What Credit Score Do I Need for a Business Loan?

William Mingione
Dec 15, 2025
3 min read

Securing business financing starts with understanding credit score requirements. Whether you're seeking capital for expansion or working capital, your credit score plays a decisive role in loan approval and terms. Here's what you need to know about credit score requirements across different lender types in 2025.

What Credit Score Do I Need for a Business Loan?

Key Takeaways

Traditional banks typically require credit scores of 680 or higher
Online lenders may accept scores as low as 500-600
SBA loans generally require minimum scores of 600-650
Higher credit scores result in better interest rates and terms
DirectLend.AI matches businesses with appropriate lenders based on credit profiles

Understanding Credit Score Requirements by Lender Type
SBA Loan Credit Score Requirements
How DirectLend.AI Simplifies the Loan Process

Understanding Credit Score Requirements by Lender Type

Credit score requirements vary significantly depending on your chosen lender. According to Lendio, borrowers have the most options available with a minimum credit score of 650.

Traditional Banks

Traditional banks maintain the strictest requirements, typically seeking scores of 680 or higher. Bankrate notes there's no industry-wide credit score requirement for small business loans, meaning each lender sets its own standards.

Online Lenders

Alternative online lenders offer more flexibility. According to SoFi, alternative lenders may accept credit scores between 500-600, though these loans often carry higher interest rates to offset the increased risk.

Credit Score Ranges and Loan Options

Credit Score Range	Loan Options	Expected Terms
720+ (Excellent)	All loan types available	Best rates, longest terms
680-719 (Good)	Most lenders approve	Favorable terms
620-679 (Fair)	Limited options	Higher interest rates
Below 620 (Poor)	Alternative lenders only	Highest rates, strictest terms

SBA Loan Credit Score Requirements

SBA loans offer government-backed financing with competitive terms. NEWITY reports that business owners need a personal credit score of at least 600 to qualify for SBA 7(a) loans.

The SBA also uses the FICO Small Business Scoring Service (SBSS), which ranges from 0 to 300. As of June 2025, the minimum SBSS score for 7(a) small loans increased from 155 to 165, reflecting stricter underwriting standards.

Time in Business Matters

Your required credit score correlates with business age:

700+ FICO: 12 months operating history required
670+ FICO: 2 years in business needed
600+ FICO: 3 years business history required

Ready to explore your funding options? Connect with matched lenders through DirectLend.AI today.

How DirectLend.AI Simplifies the Loan Process

Traditional loan shopping often means multiple credit inquiries and countless broker calls. DirectLend.AI eliminates these pain points through AI-powered matching technology.

Smart Matching Process

DirectLend.AI analyzes hundreds of data points including your credit history, revenue, industry type, and funding needs. The platform then connects you directly with lenders whose criteria match your business profile, increasing approval chances while saving time.

No Credit Impact During Initial Application

The initial questionnaire and matching process doesn't affect your credit score. You'll receive personalized lending options from qualified lenders without the typical hard inquiries that accompany traditional loan shopping.

Direct Lender Connections

Unlike broker platforms that sell your information, DirectLend.AI connects you directly with lenders. This means no middleman fees, faster decisions, and transparent communication throughout the approval process.

Whether you have excellent credit or are working to improve your score, understanding these requirements helps you prepare a stronger application. DirectLend.AI's technology ensures you're matched with lenders who value your complete business profile, not just your credit score.

Start your application with DirectLend.AI and discover which lenders are ready to fund your business growth.

Frequently Asked Questions

What is the minimum credit score for a business loan?

The minimum varies by lender type. Traditional banks typically require 680+, while alternative lenders may accept scores as low as 500-600. Most borrowers find the best options with scores of 650 or higher.

Can I get an SBA loan with a 600 credit score?

Yes, SBA 7(a) loans accept personal credit scores starting at 600, though you'll need three years in business at this credit level. Higher scores (670-700+) reduce the required business history.

What credit score do I need for the best loan terms?

A credit score of 720 or higher typically qualifies you for the best interest rates and most favorable loan terms across all lender types.

Do business loans check personal or business credit?

Lenders typically review both. Personal credit scores range from 300-850, while business credit scores range from 0-100 or 0-300 depending on the bureau.

How does DirectLend.AI help businesses with fair credit?

DirectLend.AI analyzes your complete business profile beyond just credit scores, matching you with lenders who consider factors like revenue, industry type, and business age to increase approval odds.