Can You Get Business Funding With a 500 or 550 Credit Score?

Quick answer: Yes, you can get business funding with a 500 or 550 credit score, but usually not from a bank. With scores below 600, your best options are funding based on your sales, like a merchant cash advance (MCA), or funding backed by something else, like your invoices or the equipment you’re buying. At Brookestone Funding, merchant cash advances from $10,000 to $2,000,000 are based mainly on your business’s sales, so owners with lower scores can still qualify.

Why banks turn down scores under 600

Banks and SBA lenders rely heavily on your personal credit score, and most want scores well above 600. If your score is in the 500s, a bank application will usually end in a “no,” no matter how strong your business is.

Non-bank lenders look at the business first. The biggest factors are:

• Monthly deposits: how much money comes into your business bank account each month, and how steady it is.
• Time in business: how long the business has been operating.
• Existing debt: whether you already have other loans or advances being paid out of your account.
• Account health: overdrafts, returned payments (NSFs) and negative-balance days.

A business with a 540 score and steady $60,000 monthly deposits is often a stronger candidate than a business with a 700 score and shrinking sales.

Funding options with a 500–599 credit score

1. Merchant cash advance

A merchant cash advance gives you a lump sum in exchange for a share of your future sales. Because it’s based on your revenue rather than your credit history, it’s the most common option for owners with scores in the 500s. MCAs don’t require collateral and are often funded within 24 to 48 hours.

2. Invoice factoring

If you invoice other businesses and wait 30 to 90 days to get paid, factoring lets you get cash for those invoices now. Approval depends more on your customers’ ability to pay than on your own credit score.

3. Equipment financing

With equipment financing, the equipment itself backs the financing. That lowers the lender’s risk, so some programs accept lower credit scores, often with a larger down payment.

4. Building toward a term loan or line of credit

Lower-cost products like a term loan or a business line of credit generally need a score of 600 or higher. Many owners use an MCA now, then move to cheaper financing once their score improves.

What lower credit means for your cost

Lower scores usually mean higher costs and shorter repayment terms. Before you sign, compare offers by the total payback amount (what you’ll repay in total), not just the payment size. Our guide to APR vs. interest rate vs. factor rate explains how to compare offers side by side.

How to improve your chances of approval

• Keep deposits in one business account. Lenders review your bank statements, so steady deposits in one place make your revenue easy to see.
• Avoid overdrafts and NSFs in the months before you apply.
• Have your documents ready: a short application and your recent business bank statements. See our business loan documents checklist.
• Ask for what you need, not the maximum. A request that fits your monthly revenue is easier to approve.
• Be upfront about existing balances. Lenders will see them on your statements anyway.

How Brookestone Funding works with lower credit scores

Brookestone Funding is a direct business financing lender based in Edison, New Jersey, serving small businesses nationwide. We look at your business revenue and cash flow, not just your credit score. Merchant cash advances range from $10,000 to $2,000,000, and most approved businesses are funded within 24 to 48 hours. If you already have a score of 600 or higher, see whether you qualify for a lower-cost option in our post on getting a business loan with a 600 credit score.

Apply now or call (877) 665-4209 to talk with a funding specialist.

Frequently asked questions

What is the lowest credit score for business funding?

There’s no single minimum. Banks and SBA lenders typically want scores well above 600, while revenue-based options like merchant cash advances focus mainly on your sales, so owners with scores in the 500s can still qualify.

Can I get a merchant cash advance with bad credit?

Yes. A merchant cash advance is based mainly on your business’s sales, so bad credit doesn’t automatically disqualify you. Steady monthly deposits matter more than your score.

Do I need collateral to get funding with a low credit score?

Not for a merchant cash advance. MCAs don’t require collateral. Equipment financing uses the equipment you’re buying as security.

How fast can I get funded with a 550 credit score?

With a merchant cash advance, most approved businesses are funded within 24 to 48 hours of a complete application.