Can you get business funding with bad or low credit?

Yes. The most reliable path is approval based on your business’s monthly bank deposits and time in business rather than your personal FICO score. Many merchant cash advance and revenue-based financing lenders work exactly this way — and pre-qualifying never affects your credit score. The result for you: funding decided by your business, not your credit history.

What actually gets reviewed: business bank statements (3-6 months), monthly revenue ($10K+/month), time in business (6+ months), and NSF history. In this part of the market, a clean bank statement matters more than a high credit score.

How revenue-based approval works

Three real paths:

1. Pre-qualify for free. Apply through The Broker Shop — pre-qualifying takes 2 minutes and has zero impact on your credit. Many lenders then issue an offer based on your bank statements alone.

2. Revenue-only underwriting. A number of lenders approve businesses with $25K+ in monthly revenue primarily on performance. The trade-off is a slightly higher cost (factor rates 1.40-1.49) for the convenience and speed.

3. Equipment financing. When equipment serves as collateral, lenders lean on the equipment’s value rather than your credit. The asset backs the funding.

Products that approve on revenue, not just credit

Merchant cash advances (MCAs) — fund in 24 hours, $5K-$2M, no collateral, approved primarily on revenue. Factor rates 1.15-1.49.

Revenue-based financing — like MCAs but repaid through ACH instead of card holdback. Available to cash-heavy and B2B businesses. Same speed and flexibility.

Equipment financing — equipment is the collateral, so credit weighs far less. 24-72 hour funding, 7-25% APR.

Invoice factoring — you sell outstanding invoices for immediate cash. Underwriting focuses on your customer’s creditworthiness, not yours.

When strong credit still matters

A few products still weigh personal credit heavily:

SBA loans — the government requires personal credit verification on all SBA-backed financing. Typical minimum is 640-680 FICO.

Traditional bank loans — banks review personal credit on every application.

Business term loans over $250K — most lenders verify the borrower’s full financial profile for larger amounts.

For most owners needing $5K-$500K in working capital, revenue-based options like MCAs and revenue-based financing are the cleanest path — regardless of credit.

How to position your business for the best offers

Even on revenue-based products, your bank statement health determines your rate. Five things you can do this week:

1. Eliminate NSF events. Three or more NSFs in 90 days hurts your offers more than a low credit score does.

2. Maintain a healthy average balance. An average end-of-day balance above $1,000 signals stability.

3. Consolidate deposits. All revenue into one business bank account makes the underwriting cleaner.

4. Show steady deposit frequency. 8+ deposit days per month is preferred over 4-5 large ones.

5. Apply with 4 months of statements, not just 3. Some lenders price more aggressively when they see a longer history.

Frequently asked questions

Will pre-qualifying with The Broker Shop affect my credit?
No. Pre-qualifying won’t affect your credit score. Nothing is finalized unless you accept a specific lender’s offer, and we tell you exactly what to expect first.
What credit score do I need to qualify?
Many MCA and revenue-based financing options start at a 500 score because approval is driven by your monthly revenue and bank statement health. Equipment financing typically accepts 550+, and owners with 600+ unlock a wider product mix including some term loans.
Is revenue-based funding more expensive?
Slightly — products that weight your revenue more than your FICO score tend to price a little higher (factor rates roughly 0.05-0.15 higher, or 2-5% higher on APR-based loans). For most owners, getting approved on business performance is well worth it.
How much can I borrow?
MCA and revenue-based financing: $5K-$2M depending on monthly revenue (typically 50-150% of monthly deposits). Equipment financing: up to $5M when the equipment supports it. Most owners with $20K-$50K monthly revenue qualify for $10K-$75K.
How fast can I get funded?
MCAs and revenue-based financing fund in 24 hours. Same-day funding is common when you apply before 10 AM EST with bank statements ready. Equipment financing funds in 24-72 hours — often faster than traditional bank underwriting.
Do I need collateral?
No for MCAs and revenue-based financing — these are unsecured by physical assets, backed only by future revenue. Equipment financing uses the equipment itself as collateral but typically puts no other assets at risk.