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.
Worked example: what $50,000 actually costs at 600 FICO
Numbers make the trade-off obvious. Take the same $50,000 of capital, quoted the way a 600-FICO file is usually quoted in 2026, and compare what leaves your bank account:
- Fintech line of credit, 28% APR, 12 months: about $4,835/month, roughly $8,000 in total interest if you keep the full balance drawn the whole year — and far less if you draw and repay in cycles.
- Online term loan, 38% APR, 18 months, 4% origination: about $3,565/month, roughly $14,200 in interest plus a $2,000 fee, so about $16,200 of total cost on $48,000 of net funding.
- Merchant cash advance, 1.28 factor, 8-month remit: $64,000 payback, about $364 debited every business day, and an effective APR in the 80–90% range once you annualise the short term.
Same money, three very different prices. The LOC wins on cost and flexibility, the term loan wins when you need one fixed lump for one fixed purpose, and the advance is a speed purchase — appropriate when the capital earns more than 60% annualised, and expensive otherwise. Run your own version in the business loan calculator and the MCA cost calculator before you sign anything.
The second worked example worth doing is the credit one. Moving from 600 to 645 typically re-prices that same term loan from roughly 38% to roughly 26% APR. On $50,000 over 18 months that is about $4,600 saved for what is usually 60–90 days of paying revolving balances under 30% utilisation and letting no new inquiries hit the file. Very few business decisions pay $4,600 for two months of discipline.
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
Is a 600 credit score bad for business funding?
It is below prime but firmly fundable. At 600 FICO you are declined by banks and SBA-preferred lenders, and approved by essentially every online term, line of credit, equipment, and revenue-based funder — at prices roughly 10–14 points above a 680 borrower. Treat it as a temporary tier, not a permanent one.
Will applying for a business loan at 600 FICO hurt my credit?
Most online lenders start with a soft pull for pre-qualification, which has no score impact. A hard pull happens at final underwriting on some products. Keep all applications inside a 14-day window so they count as a single shopping event, and avoid new consumer credit applications in the same period.
Should I take an MCA at 600 FICO or wait for a cheaper option?
Wait if you can. At 600 FICO you generally qualify for a line of credit or term loan at 18–38% APR, which is a fraction of an advance's 60–90% effective APR. An advance makes sense only when the capital is time-critical and clearly returns more than its cost — for example inventory you have already sold.
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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