High-Risk Business Loans

  • Interest rates from 7%
  • Get approved instantly
  • Receive funds in as little as 24 hours
  • Low credit scores accepted
  • Minimal documentation requirements
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Business financing for small businesses with limited borrowing history and lower credit scores

Getting Business Funding as a High-Risk Borrower

Operating a business is no easy feat. As your company grows, you can expect an increase in expenses. For high-risk borrowers, securing access to working capital can be a difficult but necessary part of achieving business success.

Fortunately, at Clarify Capital, we offer a wide variety of funding options for high-risk borrowers. While risk will always be a key factor that lenders consider, we believe it shouldn’t define the borrower. After all, most small business owners and entrepreneurs take on some level of risk to build their empires.

If you’ve been turned away by traditional lenders, don’t be discouraged. We work with borrowers who have bad credit, minimal credit history available, and work in “risky” industries.

Whatever your situation, Clarify is here to help make your dreams a reality. With a marketplace of 75+ lenders, competitive products, and a streamlined, fast approval process, we’re experts in getting you the fast business loans you need to keep your business running at its best.

Types of High-Risk Business Loans

Finding the right small business loan for your company depends on your needs and business goals. We have a diverse selection of loan products, so you can choose what financing option makes sense for you. Compared to more traditional loans like bank loans or loans from credit unions, these types of loans from alternative lenders can get your business funded in just a few business days.

High-risk business loans put less focus on your creditworthiness, business plan, or business track record than other loans, including SBA loans. At Clarify, we’re passionate about helping high-risk borrowers secure funding with favorable repayment terms.

Merchant Cash Advance

With a merchant cash advance (MCA), you exchange a portion of your future sales for working capital. This short-term loan type offers immediate access to funds. Common uses include bridging cash flow gaps and covering expenses when the unexpected happens.

Installment Loans

Term loans are the most popular type of funding. Borrowers receive a lump sum, which is paid back over time in fixed increments. If you’ve been in business for at least six months and your company generates over $10,000 in gross monthly revenue, a short-term business loan could be a great option for your business.

Equipment Financing

Equipment financing provides capital to purchase new or used machinery. A personal guarantee is not needed, which means your personal assets are never on the line. The equipment is used as security, so your personal assets stay protected.

Invoice factoring

If you have low credit or don’t have an established credit history, invoice financing is a great loan option. The receivables of outstanding invoices are used as collateral, which means that borrowers with all types of credit can be approved. Many high-risk borrowers choose invoice factoring loans because credit is not a primary qualifier for funding.

What Criteria Do Lenders Look at for High-Risk Business Loans?

Several factors are considered when determining borrowing eligibility. The following list is meant to serve as a general guide to better understand what lenders consider before approving a loan. Our advisers are available to speak to you about your unique circumstances and business goals.

1. Monthly Revenue

Gross monthly revenue of at least $10,000 tends to be what most lenders look for. The amount of funds you’re allotted will typically correlate with the monthly and annual revenue of your company.

2. Current Debt

Most lenders will want to know your debt-to-income (DTI) ratio. Ideal applicants have low amounts of debt relative to their earnings. Understanding how much outstanding debt you carry will help you get an idea of the loan offers you can expect.

3. Credit History

Generally speaking, having a solid business credit history is advantageous when applying for loans. That being said, your credit report is only one factor among many — it’s not the sole decider for securing funding from business lenders.

4. Length of Time in Business

The longer your company has been around, the better. Lenders prefer businesses that have been operating for a minimum of six months. Exceeding that number increases your approval odds and the chance of securing competitive rates.

5. Profitability

Lenders want your financials to show your business’s ability to consistently turn a profit. You’ll want to be able to show a positive trend with money movement in and out of your business. Being able to do so will put you in a good spot as an applicant.

6. Bank Statements

Plan to have the last three months of bank statements readily available. Your adviser will review the documentation to validate operating cash flow. Having healthy finances will work in your favor.

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Popular High-Risk Loan Uses

Whatever your business needs, we’re here to help. Below are the most common ways high-risk borrowers use their loans.

Immediate Needs

Fast funding options provide an infusion of working capital in your bank account, so you can address your most pressing needs. Our process is streamlined and quick, so you get financing without delay.

Slow Periods

If you’re experiencing a dip in sales, meeting your immediate financial obligations might be difficult. We offer high-risk financing options to help bridge short-term cash flow gaps.

Inventory and Supplies

Get the materials you need for your business when you need them. Funds can be allocated toward purchase orders to get both inventory and supplies.

Machinery and Equipment

If you need special equipment or machinery for your business operations, we’ve got you covered. We offer competitive equipment financing with high approval rates.

Rent and Utilities

Free up cash flow to pay for operational expenses, like rent and utilities, by financing. That way, your day-to-day expenses get paid on time and in full.


Restructure your debt, such as credit card debt, based on terms that work for you. We offer low interest rates and flexible loan terms, so you can choose a loan that makes sense for your unique situation.

FAQ About High-Risk Loans

Interest rates will vary depending on eligibility factors. At Clarify, we offer low APR starting at just 7%.
Yes! We offer loan products for borrowers with less-than-stellar business credit scores and no personal guarantee. Even if you have a poor personal credit score, a funding adviser is available to go over different options with you. Based on your preferences and needs, they’ll work to find a product that’s a perfect match.
Certain high-risk industries statistically have a higher chance of failing or being unprofitable, so lenders are more cautious about lending to them and may offer higher interest rates. Real estate, construction, restaurants, and retail have a higher probability of being labeled high-risk. Businesses related to these industries are more likely, on average, to have inconsistent revenue than businesses in other sectors. This can affect the loan amounts or loan options offered to these types of businesses.
To lenders, borrowers with poor credit are perceived as riskier lending candidates. Those who are unable to demonstrate a history of responsible borrowing will be categorized as high-risk.
Yes! As an online lender, we frequently work with entrepreneurs operating new businesses. When you’re just getting started, growing a company often comes with many costs. Startups typically benefit from additional cash reserves and working capital to accelerate expansion.

Types of companies we've funded quickly

What you need to get approved fast

  • keyboard_arrow_right Have been in business for over 6 months
  • keyboard_arrow_right Generate at least $10,000 per month in revenue
  • keyboard_arrow_right Can provide the last 3 months of bank statements

Lending advisors that are experts in getting you funded

When you choose Clarify, we consider you family and work with you through the ups and downs of running your small business.Manufacturing Financing Team

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Retail business loans

"I highly recommend working with Clarify. The process is always very seamless with a quick turnaround time. I received the first loan for my company from Michael several years ago to buy inventory at a better cost. Since then, my company has grown significantly, and Michael has been there every step of the way. I’m looking forward to continuing my relationship with them for many years to come."

Golf Cart Retailer
5-star Trustpilot reviews5-star Trustpilot ratingClarify Capital is rated 10/10 based on 225 reviews on Trustpilot
Ready To Grow Your Business?

Apply for a high-risk business loan now. Our approval process is quick; our online loan application takes just two minutes. Receive funding within a day. Prequalification has no impact on your credit score.