You can absolutely get a business loan with bad credit — owners with scores as low as 500 get funded every day. The trick isn't fixing your credit first; it's reaching the lenders that don't lead with credit. Most funders won't. Here's how to find the ones that will.

Why one lender declines you for credit

A direct funder builds one underwriting box, and for many of them credit score is the gate. Apply with a 540 and you're an automatic no — not because you can't repay, but because you fell outside their single profile. Plenty of other lenders barely look at FICO and underwrite your deposits instead. You just have to reach them.

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One funder = one credit box

If their box wants 650+ and you're at 540, you're declined on the spot — no matter how strong your revenue is. One profile, one answer.

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50+ lenders = a yes for your file

Many of our 50+ lenders underwrite monthly revenue, not just credit. We route your file to the ones that fund your score — and negotiate the best terms they'll give.

Going to one funder vs. The Broker Shop

What mattersGoing to one funderThe Broker Shop
What they lead withYour credit scoreYour revenue and business health
Minimum creditTheir one cutoff (often 600+)Lenders that work with 500+ — some lower
If your score is lowDeclinedRouted to a revenue-first lender who approves
Who negotiates your termsNo oneWe do, across 50+ lenders
Cost to youVaries$0 — the lender pays our fee

Your revenue matters more than your FICO

Here's what most owners don't realize: a business doing $30K/month with a 540 score gets funded, while a 700-score business with thin revenue often doesn't. The lenders that think this way exist — they're just not the one funder you happened to apply to.

The Broker Shop puts your file in front of 50+ lenders at once, finds the ones that underwrite revenue over credit, and negotiates your terms. One soft pull, funded in 24 hours, free to you.

Find a Lender Who Says Yes →

What actually determines your cost

With bad credit, these factors decide whether you get funded and at what cost:

Learn more about how a business funding broker works, or compare all funding options.

Frequently asked questions

Can I get a business loan with bad credit?
Yes. Merchant cash advances, revenue-based financing, and equipment financing routinely fund owners with credit scores as low as 500 because they underwrite monthly revenue and business performance rather than FICO alone. The key is reaching the lenders that work this way.
What credit score do I need for a business loan?
Many alternative lenders work with 500+, and some go lower if revenue is strong. A business doing $25K+/month with a 520 score regularly gets funded. See our 500-credit guide and bad-credit funding guide.
Will applying hurt my credit?
No. Pre-qualifying through The Broker Shop uses a soft pull only — zero impact on your score. A hard pull only happens if you accept a specific lender's offer, and we tell you first.
Can I get funding with no credit check at all?
Some revenue-based lenders fund on bank statements without a hard pull. See our no-credit-check funding guide.
Is a broker better than applying direct with bad credit?
Far better. One funder's credit box either fits you or doesn't — and with bad credit, it often doesn't. A broker submits to 50+ lenders, finds the revenue-first ones that approve your score, and negotiates the best terms available.