Bad-credit business loans: published minimum scores and costs (2026)
Edited by Moe Ameen · Published
Some lenders publish minimums below FICO's "fair" line of 580. Torro lists 400 for existing businesses, Credibly 550 and Fora Financial 570, though each also sets time-in-business or revenue minimums. Lower scores cost more: Bluevine and OnDeck both say their lowest rates go to the strongest credit profiles. Alternatives include SBA microloans, which generally cost 8% to 13%, community lenders called CDFIs, and secured business cards.
Key takeaways
- FICO calls scores under 580 poor and 580 to 669 fair.
- Lowest published minimums we found: Torro 400, Credibly 550, Fora Financial 570, Biz2Credit 575.
- Low-minimum products often use factor rates, which tend to cost far more than they look.
- The SBA sets no minimum credit score. Its lenders set their own.
- Microloans, CDFIs and secured cards are worth checking before a high-cost advance.
What credit score counts as bad for a business loan?
FICO calls under 580 poor and 580 to 669 fair. Each lender draws its own line, and the published minimums we found run from 400 to 650.
Those bands come from myFICO [1]. Most small business lenders look at the owner's personal score, so that's the number to check first. If yours is in the fair range, funding with fair credit goes through the options in that band.
Which lenders publish a minimum score under 600?
Torro (400 for existing businesses), Credibly (550), Fora Financial (570) and Biz2Credit's revenue-based financing (575), on their own pages.
Each one pairs the score with other minimums. Credibly asks for 6 months in business and about $20,000 in average monthly deposits [3]. Fora Financial asks for 6 months and $240,000 a year [4]. Torro's 400 applies to existing businesses; for startups it says 600 [2]. National Funding publishes no minimum but says most of its customers have a FICO of 600 or higher [12].
How much more does a business loan cost with bad credit?
Lenders don't publish rates by score, but they say the lowest rates go to the strongest credit. Low-score products often use factor rates.
Bluevine says the lowest rates are available only to applicants with the strongest credit profiles [8]. OnDeck says its rates vary with creditworthiness, and its average for lines of credit opened in the first half of 2026 was 59.8% APR [9]. NerdWallet says that in general, the higher your score, the better the rate [17].
Bankrate says factor rates often show up on high-risk loans for owners with bad credit, and that you usually owe the full fee even if you repay early [18]. Before you sign, turn the quote into an APR. Our business loan rates page shows how.
What are the alternatives to a high-cost bad-credit loan?
SBA microloans from nonprofit lenders, community lenders certified as CDFIs, and secured business credit cards that build a record over time.
- SBA microloans: up to $50,000 over up to seven years, made by nonprofit intermediaries that set their own terms. The SBA says rates generally run 8% to 13% [14].
- CDFIs: the Treasury's CDFI Fund certifies lenders that serve low-income communities and people who lack access to financing. They include community development banks, credit unions and loan funds, and the Fund publishes a list of certified CDFIs [15].
- Secured business cards: Bank of America's secured business card needs a $1,000 minimum deposit, and the credit line equals the deposit. The bank says it reviews accounts periodically and may move you to an unsecured card if your credit history improves [16].
- SBA 7(a) loans: the SBA publishes no minimum score; each lender sets its own [13].
Glisten data
Lowest published minimum credit scores
| Lender and product | Min. score | Min. time in business | Min. revenue |
|---|---|---|---|
| Torro: Business capital [2] | 400 | Not published | Not published |
| Credibly: Working capital [3] | 550 | 6 months | $240,000 a year |
| Fora Financial: Business loan or revenue advance [4] | 570 | 6 months | $240,000 a year |
| Biz2Credit: Revenue-based financing [5] | 575 | Not published | Not published |
| Fundbox: Line of credit [6] | 600 | 6 months | $30,000 a year |
| Lendio: Line of credit (marketplace) [7] | 600 | 6 months | $30,000 a year |
| Bluevine: Line of credit [8] | 625 | 12 months | $120,000 a year |
| OnDeck: Line of credit [9] | 625 | 12 months | $100,000 a year |
| OnDeck: Term loan [10] | 625 | 12 months | $100,000 a year |
| Kapitus: Business loan [11] | 650 | 24 months | $250,000 a year |
Glisten tool · Published lender requirements
| Lender | Min. credit score | Min. time in business | Min. revenue | Amounts |
|---|---|---|---|---|
| Biz2Credit Revenue-based financing · Revenue-based financing | 575 | Not published | Not published | Up to $5,000,000 |
| Biz2Credit Term loan · Term loan | Not published | Not published | Not published | $25,000 to $2,000,000 |
| Bluevine Line of credit · Line of credit | 625 | 12 months | $120,000/yr ($10,000 a month) | Up to $250,000 |
| Credibly Working capital · Working capital (factor-rate pricing) | 550 | 6 months | $240,000/yr ($20,000 average monthly deposits) | $25,000 to $600,000 |
| Fora Financial Business loan or revenue advance · Term loan | 570 | 6 months | $240,000/yr | Not published |
| Fundbox Line of credit · Line of credit | 600 | 6 months | $30,000/yr | Not published |
| Headway Capital Line of credit · Line of credit | Not published | 12 months | $50,000/yr | $5,000 to $100,000 |
| Kapitus Business loan · Term loan | 650 | 24 months | $250,000/yr | Up to $5,000,000 |
| Lendio Line of credit (marketplace) · Marketplace | 600 | 6 months | $30,000/yr ($2,500 a month) | $1,000 to $750,000 |
| National Funding Small business loan · Term loan | Not published | Not published | Not published | Up to $500,000 |
| OnDeck Line of credit · Line of credit | 625 | 12 months | $100,000/yr | $6,000 to $200,000 |
| OnDeck Term loan · Term loan | 625 | 12 months | $100,000/yr | $5,000 to $400,000 |
| Rapid Finance Small business loan · Term loan | Not published | Not published | Not published | $5,001 to $1,000,000 |
| SBA 7(a) loan program rules · SBA program rules | Not published | Not published | Not published | Up to $5,000,000 |
| SBA Microloan program rules · SBA microloan | Not published | Not published | Not published | Up to $50,000 |
| SmartBiz SBA 7(a) working capital or refinance · SBA 7(a) loan | Not published | Not published | Not published | $50,000 to $350,000 |
| Torro Business capital · Marketplace | 400 | Not published | Not published | Up to $575,000 |
Each lender name links to the page we read. Checked Oct 28, 2026. Runs in your browser; nothing you type is sent anywhere.
Is this right for you?
Best for
- Owners with scores under 670 who want to see published minimums before applying.
- Comparing a high-cost offer with microloans, CDFIs and secured cards.
Not ideal for
- Predicting a lender's decision. Lenders look at much more than these minimums.
- Anyone who needs a lender picked for them. We show what lenders publish and link to it.
Frequently asked questions
Can I get a business loan with a 500 credit score?
A few lenders publish minimums that low. Torro lists 400 for existing businesses [2]. Most lenders we checked publish 550 or higher.
Does the SBA lend to people with bad credit?
The SBA publishes no minimum score. Its lenders set their own, and microloan lenders set their own credit terms [13][14].
What is a CDFI?
A lender certified by the Treasury's CDFI Fund to serve low-income communities and people who lack access to financing [15].
Are bad-credit business loans expensive?
Usually. Lenders say their lowest rates go to the strongest credit, and factor-rate deals often carry high APRs [8][18].
Does Glisten lend money?
No. Glisten isn't a lender. We show what lenders publish, with links to where they publish it.
How we know this
On October 29, 2026 we re-read the requirement pages of every lender in our table, plus the SBA's 7(a) and microloan pages, the CDFI Fund's certification page and Bank of America's secured business card page. Minimums are exactly what each lender publishes. We checked general claims on cost against NerdWallet and Bankrate, and score bands against myFICO.
- Credit scores, myFICO. Checked October 29, 2026.
- FAQs, Torro. Checked October 29, 2026.
- working capital, Credibly. Checked October 29, 2026.
- requirements, Fora Financial. Checked October 29, 2026.
- revenue-based financing, Biz2Credit. Checked October 29, 2026.
- lines of credit guide, Fundbox. Checked October 29, 2026.
- line of credit, Lendio. Checked October 29, 2026.
- line of credit, Bluevine. Checked October 29, 2026.
- line of credit, OnDeck. Checked October 29, 2026.
- FAQ, OnDeck. Checked October 29, 2026.
- business loan, Kapitus. Checked October 29, 2026.
- small business loans, National Funding. Checked October 29, 2026.
- 7(a) loans, SBA. Checked October 29, 2026.
- Microloans, SBA. Checked October 29, 2026.
- CDFI certification, CDFI Fund, U.S. Treasury. Checked October 29, 2026.
- Business Advantage Unlimited Cash Rewards Secured credit card, Bank of America. Checked October 29, 2026.
- Average business loan rates, NerdWallet. Checked October 29, 2026.
- What is a factor rate and how to calculate it, Bankrate. Checked October 29, 2026.