Products That Work at 500 FICO

1. Merchant Cash Advance (Best for most)

The most accessible option at 500 FICO. Most MCA lenders publish 500 as the floor, with some accepting lower. Approval is driven by monthly revenue ($10K+/month) and bank statement health. Funded in 24–72 hours.

2. Revenue-Based Financing

Similar to an MCA but uses total revenue (not just card sales). Better fit for service businesses, B2B, and businesses with mixed payment types. Same FICO floor — 500 typically works.

3. Equipment Financing

The equipment itself is the collateral, so credit thresholds drop. Many equipment lenders fund at 500 FICO if the equipment has clear resale value (trucks, machinery, restaurant equipment, medical equipment).

4. Invoice Factoring

You sell unpaid invoices to a factor for immediate cash. Approval is based on your customers' credit, not yours. Even at 500 FICO, factoring works if you bill creditworthy clients (B2B, government, etc.).

5. Secured Business Line of Credit

Backed by collateral (real estate, equipment, certificate of deposit). Some lenders fund at 500 FICO if the collateral covers the line.

What Won't Work at 500

How to Maximize Your Approval at 500

  1. Show 3 months of clean bank statements: Consistent deposits, low NSFs, ending balance positive.
  2. Aim for $10K+/month in deposits: $25K+ unlocks better terms.
  3. 6+ months in business: The standard floor for most lenders.
  4. Be prepared to disclose existing debts: Don't try to hide an existing MCA — lenders will find it on bank statements anyway.
  5. Work with a broker: A broker shops 50+ lenders and finds the ones that fund your specific FICO/revenue profile.

💡 The honest expectation: At 500 FICO, expect higher factor rates (1.35–1.49 for MCAs) and shorter terms (3–6 months). The financing is real and accessible — but more expensive than what a 700-FICO borrower would pay. Use it for short-term needs with strong ROI, not long-term capital.

Frequently Asked Questions

What's the lowest credit score for any business funding?
Some MCA lenders accept 450 if revenue is strong ($25K+/month). Below that becomes difficult unless you have a co-signer or strong collateral.
How long until I'm funded with bad credit?
MCAs and revenue-based financing typically fund in 24–72 hours. Equipment financing 3–7 days. Invoice factoring within a week.
Will applying hurt my credit?
Most pre-qualifications use a soft pull, which doesn't impact your score. Only when you accept an offer does a hard pull happen.

Related: MCA Credit Score Requirements · Bad Credit Funding · Equipment Financing