Eligibility
Business loan requirements
Time in business, credit, revenue, existing debt and documents — what each product really requires, why a bank and a revenue-based funder can reach opposite conclusions on the same file, and what to fix first if you do not qualify yet.
What are the requirements for a business loan?
Every lender checks five things: time in business, revenue and deposit conduct, personal credit, existing obligations and use of funds. What differs is the weighting. Revenue-based products (merchant cash advances, working capital and short-term loans) need roughly six months of business deposits, a 500+ credit score and three months of bank statements. Lines of credit typically want a year and a 575+ score. Term loans and SBA loans want two years, good-to-strong credit and full financials including tax returns, a P&L and a debt schedule.
The five things every lender checks
Whatever the product, the questions underneath are the same. What changes is how heavily each one is weighted, and that is what makes a bank decline and a revenue-based funder approve on the same morning.
- Time in business. How long the entity has been trading and, more precisely, how long it has been depositing revenue into a business bank account.
- Revenue and deposit conduct. Not just how much comes in, but how consistently, and what the account looks like between deposits.
- Personal credit. Gating for banks and SBA. Read, but rarely gating, for revenue-based products.
- Existing obligations. Every open loan, advance, lease and line, disclosed. This is where most files quietly fail.
- Use of funds. Money that produces revenue is easier to place than money that fills a hole, and saying so plainly helps your file.
Requirements by product
Figures below are the ranges available through RAN Funding’s lender network as of the date on this page. An individual offer depends on your file.
| Product | Time in business | Credit | Other |
|---|---|---|---|
| Merchant cash advance | 6+ months | From 500 | Card sales; 3 months of statements |
| Working capital loan | 6+ months | From 500 | Consistent business deposits |
| Short-term loan | 6+ months | Read per file | Steady deposits; larger amounts verified |
| Business line of credit | 1+ year typically | From 575 | Credit pull; bank verification |
| Equipment financing | Varies | Read per file | Invoice or quote; the asset is the collateral |
| Receivables financing | Varies | Read per file | Creditworthy business customers; aged A/R report |
| Business term loan | 2+ years | Good credit | Tax returns, P&L, balance sheet, debt schedule |
| SBA loan | 2+ years | 680+ | Full financials, personal financial statement, projections |
How long do you need to be in business?
Six months of business deposits is the practical floor for revenue-based products, and it is six months of deposits, not six months since incorporation. An entity registered two years ago that only started banking revenue in June has three months of history, not two years.
One to two years opens lines of credit and most term loans. Two years plus full financials opens SBA. If you are under six months, the fastest route to being fundable is not a different lender: it is opening a business account in the entity’s name and routing every dollar of revenue through it from today.
What credit score do you need?
There is no single number, because each product has its own floor and they are far apart.
| Score | What is realistically open |
|---|---|
| 500 to 574 | Merchant cash advance, working capital loan, short-term loan, equipment financing |
| 575 to 679 | The above plus a business line of credit; some term loans with strong financials |
| 680 and above | The full menu, including term loans and SBA |
Below 600, the decision moves almost entirely onto your bank statements. Our guides to business loans with a 500 credit score and bad credit business loans without collateral set out what that looks like in practice.
Revenue and deposit requirements
Most revenue-based funders work from monthly business deposits rather than a stated revenue figure, because deposits are verifiable and a tax return is a year old. What an underwriter reads:
- Average daily balance across the month, not the balance on the closing day.
- Deposit count and consistency. Fifteen ordinary deposits beats two large ones.
- Negative days and returned items. A run of NSF days in the last thirty narrows the menu sharply.
- Non-revenue deposits. Loan proceeds, transfers and insurance payouts inflate the total and have to be explained. Flag them before the underwriter finds them.
How much that revenue translates into is a separate question, answered in how much business funding can I qualify for.
Documents, by tier
| Tier | What you will be asked for |
|---|---|
| Revenue-based | Last 3 months of business bank statements Some states require 4 months., one-page application, voided cheque |
| Line of credit, equipment | The above, plus a credit pull; equipment invoice or quote |
| Term loan | The above, plus business tax returns, P&L, balance sheet and a debt schedule |
| SBA | All of the above, plus a personal financial statement, projections and ownership documents |
One note on the SBA row above: the $10,000,000 figure is the combined ceiling across the 7(a) and 504 programmes. A 7(a) loan on its own caps at $5,000,000.3
Ten-plus states now also require the provider to give you a written cost disclosure before you sign, showing the amount financed, the total repayment and the payment schedule.2 That is a requirement on them, not on you, and it is worth knowing you are entitled to it.
Industries with extra requirements
Some sectors face additional checks, not because they are worse businesses but because funders have seen more volatility or regulatory complexity there:
- Construction and contracting — progress billing means lumpy deposits; a contract or schedule of values helps.
- Trucking — owner-operators with one or two trucks are read closely on maintenance and fuel costs.
- Medical and dental — insurance reimbursement cycles are slow, so aged receivables often matter more than deposits.
- Restricted categories. A handful of industries are outside most funders’ appetite entirely. A specialist will tell you in the first conversation rather than after a credit pull.
If you do not meet them yet
- Open a business bank account in the entity’s name and route all revenue through it. Nothing else moves the needle faster.
- Stop negative days. Thirty clean days changes what an underwriter sees.
- Deal with existing positions before adding another. If you carry two or more advances, read merchant cash advance consolidation first.
- Apply once, through one specialist. Scattering applications produces multiple inquiries and no one accountable for the outcome.
Context worth carrying in: in the Federal Reserve’s 2025 Small Business Credit Survey only 42 per cent of applicants received the full amount they sought.1 Meeting the requirements gets you an offer; it does not guarantee the number you asked for.
Common questions
What is the minimum credit score for a business loan?
It depends entirely on the product. Revenue-based products such as merchant cash advances and working capital loans are available from a 500 score because they are underwritten on business bank deposits. Business lines of credit generally start around 575. Term loans and SBA loans usually want 680 or better. A low score narrows the menu; it rarely closes it.
How long do I need to be in business to qualify?
Around six months of business deposits for revenue-based products, a year or more for most lines of credit, and two years for term loans and SBA. It is measured from when revenue started flowing through a business bank account, not from the date the entity was registered.
Do I need collateral?
Not for merchant cash advances, working capital loans, short-term loans or most lines of credit, which are unsecured but normally carry a personal guarantee. Equipment financing is secured by the equipment itself, which is why it prices lower. SBA loans may require collateral where it is available.
What documents do I need to apply?
For revenue-based products: the last three months of business bank statements (some states require four), a one-page application and a voided cheque. Term loans add tax returns, a profit and loss statement, a balance sheet and a debt schedule. SBA adds a personal financial statement, projections and ownership documents.
Can I qualify with an existing loan or advance?
Often yes, provided every open position is disclosed with a current balance. Undisclosed positions discovered at funding are the single most common reason an approved file collapses. Two or more open advances usually points toward consolidation before any new money.
Does applying affect my credit score?
Seeing your options through RAN Funding is a soft inquiry, which does not affect your score. A hard pull only happens if you proceed with a line of credit, term loan or SBA product, and you are told before it does.
Sources
- 2026 Report on Employer Firms: Findings from the 2025 Small Business Credit Survey — Federal Reserve Banks, 3 March 2026
- State Commercial Financing Disclosure Laws — Venable LLP, March 2026
- 7(a) loans — U.S. Small Business Administration
See what you qualify for
One application, about five minutes, soft pull only. A funding specialist comes back with the offers you qualify for — and explains every term before you sign.