Business Loan Requirements: What Lenders Look For

The five factors almost every lender checks

• Time in business — many alternative providers start at 4–6 months; banks and SBA lenders typically want 2+ years
• Monthly revenue — commonly $10,000+ in average monthly deposits for alternative funding
• Personal credit score — some products accept scores in the 500s; term and SBA loans usually expect 620–680+
• Cash flow health — consistent deposits, few negative days, healthy average daily balance
• Existing debt — open loans or advances and how much of your revenue already goes to payments

Why bank statements matter so much

For most small business funding, recent bank statements are the single most important document. They show real revenue, how steady it is, how much cash you keep on hand and what debts you are already paying. Many providers make decisions on statements alone for amounts under a few hundred thousand dollars.

Requirements by product (typical market ranges)

These are general market guidelines, not guarantees. Each provider sets its own criteria and prices every file individually.

• Merchant cash advance / revenue-based: 4+ months in business, $10K+ monthly revenue, all credit considered
• Working capital: 6+ months, $15K+ monthly revenue, 500+ credit considered
• Line of credit: 6+ months, $10K+ monthly revenue, 550+ credit
• Term loan: 1+ year, $25K+ monthly revenue, 620+ credit
• SBA loan: 2+ years, solid financials, 650+ credit, owner equity

How to strengthen your application

• Run all business income through one business bank account
• Avoid overdrafts and negative balance days in the months before applying
• Pay down or consolidate expensive short-term positions where possible
• Check your personal credit report for errors
• Have your documents ready before you apply