Independent since 2015
Business funding with bad credit in NYC: the lenders that look past your score
By Solomon Wiesen, editor. Updated October 2026. Editorial standards | How this site is funded
New York City is a hard place to borrow with a weak credit score. In the Federal Reserve’s latest small business survey, 34% of NYC-area firms that applied for a loan, line of credit or cash advance were denied, against 19% nationally, and 9% of NYC-area employers counted as high credit risk, meaning an owner score under 620. The good news is that the city has a deep bench of nonprofit lenders, and several of them publish no minimum score at all.
What bad-credit funding costs in NYC
Published annual rates from lenders that accept low or no credit scores, against the fast options, October 2026.
Below: the NYC lenders that accept low or no credit, what online lenders actually require, what the faster options cost, and the New York rules that protect you. Figures were checked on each lender’s own page in October 2026. No legitimate lender approves anyone before reviewing an application, and neither does this site.
What lenders mean by bad credit
- The cutoff that matters is about 620 to 640. The Fed’s survey treats a personal score under 620 as high credit risk, and several lenders below use 640 as the line for faster approval.
- Your personal score usually counts more than your business score. Among high-risk firms, 45% said lenders used the owner’s personal score and 52% both; only 3% were judged on a business score alone.
- It is rarely the only reason for a no. Nationally, 30% of firms that were not fully approved cited a low credit score, behind strict lender requirements (46%) and too much existing debt (37%).
NYC lenders that accept low or no credit scores
These are nonprofit and mission lenders, mostly community development financial institutions (CDFIs). They are slower than an online lender and ask for more documents, but they cost a fraction as much. Several also report your repayments to the credit bureaus, which helps you qualify for cheaper money next time.
| Lender | Credit score floor | Amounts | Cost | Notes |
|---|---|---|---|---|
| Accompany Capital | No minimum | $2,000 credit-builder; microloans $1,000 to $50,000 | 8% fixed; 1% closing fee | Five boroughs; reports repayments to the credit bureaus (source) |
| Kiva | No minimum | $1,000 to $15,000 | 0% interest, no fees | Friends and family must lend first, then the loan is crowdfunded (source) |
| Grameen America | No score, history or collateral needed | $500 to $2,500 to start | 18% APR | Women only; groups meet weekly near a branch (source) |
| Ascendus | None for Get Ready; 575 for term loans | From $1,000 (Get Ready); term loans up to $100,000 | 7.75% to 15.99%; 5% closing fee on term loans | Needs a referral, for example from an SBDC (source) |
| Hebrew Free Loan Society | No borrower floor listed; guarantors need 680+ | Up to $60,000 | 0% interest, no fees | Low and moderate income owners in NYC, Westchester, Long Island (source) |
| NYC Future Fund | None stated; credit check required | $25,000 to $500,000 | 7.5%; 3% origination fee | 12 months in business and $50,000 revenue (source) |
| Neighborhood Credit Fund (NYCEDC) | A FICO under 640 counts toward eligibility | $10,000 to $250,000 | Set by the lender | Meet 2 of 8 criteria; confirm the fund is open (source) |
| UMEZ Hybrid Microloan | Above 580 | Up to $50,000 | 3% | Upper Manhattan storefronts, 24 months open (source) |
| Pursuit | 640 for automatic approval; others reviewed | Microloans up to $50,000 | Up to 9.125%; 3% commitment fee | Statewide; decision in 2 business days (source) |
| Renaissance EDC | Not published | Up to $100,000 | 4% to 6% fixed | Chinatown and Flushing offices (source) |
| BOC Capital | Not published | $500 to $250,000 | Varies | Women, minority and immigrant owners (source) |
| Harlem Entrepreneurial Fund | Not published; looks at “the whole business” | $2,500 to $350,000 | Not published | Harlem, Bronx, Queens, Brooklyn (source) |
| Brooklyn Cooperative FCU | Not published; considers startups | $500 to $15,000 for startups | Not published | Brooklyn credit union; guaranty from each owner (source) |
The New York State Small Business Revolving Loan Fund also lends through many of these CDFIs, with microloans of $500 to $25,000 aimed at businesses that have historically faced barriers to credit. For the full list of city and community lenders with good credit too, see the NYC small business loans guide.
What online lenders require, and what they cost
- OnDeck: 625 minimum, one year in business and $100,000 in annual revenue. Its own disclosed average APRs for loans made in the first half of 2026 were 53.2% on term loans and 59.8% on lines of credit (OnDeck).
- Bluevine: 625 minimum for its line of credit, 12 months in business, $10,000 a month in revenue, and no sole proprietors (Bluevine).
- Fundbox: about 600 according to Bankrate; Fundbox does not publish a minimum.
- National Funding: no published minimum, but its site says most customers are above 600 (National Funding).
NYC-area firms lean on online lenders more than the rest of the country: 37% of NYC applicants applied to one, against 29% nationally. Nationally, 60% of online-lender borrowers said their costs were higher than expected, against about a third of bank borrowers.
Other ways to get funded with weak credit
- Equipment financing: the equipment secures the loan, so some lenders go as low as 550 to 575. Expect roughly 22% to 35% APR with a score in the high 500s and a down payment of up to 20%, per NerdWallet.
- Invoice factoring: if you bill other businesses or the government, a factor advances most of the invoice and judges your customers’ credit more than yours. Fees run 1% to 5% of the invoice, and 3% for 30 days is about 36% a year (NerdWallet).
- A secured business credit card: you put down a deposit and build a business credit history. Bank of America’s secured business card needs a $1,000 deposit and carries a 26.99% variable APR.
- A merchant cash advance: the easiest to get and usually the most expensive. Factor rates typically run 1.1 to 1.5. The table below converts them to annual rates; the figures are my own illustrations, assuming fixed daily payments and no extra fees.
| Factor rate | Paid back over | Approximate APR |
|---|---|---|
| 1.15 | 12 months | about 28% |
| 1.20 | 9 months | about 50% |
| 1.30 | 6 months | about 109% |
| 1.40 | 6 months | about 142% |
| 1.50 | 6 months | about 174% |
A New York court put the effective rate on one Yellowstone Capital advance at about 109.72% (People v. Yellowstone Capital, March 2026). Run any offer through the site’s factor rate to APR calculator or the New York offer checker before you sign.
New York rules that protect you
- The cost has to be disclosed. Under New York’s commercial finance disclosure law, in force since August 1, 2023, most non-bank providers must give you an estimated APR, the finance charge and the payment terms on offers of $2.5 million or less, including cash advances and factoring. See the site’s guide to the disclosure law.
- Read for a confession of judgment. Since 2019 New York courts no longer accept confessions signed by out-of-state borrowers, but NYC businesses can still be asked to sign one. See confessions of judgment in New York.
- Some advances are really loans. If an advance works like a loan, New York’s usury caps can apply. The Attorney General won a $1.065 billion judgment against Yellowstone Capital in 2025, and you can check whether your business was part of it with the settlement lookup.
Red flags
- A promise of approval before anyone reviews your application, or “no credit check” for any meaningful amount
- A fee you pay before you receive any money
- Pressure to sign the same day, or a contract you are not allowed to take home
- An offer with no APR on it; in New York most providers have to show one
Build your credit while you borrow
- Get a free D-U-N-S number from Dun & Bradstreet and check what it shows about your company.
- Open at least three vendor accounts on net-30 terms that report to D&B. A PAYDEX score needs at least three payment experiences from two suppliers, and paying on time scores 80, early 90 to 100.
- Take a small loan that reports, such as Accompany Capital’s $2,000 credit-builder loan, and pay it on schedule.
- Clear or settle liens and judgments; many of the lenders above will not lend while one is open.
- Get free one-on-one credit counseling at a city Financial Empowerment Center; call 311.
Free help in NYC
NYC Business Solutions centers help you choose a financing product, prepare documents and connect with nonprofit lenders at no charge. Call 888-SBS-4NYC (888-727-4692) and ask for financing assistance, or see NYC Business. Centers are in the Bronx (400 E Fordham Rd), Brooklyn (9 Bond St), Lower Manhattan (14 Wall St), Queens (90-27 Sutphin Blvd), Staten Island (120 Stuyvesant Pl), Upper Manhattan (361 W 125th St) and Washington Heights (560 W 181st St). The Small Business Development Centers at Lehman, Brooklyn, Baruch, Pace, Columbia-Harlem, LaGuardia, York and Staten Island also advise for free, and an SBDC can give you the referral Ascendus asks for.
Common questions
Can I get a business loan in NYC with bad credit?
Yes, mostly from nonprofit lenders. Accompany Capital, Kiva and Grameen America publish no minimum credit score, Ascendus has a no-score starter line, and NYCEDC’s Neighborhood Credit Fund counts a FICO under 640 toward eligibility. Expect smaller amounts and more paperwork than an online lender, at a fraction of the cost.
What credit score do online business lenders require?
OnDeck and Bluevine publish a 625 minimum. Fundbox is reported at about 600, and National Funding says most of its customers are above 600. OnDeck’s own disclosed average APRs for the first half of 2026 were 53.2% on term loans and 59.8% on lines of credit.
Is a merchant cash advance a good option with bad credit?
It is the easiest money to get and usually the most expensive. A 1.3 factor rate repaid over six months works out to roughly 109% APR. New York requires providers to disclose an estimated APR on offers of $2.5 million or less, so ask for that number and compare it with a nonprofit loan first.
Can a lender promise approval in advance?
No. Every legitimate lender reviews an application before deciding, and offers that promise approval in advance, or ask for a fee before funding, are red flags.
Want to see what you may qualify for? Send one short request and a funding partner will contact you about options. This is a request for information, not an application, and approval is never guaranteed. We may be paid when you submit a request; see how this site is funded.
General information, not legal or financial advice. Lender terms change; confirm them with the lender before you apply.