Minimum Credit Score for Business Loans: Answers and Options

This post was originally published on On Deck

Securing a business loan can be a crucial step for entrepreneurs looking to start or expand their businesses. However, one of the significant hurdles many face is meeting the minimum credit score requirements set by lenders. Credit scores play a pivotal role in the loan approval process, influencing both eligibility and the terms of the loan.

Let’s explore the minimum credit scores required across different lenders and loan types, and the options available for those with lower credit scores.

What Credit Score Do You Need to Get a Business Loan?

The credit score needed to secure a business loan varies depending on several factors, including the type of lender, the loan amount, and the specific terms of the loan. Generally, a higher credit score increases your chances of approval and access to better loan terms.

Here’s a rough guideline for the personal FICO credit scores typically considered:

Excellent credit (720 and above). With an excellent credit score, you can usually qualify for the best loan products with the most favorable terms.

Good credit (680 – 719). Most lenders will typically approve your loan application, though the terms might not be as favorable as those for excellent credit.

Fair credit (620

Read the rest of this post, which was originally published on On Deck.

Previous Post

What To Do When a Business Partner Has Bad Credit

Next Post

Bitcoin price sees oversold bounce to $62K, but will it hold?