How to Get a Business Loan With Bad Credit (Sub-650 FICO)
A 580 FICO does not lock you out of business capital — it locks you out of bank capital. The non-bank market underwrites cash flow, not credit score, and approves files banks reject every day. Here is how the math actually works.
What lenders see (it's not your FICO)
Sub-650 lenders pull 3–6 months of bank statements first and the credit report second. Average daily balance, deposit consistency, NSF count, and existing debt obligations drive the decision. A 590 FICO with $80k/mo of clean deposits beats a 720 with three NSFs every time.
Revenue-based MCA (24-hour funding)
Factor 1.25–1.49 on 3–12 month remits. Approves down to 500 FICO with $15k+/mo revenue and 3 months in business. Best for short bridges where speed matters more than APR.
Equipment financing (asset-secured)
The asset is the collateral, so FICO thresholds drop to 600 on titled equipment and 580 on construction/transportation gear with a 10–20% down payment.
Invoice factoring (B2B only)
Underwritten on your customer's credit, not yours. Approves any FICO if your customers are creditworthy. 1–4% per 30 days.
Secured term loan
Pledge real estate, equipment equity, or a CD and unlock 12–25% APR pricing even with damaged personal credit.
Revenue-based term (consolidation play)
If you already have 2+ MCAs, a consolidation lender will refinance the stack into one longer-term remit and lower the daily/weekly payment by 30–60%.
What to avoid
Stacking. Application fees of any kind. Anyone asking for upfront money before funding. Reverse consolidations marketed as 'consolidations.'
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