Business loans for a 600 credit score: what actually approves?
Reviewed by Turan Zeynal, Managing Partner, Outset Funding Partners ·
A 600 personal FICO unlocks a real product menu: online term loans (24–48% APR), fintech lines of credit ($10k–$150k), equipment financing at competitive rates, and merchant cash advances at the low end of the factor range (1.20–1.35). SBA and traditional bank loans are still out of reach until 660+. The single fastest lever is moving from 600 to 640 — rates typically drop 5–10 points across every online product.
Quick facts
- Products at 600 FICO
- Online term, fintech LOC, equipment, MCA
- Still out of reach
- SBA 7(a), bank term loans, bank LOC
- Online term APR
- 24% – 48%
- Fintech LOC APR
- 18% – 36%
- MCA factor rate
- 1.20 – 1.35
- Typical advance size
- 100–150% of monthly revenue
- Minimum time in business
- 6–12 months
- Minimum monthly revenue
- $10,000+ deposits
The 60-second answer
600 FICO is the single biggest bucket in online business funding. Roughly a third of US small business owners fall between 580 and 640, which is why every fintech lender has a specific product tier built for this band. The good news: you have real choice. The bad news: you're paying meaningfully more than a 680 borrower would for identical capital.
The strategy at 600 is usually a barbell — take the cheapest short-term product you qualify for now (LOC or term loan), use the on-time history to push your file toward 640 over the next 6–9 months, and graduate into SBA or bank pricing after that.
Pros and cons
- ✓Real product choice — online term, LOC, equipment, and MCA all fund at 600
- ✓Pricing is 30–50% lower than what a 500-FICO borrower pays for the same product
- ✓Approval speed is still 24–72 hours across most fintech products
- ✓Moving to 640 FICO opens SBA Express and some bank LOC offers — the payoff is unusually large per point
- ✓Adding one business tradeline that reports (fuel card, vendor NET-30) helps Experian Business independently of your personal FICO
- ×SBA 7(a) and traditional bank term loans are effectively locked until 660+
- ×APRs at 600 are still 3–4x what a 720 borrower pays — never optimize for speed alone
- ×Origination fees (3–5%) on online term loans push the real cost above the stated rate
- ×Multiple applications in a 30-day window can drop your FICO 10–20 points at exactly the wrong time
- ×Stacking a second product on top of an active MCA usually voids the second lender's terms and can trigger UCC issues
What approves at 600 FICO (and what it costs)
| Option | When to use | Watch out for |
|---|---|---|
| Online term loan | 6+ mo in business, $10k+/mo revenue | 24–48% APR; watch the origination fee (3–5%) |
| Fintech line of credit | 12+ mo in business, $8k+/mo revenue | 18–36% APR; per-draw fee is real cost |
| Equipment financing | Equipment is collateral; 12+ mo in business | 10–25% APR; longer terms possible (5–7 yr) |
| Merchant cash advance | 4+ mo in business, $10k+/mo revenue | Factor 1.20–1.35 at 600 (better than 500 bucket) |
| Invoice factoring | B2B invoices to creditworthy customers | Your customer's credit drives pricing, not yours |
| SBA 7(a) — usually not | Requires 680+ FICO effectively | Some SBA-preferred lenders will consider 640+ with strong SBSS |
| Bank term loan — usually not | Requires 660–700+ FICO | A strong DSCR + collateral can occasionally get around it |
Frequently asked questions
What's the best business loan for a 600 credit score?
For most owners at 600 FICO with 12+ months in business and $10k+ monthly revenue, a fintech line of credit is the best cost/flexibility combination — 18–36% APR, draw only what you need, pay interest only on the drawn portion. A term loan wins only if you have a single, specific, one-time use of capital.
Can I get an SBA loan with a 600 credit score?
Technically the SBA doesn't publish a hard FICO minimum, but in practice SBA-preferred lenders decline files under 660. SBA microloans (under $50k) will occasionally consider 620+. Below 620, plan on a bridge product for 6–12 months, then re-apply.
How much can I borrow at 600 FICO?
Typically 100–150% of average monthly revenue on a first advance, capped between $50k and $250k for most online products. A business doing $40k/month can generally line up $40k–$60k of first-position funding.
How long does approval take at 600 FICO?
Online term and LOC: 24–72 hours from application to funded. MCA: same day to 48 hours. Equipment financing: 3–7 business days because the equipment vendor is in the loop. SBA (if you qualify): 30–60 days.
What's the fastest way to move from 600 to 660 FICO?
Pay every revolving credit card below 30% utilization (biggest single move — often 20–40 points in 60 days), dispute inaccurate collections, keep old accounts open, and don't apply for new consumer credit for 90 days. Real growth beyond that takes 6–12 months of clean on-time history.
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