What is the lowest credit score MFE considers?

MFE considers scores from 500. Stronger credit usually means better offers, and some products, like lines of credit, commonly look for higher scores.

Will applying hurt my credit?

Ask how credit is checked at each stage before you apply. Practices vary by product and funder, so get a clear answer first.

Can a sole proprietor with bad credit get funding?

Yes, sole proprietors can be reviewed. As with any business, steady deposits in a business bank account and a clear purpose for the money help the file.

Is bad credit funding always expensive?

It usually costs more than funding for stronger credit, because the risk is priced in. Keeping the amount small and the term short limits the total cost.

How can I get better offers next time?

Keep deposits steady, avoid overdrafts, pay existing obligations on time and avoid stacking advances. Six months of clean history can noticeably change your offers.

Business Funding With Bad Credit: What Still Counts

The short answer

Business funding is still possible with a low credit score because revenue-based products, such as a merchant cash advance, are reviewed mainly on bank deposits rather than credit alone. Merchant Fund Express considers scores from 500. A lower score usually means a higher cost or a smaller amount, and steady deposits, time in business and a clean bank account still matter a great deal.

Why deposits can outweigh the score

A credit score summarizes how you have handled personal or business debt in the past. Revenue-based funding focuses on something more current: whether money flows into your business account steadily today. A funder reading four months of statements can see real sales, real balances and real bills being paid.

That is why an owner with a 540 score and steady $25,000 monthly deposits can sometimes qualify for an advance while a bank declines the same file. For how this product works, see revenue-based financing.

What still matters with low credit

Consistent deposits: steady revenue with no long gaps
Account health: few negative-balance days and overdrafts
Time in business: MFE's MCA guideline often starts around 3+ months
Existing payments: fewer open advances leave more room
Industry: many funders restrict residential remodeling and long-haul trucking
Recent issues: very recent defaults or open judgments get extra scrutiny

Check what your business qualifies for

Merchant Fund Express reviews business funding with bad credit requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.

Check funding options with Merchant Fund Express

Which products fit lower credit

Products that lean on deposits or assets are usually more reachable:

Merchant cash advance: credit flexible under MFE's guidelines, from about $7,500 a month in revenue
Invoice factoring: your customers' payment strength matters most
Equipment financing: the equipment secures the deal, though a down payment may be asked

Working capital loans and lines of credit commonly look for 600+ and about 650+ credit respectively, so they tend to open up after your score improves.

Worked example: what lower credit can cost

Illustrative example. These figures are illustrations built on stated assumptions, not offers. Real pricing depends on the file MFE reviews.

Assumptions: a cleaning company with a 540 score, 8 months in business and about $25,000 in monthly deposits takes a $15,000 advance at an assumed 1.42 factor rate, repaid weekly over 30 weeks, with a $600 fee. For comparison, the same file with stronger credit is assumed to price at 1.28.

Item	540 score	Stronger credit
Advance amount	$15,000	$15,000
Fee at funding	$600	$600
Net cash received	$14,400	$14,400
Total repayment	$21,300	$19,200
Weekly remittance (over 30 weeks)	$710	$640
Total cost	$6,900	$4,800

The $2,100 gap is the price of the lower score in this illustration. That is why a small, short advance is usually wiser than a large one while credit is rebuilding.

Funding brings customers. Is your website ready for them?

When your score is low, steady deposits are what carry the file, so anything that brings in consistent customers helps both the payment and your next offer. A clean website with your services, service area and a request form is a low-cost way to keep jobs coming. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month; se habla español.

See website plans See example websites

Websites from$399one-time, plus Website Care $30/month. Built for you, words included, se habla español.

When waiting is the better choice

If the need is not urgent, three to six months of clean statements and on-time payments can improve both your score and your offers. Waiting also makes sense if you already carry advances; adding one with a low score often means stacking at a high price, covered in MCA stacking explained.

Funding is worth it when the money pays for something with a clear return, such as a contract you have already won, not when it only covers a loss that will repeat.

What to prepare

3 to 4 months of business bank statements
Owner ID and a voided business check
A short note explaining any recent credit event, if relevant
The short application on the MFE bad credit business loans page

MFE offers service in English and Spanish. Decisions on complete files are often same day, but nothing is promised before review.

Related funding guides

Revenue-based financing Merchant cash advance How much can my business borrow MCA stacking explained Business funding with bad credit at Merchant Fund Express

Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.

Business funding with bad credit: deposits can speak louder than your score