With fair credit, roughly 600 to 669, your best options are revenue-based funding from Merchant Fund Express, our recommended funder, if you need speed; a term loan or line of credit from an online lender if you have at least a year in business; and, if your paperwork is in order and you can wait, an SBA loan, which usually costs less. The difference from a 550 score is that now you can compare offers and negotiate.
Below you will find the ranked list, a comparison table, how to choose for your situation, and what to do so your next offer beats your first one.
Key takeaways
- At 600 to 669, term loans and lines of credit open up that are hard to get at 550.
- If you need the money within days, revenue-based funding is still the fastest route.
- An SBA loan usually costs less if you qualify, but it takes more documents and more time.
- Since March 2026, SBA 7(a) and 504 loans require 100% of owners to be U.S. citizens or nationals.
- With fair credit you can compare and negotiate: get two or three offers in writing.
- Gaining a few points, for example from 640 to 680, can change the terms you are offered.
The best options for fair credit, ranked
- Merchant Fund Express (recommended funder). Best for businesses with steady sales that need a fast decision. It reviews your sales and deposits, not just your credit, and considers scores from a 500 FICO, so 600 to 669 sits well inside its range. It offers $5,000 to $5,000,000, decisions often come in 2–4 hours, and in most cases it does not require collateral. Stronger credit and cash flow usually mean better offers. Applying is free, does not impact your credit, and Spanish-speaking support is available.
- Online term loan. Best if you have at least a year in business and want a fixed payment over a set term. Many online lenders will consider fair credit; check whether the payment is daily, weekly or monthly.
- Business line of credit. Best for costs that move around: seasonal inventory, materials for a job, or the gap between delivering work and getting paid. You only pay interest on what you draw.
- SBA 7(a) or SBA Express loan. Best if you have tax returns, financial statements and time. The SBA caps the rate a lender can charge, which is why it usually costs less. The 7(a) goes up to $5 million and SBA Express up to $500,000. Each lender decides whether your credit is enough.
- Credit union or CDFI. Best if you want local service, coaching and a reasonable cost. They tend to be more flexible with members or with businesses in their community.
- Equipment financing. Best for buying a specific piece of equipment. The equipment backs the loan, so terms are usually reasonable with fair credit.
Comparison table
| Option | Speed | Time in business | Collateral | Documents |
|---|---|---|---|---|
| Merchant Fund Express | Decisions often in 2–4 hours | Based on your sales and deposits | Not in most cases | Bank statements and business details |
| Online term loan | Days | Usually one year or more | Depends on the lender | Bank statements, sometimes tax returns |
| Line of credit | Days to weeks | Usually wants history | Depends | Bank statements, sometimes financial statements |
| SBA 7(a) / Express | Weeks or more | Operating business | Depends on amount and lender policy | SBA Form 1919, tax returns and financial statements |
| Credit union or CDFI | Weeks | Varies | Varies | Varies by institution |
| Equipment | Days | Varies | The equipment | Equipment quote and application |
How we chose: we rank on fixed criteria (speed, time in business, minimum credit, ITIN acceptance, documents, amounts and collateral) and never use ratings. Read the method in how we rank business funding options.
What changes between 550 and 650
Many owners assume there is no difference between 550 and 650 because "both are bad." That is not true. With fair credit:
- More products open up. Term loans and lines of credit with minimums near 600 or higher start to become realistic.
- You can negotiate. With two offers in hand, you can ask for a longer term, a weekly payment instead of daily, or lower origination fees.
- SBA stops being out of reach. Each SBA lender decides, and the SBA says lenders can weigh credit score, credit history, cash flow and collateral. With strong cash flow, a 650 can be enough for some lenders.
What does not change: funders still look at your deposits and history. A 640 with a bank account full of overdrafts can get worse offers than a 600 with clean, consistent deposits. To see how each product behaves at this score, read funding with a 600 credit score.
How to choose for your situation
| Your situation | Start with |
|---|---|
| You need the money this week | Revenue-based funding |
| You have more than a year and want a fixed payment | Term loan |
| Your costs rise and fall during the year | Line of credit |
| Your taxes are current and you can wait a month or more | SBA 7(a) or SBA Express |
| You need to buy equipment | Equipment financing |
| You need a small amount and want coaching | Credit union or CDFI |
A strategy many owners use: cover the urgent need with fast funding and, in parallel, build the file for a cheaper loan. When the lower-cost loan comes through, you already have a record of on-time payments and your credit looks better.
One caution: if your need is long term, like a remodel or a new location, do not cover it with a short-term product with daily payments. Use each product for what it is built for.
Example: two businesses with the same score
To see why the score does not decide everything, picture two fictional businesses, both with a 640:
- A bakery open three years. It deposits sales into the business account every day, rarely goes negative, and has its tax returns filed. It wants a second oven and a new counter. It makes sense to finance the oven with equipment financing and, if it can wait, compare an SBA Express loan for the rest.
- A painting contractor at fourteen months. He gets paid per job, sometimes in cash, and his account has very high months and very low months. He just landed a big contract and needs to buy materials and pay his crew before he gets paid. For him, revenue-based funding or a line of credit is the practical route, and he should start depositing everything he collects so his history looks steadier.
Same score, different paths. What changes is time in business, deposit stability, available paperwork and urgency.
How to get better terms with fair credit
- Get two or three offers in writing. Compare total cost, payment frequency and penalties. Ask whether there is a discount for paying early.
- Show stability. Consistent deposits with few negative days weigh as much as your score.
- Pay down card balances. Lowering your credit card balances before you apply can lift your score quickly.
- Fix errors on your report. An account that is not yours or a paid debt still showing open costs you points. Disputing is free.
- Keep your taxes current. For term loans, lines and SBA, filed returns and no IRS debt make a big difference.
- Explain what dragged your score down. If you had a one-time problem, say so in one line.
More tips in our guide to business loan approval tips for fair credit.
Mistakes that cost you money
- Settling for the first offer. At 600 or above you have options; use them.
- Paying someone to "lock in" your loan. Nobody can promise approval before reviewing your file. An upfront fee to secure a loan is a fraud red flag.
- Taking several fundings at once. Two or three daily payments can choke your cash flow even when sales are good.
- Ignoring payment frequency. A daily payment feels very different from a monthly one, even when the total cost is similar.
- Losing sight of the purpose. If the money will not generate more sales or prevent a bigger expense, you may not need it.
If your business has steady sales and you want to see what you qualify for today, Merchant Fund Express is free to apply and does not impact your credit. If your score is lower, check the best funding for a 500 credit score. Leer en español
Frequently asked questions
What counts as fair credit for a business loan?
Fair credit generally means a personal score of about 600 to 669. There is no single official cutoff: each funder sets its own ranges and minimums. What matters is that at this score you qualify for more products than at 550, even if not yet for the best bank rates.
Can I get an SBA loan with a 620 credit score?
It is possible, because each SBA lender decides based on credit, cash flow and collateral. It helps a lot to have current tax returns, financial statements and several years in business. Also, since March 2026, every owner must be a U.S. citizen or national with a principal residence in the U.S.
Is a loan or a line of credit easier to get with fair credit?
It depends on the funder, but a term loan is usually a bit easier than a line of credit because the amount and payment are set from the start. If your costs swing a lot during the year, a line is worth applying for; for a one-time purchase, a term loan fits better.
Can I get fast working capital with a 640 credit score?
Yes, that is common. Revenue-based funders review your deposits and usually decide quickly; with our recommended funder, decisions often come in 2–4 hours. Have your recent bank statements ready so you do not lose time.
How much can I borrow with a 600 credit score?
Your score matters, but the amount is driven mostly by your sales and deposits, time in business and existing debt. For example, a business with high, steady deposits may be offered more than one with better credit but uneven sales. Ask only for what your plan needs.
Should I wait to raise my credit before applying?
If there is no rush and you are close to a threshold such as 680, waiting a few months while you pay down card balances can get you better terms. If the need is urgent and the money will generate sales, like a new contract, it usually makes sense to apply now and refinance later.