Best Bad Credit Business Loans in 2021

Best Unsecured Personal Loans for 2021 with No Collateral

Top 10 Best No Collateral Unsecured Personal Loan

Stressed about your credit history?
Here’s the solution to obtain a loan with a bad credit history!

When Traditional banks are unwilling to loan such a customer, alternative lenders are willing to offer small business loans. Some of these lenders have no particular credit score requirements and loan money based on revenue or business time.

Thus, with business loans, entrepreneurs can get access to a lump sum of money which they can use to sustain their business and thrive. It is interesting to note that the best business loans are offered online and not by traditional banks.

Let’s take a look at the top 5 best business loans for bad credit borrowers.

What can you expect from this guide.

Top 5 best business loans with bad credit

What are the requirements for a bad credit business loan?


Founded in 2013, Fundbox offers pre-qualified business loans online without any hard inquiry about credit score. It qualifies you for a certain amount, and you can borrow as per your needs. They offer loans within a short service time.


  • Fundbox provides quick service, and you get a decision within minutes.
  • There is no hard inquiry about the credit score of the borrower.
  • A borrower is not required to borrow a lump sum and can borrow money as per her needs.


  • A borrower cannot borrow a lump sum upfront
  • Lines of credit are restricted to 100,000$


Bluevine has served more than 200,000 customers by delivering more than 9$ billion in financing since its establishment in 2013. Bluevine mainly focuses on small businesses and offers business lines of credit up to $250,000 and invoice factoring with credit lines of a maximum of 5 million dollars.


  • Bluevine has invoice factoring credit lines as large as 5$ million.
  • Loan disbursement is quick, usually within 24 hours of approval.
  • Bluevine has Flexible business lines of credit.


  • New startup loans are not accepted
  • Bluevine might require a general lien on business assets and a personal guarantee.


Founded in 2006, Ondeck has prominently established its reputation as small business loan lenders that offer the loan amount on the same day. This is a crucial factor for small business owners to keep up with the expenses.


  • Ondeck provides funding as soon as on the same day.
  • A borrower can borrow small business loans up to 250000$ or 100,000 with lines of credit.
  • They have maintained transparency in the loan details, approval, and eligibility process.


  • A Minimum personal credit score of 600 is necessary to borrow money from Ondeck.
  • Applicants also need at least one year in business with a minimum of 100,000$ in revenue.


Kabbage is well known for its fast funding and flexible options for financing. Founded in 2021, Kabbage aims to provide cash flow to all types of businesses. It offers secured and unsecured personal loan options for small businesses.

One can also apply for industry-specific loans for trucking, pawnshops, retail, etc. Kabbage has an easy online application process and fast funding upon approval.


  • Kabbage has transparent qualification requirements and no application fee.
  • Multiple small business loan options are available, along with access to the mobile application.


  • A borrower needs to be in business for at least a year and have 4200$ in revenue each month.


Founded in 2005, Kiva is a peer-to-peer lending platform that serves as an ideal option when borrowers want to borrow a small amount of money. The interest rate is 0% APR and the repayment period is for three years. Kiva supports the underprivileged communities and their members to qualify for a small loan and work towards achieving their dream.


  • It allows borrowers to borrow money with no interest.
  • You can market your product to a vast network of Kiva lenders.
  • The repayment time is up to 36 months.


  • The borrowing amount is restricted to 15,000$
  • It takes 30 days or more to be funded.

Now that we know the best options available in the market, let us clarify some common questions about business loans and bad credit.

Best Unsecured Personal Loans

Top choices for Unsecured Loans


Lending Club is based on the peer-to-peer lending model. Instead of depending on traditional banks or financial institutions, Lending Club connects you with individual investors who can fund your loan. This lender is one of the pioneers of online lending. Thus, this gives Lending Club a lot of reliability and credibility.

Lending Club allows you to apply for loan amounts of up to $40,000 and repay it over 36 or 60 months. After approval, borrowers receive the funding within three days. Lending Club charges an origination fee that ranges from 1-6% of the loan amount.


  • The terms of Lending Club are clear, and their service is well-established.
  • You can apply for a loan online and get your loan pre-approved within minutes.


  • Lending Club charges origination fees, late payment fees, and return payment fees.
  • Applicants need to have a credit score of at least 600 and a debt-to-income ratio of 31%.


Upstart is a great option when you need financing immediately. You need to complete an online application, and if approved, you may get funds as quickly as the next day, which makes this option extremely convenient.

Your educational and employment history is considered by Upstart while evaluating your eligibility for a loan. Thus, eligibility goes beyond the credit score, and a borrower with a fair credit score and stable income or employment might be approved quickly.


  • Upstart does not charge any prepayment penalty.
  • It considers your education and employment history for loan approval.
  • Upstart has a quick and simple application process.


  • Borrowing terms are limited to five years.
  • Upstart charges an origination fee.


Payoff personal loans are best suited for people who want to consolidate credit card debt. These loans are meant for people with good credit who want to eliminate high-interest credit card debt.


  • No extra fees:In case you miss an installment, you will not have to pay any late fees. You can speak with a Payoff representative and defer a payment, skip a payment or change the payment date. They do not charge any application fee or prepayment fee. 


  • Slower Funding time:You will receive funding within 3-6 business days after approval. 
  • Origination fee:Payoff charges a one-time origination fee. It is 5% of the loan amount. functions differently than the other options mentioned. It provides referrals to lenders and does not lend money itself.

However, this feature of makes it very easy for a borrower looking for a short-term loan and having a fair credit score to research different options.


  • Loan amounts as high as 35,000$ can be borrowed through
  • Short-term loans can range from 90 days to as long as 72 months.
  • No prepayment penalties are charged.


  • The information process is less transparent when compared with direct lenders and makes it difficult to compare and figure out APRs, terms, and other information.