What Do You Need to Qualify for a Small Business Loan?
Exclusive Lender Relationships
$5k+ in Monthly Revenue
500+ Credit Score
What Do You Need To Qualify?
6+ Months in Business
You can qualify for our top financing options with as little as 6+months in business.
$5,000+ Monthly Gross Sales
The minimum revenue to qualify for financing options are $5,000 per month, or $60,000 in annual gross sales.
500+ Credit Score
We have financing options for all credit profiles.
Easy 15-second application to get options in just minutes and funding in hours!
Have Questions?
Our Business Financing Advisors will help you find the best financing options for your business to get you more funding, better terms, and lower interest rates. We’re available to explain every step of the process from applications to your re-payment schedule!
What is a small business loan?
So, what is a small business loan? Simply put, a small business loan is any funding option specifically designed for a small business. Small business loans allow existing or startup companies to borrow money from various lenders. Various loan types exist to help entrepreneurs meet different goals. The way each loan works depends on the type of loan.
There are many business loans on the market and it can be beneficial to go over just a few of them.
Term Loan – A standard bank-type loan. You receive the funding and pay off the principle plus interest over time.
Equipment Financing – An excellent way for a growing business to get an edge. You receive the equipment upfront and pay it off over the life of the equipment.
Accounts Receivable Financing – If you have large amounts of outstanding invoices, you can borrow against them. The invoices act as collateral and AR Financing offers lower rates.
Merchant Cash Advance – A merchant cash advance is borrowed against future credit card sales. A borrower then pays back a percentage of daily CC sales to the lender. So, you never have to see the payments!
Business Line of Credit – A business line of credit works just like a non-physical credit card. The owner of a small business is extended a line of credit and is charged the interest only or what is spent.
Frequently Asked Questions
It depends. Some lenders can be more difficult to get approved for. For example, banks and SBA loans tend to feature the strictest requirements. However, online lenders are more lenient and more likely to offer a wider range of small business loans.
It’s best to apply for small business loans strategically. You should apply with both bank and non-bank lenders to get a general understanding of what your business qualifies for and, more importantly, ensure you have options to choose from.
Most lenders will need to see a 580 to 620 credit score at a minimum to approve a business for a small business loan. Banks and credit unions are a bit more restrictive, with a 700+ minimum FICO requirement.
Some non-bank lenders work with businesses with poor credit histories. However, these lending institutions often impose higher interest rates as a trade-off.
Small business loans typically don’t feature a set minimum amount, although many lenders will only work with businesses seeking $10,000+. If you’re seeking capital below a lender’s minimum funding amount, consider using business credit cards, personal investments, or fundraising to achieve your goals.