Report

One of the first things you need to do is make sure that you actually have bad credit. For many people, their credit is poor, but not bad. Since it is not as high as they are used to, they think it is bad.

Find out what the lenders actually think is bad credit. Then, get your credit report, and do a good sweep of it to make sure everything is accurate, and that any mistakes that are on it are addressed right away. Look at your credit report and see if you have any R9’s. If not, you should be fine, but if you do, you will need to explain them to the lender or there is no way you are going to get a business loan.


If you want to get a business loan with bad credit, you have to have something to leverage the debt. Assets that are worth something are a must if you have bad credit and want a business loan. This might be cash, real estate, vehicles, machinery, etc. Basically, provide the lender with some reassurance that if you were to default on your loan, there is something of value they could collect to minimize their losses. Getting an unsecured business loan will not be possible with bad credit.

Comprehensive Business Plan

If you have bad personal credit, your best chance at getting a business loan is to have a great business plan. No lender is even going to look at you if you don’t have a great business plan. Make sure you include why you are qualified to work in the industry, what your competitive advantages are, what you do, who your competitors are, and why you can beat them out for market share. Do not assume the bank knows what your plan is, or why you are better, spell it out in a comprehensive business plan that they can easily read.

Last, but not least, if you have poor personal credit and want to get a business loan, consider establishing some business credit that you can use to apply for a loan in the future. If you can’t get an SBA loan or some other traditional loan, there are other options. Lenders all have different qualifications, so if you aren’t a good fit, you might be for a different lender. You also may qualify for a business line of credit or a cash advance.

Don’t give up if you get turned down initially. Most business loan applications get rejected. There are other options. Lendio is a great tool/resource for finding a business loan with bad credit, just use our free business loan finding tool. Lendio’s mission is to empower your small business by making small business loans simple through options, speed, and trust. Find out which business loan is best for you.

It takes a little cash to change the world.

So what are you waiting for?

About the author


  1. I would like to see if you could help me to get a loan for my small business .

  2. I have a product that not only have created, designed and hold an approved 14 yr. Patent and 7 yr. TM as well. This is product that has sold not only to people in the USA , but also in Canada, and overseas. My largest problem is I cannot get any financing unless I pay up front monies to companies and or SBA Loans.
    Without this money I cannot go forward and fill orders that are now pending with companies and people If you are looking for a good investment then it is me. I can be reached at; 813-926-2364-office or 813-359-3060

    Gary Hoskins, Pres
    Rocket Pockets Global Games, LLC

    • Gary,

      Have you created a Lendio profile? It’s possible we can match you with the right loan and lender.

      • I tried to apply at lendio and it said the length in business wasn’t long enough,,i thought this would be a start up site

        • Hi Craig,
          Lendio matches small business borrowers to banks, credit unions, and non-bank lenders—it’s not designed to help you find investors or crowd-sourced resources. Although there are a lot of options for financing a small business, that initial “thought” or “development” stage is tough. Best of luck with your start-up.

    • https://www.kickstarter.com
      I may be totally out of the loop, but i just came across this 2 days ago. Good luck!

  3. This might be cash, real estate, vehicles, machinery, etc. Basically, provide the lender with some reassurance that if you were to default on your loan, there is something of value they could collect to minimize their losses.

  4. I have a chance to purchase a bar and property. the value of the building and property is 211,000 all I need to purchase the building is 50,000 plus some start up moneys.

  5. I am currently seeking funds in order to expand my business and take it to the next level by seeking commercial property which would mean start-up for this expansion from a home-based business to this. Can you help?

    • Monique,
      The first thing you should do is complete a profile on Lendio. After you answer a few questions about your business, you can see if you get matched to any of the lenders on our network.

  6. This is great information. It’s hard to find funds for your business if you have bad credit. My co-worker found a company for his construction business that did not do credit checks to apply for the loan. http://www.simplebusinessfunds.com
    You must be in business for at least 1 year and generate a gross income of at least $150,000.

  7. Hi
    I am a citizen of Iran.
    I live in Tehran.
    I am engaged in construction work
    I need one million dollars
    5 to 10 years to repay
    With respect

  8. Need businessloan urgently,please no scammers and upfront fee

  9. Hi,i will like a business loan for a piece of property that i can pay back taxes on and start a small diner its close to public transportation and transportation center were lots of people in the surrounding area will stop in to sit and enjoy a good meal and atmosphere im forty years old and would it to happen so can you point me in the direction thanks

  10. Im insterested in getting the needed funds to help start a roller skating rink business.

  11. To Whom It May Concern:

    I represent a client who owns a non profit organization and wishes to fund a project that involves assisting disabled veterans and non veterans. He is looking for approximately $250,000 as seed capital as a requirement per his investor. Do you think your organization can assist? I look forward to hearing from you.


    Kristie Lewis, Esq.

  12. looking for a small buisness loan to start my business

  13. Good day,

    I urgently need your help.

    I’m not sure if you can help me but you are the first people I’m contacting at this point.
    My father passed on last year Jan, I’m an executor of his estate. I have been working together with him for the past 14years, running his bottle store business. He left three children, me, my sister and my younger brother. Before he died he told me to take over everything including his business but my problem is that I need to buy out my sister and my brother out because they are not interested in the business as they never were before.

    Is it possible that your company can loan me an amount of R297500 so I can buy them out of the business and be the sole owner? I need to pick up where he left off, I have transferred the LIQUOR license and running the business alone at this point and the bookkeeper is impressed with the way I have been running the business. My problem at the moment the only security that I have is the business and I need to wrap up the estate. If possible we can attached the business as a security. The business property has been paid up, it has it’s own property.

    Because we are family and my father wanted me to keep on running the business and the fact that I have been running the business with him, my siblings agreed that I can buy the business for R450000 of which my share will be deducted and I will have to pay only the difference. I have R40 000 and the amount that I need from you guys if you can help me out is R297 500. Please let me know.

  14. is 606 credit score enough to apply with your company?

    • Hi Joe,

      Yes. That credit score is enough to apply. Here is the link to help you along the way https://www.lendio.com/bp/signup. Thanks and good luck!

  15. Hello I am trying to purchase a sno cone business that is up for sale for $12,000 . I know that it will generate money because I have a great plan and have sought out locations that would generate a lot of business. My credit score is low around 550 what’s the possibility of getting funded.

    • It’s hard to tell without looking at the big picture. Credit score isn’t the only thing lenders look at when making their decision. You can go ahead and apply here: https://www.lendio.com/bp/signup

      Our funding managers can give you a better answer after talking with you and getting more information.

  16. I have a business but i need money to buy some equipment pls help me

    • We work with a handful of lenders that do equipment loans. Feel free to apply here to see what loan options you qualify for: https://www.lendio.com/bp/signup

  17. I have very bad credit. I have been in the automotive field for more than 20 years mechanical – auto body – welding and more. I have found a successful turnkey business I would like to purchase. I would like to use the business as the collateral. Do to my credit im having a hard time finding a lender.

    • We work with over 75 lenders. Without knowing specifics, we can’t tell you for sure if we can get you the funding you need. But you can feel free to submit an application at lendio.com/bp/signup

  18. I am looking for a loan to start a business I have been in the trucking business would like to go out on my own my credit is low in the 500s looking for a loan to put the truck and trailer up for collateral looking to borrow 25000 have any recommendations

    • Hi William, we can definitely see what options we have for you. Our lenders typically look for a credit score over 650, but your revenue or time in business may help. Have you created an account with us? That will allow you to try out our unique algorithm that’s designed to match you with more than 70 lenders to find you a loan that fits your needs. Let us know if you have any other questions.

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