Lender Requirements Guide

What is lender requirements?

Lender requirements are the minimum credit, revenue, time-in-business, documentation, and use-of-funds criteria a lender applies before considering a business loan application. Requirements vary by lender category — conventional bank, SBA-preferred, online lender, alternative funder.

Why this matters

• Applying to a mismatched lender wastes a hard inquiry and 2–4 weeks.
• Each lender category has its own price band — picking the wrong one overpays for capital.

How it works

• ›Conventional bank: 700+ personal, 2+ years in business, $250K+ revenue, full documentation.
• ›SBA-preferred lender: 680+ personal, 2+ years in business, $100K+ revenue, full SBA documentation.
• ›Online lender (e.g. funding marketplace): 600+ personal, 1+ year in business, $100K+ revenue, lighter documentation but higher rates.
• ›Alternative funder (MCA, factoring): 500+ personal, 6+ months, $100K+ revenue, minimal documentation but highest cost.

Examples in practice

Step-by-step process

1. 1

   Score your profile against each category
2. 2

   Eliminate categories where you fail thresholds
3. 3

   Compare APR across qualifying categories
4. 4

   Apply only to lenders within the qualifying band

Action checklist

• Personal credit score categorized
• Time in business categorized
• Revenue band categorized
• Document readiness scored
• Lender shortlist matched to profile

Common mistakes to avoid

• Applying to a bank with sub-700 credit and weak documentation
• Going straight to MCA when conventional or SBA would qualify
• Comparing rate without comparing total cost (fees, prepay, ACH frequency)

Frequently asked questions