The quick answer (and the nuance behind it)
If you’re looking for a clean number, here it is: many mainstream small, business lenders become comfortable around a 680+ personal FICO. That said, 2025 underwriting is more layered than a single cutoff. Some products welcome owners with 640–679; others are accessible even below 620 if revenue, collateral, or cash flow is strong. And for the right use case, there are financing options that don’t hinge on personal credit at all.
Here’s the real takeaway: your credit score shapes the product, price, and paperwork—but it rarely ends the conversation. Lenders look at time in business, annual revenue, cash, flow stability, collateral, industry risk, and how much leverage you already carry. Treat the score as one dial among several.
What lenders actually look at (beyond the number)
A lender might glance at your credit score first, but approval usually rides on a broader picture:
- Revenue patterns and consistency. Predictable deposits and a healthy average daily balance go a long way.
- Time in business. Crossing the 24, month mark can open doors and better rates.
- Debt service coverage (DSCR). Can your cash flow comfortably support the new payment plus existing obligations? A 1.25× DSCR is a common comfort zone.
- Collateral. Equipment, real estate, or strong receivables can offset a thinner credit profile.
- Industry risk. Cyclical or high, variance sectors may face tighter credit boxes, even with good scores.
- Owner’s track record. Clean payment history on business obligations, responsible credit utilization, and no recent major derogatories (like tax liens or judgments) all help.
Bottom line: A 675 attached to rock, solid cash flow may be stronger than a 720 paired with unpredictable deposits.
Score bands and the products most likely to fit.
This isn’t a rulebook—every lender calibrates differently—but these ranges reflect common 2025 realities:
760+ (excellent)
With strong revenue and a stable balance sheet, you’re in range for prime, priced term loans, SBA loans, and low, cost business lines of credit. Expect competitive rates, longer terms, and friendly covenants. If flexibility matters, explore a true revolving Business Line of Credit** to smooth seasonal gaps or stage inventory buys.
700–759 (very good)
Most traditional and fintech lenders are comfortable here, particularly if you’ve got 2+ years in business and clean financials. Equipment financing, expansion term loans, and SBA 7(a) are realistic. Pricing may be a notch above top tier, but approvals are common with strong cash flow.
640–699 (good to fair)
You’re in the middle ground. Bank term loans can be hit or miss, but many non, bank lenders and fintechs will lean in—especially if revenue is steady and leverage is reasonable. Short, term working capital, equipment loans, and revenue, based facilities are in play. If flexible access to funds is a priority, an underwritten Business Line of Credit** may still be on the table, though limits might start modestly.
Below 640 (challenged or rebuilding)
All is not lost. Your best path is to emphasize cash flow, collateral, or receivables—assets that reduce a lender’s exposure to your personal score. Consider Invoice Factoring to unlock cash from slow, paying customers, a Collateral Loan if you have equipment or property, or a Merchant Cash Advance if card sales are consistent and you need speed. Pricing will reflect the risk, but these can be smart bridge solutions** while you rebuild credit.
Personal credit vs. business credit: which matters more?
Most small businesses rely on personal credit in the early years. Lenders want to see how you’ve historically handled obligations, especially if your business credit file is thin. Over time, as you open trade lines under the business, pay vendors on time, and manage a business credit card responsibly, your business credit file grows—and lenders will reward that.
A useful rule of thumb: the younger the business, the more personal credit matters. As you mature and add collateral, recurring revenue, and audited, style financials, operating performance starts to carry more weight than your personal FICO.
How to raise your approval odds in 30–90 days
You don’t have to overhaul your life to move the needle. Focus on the handful of levers lenders notice first:
- Lower revolving utilization. If your personal credit cards are near their limits, pay them down below 30% utilization—even temporarily. That alone can bump your score.
- Dispute clear errors. Pull reports from all three bureaus; address any misreported lates or balances.
- Stabilize deposits. Avoid big swings in your operating account. Lenders love predictable cash flow and adequate average daily balances.
- Add positive trade lines. A responsibly used business card that reports to bureaus can help.
- Avoid new hard inquiries right before you apply. Many lenders can start with a soft pull to pre, qualify.
- Tidy up your financials. Up, to, date P&L, clean bank statements, and organized AR/AP aging improve both speed and confidence.
Practical tip: Decide which product you want before you apply. If short, term flexibility is the goal, a Business Line of Credit** may beat stacking multiple short, term loans later.
Matching the product to your score (and your needs)
Think in terms of fit rather than “what will they give me?”
- Working capital for seasonality: If your score is middling but deposits are healthy, a smaller line or short, term working capital facility can be perfect.
- Cash tied up in invoices: Invoice Factoring can convert receivables into immediate cash without leaning on your personal FICO.
- Equipment or hard assets: A Collateral Loan or equipment financing uses the asset to secure terms, giving lower, score owners a fair shot.
- Fast funding based on card sales: A Merchant Cash Advance repays via a percentage of daily card receipts, aligning payback with sales volume.
- Opportunistic inventory buy: A line of credit gives you draw, as, needed flexibility without paying interest on funds you’re not using.
A real, world style scenario
A landscaping company with $85k monthly revenue, two trucks free and clear, and a 662 personal FICO wants to expand crews ahead of spring. A traditional bank says “not yet.” Here’s a path that often works:
- They open a modest business line of credit for payroll gaps and materials.
- They use a collateralized equipment loan secured by one of the trucks to fund a new mower fleet.
- As receivables expand, they dabble in invoice factoring during peak months to keep cash moving without tapping the line.
Within six months, on, time performance plus lower credit utilization nudges the owner’s score near 690. That opens the door to refinance the equipment at better rates and raise the LOC limit before summer.
Lesson: Credit score mattered—but cash flow and collateral did the heavy lifting.
Common misconceptions that cost owners money
- “I need a 700+ to get anything.” Not true. You may need 700+ to unlock prime pricing or certain bank products, but plenty of viable options exist below that line, particularly if you show strength elsewhere.
- “I should wait until my score is perfect.” If you’re turning down profitable work while you wait, the opportunity cost can be bigger than a slightly higher rate today.
- “Applying will tank my score.” Many lenders start with a soft pull for pre, qualification. Hard pulls tend to happen at final approval—ask up front how the process works.
What to have ready before you apply
Speed to funding often depends on how prepared you are. Have these in one folder:
- Last 3–6 months of business bank statements
- Most recent tax return (business and personal, if requested)
- Year, to, date P&L and balance sheet
- AR aging and major customer list (for factoring)
- Equipment quotes or serials (for collateralized loans)
- Entity docs (Articles, EIN letter) and a simple cap table if you have partners
Showing up organized signals that you’ll be an organized borrower—a credibility boost that’s hard to fake.
Choosing the right next step for your situation
If your credit is 700+ and you want flexible, low, cost working capital, start with a Business Line of Credit. If your score is in the mid, 600s but receivables are strong, compare Invoice Factoring to a shorter, term working capital loan. If your score is under 640 but you have equipment or property, a Collateral Loan can lower your rate versus unsecured options. If you run heavy card volume and need speed, a Merchant Cash Advance can fill the gap while you rebuild credit.
Tip: You can combine products. Pair a revolving line for everyday needs with an equipment loan for long, lived assets, and you’ll likely pay less interest overall than forcing everything into one tool.
FAQs business owners ask (in plain English)
Will a low score automatically disqualify me?
Not automatically. It narrows options and usually raises cost, but cash flow, collateral, and time in business still matter—sometimes more.
Do lenders look at personal or business credit?
Both. Early on, personal credit carries more weight. As your business file grows and your financials mature, business performance and collateral take the lead.
What’s a reasonable minimum for an SBA loan?
There’s no single number, but borrowers often succeed around 680+, especially with strong documentation, solid DSCR, and clean payment history.
How fast can I fund?
Collateral, or revenue, backed options can move quickly once paperwork is organized. Traditional term loans and SBA take longer due to underwriting depth.
Will applying hurt my score?
Ask about the process. Many lenders use soft credit pulls for pre, qualification and only run a hard inquiry at final approval.
Final word: Your credit score influences the playbook—it doesn’t write the ending. Approach financing like you approach operations: match the tool to the job, keep an eye on cash flow, and negotiate from your actual strengths. If you’d like help mapping your score and revenue to the right structure, compare flexible options like a Business Line of Credit, asset, backed tools such as a Collateral Loan, cash, flow unlockers like Invoice Factoring, or speed, first solutions including a Merchant Cash Advance—and choose the path that gets you funded on terms you can live with.