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What Credit Score is Needed for a Business Loan? Check Out Our Professional Analysis

Published By Janet Gershen-Siegel at October 24th, 2018

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Do You Know What Credit Score is Needed for a Business Loan? Your Underhanded Competition Just Might

You asked: What credit score is needed for a business loan? Here’s what we found out.

Lenders have various requirements. We focused on online lenders. But check at your neighborhood bank. Maybe you can get a better deal if they know you and your reputation for paying back your debts.

What Credit Score is Needed for a Business Loan: Online Lenders and their Credit Score Requirements

Only some online lenders will provide a loan if you have less than stellar personal credit. Qualifications including yearly revenue and time in business can vary. So can the available amounts.

We researched the following online lenders. We asked about their programs, rates, terms, and features. But only BlueVine and QuarterSpot confirmed our research. Rates can rise and fall; this is normal when it comes to financing.

A Caveat

Investigate all online vendors which interest you. Make sure to confirm our numbers before requesting funding.

Here are the details. Keep in mind that numbers can and do change.

Demolish your funding problems with 27 killer ways to get cash for your business.

What Credit Score is Needed for a Business Loan: BlueVine

Contact Information

https://www.bluevine.com
(888) 216-9619
Their office is in Redwood, CA.

Details

BlueVine confirmed this information. They offer invoice factoring and lines of credit. For invoice factoring, there are no reserves or minimums. The BlueVine system syncs with your accounting software.

They connect to QuickBooks Online. BlueVine also works with FreshBooks and Xero and others. And you can get rebates on the same day. BlueVine offers up to $2,500,000 in invoice factoring financing.

But your business must be either B2B or B2G (business to government). Right now, BlueVine does not work with medical or healthcare industry businesses. The business must have revenues of $10,000 or more per month. This works out to $120,000 per year.

You will need to have a 620 or better FICO score for a line of credit. Submitted invoices must have a face value of $500 or more. Payment term must be less than 13 weeks, but the due date also must be at least a week away.

Fees

Fees for invoice factoring: Flat 85-90% advance rates. Free ACH (1-2 day delivery). The cost is $15 per wire (same-day delivery). Also, BlueVine reviews your incoming funds and they will penalize you for deadbeat clients.

If they don’t pay their invoice, then you are responsible for paying. Also, you have to have a consumer credit score of 530 or better.

BlueVine offers a true revolving line of credit for up to $150,000. They have 24 hour approval. But your business must have revenues of $10,000 or more per month.

Flex credit lines currently run from $5,000 – $100,000. Interest is as low as 4.8%. There are no maintenance or unused credit fees. You must have a consumer credit score of 600 or better.

So one advantage is how easy invoice factoring is. Interest is low. You can get invoice factoring with a 530 or better FICO. But there is one disadvantage. With invoice factoring you will suffer a penalty if your clients don’t pay their invoices. Another is that you can’t use their services if your business is B2C.

What Credit Score is Needed for a Business Loan: Bond Street

Contact Information

https://bondstreet.com/
(917) 722-3891
Their office is in New York, NY.

Details

Bond Street offers term loans of $10,000 – $1 million. Terms are up to 1 – 3 years. Bond Street will ask for both EIN and SSN.

Offer arrives within 3 days. Bond Street will only do a soft credit pull. 640 or better credit score is most likely to get a loan but Bond Street will look at other factors.

Bond Street wants your business to be at least 2 years old. Bond Street reviews your annual profits. They want to see yearly revenue of at least $200,000.

Rates

Rates start at 6% and they go up to 22%. The APR works out to 8 – 25%. There is a 3 – 5 % origination fee.

So advantages are the soft credit pull. Plus Bond Street will look at factors beyond your personal credit if your FICO score is low. Bond Street loans can be very large if you qualify. But disadvantages are they want that you be in business longer.

And the top APR is very high.

Demolish your funding problems with 27 killer ways to get cash for your business.

What Credit Score is Needed for a Business Loan: Fundera

Contact Information

www.fundera.com
(800) 386-3372
Their office is in New York, NY.

Details

Fundera is a marketplace connecting small business owners to financing for their business via traditional and alternative lenders. There are several financing options.

SBA Loans

Most companies approved had four or more years in business. Most business owners approved had 680 or better credit scores. And most companies approved had $180,000 in annual revenue. Loan amounts run from $5,000 – 5 million, with 5 – 25 year terms. You can get funding in as little as 2 weeks. However, they may require collateral. Their interest rates start at 7.75%.

Term Loans

Most companies approved had three or more years’ time in business. Most business owners approved had a credit score of 680 or better. And most companies approved had $300,000 or more in annual revenue. $25,000 – 500,000 is available. Terms are 1 – 5 years. It is as little as 2 days to approval. Their interest rates range from 7 – 30%, and there are possible prepayment penalties.

Equipment Financing

Most companies approved had been in business for two or more years. Most business owners approved had a credit score of 630 or better. And most companies approved had $130,000 or more in annual revenue. Your loan amount up is to 100% of equipment value. The term is the expected life of the equipment, and the equipment serves as the collateral. You can get approval in as little as 2 days.

Interest rates range from 8 – 30%. Equipment depreciation may be required; this cuts into tax deductions.

Business Lines of Credit

Most companies approved had been in business for a year or more. Most business owners approved had a credit score of 630 or better. And most companies approved had  $180,000 or more in annual revenue. $10,000 to over $1 million in funding is available, with 6 months to 5 years terms. Approval is in as little as one day.

Interest rates range from 7 – 25%. However, they may require collateral. There are higher rates for lower credit scores.

Invoice Financing

Most companies approved had been in business for one year or more. Most business owners approved had a credit score of 600 or better. And most companies approved had $130,000 or more in annual revenue. The maximum advance is equivalent to 100% of the total amount of invoice. Approval is in as little as one day.

Get a fast advance of about 85% of the value of invoices. Most of the other 15% is paid later. There is a 8 – 30% factor fee. These fees are based on the time it takes for a customer to pay off the invoice.

Short Term Loans

Most companies approved had two or more years in business. Most business owners who were approved had a 600 credit score or better. And most companies approved had $150,000 or more in annual revenue. $2,500 – 250,000 amounts are available, with 3 – 18 months terms. Approval is in as little as 1 day.

Interest rates start at 10% with a weekly payment plan. Annual rates are higher than for long term loans.

Demolish your funding problems with 27 killer ways to get cash for your business.

Merchant Cash Advances

Most companies approved had been in business for two or more years. Most business owners approved had a 550+ credit score of 550 or better. And most companies approved had $180,000 or more in annual revenue. $2,500 – 250,000 amounts are available. Get funding in as little as two days.

The factor fee is 1.14 – 1.18.

Startup Loans

Most business owners approved had exceptional credit. So this was a credit score of 700 or better. Most companies approved had $75,000 or more in annual revenue. Up to $150,000 available, with 6 months – 4 years terms. Funding is in as little as two weeks.

There are 7.9 – 19.9% interest rates, but these loans are interest-free for the first 9 – 15 months with no prepayment penalty.

Personal Loans for Business

Most companies approved had two or more years in business. Most business owners approved had a credit score of 680 or better. And most companies approved had $45,000 or more in annual revenue. There is up to $35,000 available, with 3 – 5 year terms. Funding is in as little as one day. This loan reports on your personal credit history.

Fundera will charge 5.99 – 36% APR.

What Credit Score is Needed for a Business Loan: Lending Club

Contact Information

https://www.lendingclub.com/
(888) 596-3157
Their office is in San Francisco, CA.

Details

Lending Club offers term loans. Business loans from $5,000 to $300,000. Loan terms 1 – 5 years.

Get a quote in less than 5 minutes. Funds are available in as little as 48 hours with approval. There are no prepayment penalties.

Your company’s yearly revenue must be $75,000 or more. You must be in business for 2 years or more. You must have a personal FICO score of 620 or better.

Lending Club loans carry rates of 5.99% – 29.99%. Total APR starts at 8%.

So advantages are that they aren’t looking for high yearly revenue. Also, Lending Club reviews are quick. Funds are available fast. But disadvantages include high max rates.

What Credit Score is Needed for a : NUGROWTH/IBIS

Contact Information

http://www.nugrowthcapital.com/
(845) 920-7572
Their office is in New York, NY.

Details

NUGROWTH/IBIS provides working capital advances. This is for companies in both the United States and Canada. They are in New York, NY.

Your company’s yearly revenue must be at least $120,000. You have to have a FICO score of 550 or better. You must be in business at least one year.

NUGROWTH Capital will ask about your intended use of the funds. But that doesn’t seem to matter when it comes to your chance for getting funding.

$5,000 – $250,000 is available. They have flexible terms. NUGROWTH Capital reviews quickly. The entire process takes as little as 72 hours. “A small percentage of your daily sales revenue is withheld until the total amount is repaid.”

So advantages include a quick turnaround and flexible terms. But disadvantages include basing the fees on sales revenue. Variable fees make budgeting more difficult.

What Credit Score is Needed for a Business Loan: OnDeck (OD)

Contact Information

https://www.ondeck.com/
(888) 269-4246
Their office is in New York, NY.

Details

OnDeck offers short term loans and lines of credit. For short term loans: $5,000 – $250,000. Terms of 3 – 24 months.

You must have yearly revenue of $100,000 or more. Personal FICO score of 500 or better. You must be in business 12 months or more. There is an 8.5% – 79% APR.

For lines of credit: $5,000 – $100,000 available. There is a term of 6 months.

You must have yearly revenue of $100,000 or more. They want to see a personal FICO score of 600 or better. OnDeck reviews your time in business. You must be in business 9 months or more. There is a 13.99% to 36% APR.

So advantages include they will accept a low FICO score for term loans. There is some flexibility for term lengths. But disadvantages are the max APR for both term loans and lines of credit are high. If your company cannot pay back a loan or line of credit, it could sink you financially.

What Credit Score is Needed for a Business Loan: QuarterSpot

Contact Information

https://www.quarterspot.com/
(646) 650-.5018
Their office is in New York, NY.

Details

Quarter Spot offers short term loans. $5,000 – $150,000 is available. Terms: 9 – 18 months. Quarter Spot will only do a soft credit check when you apply. QuarterSpot confirmed this information.

Your company must have yearly revenue of $200,000 or more. QuarterSpot reviews your personal credit. You have to have a personal FICO score of 550 or better. There is no fee to apply.

Minimal time in business is 12 months. You must have at least an average bank balance of $20,000. You must also show at least $16,000 in monthly sales.

Borrower must own at least 50% of the business. Rates are 25% – 40%.

So advantages are that they are okay with a low personal FICO score. They only want a low average bank balance. But disadvantages are this is not for sole proprietors AT ALL. Max rates are rather high.

What Credit Score is Needed for a Business Loan: Rapid Advance

Contact Information
https://www.rapidadvance.com/
(240) 380-1657
Their office is in Bethesda, MD.

Details

Rapid Advance offers standard, select, and preferred loans. For standard loans: $5,000 – $1 million available. Terms: 4 to 12 months.

Rapid Advance reviews your annual profits. Your company must have yearly revenue of $120,000 or more. You must have a personal FICO score of 580 or better. Time in business must be 2 years or more. 1.16 to 1.30 factor rate.

Select Loans

So for select loans: $15,000 – $1 million available. Terms: 6 to 15 months. You must have revenue of $240,000 or more per year. Must have personal FICO score of 620 or better. Time in business must be 3 years and up. 1.12 to 1.31 factor rate.

Preferred Loans

For preferred loans with Rapid Advance: $15,000 – $200,000. Terms: 9 to 18 months. But you must have yearly revenue of $240,000 or more. Also, must have personal FICO score of 660 or better.

Time in business must be 6 years at least. You must have a bank balance of $10,000 or more. Borrowers must have at least 10 deposits from 5 different sources every month. 1.11 to 1.25 factor rate.

So advantages are a few choices for loan types. Also, amounts available are high. But disadvantages are they want a high bank balance. Rapid Advance also wants you to have high yearly revenues.

What Credit Score is needed for a Business Loan: Observations

Getting funding based on personal credit can be tough. Here are some pros and cons.

The lowest personal credit score (FICO) needed is 500 for OnDeck short term loans. But Bond Street will look past a low FICO score if other factors are favorable. The most funding you can get is $2.5 million from BlueVine invoice factoring.

And the shortest time in business required is one year at both OnDeck and QuarterSpot.

Alternatives

So borrowers with less than stellar personal credit might want to repair their credit. Or they could have another person act as a guarantor. Or they could offer collateral, which can take the shape of anything from equipment to a 401(k) account.

Any of those would open up more options. Online lenders would care less about a low FICO score if any of these factors were present.

What Credit Score is needed for a Business Loan: Takeaways

As with all funding sources, make sure to read the fine print. Your own unique needs are most important when deciding where to get business funding. Today, we want to hear from our audience! Share your voice with us about your experiences about what credit score is needed for a business loan.

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