Best Small Business Loans for Women With Bad Credit
Best for Short-term Loans
OnDeck
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
$5,000 to $250,000
APR
Not disclosed
Minimum credit score
625
Via Ondeck's Website
Loan amounts
$5,000 to $250,000
APR
Not disclosed
Minimum credit score
625
Why We Picked It
OnDeck was founded in 2006 and has since been a leading provider in the business lending space, offering both term loans and lines of credit. Today, they have extended $14 billion in funding to small businesses.
We picked OnDeck for its variety of business lending products and same-day funding. OnDeck offers a term loan between $5,000 and $250,000 with repayments terms of up to 24 months. You can also access a credit limit of $6,000 to $100,000 through its line of credit with a 12-month repayment term that resets after each withdrawal.
Note: OnDeck does not lend to businesses in Nevada, North Dakota or South Dakota. What’s more, while it lends to over 700 industries, there are some industries it cannot serve.
Pros & Cons
- Term loans up to $250,000; lines of credit up to $100,000
- Same-day funding
- Low minimum credit score requirement
- $100,000 minimum annual revenue requirement
- Must have been operating for at least one year
- Does not lend to businesses in Nevada, North Dakota or South Dakota.
Extra Details
Eligibility: Prospective borrowers must have a minimum personal credit score of 625 to qualify for an OnDeck term loan or line of credit. Additionally, their business must have been in operation for at least one year and have annual gross revenue of at least $100,000. Applicants must also have an open business checking account.
Turnaround time: You can apply and receive a decision from OnDeck on the same day. What’s more, approved borrowers also can have their funds in their bank account as early as the day they’re approved.
Best for Flexible Lines of Credit
BlueVine
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
$6,000 to $250,000
APR
Not disclosed
Minimum credit score
625
On BlueVine's Website
Loan amounts
$6,000 to $250,000
APR
Not disclosed
Minimum credit score
625
Why We Picked It
BlueVine is a financial technology company that provides financing solutions to small businesses nationwide. It specifically specializes in business lines of credit and checking accounts. As of December 2021, BlueVine no longer offers invoice factoring.
Bad credit business owners looking to access a line of credit on an as-needed basis can receive funds between $6,000 and $250,000. Through BlueVine’s Flex 6 payment structure, borrowers make weekly payments over 26 weeks. What’s more, after 45 days of payment on Flex 6, you may be eligible for a credit line increase. BlueVine also offers its Flex 12 structure, but it requires a minimum credit score of 650, so it’s not suited for applicants with bad credit.
BlueVine also charges weekly or monthly fees for its line of credit. Standard pricing is 1.7% per week or 7% per month for line of credit draws.
Note: BlueVine’s line of credit is available in most U.S. states except North and South Dakota, Puerto Rico and U.S. territories.
Pros & Cons
- Businesses that have been in operation for at least 24 months are eligible
- Lines of credit up to $250,000
- Low credit score requirement
- No mobile app for its line of credit
- Monthly revenue requirement
- Not available to business in North and South Dakota, Puerto Rico and U.S. territories
Extra Details
Eligibility: Applicants must meet the following criteria to be eligible for BlueVine’s Flex 6 payment structure:
- Minimum personal credit score of 625
- Must have been in business for at least 24 months
- $40,000 per month in revenue or $480,000 annually
- Your business must be a corporation or LLC
- No bankruptcies within the last three years
Turnaround time: After you submit your application, you can receive a decision as quickly as five minutes. If approved, you’ll receive your funds in your bank account within a few hours if you choose its $15 bank wire option. Choose its free ACH transfer option, and you’ll receive your funds within one to three business days.
Best for Working Capital Loans
Biz2Credit
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
$25,000 to $2 million
APR
As low as 7.99%
Minimum credit score
575
From participating partners via businessloans.com's website.
Loan amounts
$25,000 to $2 million
APR
As low as 7.99%
Minimum credit score
575
Why We Picked It
Biz2Credit makes working capital loans between $25,000 and $2 million available to business owners with bad personal credit. Its working capital loans are paid back with your business receipts through daily, weekly or bimonthly payments. It only takes a few minutes to apply and 24 hours to receive a decision.
In the event that Biz2Credit cannot provide a financial product, it may present third-party options to qualified prospective borrowers. However, Biz2Credit confirms that “in the vast majority of cases, [it] will make a financing decision without referral to any external party.”
Biz2Credit also offers traditional term and commercial real estate (CRE) loans; however, those require a minimum credit score of 660 and are not suited for bad credit borrowers.
Pros & Cons
- Low minimum credit score
- Low minimum annual revenue requirement of $100,000
- Quick application, approval and funding process
- More stringent qualification requirements for term and CRE loans
- Working capital loans require daily or biweekly payments
Extra Details
Eligibility: To qualify for a working capital loan, applicants must have a minimum personal credit score of 575, have been operating their business for at least six months and have annual revenue greater than $100,000.
Funding time: Business owners can apply within four minutes, get a decision as fast as 24 hours and receive funds within 72 hours from approval.
Best for Quick Approvals
Fundbox
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
$1,000 to $150,000
APR
Start at 4.66%
Minimum credit score
600
On Fundbox's Website
Loan amounts
$1,000 to $150,000
APR
Start at 4.66%
Minimum credit score
600
Why We Picked It
Fundbox is an AI-powered business lending platform that speeds up the application, decision-making and funding process. It offers decisions within three minutes and funds as soon as the next business day.
Prospective borrowers have two business financing options through Fundbox. Business owners can apply for revolving business lines of credit up to $150,000 with repayment terms of 12 or 24 weeks. Your available credit goes back up as you repay your line of credit.
Pros & Cons
- Receive a decision within three minutes
- Low minimum credit score requirement
- Next-day funding
- Only short-term repayment terms are available
- Relatively low lines up credit of up to $150,000
Extra Details
Eligibility: Applicants must have a minimum personal credit score of 600 to qualify for financing through Fundbox. The applicant’s business must only be in operation for at least six months, making it a possible option for startups. However, businesses must have at least $100,000 in annual revenue.
Funding time: Whether you’re getting a line of credit, your funds transfer to your bank account as soon as the next business day.
Best for Product Availability
Rapid Finance
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
$5,000 to $1 million
APR
Not disclosed
Minimum credit score
550
From participating partners via businessloans.com's website.
Loan amounts
$5,000 to $1 million
APR
Not disclosed
Minimum credit score
550
Why We Picked It
Rapid Finance is an online lender that has funded over $2 billion in business financing across a variety of industries. Business owners looking for unsecured loans can access a wide variety of options, including term loans, lines of credit, merchant cash advances and invoice factoring.
Rapid Finance unsecured loans range from $5,000 to $1 million with terms from three to 60 months, depending on the specific type of loan. However, business owners with bad credit typically won’t receive the largest loan amounts. What’s more, borrowers are required to meet daily or weekly repayment schedules.
To apply, applicants will need a form of identification, business bank account number and routing information, and their last three months of business bank statements.
Pros & Cons
- Loans up to $1 million
- Less stringent minimum qualification requirements
- Fast closing and funding
- Doesn’t disclose APRs or monthly fees
- Maximum terms of five years
- Smallest loan amount is $5,000
Extra Details
Eligibility: To qualify for a Rapid Finance business loan, prospective borrowers must have a minimum credit score of 550, be in business for at least six months and have at least $5,000 in monthly revenue.
Turnaround time: Rapid Finance prides itself in fast turnaround times. Roughly 90% of its loans are funded within 24 hours, but it can take up to two days in some cases.
Best for Loan Options
Credibly
3.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
$5,000 to $400,000
APR
Factor rates as low as 1.11
Minimum credit score
500
On Credibly's Website
Loan amounts
$5,000 to $400,000
APR
Factor rates as low as 1.11
Minimum credit score
500
Why We Picked It
Credibly offers a wide range of business loans for bad credit—working capital loans, business lines of credit and merchant cash advances, specifically. What’s more, new businesses may also find it easier to secure financing because Credibly only requires businesses to be in operation for at least six months.
Working capital loans of up to $400,000 are available with terms between six and 18 months; payments are due daily or weekly. If a business owner should choose a business line of credit, they can access credit lines up to $250,000. Lastly, Credibly offers merchant cash advances (MCAs) up to $400,000 with terms between three and 18 months.
Pros & Cons
- Wide variety of loan products
- Low credit score requirement
- Fast funding times
- Lowest loan amount is $5,000
- Requires daily or weekly payments
Extra Details
Eligibility: To qualify for financing through Credibly, business owners must have a minimum personal credit score of 500, be in business for at least six months and have at least $15,000 in average monthly bank deposits.
Turnaround times: Credibly offers same-day approvals and as soon as same-day funding once approved.
Best for Crowdfunding Up to $15,000
Kiva
3.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
Up to $15,000
APR
0%
Minimum credit score
None
From participating partners via businessloans.com's website.
Loan amounts
Up to $15,000
APR
0%
Minimum credit score
None
Why We Picked It
Kiva is a microlender that offers a unique crowdfunding platform for a wide variety of prospective borrowers. Compared to traditional financing, Kiva utilizes your personal network and its own network of 1.6 million investor lenders to crowdfund loans up to $15,000 with terms up to 36 months.
Business owners who apply directly through Kiva’s website may receive 0% interest. Kiva refers to these as Direct Loans, which are only available to businesses in the U.S. and social enterprises internationally. However, if a prospective borrower applies through a Kiva Field Partner—local organizations working in communities to vet borrowers, provide services and administer loans—they will likely pay interest to the partner in some form, which varies by partner.
Loan funds are distributed and repaid through PayPal or Kiva’s Field Partners.
Pros & Cons
- No minimum credit score requirement
- Does not require cash flow documents
- Requires no collateral
- Maximum loan amounts of $15,000
- All loans are crowdfunded
- Long funding times
Extra Details
Eligibility: Because Kiva uses a crowdfunding method, it’s able to offer less stringent qualification requirements. Although Kiva loans don’t require a minimum credit score, years of cash flow documents or collateral, borrowers are vetted or endorsed by either a local Field Partner, Trustee or members of the community.
Turnaround time: After you submit your application, a Kiva representative will get back to you within 10 to 15 business days. Kiva suggests that “submitting a great photo and business story will help your application make it through the review process more quickly.”
Once you’re approved for fundraising, you have 15 days to raise funds from your own network, and then 30 days to publicly fundraise with Kiva’s network of lenders.
Summary: Best Small Business Loans for Women With Bad Credit
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Loan amounts | APR | Time in business | Minimum credit score | Learn More CTA text | Learn more CTA below text | Learn More |
|---|---|---|---|---|---|---|---|---|---|---|
| OnDeck |  | 4.0 |  | $5,000 to $250,000 | Not disclosed | 1 year | 625 | Learn More | On Ondeck's Website | |
| BlueVine |  | 4.0 |  | $6,000 to $250,000 | Not disclosed | 2 years (Flex 6 plan) | 625 | Learn More | On BlueVine's Website | |
| Biz2Credit |  | 4.0 | | $25,000 to $2 million | As low as 7.99% | 6 months | 575 | Learn More | From participating partners via businessloans.com's website. | |
| Fundbox |  | 3.5 |  | $1,000 to $150,000 | Start at 4.66% | 6 months | 600 | Learn More | On Fundbox's Website | |
| Rapid Finance |  | 3.5 |  | $5,000 to $1 million | Not disclosed | 6 months | 550 | Learn More | From participating partners via businessloans.com's website. | |
| Credibly |  | 3.0 |  | $5,000 to $400,000 | Factor rates as low as 1.11 | 6 months | 500 | Learn More | On Credibly's Website | |
| Kiva |  | 3.0 | | Up to $15,000 | 0% | No requirement | None | Compare Rates | From participating partners via businessloans.com's website. |
Tips for Comparing Business Loans for Women With Bad Credit
With the right lender, women with bad credit can get access to the funds they need for their businesses. When applying, follow these tips to improve your approval odds:
- Check your credit score. Lenders have their own credit score requirements and each may define bad credit differently. In general, a poor FICO score is below 580 and fair scores range from 580 to 669. Checking your credit score—which has no impact on your credit—before applying for a loan can show you which lenders could work for you.
- Review your credit report. Before applying for a loan, review your credit history and make sure there isn’t any incorrect information. If there are any errors, file a dispute with the credit bureau to get it corrected.
- Compare interest rates. Interest rates on the best small business loans typically start around 9%, but rates are usually higher for bad credit loans—sometimes as high as 99%. Some lenders allow you to prequalify, giving you an idea of which rates you’d qualify for without damaging your credit score. These offers can help you compare lenders.
- Consider loan terms. Business loan terms usually range from three to 18 months, and longer terms come with lower monthly payments. When choosing a repayment term, consider how much you need to borrow and what payments you can afford each month.
- Check eligibility requirements. A lender’s eligibility requirements are critical if you have bad credit. Before applying, check each lender’s qualification requirements, such as minimum credit score, time in business and minimum annual revenue. Doing so can prevent you from spending time on applications that won’t be approved.
- Research lender reputation. Research each potential lender’s reputation to evaluate their track records with current and former borrowers. Read reviews on websites like Trustpilot and the Better Business Bureau (BBB), and if possible, ask other people in your region or industry for recommendations.
- Look for flexibility. Seek out lenders that offer flexible terms and conditions, such as extended repayment periods or leniency with repayment dates. This can make managing your loan easier in the long term, especially if you run into financial trouble.
- Ask questions. Ask a lender representative any questions during the application process to ensure that loan details are clear before committing to a monthly payment.
Where To Get a Business Loan as a Women With Bad Credit
Women entrepreneurs with poor credit scores have several lending options to explore when getting a business loan. Nonprofit lenders focused on helping women-led startups secure funding are one option, and alternative lenders with less strict qualification requirements are another. Even with bad credit, there are possibilities to secure funding for your business.
Online Lenders
Online lenders have become increasingly popular for their relaxed lending standards and streamlined account management. Interest rates vary depending on the lender, loan size and duration, but rates can be as high as 99%.
Loans may be available up to $500,000 or more, with terms as long as 10 years. For women entrepreneurs with bad credit scores or insufficient collateral—something of value that secures the loan and can be repossessed if you default—online lenders that offer unsecured business loans with higher interest rates may be more accessible than loans from other financial institutions.
To apply, submit an application along with necessary documentation like your business plan and financial records.
Community Development Financial Institutions
Community Development Financial Institutions (CDFIs) are financial institutions that provide affordable credit and financial services in underserved markets. For women looking to start or grow their businesses, CDFIs can be a great resource for obtaining financing. Unlike traditional banks, CDFIs often have more flexible lending standards and are more likely to consider a borrower’s character and community impact.
You can identify CDFIs by searching the CDFI Fund awards database. CDFI loans are best for women who have been denied traditional financing or require more support and guidance in their entrepreneurial journey. With the help of a CDFI, women entrepreneurs can obtain the funding they need to succeed and positively impact their communities.
Nonprofit Lenders
Nonprofit lenders are organizations that provide business loans to entrepreneurs who can’t secure financing from traditional lenders. These lenders typically offer loans with low-interest rates, flexible repayment plans and long terms.
Nonprofit lender loans are best for women entrepreneurs who are looking for affordable loans that prioritize their success, growth and development. As a woman looking for a business loan, you can approach nonprofits that promote gender equality, such as the Accion Opportunity Fund.
How To Get a Business Loan as a Women With Bad Credit
There can be hurdles to obtain a business loan as a woman with bad credit, but you can give yourself more options with the right preparation. Follow these general steps to get the financing you need:
- Start with having a solid business plan in place and a clear understanding of how you’ll use the funds.
- Familiarize yourself with your credit report and organize your business’s financial documents before applying. This can make it easier to demonstrate the financial strength of your business.
- Next, research lenders that specialize in working with individuals with bad credit. These lenders may have higher interest rates and stricter repayment terms than traditional financial institutions, but they can offer higher approval odds. If you or your business has a relationship with a bank or credit union, inquire about its loan options. Qualifying with a lender you have an existing relationship with can be easier.
- If you can’t qualify on your own, consider adding a co-signer who has a good credit history—but be aware that if you’re unable to repay the loan, they’ll be held responsible for the debt. Beyond loans, alternative lending options such as grants or crowdfunding may be worth considering.
- Once you find a lender that feels like a good fit, it’s time to submit your formal application. You’ll typically need to submit documentation, which may include your personal information, a business plan, at least 12 months of personal and business bank statements, tax returns for at least two years and details about any current and past business loans.
Alternatives Funding Options for Women With Bad Credit
With the right tools and knowledge, finding a business loan is possible if you’re a woman with bad credit. Do your research, compare multiple lenders and consider alternative options before committing to a loan.
- Small business grants. Grants can be a great option to fund your business since they don’t need to be repaid like loans. Keep in mind, the grant application process can be lengthy and complex, and competition for funds is often high.
- Crowdfunding platforms. Online crowdfunding platforms like Kickstarter make it easy to solicit donations or investments from the public to fund your business. Not only does this type of funding not require repayment, but investors don’t expect ownership interest in exchange for their funds.
- Business credit cards. Business credit cards for bad credit may be an option if you want access to revolving credit rather than a lump sum of cash. Interest rates are higher than for business loans (usually up to 29%), but this option can help cover ongoing operating costs.
- Loans from family and friends. If you have a good relationship with family members or close friends, ask them if they would consider loaning you money to help fund your venture. If you opt for this strategy, make sure to put the agreement in writing so all parties understand when and how the loan will be repaid.
- Microlenders. Microlenders are nonprofit lenders that offer business loans designed for small businesses that can range from $500 to $50,000. They often have more lenient eligibility requirements than traditional banks and can be tailored to groups like women entrepreneurs.
- Angel investors and venture capitalists. Angel investors and venture capitalists typically invest in new ventures in exchange for equity or a share of the profits. Ensure you understand the terms of the investment before committing to this type of funding, as the arrangement could have far-reaching implications for your business.
Methodology
We reviewed 16 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost. 35%
- Loan details. 25%
- Customer experience. 20%
- Eligibility and accessibility. 10%
- Application process. 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our .
Find the Best Small Business Loans of 2023
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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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