What credit score do you need for a business loan?

There is no single magic number, because business loan covers many products from many kinds of lenders, each with its own bar. But the ranges lenders typically work in are well known, and knowing them tells you which doors are realistically open today.

Typical ranges by lender type

• Traditional banks are generally the strictest, often looking for personal scores in the high 600s or above alongside strong revenue and years in business.
• SBA-backed loans are somewhat more forgiving than banks but still favor solid credit histories.
• Online and alternative lenders commonly work with scores in the low-to-mid 600s, and some specialize below that.
• Equipment financing is frequently the most accessible product, because the asset secures the loan. Owners declined elsewhere often qualify here.

These are patterns, not promises. Every lender weighs credit alongside revenue, time in business, and industry, and a strong business can offset a mediocre score.

Your score is only one of three levers

Lenders look at a picture, not a number. Monthly revenue and its consistency often matter more than the score itself, and time in business sets which lenders will even look. A 640 with steady deposits and two years of history frequently beats a 700 with three months of operations.

If your score is not there yet

Three honest options. First, target the products that fit your profile today, like equipment financing, rather than burning applications on banks that will decline you. Second, strengthen the other levers: several months of clean, consistent revenue changes how lenders read the same score. Third, address the credit profile itself before applying; you have the right to dispute inaccurate information on your report yourself, for free, directly with the credit bureaus.

One thing not to do

Do not fire off applications to a dozen lenders directly. Each full application can add a hard inquiry, and a burst of them drags your score down right when you need it. A broker submits one application and shops it across lending partners, typically starting with a soft pull that leaves your score untouched until you choose an offer.

Common questions

Can I get business funding with bad credit?

Often yes, depending on revenue and the product. Equipment financing and revenue-strong applications are approved at scores that banks would decline. Expect pricing to reflect the risk.

Does applying for business funding hurt my personal credit?

Shopping options typically starts with a soft inquiry that does not affect your score. Hard inquiries generally happen only when you proceed with a specific lender, which is why one brokered application beats many direct ones.