Bad credit does not define your business. SMB Capital Funding is a direct lender that approves based on revenue and bank deposits, not your FICO score. We have funded thousands of business owners with credit in the 500s.
A low credit score does not mean your business is unhealthy. Maybe you went through a divorce, had medical bills, or fell behind during a slow stretch. Traditional lenders see a number. SMB Capital Funding sees your actual business performance — deposits, cash flow, and revenue trajectory.
Your personal credit score is one data point. What matters more is how your business performs day to day. If you have consistent deposits of $10K+ per month, you are likely a strong candidate regardless of your credit history.
Where most lenders draw the line at 650 or 680, we start at 500. Bankruptcies, collections, late payments, and thin credit files do not automatically disqualify you. We have funded business owners with credit scores in the low 500s.
Worried about another inquiry dragging your score down? We perform a soft pull only during pre-qualification. Your FICO score is not impacted by filling out our application.
Bad credit should not mean slow capital. Most approved applicants receive funds within 24 hours via wire transfer. Same-day funding is available for time-sensitive situations.
| Factor | Traditional Banks | SMB Capital Funding |
|---|---|---|
| Minimum credit score | 650-700 | 500+ |
| Past bankruptcy | Usually disqualifying | Discharged BK accepted |
| Collections on record | Often disqualifying | Evaluated in context |
| Tax liens | Must be fully resolved | Active payment plans OK |
| Primary evaluation | Credit score + tax returns | Bank deposits + cash flow |
| Time to decision | 2-8 weeks | Same day |
| Collateral required | Yes (real estate, inventory) | No |
Your Chapter 7 or Chapter 13 was discharged. Banks still see it on your record and say no. We evaluate your current business performance, not what happened three years ago.
Personal debt from student loans, mortgages, or medical bills pushes your DTI too high for banks. Since we focus on business bank deposits, your personal DTI is less relevant.
Immigrant entrepreneurs, young business owners, and first-time founders often have thin credit files. If your business has revenue, you can still qualify.
Already have a position of funding? We can stack a second or third position if your net cash flow supports it. We evaluate what your business can handle, not just what you currently owe.
We have approved business owners with FICO scores as low as 500. In some cases, applicants below 500 may qualify for select programs depending on revenue strength and bank account history.
No. We use a soft credit pull during pre-qualification that has zero impact on your FICO score. A hard pull may occur later in the process only if you accept a funding offer, and we will tell you before it happens.
In many cases, yes. If you are on an active IRS payment plan and current on payments, most of our programs can still work. Unpaid, unresolved liens are evaluated case by case.
Funding amounts range from $10,000 to $2,000,000. The amount depends on your monthly revenue, bank balance history, and existing obligations — not your credit score alone. Many business owners with credit in the 500-599 range qualify for $25K to $150K.
This page focuses on business capital as an alternative to traditional bank loans for bad-credit applicants. Our other page covers the general bad-credit funding category. Both lead to the same underwriting team and program options.
Programs where credit score plays a minimal role in the approval decision.
General-purpose business capital for any expense. All credit profiles welcome.
Payments flex with your sales — ideal for businesses with fluctuating revenue.
SMB Capital Funding is a DBA of CHC Capital Group. All funding products are subject to underwriting approval. Rates, terms, and availability vary based on business revenue, time in business, and creditworthiness. Funding as fast as same day is available for qualified applicants only and is not guaranteed. Not available in all states. This is not an offer of credit.
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