What credit score do you need to get a business loan?

There's no fixed cutoff, but your score can limit what types of financing you qualify for.

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Your personal credit score is often one of the main factors business lenders consider when you apply for a loan. While not as important as it might be with a personal loan, it can impact your rate, loan amounts, terms and even what types of financing your company can qualify for. And in some cases, your business credit score might come into play as well.

Is there a minimum credit score to get a business loan?

No, there’s no one minimum credit score for all business loans. But most business lenders have a minimum personal credit score requirement that you’ll have to meet to qualify for a loan. You can sometimes find out what a provider’s credit requirements are by visiting its website — especially if it’s an online lender. Otherwise, you might have to call or visit a branch to learn if you’re eligible.

Do I need a business credit score?

Not necessarily, though some lenders also take a look at your business’s credit requirements. However, it’s not nearly as common. Often, lenders will consider both your personal and business credit scores together. If you have a high business credit score, it won’t hurt. But your options aren’t necessarily limited if you don’t.

You can find out what your business credit score is by contacting one of the credit bureaus like Equifax, Experian or Dun & Bradstreet.

I have business partners. Do their credit scores count, too?

Likely, yes. Most lenders consider the credit scores of all partners who own 20% or more of the business. Often, you’ll all need to meet the minimum credit requirement to qualify.

What’s a good credit score for a business loan?

Lenders generally consider a credit score of 670 or higher to be good credit. But the higher your credit score is, the more options you have. A higher score also means you’ll be eligible for more competitive rates.

Larger loan amounts might also have higher credit requirements. If you’re interested in borrowing close to the maximum a lender offers, reach out to make sure your credit is strong enough to qualify.

What are my options based on my credit score?

The types of business loans available to you might vary depending on your credit score, though there’s no one specific cutoff — it varies by lender.

Good to excellent credit: 670 to 800

  • Term loans from banks, online lenders and credit unions
  • Lines of credit
  • SBA loans
  • Equipment financing
  • Vehicle financing
  • Invoice factoring
  • Invoice financing
  • Merchant cash advances

Most if not all options are on the table if you have a high credit score. This includes financing through banks and the Small Business Administration (SBA), which tend to have higher credit requirements than other types of lenders. Term loans, lines of credit, and equipment or vehicle financing tend to offer the most competitive deals especially — if they’re from a bank or online lender.

Fair credit: 580 to 669

  • Term loans from online lenders
  • Lines of credit
  • Equipment financing
  • Vehicle financing
  • Invoice factoring
  • Invoice financing
  • Merchant cash advances

With fair credit, your choices are slightly more narrow. You likely won’t meet the cutoff for an SBA loan — most lenders require a score of 660 or higher. And you could struggle to qualify with a bank or some of the more selective online lenders. You can strengthen your chances of approval by backing your loan with business or personal assets.

Poor credit: 300 to 579

  • Equipment financing
  • Vehicle financing
  • Invoice factoring
  • Invoice financing
  • Merchant cash advances

When your credit score drops below 580, the main options available are financing that’s backed by some kind of collateral, like equipment, vehicle or invoice financing. Your other main choice is an advance on your business’s future profits, like factoring or a merchant cash advance. These last two options often don’t have any credit requirements at all. But they can cost the equivalent of a triple-digit APR — similar to a payday loan.

Compare business loan offers

Updated February 28th, 2020
Name Product Filter Values Min. Amount Max. Amount Requirements
LoanBuilder, A PayPal Service Business Loans
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Customizable loans with no origination fee for business owners in a hurry.
First Union Lending Unsecured Long-Term Business Loan
$5,000
$5,000,000
450+ credit score, 1+ year in business, $25,000+ monthly revenue, no open bankruptcies
Unsecured funding and more for all credit types.
National Business Capital Business Loans
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000.
Get a large business loan to cover your financing needs, no matter what the purpose is.
OnDeck Small Business Loans
$5,000
$500,000
600+ personal credit score, 1+ years in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
BlueVine Business Loans
$5,000
$5,000,000
6+ months in business, $10,000 in monthly revenue, 600+ personal credit score.
Get approved for a business loan in as little as 5 minutes. Applications won't affect your credit score.
First Down Funding business loans
$1,000
$300,000
Varies by type of loan
Alternative financing up to $300K with highly competitive rates.
Kabbage Small Business Line of Credit
$500
$250,000
1+ years in business, $50,000+ annual revenue or $4,200+ monthly revenue over last 3 months
A simple, convenient online application could securely get the funds you need to grow your business.
Become Business Loan Marketplace
$5,000
$500,000
12+ months in business and $10,000+ monthly revenue
Compare loan offers from top lenders using this marketplace. It’s free & won’t affect your credit.
Sheer Funding Business Loans
$5,000
$2,000,000
6+ months in business, 550+ credit score, $150,000+ annual revenue, eligible industry
Multiple financing options available for business owners with less-than-perfect credit scores.
Efundex long-term business loans
$50,000
$1,000,000
2+ years in business, 620+ credit score, not a sole proprietorship or nonprofit, strong financial history
Financing for high-risk industries with transparent rates and terms.
LendingTree Business Loans
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but many require good personal credit, minimum annual revenue and minimum time in business
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Main Street Finance Group Business Loans
$5,000
$1,000,000
1+ years in business, $10,000+ monthly revenue
Apply online and get approved within hours with minimal paperwork. Multiple financing options available.
SmartBiz SBA Loans
$30,000
$5,000,000
650+ personal credit score, US citizen or permanent resident, 2+ years in business, $50,000+ annual revenue, no outstanding tax liens, no bankruptcies or foreclosures in past 3 years
Get funding for your small business with a government-backed loan and extended repayment terms.
Fundbox Invoice Financing and Line of Credit
$1,000
$100,000
You must have an established business with regular monthly revenue.
Get flat rate, short-term financing based on the financial health of your business, not your credit score.
Square Capital Business Loans
$500
$100,000
Your business must use Square to process payments, you must process at least one payment a week, your annual business revenue must be at least $10,000.
Business financing of up to $100,000, comes with daily repayments.
QuickBooks Capital Business Loans
$1,000
$35,000
FICO score 580+, $45,000+ in revenue for the previous year, no bankruptcies in the past 2 years
With a simple online application form, you could get funding in as little as one business day.

Compare up to 4 providers

What other factors do lenders consider?

Your credit score might be important to your business loan application. But it isn’t the only factor lenders consider. Here are a few other details they’ll look at:

  • Revenue. Most businesses lenders have a minimum revenue cutoff — and also require you to show that you bring in enough money each year to afford repayments.
  • Time in business. Many lenders want your business to have a track record of at least a year — though at least three years is ideal.
  • Net operating income. In addition to revenue, most lenders will consider how much money you have available after covering your day-to-day expenses.
  • Business debts. Lenders also typically ask about any outstanding debts in your business’s name. If your debts are equal to or more than your net operating income, you might struggle to qualify.
  • Collateral. Any business or personal collateral you can use to back the loan makes you less of a risk to a lender and can make up for a low credit score or short time in business.
  • Industry. If you work in what lenders consider to be a high-risk industry — like financial services or cannabis — you could have a hard time qualifying for some types of business loans.

20+ business loan requirements

Bottom line

While there’s no set minimum credit score for a business loan, your options might be more limited depending on your rating. And while your business credit score won’t necessarily factor in, your business partners’ personal credit ratings typically will. You can find out more about how to finance your company with our guide to business loans.

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