📌 Key Takeaway: The four key requirements for most small business loans are: personal credit score (600+ for online lenders, 680+ for banks), time in business (6+ months for online lenders, 2+ years for banks), annual revenue ($100,000+ preferred), and business bank statements (3–6 months). Meeting all four clearly improves approval odds significantly.
Requirements by Lender Type
| Requirement | Online Lenders | Traditional Banks | SBA Loans |
|---|---|---|---|
| Personal credit score | 600–625+ | 680+ | 650+ |
| Time in business | 6+ months | 2+ years | 2+ years |
| Annual revenue | $100K+ | $250K+ | Varies |
| Bank statements | 3–6 months | 6–12 months | 12 months |
| Collateral | Often not required | Usually required | Required over $25K |
| Business plan | Not required | Often required | Required |
| Approval time | Same day–48 hrs | 1–4 weeks | 30–90 days |
Documents You'll Need
- Business bank statements: 3–6 months showing consistent revenue and cash flow
- Business tax returns: Last 1–2 years (Schedule C or business returns)
- Personal tax returns: Last 1–2 years for all owners with 20%+ ownership
- Profit and loss statement: Current year P&L showing revenue and expenses
- Business license: Proof your business is legally registered in your state
- Government ID: Driver's license or passport for all owners
- Voided business check: For direct deposit of funds
- Business plan: Required for SBA and bank loans, not usually for online lenders
Frequently Asked Questions
Can I get a business loan with no revenue?
Most lenders require at least 3 months of revenue history. If your business has no revenue yet, options include: startup business loans (specific lenders focus on new businesses), microloans from SBA-approved nonprofit lenders (up to $50,000), personal loans used for business purposes, or business credit cards for smaller amounts.
Does a business loan affect my personal credit?
Yes — in two ways. Applying causes a hard inquiry (5–10 point temporary dip). If the loan requires a personal guarantee (most do), a default will damage your personal credit. Making all payments on time typically does not affect personal credit — most business loans only report to business credit bureaus, not personal ones.