Businesses with Low Credit
A low personal or business credit score shouldn’t disqualify you from getting the funding your small business needs to succeed and continue to grow. With a streamlined online application, businesses with low or bad credit can access up to $500,000 in working capital from NextGen Capital in as little as 24 hours
Fast Small Business Funding for Low Credit Scores
Getting small business funding is hard under the best circumstances, and it’s even tougher when you have a low personal or business credit score. Whether your credit is low because of your personal financial history or your business hasn’t had a chance to accrue a strong business credit history, bad credit can overshadow even the strongest business finances, especially if you are applying for funding from a traditional lender.
With a simpler application, faster turnaround, and flexible approval requirements, NextGen Capital can fund more businesses with low credit in as little as one business day. We offer a variety of small business funding options for low credit scores, from as little as $3,000 up to $500,000. We fund all industries, including healthcare businesses, medical practices, law firms, retail stores, business services, restaurants, and more.
Low Credit Score Business Loan Solutions
Merchant Cash Advance
You get working capital when you need it. We’ll receive a percentage of your daily or weekly credit card sales until the advance is repaid.
Invoice Factoring
Sell us your pending invoices in exchange for the net amount in cash. You’ll receive the balance of the invoices’ value when we receive payment (minus our fee).
Collateral Loan
A secured loan that uses commercial real estate to reduce risk. Because the loan is secured, you may be approved for larger loan amounts with lower rates and fees.
Business Line of Credit
Borrow as much or as little as you need without the obligation of a fixed term loan. Draw and repay as you go, and only ever pay interest on the amount you've borrowed.
How To Use Business Funding for Low Credit Scores
There are no restrictions on how businesses with low credit scores can use their funding. Alternative funding for businesses with loan credit scores is most ideal for supporting growth initiatives that will increase your business’s revenue, such as:
- Hiring staff so you can expand services and take on more business
- Purchasing new equipment or technology
- Renovating or remodeling your space to offer a more comfortable environment
- Expanding your business or acquiring another business
- Building a new website or expanding your existing online presence
- Purchasing raw materials or inventory in bulk at lower prices
- Investing in continuing education and training
- Energizing your marketing and advertising to bring in more business
Will You Qualify for Business Funding for Low Credit Scores
Exact qualification requirements depend on the type of funding you are seeking. NextGen Capital doesn’t base approval solely on your credit score or financial history. Instead, we consider the overall health of your business, including:
- Business revenue
- Cash flow
- Vendor payment history
- Years in business
- Public records
- Pay for professional development courses for you and your team
Repayment Terms and Flexibility
Case Study | Industry | Challenge | Solution | Outcome |
Construction Company | Construction | The company’s low credit score hindered equipment upgrades to meet demand. Traditional lenders declined financing. | Turned to Greenbox Capital for equipment financing for bad credit. | Acquired necessary equipment, improved productivity, and rebuilt creditworthiness with timely repayments. |
Small Retail Store | Retail | The store needed funds for expansion, but faced rejection from banks due to poor credit history. | Utilized small business loans for bad credit from Greenbox Capital. | Expanded store, increased revenue, and improved credit score with timely repayments. |
Tech Startup | Technology | The startup lacked capital for product development and marketing due to limited funding options. | Accessed startup funding for bad credit through Greenbox Capital. | Developed product, launched successful marketing campaigns, and attracted investors with improved financial stability. |
How Accounting Firm Funding Works
Low Credit Funding Q&A
Direct online lenders are the best place to get a business funding with bad credit. These lenders have more flexible approval requirements that consider the overall health and potential of your business—not just your credit score—and offer revenue-based financing options that are more ideal for businesses with lower credit scores, such as merchant cash advances for low credit. Contact one of our Funding Advisors to learn more.
Yes, you may be able to get a business loan from an alternative lender with a 500 credit score, depending on your business’s revenue and cash flow. Some direct online lenders will approve funding for a 500 credit score, but take the time to thoroughly research your lender to ensure they are reputable, and never work with a lender that engages in “loan stacking”.
Absolutely! At NextGen Capital, we focus on the overall financial health of your business rather than solely relying on credit scores. As long as your business demonstrates revenue and stability, you have a good chance of qualifying for our equipment financing solutions.
Our equipment loans for bad credit cover a wide range of equipment types, including machinery, technology, vehicles, and more. Whether you need to upgrade existing equipment or invest in new assets, our financing options have you covered.
