Challenged Credit Business Loans

Contrary to popular belief, poor credit score is not always an indicator of financial irresponsibility. Many reliable business owners have less than perfect credit due to a host of reasons beyond their control. A dedicated business owner is likely to use personal finances to get a business off the ground or even in years when stagnation appears. A big hit to that owner’s credit score can take time to return to what it once was. Companies like Direct Biz Funding have access to options for small businesses struggling with less than perfect credit. Challenged Credit Business Loans are the best for business owners with less than perfect credit. They do not require fees and repayment terms that would further endanger a business owner’s finances. Challenged Business Credit Loans for bad credit history are meticulously designed for payments to be made without putting increased cash flow pressure on a business.

Challenged Credit Business Loans FAQ:

What is a Challenged Credit Business Loan?

A Challenged Credit Business Loan is a type of financing option that business owners can access with a minimum credit score falling below 550. This option is ideal for a business owner to keep their business operating, pay off existing debts, or cover short-term expenses. Terms for small businesses with poor credit history typically do not exceed eighteen months and carry a higher interest rate compared to other loan options (i.e., Merchant Cash Advances, Unsecured Business Loans, and etc.). The borrowing amount and repayment structures are mainly designed to make small business loans with challenged credit relatively easy to repay. A small business owner with poor credit is then more likely to meet the eligibility requirements for another loan and possibly raise their business and personal credit scores in the process.

Funding Amount

$10k - $500k

Funding Terms

3 months – 2 years


1.28 to 1.44


Same business day

What are the advantages of Challenged Business Credit Loans?

  • One of the best advantages of small business loans with challenged credit is the overall accessibility. With a steady cash flow, a poor credit score should not prevent approval. High volume in sales can also decrease the effect of a bad personal credit score on the small business loan cost and terms.
  • By use of business loans with bad credit, a business can develop a track record of timely payments. Not every Challenged Business Credit Loan will directly impact personal credit score. It can strengthen a business’s profile when applying for a second or larger round of funding in the future. This, in turn, could result is cheaper costs of capital and more favorable terms.

What are the disadvantages of Challenged Business Credit Loans?

Bad credit business loans are not inexpensive and tend to not offer the highest loan amounts. This is naturally a result of bad credit. Alternative lenders implement lower borrowing amounts, high rates, and shorter terms to offset the heightened risk of repayment.
  • Quick application process
  • Unsecured programs available
  • Less than perfect credit score accepted
  • Higher rates & fees than with traditional bank loans
  • Most lenders might require collateral
  • Might require automatic withdrawal repayment

Who qualifies for Challenged Credit Business Loans?

Annual Revenue


Credit Score


Time in Business

6 months+

How do I apply for a Challenged Credit Business Loan?

Step 1: Choose the best option for your business needs.
Bad credit business loans come in many forms and choosing the best option should not be taken lightly. To choose the best small business loan, consider which borrowing terms pose the least risk for the business’s cash flow. Keep in mind the following questions:

  • Is your business highly seasonal?
  • Are you prone to occasional dips in revenue?
  • Would a business line of credit or maybe merchant cash advances help you build your business? It would be best to consider the funds’ intended purpose since this directly affects how long it will take you to pay it back.

Step 2: Submit business bank statements.
Upload the last 4 months of your business bank statements. Once bank statements are submitted, an electronic application will be emailed to you.

Step 3: Complete quick 1 page electronic application.
Upon completing our one-page online application, our underwriting team will review your information to give approvals best suited for your business.

Step 4: Connect and discuss.
Once your application is submitted and reviewed, a trained and skilled representative will reach out to you to explain the repayment structure, rates, and terms of your available options. This will ensure that there are no surprises or hidden fees during repayment.

Step 5: Receive Approval.
The Challenged Credit Business Loan application
process takes a few minutes depending on which product you choose. 
Once the file is approved and closed, a lump sum of funds should be in your account the same business day.

Ready to expand your business?