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What Credit Score Do You Need for a Business Loan?

There's no single credit score that guarantees a business loan — the bar depends heavily on the product you choose. This guide covers the typical score ranges by loan type, what lenders weigh besides your score, and how to qualify even if your credit is less than perfect.

Key takeaways
  • There's no single credit score that guarantees a business loan — the bar depends on the product, with banks and SBA loans wanting the mid-600s and up while revenue-based products can approve scores in the 500s.
  • Lenders weigh more than your score: time in business, revenue, cash flow, debt load, and industry all matter, and a strong revenue trend can offset weaker credit.
  • To qualify with a lower score, lead with revenue-based products, offer collateral, keep your bank account healthy, and use soft-pull pre-qualification.

There’s no magic number

Lenders don’t share one universal cutoff, and the score you “need” depends on the type of financing, the lender, your revenue, and your time in business. A bank weighing a low-rate term loan will set a higher bar than an online lender funding working capital against your deposits. Think in ranges, not a single threshold.

Typical score ranges by loan type

These are general guidelines, not guarantees — every lender sets its own criteria:

  • SBA and traditional bank loans: usually want strong personal credit, often in the mid-600s and up, plus solid financials and time in business.
  • Business lines of credit: vary widely; online providers may approve lower scores than banks.
  • Equipment financing: the equipment serves as collateral, so requirements can be more flexible than unsecured loans.
  • Working capital loans (online): more revenue-driven; many approve scores in the low-to-mid 600s or below.
  • Invoice factoring: leans on your customers’ creditworthiness and your receivables, so your own score matters less.
  • Merchant cash advances / revenue-based financing: focus on consistent deposits and can approve scores in the 500s, typically at a higher cost.

What lenders look at besides your score

Your credit score is one input among several. Most lenders also weigh:

  • Time in business — many want at least 6–24 months.
  • Revenue — steady, healthy monthly deposits can offset a weaker score.
  • Cash flow — can the business comfortably cover the payments?
  • Debt load — existing obligations and how they stack up against income.
  • Industry — some sectors are viewed as higher risk.

The takeaway: a strong revenue trend can sometimes do more for your approval than a few extra points on your score, especially with revenue-based products.

Personal vs. business credit

For established businesses with their own credit history, lenders may review the business profile from bureaus like Dun & Bradstreet, Experian, and Equifax. But for newer or smaller businesses, lenders frequently rely on the owner’s personal credit, since there’s limited business history to evaluate. It’s common for owners to provide a personal guarantee as well.

How to qualify with a lower score

If your credit isn’t where you’d like it, you still have options:

  1. Lead with revenue. Choose products that weigh deposits and receivables — working capital, factoring, or revenue-based financing.
  2. Offer collateral. Equipment financing and secured loans reduce lender risk and can ease score requirements.
  3. Keep your bank account healthy. Avoid overdrafts and NSFs; lenders review your statements closely.
  4. Apply for a sensible amount. Requesting what your cash flow clearly supports improves your odds.
  5. Use soft-pull pre-qualification. Compare offers without stacking up hard inquiries.

How to strengthen your score over time

If you have time before you borrow, a few habits help:

  • Pay every bill on or before its due date.
  • Keep credit card and revolving balances low.
  • Correct errors on your personal and business credit reports.
  • Avoid opening several new accounts right before applying.

Find lenders that fit your score

Rather than guessing where you’ll qualify, tell Hoss Capital about your business once and we’ll match you with lenders suited to your credit and revenue — free, and with no hard credit pull to start.

Related funding options
SBA Loans Working Capital Merchant Cash Advance

FAQs

Can I get a business loan with bad credit? +

Yes. Revenue-based products like merchant cash advances and invoice factoring focus more on your business's deposits and receivables than your credit score, so approvals in the 500s are possible. Expect higher costs than prime bank loans.

Do lenders check personal or business credit? +

Often both. Banks and SBA lenders typically check your personal credit and may review business credit. Many newer businesses are evaluated largely on the owner's personal score because there isn't much business credit history yet.

Will applying for a business loan hurt my credit? +

A formal application can trigger a hard inquiry, which may dip your score slightly. Many matching services and pre-qualification checks use a soft pull first, so you can compare options before any hard inquiry.

Last updated: June 2026

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