It is possible to get certain types of business financing with a lower credit score. Some business cash advance lenders, for example, will allow for a minimum credit score in the 500s. Just know that with a lower credit score, lenders will typically look for a longer time in business and higher monthly revenue.

There are a number of reasons your loan may be denied. Your funding manager will work with you to identify loans you are best qualified for through our network of 75+ lenders. Should you be unable to find a match, Lendio has accounting software tools that can help you improve the financial health of your business and guidance on how to boost your credit score.

The credit score required to qualify for a business loan can vary significantly depending on the type of loan and the lender. However, as a general rule, lenders often look for a credit score of 600 or higher for traditional loans. Some types of loans, like the SBA 7(a) loan, may require a higher credit score, typically around 650 or above. On the other hand, some alternative lenders may have more flexible credit requirements, with minimum scores as low as 500. It’s worth noting that while a higher credit score can increase your chances of approval and secure better terms, it’s not the only factor lenders consider. Other aspects of your business’s financial health, such as revenue and time in business, will also play a significant role.

Obtaining a business loan for a brand-new business can be quite challenging. However, startups can still get equipment financing right from the day they launch their business. Depending on their monthly revenue and credit score, they may qualify for cash advances, accounts receivable financing, or a line of credit within 3-6 months of commencing their business.