Yes, it's possible. Two numbers decide which lenders will look at you: your personal credit score and the money moving through your business account each month. Under 600, community lenders and microloan programs are usually the cheapest door; at 600 and up with steady deposits, revenue-focused online lenders open up.
- Banks and credit unions generally want a score near 700 and a couple of years in business.
- Online and alternative lenders may consider scores in the low 600s and lean on documented deposits.
- Secured lines typically run from the high single digits to about 20% a year; unsecured lines from about 10% into the mid-30s.
- Example: $15,000 drawn at 19% and repaid in about two months costs roughly $475 in interest.
- Fuel Business Capital publishes a baseline of about $20,000 in monthly revenue and six months in business.
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On this page10 sections
- Quick verdict
- The two numbers lenders actually look at
- How a business line of credit works
- Secured or unsecured, and the personal guarantee
- What a line of credit costs
- Two free things to do before you apply
- Which lender type to ask first
- Fuel Business Capital: for 600+ scores with steady sales
- Pros and cons
- Frequently asked questions
It's a weeknight, your credit report is open on the laptop, and the score reads 574. You run a commercial cleaning company with a crew of five and real invoices going out every month, and the bank took nine days to say no. The question now is whether anyone will give you a line of credit at all.
The short version: a weak score narrows the field, it doesn't empty it. We went through the neutral lending research and the criteria lenders publish themselves, and the most common reason these applications fail isn't the score. It's applying to the wrong type of lender.
Quick verdict
Approval with bad credit is realistic if your deposits are steady and you aim at the right lender. Under 600, or open less than a year, start with community development lenders and microloan programs: slower, more paperwork, but priced for your profile. At 600 and up with roughly $20,000 or more in monthly sales and a cash gap that keeps coming back, a revenue-focused lender such as Fuel Business Capital is worth a quote.
The two numbers lenders actually look at
Your personal credit score is only one of them. The other is how much money moves through your business account in an average month. Roughly, under 600 one set of lenders is in play, and from 600 up a different, cheaper set opens. Your deposits decide how wide either door swings.
Lenders that underwrite on revenue rather than credit history approve businesses in the medium- and high-risk bands all the time, often for at least part of what was requested. That's why documented, steady deposits are the lever that outweighs a low score, and the one you can improve this quarter.
How a business line of credit works
A line of credit is the financing you set up while nothing is wrong. You're approved for a ceiling and then it sits there: nothing is borrowed and nothing is owed until the day you draw on it. You pay for access, and interest only on what you use.
It revolves. If your limit is $60,000 and you draw $15,000 to cover supplies and a new hire, the $45,000 you left alone costs nothing, and every dollar you repay becomes available again without a new application. That makes a line a good fit for gaps that repeat but never arrive on schedule: payroll stretches, materials, a slow-paying customer.
Without one, those gaps get covered with whatever cash you can find in two days, and the fastest money in this market is almost always the most expensive.
Secured or unsecured, and the personal guarantee
- Secured: backed by equipment, inventory or property. The lender can take the asset if you default; in exchange your rate comes down and your limit goes up.
- Unsecured: the lender carries the risk alone, which shows up as a higher rate and a tighter approval.
Either way, expect a personal guarantee on most of these. If the business can't pay, the lender can come after you personally. So the size you're approved for and the size that's safe to draw are two separate decisions, and the lender only makes the first one.
What a line of credit costs
| Type | Typical annual rate |
|---|---|
| Secured line | High single digits to about 20% |
| Unsecured line | About 10% into the mid-30s |
These are annual rates, not monthly. A lower score with no collateral puts you near the top of the band; that's how risk gets priced. In dollars: $15,000 drawn at 19% and cleared in about two months costs roughly $475 in interest, the price of covering a payroll cycle you'd otherwise have covered by shorting a supplier.
One wrinkle specific to business borrowing: the consumer disclosure rules that force a single comparable annual rate onto a car loan don't apply to small-business credit. One offer may quote a rate with the fees left out, another may leave the fee list out entirely, so a true APR never appears. Ask every lender for the total dollars you'll repay and the full fee list in writing, and compare those.
Two free things to do before you apply
- Pull your personal credit reports and read them line by line. An incorrect negative item costs you points for nothing, and disputing it costs nothing.
- Pick a limit that matches the real gap, not the biggest number you think you can talk someone into. Overreaching is one of the most common reasons a thin file gets declined.
And apply only where you clear the bar. Every application to a lender that was never going to say yes can leave a hard inquiry behind, and those stack up against you.
Which lender type to ask first
| Lender type | Typical bar | Trade-off |
|---|---|---|
| Banks and credit unions | Score near 700, a couple of years in business | Cheapest money, highest bar |
| Online and alternative lenders | Some consider the low 600s; lean on documented deposits | Faster, more flexible, costs more |
| Community development lenders and government-backed microloans | Built for weaker credit files | Priced low, more paperwork, typically up to about $50,000 and usually much less |
If your score is under 600 and the need isn't urgent, start with the community and microloan route. That money is priced for exactly your profile, and the extra paperwork is worth what it saves.
Fuel Business Capital: for 600+ scores with steady sales
For owners at 600 and up with steady deposits, Fuel Business Capital came up repeatedly in our research. It's a nationwide small-business lender with more than a dozen financing products, including a revolving line of credit.
- Who qualifies: a published baseline of roughly $20,000 a month in steady revenue and at least six months in business. The company says it looks past imperfect credit, prior advances and bank declines, focusing on cash flow.
- Starting: an opening form of about a minute with basic contact details; no Social Security number, no collateral and no credit check that affects your score at that stage.
- If you go ahead: recent bank statements and a few business details, then a call with a funding specialist.
- Speed: approved deals can fund in as little as 24 hours, sometimes the same day. Treat that as the best case, not a promise.
Put your questions to the specialist and get your exact numbers and every fee in writing before you take the funds.
Pros and cons
What works
- Revenue-based lenders weigh deposits, not just your score.
- You pay interest only on what you draw, and repaid funds become available again.
- Community lenders and microloans offer cheap money for weaker credit files.
What doesn't
- Low score plus no collateral means rates near the top of the band, up to the mid-30s.
- Most lines need a personal guarantee.
- Small-business offers aren't standardized, so costs are hard to compare without the total in writing.
- Every misdirected application can leave a hard inquiry.
Frequently asked questions
Can I get a business line of credit with a credit score under 600?
It's harder but possible. Revenue-focused online lenders may approve part of a request on steady deposits, and community development lenders and government-backed microloan programs are built for weaker credit files, usually at lower cost.
What credit score do banks want for a business line of credit?
Banks and credit unions generally want a score near 700 and a couple of years of operating history. They offer the cheapest money but have the highest bar.
How much does a business line of credit cost?
Secured lines typically run from the high single digits to about 20% a year, and unsecured lines from about 10% into the mid-30s. For example, $15,000 drawn at 19% and repaid in about two months costs roughly $475 in interest.
What does Fuel Business Capital require?
Its published baseline is roughly $20,000 in monthly revenue and at least six months in business. The initial form doesn't ask for a Social Security number or run a credit check that affects your score; bank statements come later if you proceed.
Is the interest rate the same as the APR?
No. A quoted interest rate usually leaves out fees, so the real annual cost of a line is higher than the rate suggests. Ask for the total repayment and full fee list in writing.
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