A recent debt settlement on your credit report could limit your small business loan options. Commercial lenders look at your consumer credit report when underwriting business loans. As with consumer credit, the higher your credit score, the better your access to business loans.nnWhile there are bad credit business loans, they typically have higher interest rates and fees than traditional business loans. In addition, there are fewer options for business loans with bad credit. You'll also likely get lower borrowing amounts and shorter terms.nnHowever, a business for bad credit could help if you need urgent funding and can't wait until your credit score improves. Some small business owners will use a bad credit business loan as bridge financing.nnMost business loan for bad credit lenders are online lenders that offer quick and easy online applications with fast funding. You can use the funds to cover business expenses in the short term while building your credit until you qualify for a lower-cost business loan.