Guide · Qualification
How to Qualify for a Business Loan
Qualification isn't a single threshold — it's a mix of signals. Here's exactly what lenders weigh, what "good enough" looks like for each, and what you can do this week to strengthen your file before applying.
The five things lenders look at
Personal credit score
Online lenders: 600+. Banks and SBA: 680+. Revenue can offset lower scores in some programs.
Time in business
6+ months for most working capital products. 2+ years for SBA and bank term loans.
Monthly revenue
$10K+ in monthly bank deposits is a common floor. Consistency matters more than peaks.
Debt service coverage
Lenders check whether new payments fit on top of existing debt. A DSCR of 1.25+ is healthy.
Industry and use of funds
Some industries (cannabis, adult, gambling) are restricted. A clear, sensible use of funds helps.
Strengthen your file before applying
- Run all revenue through your business bank account — personal accounts don't count.
- Avoid negative days and NSFs in the 90 days before applying.
- Pay down revolving personal credit utilization below 30%.
- Have your EIN letter, formation docs, and ID ready as PDFs.
Apply once, see what you qualify for
BizKred is a financing broker — one application is reviewed against multiple lender programs. Pre-qualification is a soft pull and won't impact your credit.
Frequently asked questions
What credit score do I need for a business loan?
Most online lenders look for a personal FICO of 600+; banks and SBA typically want 680+. Revenue-based products can fund lower scores when revenue is consistent.
What's the minimum time in business?
Most working capital programs require 6+ months. SBA and bank term loans typically want 2+ years.
How much revenue do lenders require?
A common floor is $10,000/month in business bank deposits, though some programs go lower.
Will applying hurt my credit score?
A pre-qualification with BizKred is a soft pull and won't impact your score. A final lender offer may involve a hard pull.
What documents will I need?
Three months of business bank statements, EIN, owner ID, and basic business info. SBA loans require tax returns and financial statements.