Different loan types have very different credit score thresholds. This guide breaks down the exact minimums for SBA, term loans, MCAs, and more.
Credit score minimums for business loans vary dramatically depending on the loan type and lender. Understanding the thresholds before you apply prevents wasted hard inquiries and helps you target the right products for your current profile.
Business Loan Credit Score Thresholds by Product
- SBA 7(a) loans: Personal credit 650+ (675+ preferred by most lenders)
- SBA Microloans: 575+ (some community lenders go lower)
- Conventional bank term loans: 680+ minimum, 720+ for best rates
- Online term loans (Fundbox, OnDeck, etc.): 600–640+
- Merchant cash advances: 500+ (but rates are punishing — approach with caution)
- Equipment financing: 620+ (equipment as collateral makes approval easier)
- Business lines of credit: 620–640 minimum, 680+ for best terms
Business Credit Scores vs. Personal Credit Scores
Most lenders look at both. Your personal FICO score is weighted heavily for businesses under $5M in annual revenue because the business is often not large enough to stand entirely on its own. Your Dun & Bradstreet PAYDEX score, Experian Business score, and Equifax Business score are increasingly reviewed for businesses that have been operating 2+ years.
What If You Are Below the Thresholds?
Do not apply to lenders requiring scores above yours — each hard inquiry drops your score slightly and signals desperation. Instead, focus on the 60–90 day improvement strategies in our credit score guide, explore products designed for lower credit profiles, or consider adding a co-signer with stronger credit.
Important: Some online lenders advertise "no credit check" loans. These almost always carry 40–80% APR equivalents. The cost of these products nearly always outweighs the benefit unless you are in an extreme short-term cash emergency.
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