To get a small business loan with bad credit, the key is to explore lenders and loan types that are more flexible with credit requirements. Options include online lenders specializing in bad credit lending, SBA microloans with lower credit score minimums, and alternative financing like invoice or equipment financing where collateral matters more than credit. It also helps to present a strong overall application beyond credit score, including a convincing repayment plan, assets for collateral, and potentially a co-signer.

Loan Options for Bad Credit

• Upwise Capital offers loans with a low minimum credit score of 550 and long repayment terms up to 84 months, making it a top choice for businesses with bad credit but steady revenue.
• SBA microloans are available to borrowers with credit scores as low as 500 and provide up to $50,000 at reasonable interest rates (8%-13%). Approval depends on showing ability to repay and possibly providing collateral.
• Equipment financing uses purchased equipment as collateral and is more accessible despite bad credit.
• Invoice financing or factoring, which uses your unpaid invoices as collateral, can be an option with less stringent credit checks.

Improve Loan Approval Chances

• Emphasize your strengths beyond credit score: your business character, capital you invest, ability to repay (clear plan and supporting documents), and offer collateral if possible.
• Consider a co-signer with good credit.
• Ask for a smaller loan amount to improve approval chances.
• Work on improving your credit score over time for better future options.

Other Considerations

• Online lenders tend to have lower credit score minimums (600 or below).
• Be prepared for higher interest rates and shorter loan terms.
• Present detailed business plans, revenue forecasts, and personal/business financials.

Overall, while bad credit limits options, many lenders evaluate the full picture of your business and finances to provide opportunities for funding.