A charge-off in your credit history could potentially limit your small business loan options. Commercial lenders consider your personal and business credit when underwriting business loan requests. If you don't have business credit yet, then your personal credit score is weighed more heavily.nnEven if you meet the minimum credit score requirement, a charge-off could give some lenders pause. They will review your full credit report, and you may have to explain the reason for the charge off and your actions to correct it.nnYou might want to take some time to improve your personal credit score before applying for a business loan. However, bad credit business loans are available if you have a low score but need urgent funding.nnGetting a business loan with bad credit can be challenging. You'll likely have to apply to an alternative online lender or marketplace, like UCS. Traditional lenders like banks and credit unions usually won't issue a bad credit business loan.nnIn addition to having fewer loan options, small business loans for bad credit usually have lower credit limits, higher interest rates, additional fees, shorter terms, and frequent payments. One way to think of a business loan for bad credit is as a form of bridge financing.nnBad credit business loans can provide short-term financing to help support operations. Your credit could improve as you repay the loan and grow the business. Once you have a better credit score, a longer time in business, and higher revenue, you can qualify for a longer-term, lower-cost loan. Sometimes, you can use the long-term loan funds to pay off the bad credit business loan.