How to Qualify for a Business Loan: Credit Score, Revenue & Other Requirements

Applying for a business loan can feel like trying to get into an exclusive club—except instead of a velvet rope, there’s a stack of paperwork and a credit check. But don’t worry. If you’re a small or micro business owner in the U.S., this guide will break down what you need to qualify.

What Lenders Look At

1. Credit Score

• Both personal and business credit scores matter. Lenders often review both, especially for newer businesses where personal credit can heavily influence decisions.
• A score of 680+ is ideal. This opens doors to the best rates and terms. But don’t panic if you’re not quite there—there are lenders who specialize in working with lower scores.
• Tip: Pay your bills on time, avoid maxing out credit lines, and check your reports for errors. A good credit score is like a solid handshake in the financial world.

2. Annual Revenue

• Lenders want to know your business is making money. It’s not about raking in millions—just consistent cash flow that proves you can repay the loan.
• Minimums vary by lender and loan type. A common baseline is $50,000 per year, but higher revenue strengthens your application.
• Pro tip: Keep your books clean and up to date. If your finances look like a mystery novel, lenders won’t be eager to solve it.

3. Time in Business

• The longer you’ve been operating, the more confident lenders feel. Businesses that have survived the early chaos are seen as lower risk.
• 2+ years is a sweet spot. Many lenders require this, but startups still have options through alternative financing.
• If you’re newer: Show traction through contracts, sales history, or growth plans.

4. Business Plan & Loan Purpose

• A clear plan = a confident lender. Explain how the loan will grow your business, not just patch a short-term hole.
• Include projections, market analysis, and repayment strategy. No need for a 100-page manifesto—concise and clear wins the day.
• Remember: A loan isn’t a lottery ticket. Show that you’re strategic, not just hopeful.

5. Collateral (Sometimes)

• Some loans are secured, meaning lenders want an asset to back the deal. This could be equipment, property, or even future invoices.
• Why? Collateral reduces the lender’s risk.
• If you don’t have assets to pledge: Look for unsecured loans or lender programs that cater to service-based or online businesses.

Extra Tips for Approval

• Clean up your credit before applying—pay off debts, dispute errors, and avoid new credit pulls.
• Organize your financial docs like a pro: tax returns, P&Ls, bank statements.
• Be honest. Lenders have finely tuned “BS detectors.” Transparency builds trust.

Still unsure where you stand? Viking Funding can guide you. Call 754-240-8620 or click ‘Apply Now’ and we’ll help you figure it out.