Qualifying for Business Funding: The 5 Things Lenders Actually Look At

TL;DR — Lenders care about 5 things. If 3+ are strong, you'll get offers. If 2 or fewer, expect higher rates or a decline.

The five things

1. Time in business

Most programs want 2+ years. SBA wants 2-3. Some programs go down to 6 months but with much higher rates.

2. Monthly revenue

Lenders want to see at least $10K/mo deposits for working capital, $25K+ for SBA, $50K+ for larger programs. They'll pull 3-6 months of bank statements to verify.

3. Credit score

• 700+ — best rates, most programs
• 650-700 — most programs, slightly higher rates
• 600-650 — fewer options, working capital and equipment mainly
• <600 — limited; often only equipment or revenue-based

4. Industry

Some industries are restricted (cannabis, firearms, adult, gambling). Some are higher-risk in lender eyes (restaurants, trucking, construction) — fewer options, higher rates. Some are prime (medical, professional services, manufacturing).

5. Use of funds

Equipment, expansion, inventory, working capital, real estate all qualify. Paying off other MCAs, payroll taxes, personal use can disqualify or limit you.

What lenders don't care about

• Your business plan (mostly)
• Your story
• Your social media
• Your office decor

The shortcut

If you don't know where you stand, run the 60-second pre-qualify. I'll tell you straight up what you'll qualify for and what to fix if you don't.