"What credit score do I need for a business loan?" is one of the most common questions business owners ask—and the honest answer is: it depends entirely on which loan you're after. A 600 score that gets nowhere with a bank can be perfectly fundable for invoice factoring or equipment financing. Here's exactly where the bar sits by product, and why score isn't always the deciding factor.
There's no single "business loan credit score"
The phrase implies one number, but lenders evaluate credit differently depending on the product, your time in business, and your revenue. Two things get checked:
- Personal credit (FICO Score): Your individual score, usually pulled from one of the three bureaus. Most small business financing relies on this because owners sign a personal guarantee.
- Business credit (Business Credit Score): A separate score tied to your EIN, reported by bureaus like Dun & Bradstreet, Experian Business, and Equifax Business. It matters more as your company matures and builds tradelines.
For newer businesses, personal FICO carries most of the weight. For established companies with years of history, business credit and financial statements start to share the load. If you're just getting started, our guide on how to build business credit walks through the foundations.
Credit score ranges by loan type
Here's where the bar typically sits. These are general ranges lenders look for—not guarantees, since every lender sets its own underwriting criteria.
| Product | Typical minimum FICO | What else matters most |
|---|---|---|
| SBA 7(a) / 504 | 650–680+ | Cash flow, DSCR, business plan, collateral |
| Bank term loan | 680+ | Profitability, 2+ years in business, financials |
| Online term loan | 600–625 | Recent revenue, bank deposits, time in business |
| Business line of credit | 600–660 | Monthly revenue, deposit consistency |
| Equipment financing | 575–620 | The equipment (collateral), down payment |
| Revenue-based financing | 550–600 | Daily/monthly card and bank revenue |
| Invoice factoring | Often not decisive | Your customers' creditworthiness, invoice quality |
The pattern is clear: the more a lender relies on collateral or predictable cash flow, the less your personal score dominates the decision.
Where credit score matters most: SBA and bank loans
The most affordable financing comes with the strictest credit expectations. SBA loans and traditional bank term loans offer the lowest rates and longest terms, so lenders screen carefully.
For an SBA 7(a) loan, most lenders want a personal FICO around 650 or higher, with many preferring 680+. The SBA doesn't publish a hard minimum—the bank or non-bank lender sets it. Beyond the score, expect underwriting on your Debt Service Coverage Ratio (DSCR), time in business (usually 2+ years), and a clear use of funds. Learn more in our SBA loans guide.
Bank loans are often even tighter—680+ FICO, two-plus years of profitability, and clean financial statements. If a bank has already turned you down, why your bank declined you explains the common reasons and what to do next.
Where credit score matters less: online lenders, lines of credit, and RBF
Online term loans and a business line of credit trade some affordability for speed and flexibility. They typically start accepting scores around 600–625, and some go lower. What they weigh more heavily:
- Recent revenue and bank deposits — usually the last 3–12 months of statements
- Time in Business (TIB) — often a 6–12 month minimum
- Deposit consistency — steady inflows beat lumpy ones
Revenue-based financing goes furthest in de-emphasizing FICO. Because repayment flexes with your sales, lenders focus on your monthly revenue and card volume. Scores in the 550–600 range are often workable—though cost rises as score falls. If your credit is genuinely rough, business loans for bad credit lays out realistic paths.
The surprising cases: factoring and equipment financing
Two products flip the usual logic on its head.
Invoice factoring advances cash against your unpaid invoices. Because the lender (factor) collects from your customers, the most important credit profile is theirs—not yours. A business with a 560 owner FICO but invoices owed by creditworthy corporate clients can often qualify. Your Accounts Receivable quality and customer concentration matter far more than your personal score. See invoice factoring and our invoice factoring guide for mechanics.
Equipment financing is secured by the equipment itself. Since the asset can be repossessed if you default, lenders accept lower scores—often into the 575–620 range, sometimes lower with a larger down payment. The collateral reduces their risk, so your FICO isn't the whole story. Our equipment financing guide covers terms and structures.
How lenders weigh score against revenue and time in business
Underwriting is a balancing act across three core factors:
- Personal/business credit — your track record of repaying debt
- Revenue and cash flow — your ability to service new payments
- Time in business — how much history you have to judge
A weakness in one can be offset by strength in another. A 620 score paired with $80,000 in steady monthly revenue and three years in business may beat a 690 score on a six-month-old startup with thin deposits. This is exactly why a single number can't answer the question—and why routing one application to multiple lenders surfaces the ones whose criteria fit your actual profile.
How to check where you stand without hurting your score
A soft inquiry (used for prequalification) doesn't affect your credit. A hard inquiry happens only when you formally proceed with a lender. Submitting full applications at five banks means five hard pulls; routing one application through a marketplace lets multiple lenders review your file and compete with side-by-side offers—without scattering hard inquiries everywhere.
Before you apply, it helps to:
- Pull your personal FICO and review for errors
- Gather 3–12 months of business bank statements
- Know your average monthly revenue and time in business
- Avoid opening new personal debt right before applying
EQ Funding isn't a lender—we route your single application to a network of lenders who compete to fund your business. That means you can see realistic options across products without guessing which credit threshold you'll clear. Curious how much you might qualify for? Start with how much can I borrow.