Business Funding Options for Owners with Bad Credit

For business owners, a low FICO score translates to banks that your personal finances may have been mismanaged during your working life. In their judgment, that makes you and your business a potential credit risk. It is still possible to receive business funding with bad credit, however. At National Business Capital, there are several options which depend on individual circumstances, business requirements, business revenue, and, we consider not just your credit score.

Generally, one or more of the following criteria are required to qualify for business funding, such as a term loan or business line of credit:

  • A credit score of 500 or higher
  • Potential borrower has posted $100,000 or higher in gross annual revenue
  • Business has been in business 3 months or more

As stated above, banks will deny almost all financing applications for bad credit. However, the alternative financing industry, which has grown significantly over the last decade, generally has less stringent underwriting criteria. We have a financing approval rate of over 90%.

How to Qualify for Business Funding with a Low FICO

Tips that will assist business owners to qualify for business funding despite having a low FICO score:

  • Regular Bank Deposits help demonstrate having cash flow AWG note: Please provide any additional documents needed by our Business Consultants. Have all paperwork in order.
  • Quickly provide any additional information the underwriter may ask for
  • Be prepared to have a conversation with the underwriter about what you are looking to accomplish with funding

These are helpful tips to obtain business funding with bad credit. There are numerous other ways for small business owners to gain access to financing without perfect credit or the lengthy and involved timeline associated with traditional business funding.

National Business Capital is a leading alternative financing company. Over 70% of our clients had been denied financing by their banks prior to contacting our Business Consultants. If you have questions about how to obtain financing despite a low FICO, please give us a call at (888) 888-9124.

Also, be sure to check out our FREE eBook on how to get business funding when banks say no:

About the Author, Megan Capobianco
Megan Capobianco is the Marketing Manager at National Business Capital. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.