A low credit score shouldn’t stop you from securing the funding you need to grow your business. Some lenders offer loans with low or no credit score requirements. Granted, it’s likely you’ll be on the hook for paying higher interest rates. But making your payments in full and on time can help you increase your credit score (for the next time you need a loan) all while giving your business a financial boost.
Below, we’ve rounded up some of the best business loans for borrowers with a credit score of 580 or lower. (See our methodology for more information.)
Best business loans for borrowers with a credit score of 580 or lower
Best for microloans
Kiva
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Types of loans
Peer-to-peer crowdfunded loan
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
No minimum credit score required
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Minimum requirements
You must be 18, live in the U.S., use this loan for business purposes, not currently in foreclosure, bankruptcy or have any liens, and have a small number of your friends and family willing to make a loan to you (Nevada and North Dakota residents are not ineligible)
Pros
- Ability to borrow with no interest
- Loans are geared toward borrowers who are unbanked and have trouble qualifying for financial products
- Ability to market your product to 1.6 million lenders on Kiva
Cons
- You need to prove your creditworthiness by inviting friends and family to lend to you
- It can take a while to receive your loan since investors need to raise money
- No BBB rating
Who’s this for? Kiva lets business owners borrow up to $15,000, and it doesn’t have a minimum credit score requirement. However, it does require borrowers to create crowdfunding campaigns to fund their loans. Small business owners can only raise up to $15,000, so Kiva is best suited for businesses that don’t need to borrow tens of thousands of dollars.
Standout benefits: Kiva and its lenders for the U.S. small business loan program don’t collect interest from borrowers because it’s a nonprofit.
Best for secured loan options
Greenbox Capital
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Types of loans
Term loan, business line of credit, invoice factoring, merchant cash advance
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
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Minimum requirements
Must be in operation for at least five months
Pros
- Funding amounts between $3,000 and $500,000
- Borrowers could get funded in as little as one business day
- Applicants get connected with a Funding Advisor to walk through funding options
- Options available for borrowers with lower credit scores
Cons
- Repayment terms for collateral loans may err on the shorter side
Who’s this for? Not every lender requires collateral to secure the loan. However, secured loans can be easier to get because you’re using business assets as collateral in the event you default on payments. Greenbox Capital provides up to $250,000 in secured loan funding; the minimum funding amount is $50,000.
Standout benefits: Greenbox Capital offers funding in all 50 states.
Best for high-revenue businesses
National Funding
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Types of loans
Working capital loans, short term loans, equipment financing loans
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
Up to 5 years, depending on the loan type
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Minimum credit score needed
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Minimum requirements
Must be in operation for at least six months and have at least $250,000 in annual sales
Pros
- Offers a higher funding amount at $500,000
- No-cost application
- Application approval in as little as 24 hours
- Doesn’t require collateral
- Offers an early payoff discount
Cons
- High annual sales requirement to qualify for the loan
Who’s this for? National Funding requires businesses to have been active for at least six months and earn at least $250,000 in annual sales in order to qualify for a loan. The revenue requirement is quite high compared to that of other lenders, so National Funding may be better suited for businesses that already have a strong revenue stream.
Standout benefits: Eligible businesses may apply for up to $400,000 in funding. By contrast, most lenders only let you apply for around $250,000, so National Funding offers significantly more.
Best for higher loan amounts
Credibly
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Types of loans
Long-term loans, working capital loans, business line of credit and merchant cash advance
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
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Minimum requirements
Must have been in business for at least six months and have average monthly revenue of at least $15,000
Pros
- Offers multiple options for small business financing
- Can get approved within four hours
- Low minimum credit score requirement
- Provides loan amounts of up to $600,000
- Funds deposited as soon as the same business day
- Considers overall business health as an approval criteria
Cons
- Requires an average monthly revenue of at least $15,000
Who’s this for? Credibly offers loan amounts up to $600,000, the highest of any other lenders on this list. If your business needs to borrow larger amounts of money, Credibly should be your first stop.
Standout benefits: Credibly’s minimum credit score requirement is just 500.
Best for PayPal business users
PayPal Working Capital Loan
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Types of loans
Working capital business loan
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Better Business Bureau (BBB) rating
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Loan amounts
$1,000–$200,000 (up to $300,000 if you’re a repeat borrower)
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Terms
None specified; borrowers pay a portion of their sales until the loan is paid off
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Minimum credit score needed
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Minimum requirements
Must have a PayPal account since approval is based on your business’s PayPal account activity
Pros
- Charges a single fixed fee
- Borrowers can choose a higher or lower repayment percentage; choosing a higher repayment percentage can lower the fee you’re charged
- Repayments are automatically deducted from your PayPal account
- No early repayment fee
Cons
- Must have a PayPal business account with account activity to be considered
- Repayment percentage cannot be changed once you receive the loan
Who’s this for? Eligibility for a PayPal working capital loan isn’t actually based on a credit score. Rather, it’s based on your business’s PayPal account sales history, which means you need to already be a PayPal business user to qualify.
Standout benefits: First-time borrowers may only receive up to $200,000 in funding, but repeat borrowers can qualify for up to $300,000 in loans.
More on our picks for best business loans for borrowers with a credit score of 580 or lower
Kiva
Kiva is a nonprofit and peer-based lending platform. After you apply, Kiva gives you 15 days to raise funds from your friends and family. If you succeed with that, Kiva will consider granting you access to its larger network of lenders to raise the rest of your requested funds. So far, Kiva has helped borrowers raise over $1 billion, according to its website.
Eligible borrowers
Must be at least 18 years old, living in the U.S. and use the funds for business purposes only
Loan amounts
Up to $15,000
Loan terms
Up to 3 years
Greenbox Capital
Greenbox Capital offers several types of funding, including equipment financing, merchant cash advances, business lines of credit and invoice factoring.
Eligible borrowers
Must be in operation for at least five months
Loan amounts
Up to $250,000 for collateral loans
Loan terms
Not disclosed
National Funding
National Funding funds a variety of industries, including agriculture, beauty, wellness, restaurants and more. So far, this lender has provided over $4.5 billion in funding to businesses.
Eligible borrowers
Must be in operation for at least six months and have at least $250,000 in annual sales
Loan amounts
Up to $400,000
Loan terms
Up to 5 years, depending on the loan type
Credibly
Credibly has a minimum credit score requirement of 500. Businesses will also need to earn at least $15,000 per month in average revenue in order to qualify.
Eligible borrowers
Must be located in the U.S., have a credit score of 500+ and must earn at least an average of $15,000 per month through the business
Loan amounts
$5,000 to $600,000
Loan terms
3–24 months
PayPal working capital loans
With PayPal working capital loans, the platform automatically deducts a portion of your business’s sales from your PayPal account. This counts as repayment until your loan is completely paid off. Depending on the loan terms, borrowers must repay at least 5% or 10% of their total loan amount (plus the fixed fee) every 90 days.
Eligible borrowers must have a PayPal Premier or Business account for more than 90 days. You must also process at least $20,000 in annual PayPal sales if you have a Premier account, or at least $15,000 in annual PayPal sales if you have a Business PayPal account.
Eligible borrowers
Must have a PayPal business or Premier account for at least 90 days
Loan amounts
$1,000 to $150,000 (up to $250,000 for repeat borrowers)
Loan terms
Payments are made until the loan is completely paid off
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FAQs
Can I get a business loan with a 500 credit score?
It’s possible to get a business loan with a 500 credit score if you target lenders that consider applicants with lower credit scores, or lenders that consider alternative credit factors. Just be aware that if you have a low credit score, you’ll likely have to pay higher interest rates.
How much collateral is needed for a business loan?
Not all lenders require collateral to secure a business loan but for the most part, the amount of collateral needed can depend on the lender. It can also depend on several business factors like your business credit and how much of a loan you’re borrowing.
Why trust CNBC Select
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of small business products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best LLC services for small businesses.
Methodology
To determine the best business loans for borrowers with a credit score of 580 or lower, CNBC Select analyzed lenders.
We compared each loan on a range of features, including:
- APR
- Fees and penalties
- Loan amount
- Loan terms
- Revenue requirements for eligibility
- Business activity requirements
- Credit score requirements
APRs, fees and other loan terms are subject to change at any time.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
