Funding guide
Bad Credit Business Loans: Funding Options Under 600
Yes, businesses with credit scores below 600 can still get funding, mainly through revenue-based products like merchant cash advances, invoice factoring and some equipment financing. These providers weigh your bank deposits and sales more heavily than your credit score, but you should expect higher costs and shorter terms.
Last updated October 23, 2026
What is a bad credit business loan?
Traditional lenders rely heavily on personal credit. Alternative providers focus on cash flow: consistent deposits, average daily balance and low overdrafts.
Collateral-based options like equipment financing and invoice factoring also reduce reliance on credit scores.
- Amount
- $5k – $250k
- Term
- 3 – 18 months
- Cost
- 1.20 – 1.50 factor typical
- Speed
- 1 – 3 days
- Credit
- 500+
Source: industry estimates compiled by BusinessFundingQuote.com; actual terms are set by each provider.
Requirements
- 6+ months in business
- $10k+ monthly revenue
- 3–4 months of bank statements
- No open bankruptcy (usually)
Pros and cons
Pros
- Accessible with low credit
- Fast decisions
- Can build a funding history
Cons
- Higher costs
- Short terms
- Risk of debt cycles if stacked
Who it's best for
- Owners rebuilding credit
- Strong-revenue businesses with credit blemishes
Bad Credit Business Loans vs alternatives
| Option | Amount | Term | Typical cost | Speed | Credit |
|---|---|---|---|---|---|
| Bad Credit Business Loans | $5k – $250k | 3 – 18 months | 1.20 – 1.50 factor typical | 1 – 3 days | 500+ |
| Merchant Cash Advance | $5k – $500k+ | 3 – 18 months | 1.10 – 1.50 factor | 24 – 72 hours | 500+ often accepted |
| Invoice Factoring | $10k – $10M | Per invoice (30–90 days) | 1% – 5% per 30 days | 1 – 3 days | Customer credit matters most |
| Equipment Financing | $5k – $5M | 2 – 7 years | 6% – 30% APR | 1 – 10 days | 600+ |
| Revenue-Based Financing | $10k – $5M | 6 – 36 months (variable) | 1.1x – 1.5x cap | 2 – 10 days | Revenue-focused |
Frequently asked questions
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Written by
BusinessFundingQuote Editorial Team
Small business finance writers
Reviewed by
Funding Review Desk
Reviewed for accuracy against current market practices
Rates and ranges on this page are typical market estimates for educational purposes, not offers. How we make money.