What’s the Minimum Credit Score for a Business Line of Credit?

Wondering if your credit score is high enough to get a business line of credit? The truth is, it depends on the lender. Some require excellent credit, while others are more flexible. Understanding these differences can help you find the right fit and boost your approval chances.

Minimum Credit Score Requirements

Lenders have different expectations, but here’s a general breakdown:

• Traditional Banks: Usually expect a 680+ personal credit score and a solid business credit profile.
• Alternative Lenders: May approve businesses with a 600–650 personal credit score, especially if revenue is strong.
• Fintech Lenders & Online Providers: Some lenders work with scores as low as 550, though the trade-off is usually higher interest rates and stricter repayment terms.

Why Credit Score Matters

Your credit score tells lenders how risky it is to lend to you. A high score can mean:

• Lower interest rates
• Bigger credit limits
• More flexible repayment terms

A lower score? That might mean collateral, personal guarantees, or sky-high interest rates just to get approved.

How to Improve Your Credit Score for a Business Line of Credit

If your credit score isn’t where you want it to be, here’s how to fix that:

1. Always Pay on Time – Late payments kill credit scores. Keep bills up to date.
2. Lower Your Credit Utilization – Aim to use less than 30% of your available credit.
3. Establish Business Credit – Open trade lines with vendors that report to Dun & Bradstreet, Experian, and Equifax.
4. Check Your Credit Report for Errors – Dispute anything that doesn’t belong there.
5. Boost Your Revenue & Cash Flow – Lenders love businesses that show strong, steady income.

Can You Get a Business Line of Credit with Bad Credit?

Yes, but it won’t be easy. If your score is under 600, consider:

• Secured credit lines – Requires collateral like equipment or inventory.
• Revenue-based financing – Some lenders care more about cash flow than credit scores.
• Bringing in a co-signer – If a partner has good credit, that might seal the deal.

How We Can Help

Most lenders either approve or deny your application—we do more than that. We underwrite your deal and help raise collateral, increasing your chances of getting approved. If your score isn’t perfect, we’ll structure a solution that works for your business.

Making the Right Move

Every lender has different credit score expectations, but the better your credit, the better your options. If your score isn’t where you need it to be, focus on paying on time, reducing debt, and building business credit.

Need funding? Let’s make it happen. Apply today and take your business to the next level.