One of the best ways to handle cash flow, deal with emergencies, and keep your business stable is to get a business line of credit. But what if your credit score is low? What if you don’t have strong business credit, tax returns, or financial statements?
The good news is that you can still get a business line of credit even if you have bad credit or no financials. You just have to apply the right way and work with the right lenders.
This guide tells you exactly how to qualify, what kinds of lenders will approve businesses with bad credit, how unsecured business lines work, and how ICG Funding helps business owners get approved when banks say no.
At the end, you’ll know:
- If you have bad credit, can you still get a business line of credit?
- Which lenders give out unsecured business lines?
- Which choices are good for new businesses
- What you need at the very least
- What papers do you need, if any?
- How to raise your chances of getting approved
- How ICG Funding helps you get money fast
Let’s get started.
Can You Get a Business Line of Credit Even If Your Credit Is Bad?
Yes, you can still get a business line of credit even if your credit score is low.
But the type of lender is important.
Most of the time, traditional banks need:
- 680–720+ credit
- 2–3 years in business
- Good finances
- Returns on taxes
- Statements of profit and loss
Banks won’t give loans to most small businesses with bad credit.
But non-bank lenders, fintech lenders, and private lenders WILL lend to businesses with bad credit as long as they have a lot of cash flow.
Business Lines of Credit for People With Bad Credit
If your credit score is low or you don’t have a lot of paperwork, you have three main choices.
1. Unsecured Business Line of Credit (No Collateral Required)
You don’t need to put up any collateral for an unsecured business line. You don’t need any equipment, inventory, or real estate.
Instead, approval is based on:
- Income
- Flow of cash
- Health of bank statements
- Time spent in business
These lenders are more flexible and will lend to a lot of businesses that:
- Scores on credit cards can be as low as 500–620.
- In business for only 3 to 6 months
- Income of at least $8,000 to $15,000 per month
For most business owners with bad credit, this is the quickest fix.
2. Line of Credit Based on Revenue
This kind of LOC is mostly based on your business’s income, not on its usual financials.
Lenders use:
- Statements from the bank
- History of deposits
- Trends in daily balances
- History of overdrafts and NSF
If your statements look good, lenders will give you money no matter what your credit score is.
Best for:
- Bad credit
- No tax forms
- No money statements
- Businesses that deal in cash
3. Line of Credit for New Businesses
If your business is new and doesn’t make much money yet, you might still be able to get a startup line of credit.
These are based on:
- Credit for yourself
- Income that a person says they make
- Personal banking activity
- No business financials needed
Minimum credit score: usually 620 or higher, but some lenders will accept lower scores if there are other factors that make up for it.
Startups often get:
- Limits of $2,000 to $20,000
- Access without security
- No need for money
What Lenders Look At Instead of Your Credit Score
Lenders look at other things if you have bad credit or no money.
This is what matters most:
1. Monthly Income
Most lenders want at least:
- $8,000 to $12,000 a month for unsecured LOCs
More money means higher limits.
2. Health of the Bank Statement
This is the most important thing for approval.
Lenders check:
- Average amount of money in the bank each day
- Overdrafts
- NSF events
- How often you deposit
- Patterns of cash flow
Doing well with your bank can make up for bad credit.
3. Time Spent in Business
Minimum:
- 3 to 6 months for LOCs based on revenue
- 0 months for startup LOCs (using personal credit)
4. Debt That Is Already There
If you have stacked MCA loans, lenders may:
- Lower your limit
- Offer LOCs that are easy to combine
- Need to be restructured
ICG Funding works with lenders who help businesses “reset” their debt.
How Much Can You Get If You Have Bad Credit?
Normal ranges for approval are:
If your monthly income is between $8,000 and $20,000
→ LOC of $3,000 to $15,000
If your monthly income is between $20,000 and $50,000
→ $15,000–$40,000 LOC
If your monthly income is between $50,000 and $150,000
→ LOC of $25,000 to $100,000 or more
The approval amount is not affected by your credit score.
Documents Needed for Low-Credit or No-Doc Lines of Credit
Most lenders that aren’t banks need:
- 3 to 6 months of bank statements for your business
- License for drivers
- Basic information about business
No need to file taxes.
No P&L needed.
No need for balance sheets.
Startup LOCs may need:
- Bank statements for you
- Check your own credit
- Checking the EIN
That’s all.
How to Improve Your Chances of Getting Approved (Even With Bad Credit)
These are the quickest ways to boost your chances:
- Keep your daily balances between $1,000 and $2,500.
Strong balances mean that things are stable. - For 30 to 60 days, don’t go over your limit or NSF.
A denial can happen with just two NSFs. - Keep making deposits on time.
Lenders like more than one weekly deposit better than one big deposit. - If you can, pay off some of your MCA debt.
Stacked daily payments make the approval size smaller. - Request funding through ICG.
They connect you with lenders who will accept profiles with low credit.
The Best Business Line of Credit Options for People With Bad Credit
These are the most common approvals for businesses with bad credit:
1. Business Line of Credit Without Security
- No security
- Quick approvals
- Great for working capital
- Based on income and cash flow
2. Hybrid LOC and Revolving Credit Facility
- A mix of a line of credit and short-term working capital
- Access that goes around
- Accepts low credit
3. Line of Credit for Startups
- Based on personal credit
- Good for starting a business
- No need for business income
4. Revolving Advance Based on Revenue
- You can draw at any time.
- You only pay interest (factor rate) on what you use.
- A lot of people approve
How ICG Funding Can Help You Get Approved Even If You Have Bad Credit
Banks won’t lend to people with bad credit, but ICG Funding does.
ICG Funding can help you:
- Get approved even if your credit score is low
- Find lenders who give out unsecured LOCs.
- Look at more than one offer
- Stay away from lenders who prey on people
- Increase your chances of getting approved
- Get higher limits
- Get money quickly (in 24 to 72 hours)
- Get qualified with little paperwork
ICG Funding works with:
- Lenders in the fintech space
- Lenders who are not public
- Lenders who are not banks
- Lenders based on income
- Startup LOC lenders
You can work with more than one lender; you have access to a whole network.
How to Get a Business Line of Credit With Bad Credit From ICG Funding
It’s quick and easy:
Step 1: Send in your application
Step 2: Send in bank statements for the last 3 to 6 months
Step 3: Look over offers from more than one lender
Step 4: Pick the option you like best.
Step 5: Get your money in 24 to 72 hours
No tax forms.
No complicated finances.
No long bank underwriting.
Last Thoughts
You can get a business line of credit even if you have bad credit or not a lot of paperwork. You just need to apply to the right lenders. The most important things are having a lot of cash flow and a clean bank account, whether you want an unsecured business line, a revenue-based LOC, or a startup line of credit.
Even if a bank has turned you down, ICG Funding makes the process quick, easy, and open to everyone.
