When you have bad credit, you can still get a small business loan. This is because your credit score doesn’t matter as much as the overall financial health of your business. Most lenders require a minimum credit score of 500, at least six months in business, and $40,000 in annual revenue.
Small business loan products include:
- Merchant cash advance
- Invoice factoring
- Line of credit
- Working capital
- Business expansion
- Equipment financing
- Small business administration (SBA) loans
You can expect to pay higher fees and interest rates when you have bad credit as a business owner. When you take out certain loan products, such as an invoice factoring loan or a merchant cash advance, these loans rely on future sales or money already invoiced but not yet received.