5 Things Lenders Actually Check Before Approving Your Business Loan

Most business owners think loan approvals hinge on personal FICO alone. That's part of it — but under $100K, lenders look at five specific things in a very specific order. Miss any one and the whole file goes to the reject pile.

1. Personal FICO (Yes, Still)

For loans under $250K, personal FICO drives ~60% of the decision. Sub-650 you're locked out of banks. 650–700 puts you in alt-lender territory (higher rates). 700+ unlocks conventional bank pricing.

Fix: dispute inaccurate items, keep utilization under 30%, and never skip a payment during the 90 days before applying.

2. Time in Business

Twelve months is the floor for most lenders. Under 12 months you're limited to microloans, revenue-based financing, or personal-guaranteed products. The clock starts from your EIN issuance date — file that early even if you're not operating yet.

3. Monthly Revenue

The three magic numbers: $10K, $15K, and $50K per month.

• $10K+ opens working-capital LOCs
• $15K+ opens term loans
• $50K+ opens SBA and premium bank products

Show three consecutive months of clean deposits before applying.

4. Business Foundation

Lenders auto-verify: EIN, D-U-N-S number, 411-listed business phone, business address (not a PO box), and a functioning website. Miss two of these and half of underwriters won't even open your file.

5. Debt Service Coverage (DSCR)

If you have existing debt, they calculate: Net Operating Income ÷ Total Annual Debt Service. Anything under 1.25 is a red flag. Under 1.0 is a decline.

Run your DSCR before applying using our free calculator.

Do this before your next application

Complete the Funding Readiness assessment to see exactly which of these five you pass and which need work — with a personalized action plan you can execute in 30 days.