A 500 credit score closes the door at most banks, but it does not close the door on funding. Several revenue-based products are built to look past a low score when sales are steady.
What a 500 score means to lenders
At 500, traditional banks and SBA programs are usually out of reach because they treat the score as a gate. Alternative and revenue-based lenders take a different view, focusing on whether your business generates consistent cash.
You will still see higher pricing than a strong-credit borrower would, but approval is realistic when your deposits back you up.
Options that work at this score
The most accessible paths at 500 include:
- Merchant cash advances and revenue-based financing
- Short-term working-capital products
- Equipment financing secured by the equipment itself
- Invoice factoring if you invoice other businesses
How to get the best terms available
Even with a low score, you can improve your offer. Strong monthly revenue, no negative days, and a few clean months of statements all push your factor rate down. The single biggest lever is often simply showing healthy, consistent deposits.
Borrow only what the business can comfortably repay, since a tighter request is easier to approve on good terms.
Let lenders compete instead of chasing one
With a 500 score, the difference between a fair offer and an expensive one comes down to which lender sees your file. The Broker Shop sends one application to 50+ competing lenders so you compare real offers rather than taking the first approval.
Checking your options is free and won't affect your credit score.
See what you qualify for
One 2-minute application reaches 50+ competing lenders. It's free, and checking your options won't affect your credit score.
See What I Qualify For →The bottom line: A 500 score takes banks off the table but not funding, lean on revenue-based options, show clean deposits, and compare several lenders for the best available terms.