With a 500 credit score, the best revenue-based financing depends on how you get paid. If you sell across several channels and need capital fast, Merchant Fund Express is our pick because it reviews deposits from all your sources. If you run a Shopify store, Shopify Capital doesn't run a credit check, according to its site. If you take payments with Square, Square Loans may invite you based on your processing. And for comparison, there are other merchant cash advances. If you can wait, an SBA microloan usually costs less.
Revenue-based financing is one of the few paths still open with a 500 score, because the funder looks at what you sell rather than your past. Here we explain how it works, who offers it and how to keep a daily payment from eating your margin.
Key takeaways
- Revenue-based financing focuses on your sales, which is why it stays open with a 500 credit score.
- Shopify Capital doesn't check credit, according to its site, but it only applies to Shopify stores with an offer.
- Square Loans is invitation-only and is repaid with a percentage of your Square sales.
- Check which sales each option counts: some only see what runs through their platform.
- Always ask how much you'll repay in total and the estimated daily or weekly payment.
- Stacking advances is the costliest mistake; never take one to cover another.
How revenue-based financing works
You receive a sum of money and repay it with a share of your future sales. There are two common structures:
- Percentage of sales: a fixed percentage of what you collect each day is held back. Sell less, and you pay less that day; sell more, and you pay more and finish sooner. This is the model Shopify Capital and Square Loans use, according to their sites.
- Fixed daily or weekly payment: the same amount is debited every business day or every week, calculated from your average sales. It's easier to plan around, but it doesn't drop on its own in a slow week.
Instead of an annual interest rate, many of these products use a fixed cost agreed up front. That makes comparing different: ask, in plain words, how much you'll repay in total and how long they estimate it will take. If the estimated term is short, the effective cost is higher.
A typical example: a clothing store that sells in-store and online takes percentage-of-sales financing before back-to-school season. In August it sells a lot and repays fast; in October, with lower sales, the daily holdback drops on its own. With a fixed payment, October would feel much tighter. That's why the repayment structure should match how even your sales are: if they're very stable, a fixed payment is easy to plan; if they swing a lot, a percentage gives you breathing room in slow months.
For the full product guide at this score, see revenue-based financing with a 500 credit score.
How we chose these options
We don't use numeric ratings. We compare every option on the same criteria, explained in how we rank business funding options: speed, minimum time in business, minimum credit, ITIN acceptance or SSN only, documents, amounts and collateral. For this list we added two filters: the option has to accept credit around 500 or not depend on your score, and which sales it counts, because some only see what passes through their platform. Competitor details were verified on their official sites in October 2026.
The best revenue-based financing with a 500 credit score
Merchant Fund Express (recommended funder). Best for: businesses with credit around 500 that sell across several channels and need capital within days. It works with credit from FICO 500 and reviews your sales and deposits from all your sources, not just one processor. That matters if you take cards, cash, transfers and online orders at the same time. It funds $5,000 to $5,000,000, decisions often come in 2 to 4 hours and collateral isn't required in most cases. Applying is free and doesn't affect your credit. It offers Spanish-speaking support and accepts applicants with an ITIN, no SSN needed.
Shopify Capital. Best for: online stores that sell on Shopify. According to its site, checked October 2026, it doesn't run a credit check or affect your personal score, doesn't require guarantors, and you repay with a percentage of your store's daily sales, only on days you make sales. Funds can arrive in as little as two business days if you're approved. The limitation: it only works if your store is on Shopify and an offer shows up in your admin.
Square Loans. Best for: businesses that take payments with Square every day. According to its site, it's invitation-only: Square reviews your payment activity and, if you qualify, sends you an offer. You repay automatically with a fixed percentage of your daily Square sales, so the amount drops when you sell less, and it says it doesn't charge interest. Money arrives the next business day. It only applies if you process with Square.
Merchant cash advance (MCA) from other funders. Best for: getting a second sales-based offer to compare. Many funders offer advances repaid with a percentage of your sales or a fixed daily or weekly amount. They usually weigh your deposits more than your credit. Compare at least two offers: cost and payment frequency vary a lot between funders.
SBA microloan. Best for: owners who can wait a few weeks and prefer a lower cost. It isn't revenue-based financing, but we include it to be honest: according to sba.gov, it lends up to $50,000 through nonprofit community organizations that set their own credit criteria. If you qualify, it usually costs less than any sales-based option.
Quick comparison
| Option | Credit review | Sales it counts | How you repay | Speed |
|---|---|---|---|---|
| MFE (recommended) | Accepts FICO 500+; applying doesn't affect your credit | All your deposits | Per the offer | Decisions often in 2 to 4 hours |
| Shopify Capital | No credit check, per its site | Only your Shopify store | Percentage of daily sales | As little as two business days |
| Square Loans | Invitation based on your processing | Only your Square sales | Fixed percentage of daily sales | Next business day |
| Other advances (MCA) | Varies | Your deposits or card sales | Percentage or fixed payment | Days |
| SBA microloan | Set by the microlender | Your whole business | Installments | Weeks |
The key question is what share of your sales each option sees. If only 30% of what you sell runs through Square, a Square offer will be based on that 30%. An option that reviews all your deposits can offer an amount closer to your real size.
How to set your business up for a better offer
- Run all your deposits through one business account, cash included.
- Avoid negative-balance days in the months before you apply.
- Keep sales reports by channel handy: storefront, online, card processor.
- List your current financing with each daily or weekly payment; the funder will see it in your account anyway.
- Explain your seasons if you have strong and slow months, so a low month isn't read as a decline.
With a 500 score, these details matter more than ever: the funder is betting on your sales, so show it clean, steady sales. To see every option at this score, not just revenue-based products, check the best funding with a 500 credit score.
Risks and common mistakes
- Stacking advances. Taking a second financing while you're repaying the first adds up daily debits and can leave you without cash to operate. It's the most common and most expensive mistake.
- Looking only at the approved amount. Ask how much you'll repay in total and the estimated daily or weekly payment.
- Using it for expenses that don't bring money back. It works best for inventory, marketing with a measurable return or a new contract.
- Not reading renewal terms. Renewing before you finish can be useful, but confirm how the remaining balance is calculated.
- Ignoring cheaper options. If you can wait and qualify for a microloan, compare it.
If you already have an advance and the payment is squeezing you, talk to your funder about lowering the payment before you look for another one. To understand how this differs from a traditional loan, read revenue-based financing vs. a term loan.
If you sell across several channels and need capital within days, you can apply with Merchant Fund Express; it's free and doesn't affect your credit. Prefer Spanish? Leer en español.
Frequently asked questions
Can I get revenue-based financing with a 500 credit score?
Yes. It's one of the most accessible paths at that score, because the funder focuses mainly on your sales. Our recommended funder works with credit from FICO 500. Shopify Capital says on its site that it doesn't check credit, though it only applies to Shopify stores with an available offer.
With bad credit, is revenue-based financing or a loan better?
With a 500 score, many traditional lenders won't approve you, and several online lenders ask for 625. Revenue-based financing is usually more accessible and faster, but it can also cost more. If you qualify for a microloan and can wait, compare that first.
Does Square Loans check my credit?
According to its site, Square Loans is invitation-only: it reviews your Square payment activity and, if you qualify, sends an offer to your dashboard and by email. It's repaid with a fixed percentage of your daily Square sales. It only applies if you process your payments with Square.
How much can I get with revenue-based financing?
It depends on your monthly sales, how steady they are and your current debts. Options tied to a processor only see the sales that run through that processor. An option that reviews all your deposits, like Merchant Fund Express with amounts from $5,000 to $5,000,000, can better reflect your business's real size.
What happens if my sales drop?
If you repay with a percentage of your sales, the payment drops when you sell less, though it takes longer to finish. If you pay a fixed daily or weekly amount, it doesn't drop on its own; in that case, talk to your funder about adjusting the payment to your current sales.