Business loans · Credit score
What Credit Score Do You Need for a Business Loan? Minimums by Product
There is no single credit score that gets a business loan. Each product has its own floor: revenue-based financing can approve around 500, most online lines of credit and term loans want 600 or more, and banks and SBA lenders usually look for 680 and up. This guide shows the realistic minimum for every common product, what each score band can get you in 2026, and what lenders weigh more heavily than the score itself.
What Is the Minimum Credit Score for a Business Loan?
According to RAN Funding, for most small businesses, the practical minimum is about 500 for revenue-based financing and merchant cash advances, 550 to 600 for equipment financing, 600 to 650 for online lines of credit and term loans, and 680 or higher for bank loans and SBA 7(a) loans. Below 500, invoice factoring (which relies on your customers’ credit) is the main option. Your score sets which products are open to you; your monthly deposits, time in business and existing debt decide how much you get and what it costs. RAN Funding matches your score to the lenders whose guidelines fit it on one application with a soft credit pull.
Minimum Credit Score by Loan Type
| Product | Typical minimum score | What carries the approval | Typical funding speed |
|---|---|---|---|
| Invoice factoring | No minimum | Your customers’ credit and invoices | 1 – 3 days |
| Revenue-based financing | 500+ | Monthly deposits | 24 – 48 hours |
| Merchant cash advance | 500+ | Card or total sales | Same day – 48 hours |
| Equipment financing | 550 – 600+ | The equipment itself | 2 – 7 days |
| Online line of credit | 600 – 650+ | Deposits and credit | 1 – 3 days |
| Online term loan | 600 – 650+ | Cash flow and credit | 2 – 5 days |
| Bank loan or line | 680+ | Credit, financials, collateral | 2 – 6 weeks |
| SBA 7(a) loan | 650 – 680+ (lender policy) | Cash flow, credit, collateral | 30 – 60 days |
Typical market minimums for personal credit (FICO) of the main owner in 2026. Individual lenders set their own floors.
What You Can Get at Each Credit Score
| Score | Realistic options | What to expect |
|---|---|---|
| Under 500 | Invoice factoring; equipment financing with a large down payment; a secured card | Approval depends on collateral or your customers, not your score |
| 500 – 549 | Revenue-based financing, merchant cash advances, factoring | Shorter terms and daily or weekly payments; deposits drive the amount. See business loans with a 500 credit score |
| 550 – 599 | All of the above plus most equipment financing | More offers to compare; equipment terms of two to five years |
| 600 – 649 | Online lines of credit and short term loans open up | Monthly or weekly payments become possible. See business loans with a 600 credit score |
| 650 – 679 | Larger lines, longer online term loans, some SBA lenders | Lower pricing and terms up to three years on online term loans |
| 680+ | Bank loans and lines, SBA 7(a), the full menu | The lowest rates, if you can wait for bank or SBA timelines |
What Lenders Weigh More Than Your Credit Score
Below about 650, your score mostly decides which products you can apply for. The amount and the price come from the bank statements:
- Monthly deposits. Most offers are sized at roughly one to one and a half times average monthly deposits. $20,000 a month is the floor for most of RAN Funding’s lenders.
- Time in business. Twelve months of history opens far more options than six.
- Negative days and NSFs. More than three to five overdrafts in 90 days hurts more than a 40-point lower score.
- Existing balances. Open advances or loans reduce what a new lender will offer; consolidation may fit better than new debt.
- What the score is made of. A 560 from one old collection reads very differently from a 560 with recent late payments.
How underwriters read statements is covered in how lenders read your bank statements.
Share of applicants fully approved, by product (Federal Reserve, 2026)
81% of applicants were approved for at least part of what they asked for. Source: Federal Reserve Banks, 2026 Report on Employer Firms.
How to Improve Your Odds Before You Apply
- Pull your own credit (free, no score impact) and dispute errors; a corrected late payment can move you into the next band.
- Pay revolving balances below 30% of their limits a month before you apply.
- Keep the business account positive for 60 to 90 days: no overdrafts and steady deposits.
- Separate business and personal money so every business deposit counts.
- Apply once, with a soft pull, instead of filling out several lender forms; multiple hard inquiries in a short window can lower your score and flag you as a risk.
Longer term, see how to build and improve business credit.
How RAN Funding Matches Your Score to the Right Lenders
The fastest way to waste a credit inquiry is to apply to a lender whose floor is above your score. RAN Funding works the other way around: one specialist looks at your score, deposits and history first, then sends the file only to the lenders in our network whose guidelines fit. RAN Funding minimums: 12 months in business (six months is sometimes possible), $20,000 a month in deposits and a $20,000 minimum funding amount.
- Apply once with a soft credit pull and the last three months of business bank statements (four in California, New York and Virginia).
- One RAN Funding specialist reads the file the same day and sends it only to the lenders in our network whose credit guidelines fit your score and deposits.
- You see the approvals side by side with total payback, payment and term, and choose.
- Funds in 24 hours to 5 days on most products; SBA in 30 to 60 days.
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Common Questions
Can I get a business loan with a 500 credit score?
Yes, mainly through revenue-based financing and merchant cash advances, which approve based on monthly deposits rather than score. Expect shorter terms and daily or weekly payments. Lines of credit and term loans usually need 600 or more.
What credit score do I need for an SBA loan?
The SBA does not publish a personal score minimum for 7(a) loans; lenders set their own, usually 650 to 680 or higher, along with strong cash flow and, for larger loans, collateral.
Does my business credit score matter?
For most loans under $500,000, lenders look at the owner’s personal score first and use business credit (such as a FICO SBSS or Dun & Bradstreet score) as a secondary check. Building business credit helps most with banks, SBA lenders and trade suppliers.
Does checking my options hurt my credit?
Not with a soft pull. RAN Funding pre-qualifies with a soft credit inquiry, which does not affect your score; a hard pull, if any, happens only when you choose an offer.
What credit score is considered bad for a business loan?
Most lenders treat scores below about 600 as subprime. That limits you mostly to revenue-based financing, advances, equipment financing and factoring, at higher cost, but it does not mean you cannot get funded.
Is RAN Funding a lender?
No. RAN Funding is a business financing broker. We present your application to the lenders in our network that fit your file and show you the approvals that come back; the funding partner sets the approval, amount, rate, fees and term.
Sources
- 2026 Report on Employer Firms: Findings from the 2025 Small Business Credit Survey — Federal Reserve Banks
- 7(a) loans — U.S. Small Business Administration
- Credit reports and scores — Consumer Financial Protection Bureau
See What You Qualify For
One application, about five minutes, soft pull only. A funding specialist tells you up front which products fit your file, what they cost and how fast each one funds.
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