How to Get Business Funding with Bad Credit

Quick Summary

Having bad credit doesn’t mean you can’t fund your business. This blog will discuss how small business owners can access funding, even with less-than-perfect credit. From creative alternatives to practical lender tips, we’ll show how Next Level Wealth Miami helps business owners overcome credit barriers to get approved and grow.

Can You Get Business Funding with Bad Credit?

Yes, you can. While traditional banks often deny business loan applications due to low credit scores, alternative lenders and creative funding models have enabled entrepreneurs to get financing even with bad credit.

Bad credit is generally defined as a personal credit score below 580. Many business owners fall into this category due to personal debt, late payments, or limited credit history. But today, lenders look at more than just your credit score. They may consider:

• Monthly revenue

• Business cash flow

• Time in business

• Industry type

• Business assets

If your business is bringing in steady income or you can offer collateral, you still have a solid shot at getting approved.

Best Business Funding Options for Bad Credit

Here are five proven funding methods you can explore if your credit score is holding you back:

1. Revenue-Based Financing

This option allows you to repay funding as a percentage of your monthly revenue. Approval is based on your income—not your credit. Perfect for businesses with steady sales.

2. Merchant Cash Advance (MCA)

If you accept credit card payments, an MCA provider can advance you a lump sum based on your average monthly card sales. Repayment is made daily from future sales.

3. Equipment Financing

Need gear to grow? Use the equipment itself as collateral. This reduces lender risk and boosts your approval odds.

4. Microloans or Community Lenders

Organizations like CDFIs (Community Development Financial Institutions) offer small business loans to underserved borrowers, including those with poor credit.

5. Secured Business Credit Cards

If you're just starting out, consider a secured card to build your credit and cover small expenses.

Also Read: How Do I Get My First Funding for a Small Business

What Lenders Look for Besides Credit Score

Even if your credit is low, lenders want to see signs of business health. Boost your application by preparing:

• Bank Statements: Show at least 3-6 months of positive cash flow

• Business Plan: Lenders want to know you have a strategy

• Proof of Revenue: Daily, weekly, or monthly sales

• Tax Returns: Shows long-term business activity

If your credit is shaky, transparency and documentation can go a long way in building trust with lenders.

Tips for Improving Your Chances

• Separate business and personal finances with a dedicated account

• Pay down small debts and avoid new ones before applying

• Start small—get a smaller loan first, repay it, and build history

• Work with a funding expert who knows how to position your application

Next Level Wealth Miami specializes in helping business owners with bad credit find real funding solutions that work.

Real Talk: Should You Fix Your Credit First?

It’s a smart long-term move, but don’t wait if your business needs cash now. You can build credit while accessing funding through alternative options. Many borrowers use their first rounds of revenue-based funding or microloans to stabilize operations and improve their credit scores.

Ready to Move Forward?

Bad credit doesn’t have to stop your business. Whether you're launching a new idea or trying to stabilize your cash flow, funding paths are available. Let us help you find the one that fits your situation.

Apply now for business funding through Next Level Wealth Miami