Top 5 Ways to Get Business Funding with Bad Credit in 2025
Starting or growing a business in 2025? If your credit score isn’t where you’d like it to be, you’re not alone. Many entrepreneurs struggle to get traditional loans due to past financial hiccups or limited credit history. But here’s the good news: having bad credit doesn’t mean you’re out of options.
In fact, with the rise of alternative lenders and flexible financing models, there are now more ways than ever to secure funding—even with a low credit score. Here are the top 5 strategies to get your business the capital it needs in 2025:
1. Business Cash Advance (MCA) A merchant cash advance isn’t a loan; it’s a lump sum of capital provided upfront in exchange for a percentage of your daily credit card sales. It doesn’t rely heavily on your credit score, making it a solid option for businesses with consistent revenue but poor credit.
Pros: Fast approvals, minimal paperwork, no collateral. Cons: High fees and daily repayments can add up quickly.
2. Secured Business Line of Credit If you have assets like inventory, equipment, or receivables, you can use them as collateral to secure a revolving line of credit. This helps offset the risk for lenders and increases your chances of approval.
Pros: Flexible access to funds when you need them. Cons: You risk losing the collateral if you default.
3. Credit Building & Pre-Funding Strategy At FundPera, we help clients build their credit profiles to improve approval odds for better funding options. This includes resolving negative marks, increasing credit limits, and establishing positive payment history through targeted strategies.
Pros: Sets you up for better funding terms long term. Cons: Takes time and requires discipline.
4. Personal Guarantee Business Loans In some cases, you can use your personal credit to secure a business loan. This can work well if your business credit is poor but your personal credit is in decent shape.
Pros: Opens doors to better funding. Cons: You become personally liable if the business defaults.
5. Alternative and Private Lenders Private and non-bank lenders are more flexible when it comes to credit history. Many specialize in working with small businesses and startups, offering fast access to working capital without the strict requirements of traditional banks.
Pros: Quick funding, more lenient credit requirements. Cons: Rates may be higher compared to banks.
Conclusion Bad credit doesn’t have to be a roadblock in 2025. With the right funding strategy and the right partner, you can still secure the capital your business needs to grow. At FundPera, we specialize in helping business owners navigate these options, build credit, and secure real funding—even when others say no.
Ready to explore your funding options? Apply now or schedule a free consultation with our team today.
