To secure a business line of credit, most lenders require five things: at least 6–24 months in business, consistent monthly revenue (often $10,000+), healthy business bank deposits, a personal FICO score of 500 or higher, and clean documentation (bank statements, ID, and voided check at minimum). Banks weight credit score and collateral heavily; revenue-based lenders weight your bank deposits and cash flow instead — which is why an owner with a 560 FICO and strong daily balances often gets approved through a revenue-based marketplace when a bank has already declined. Below is exactly how each requirement is underwritten, where the cutoffs sit, and how to position your file so it clears them.
Key takeaways
- Banks typically require 2+ years in business; revenue-based lenders often approve at 6 months.
- A common revenue floor for revenue-based approval is roughly $10,000 in monthly deposits, with minimum funding around $10,000.
- Bank lines usually want a 670+ FICO; revenue-based marketplaces frequently work with FICO 500+.
- Business bank statements (3–6 months) are the most heavily weighted document in revenue-based underwriting.
- Deposit consistency matters more than peak revenue — steady beats spiky.
- Revenue-based funding can close in 24–48 hours versus 1–3 weeks for a bank line.
- No legitimate lender guarantees approval; it depends on what your bank statements and cash flow show.
Requirement 1: Time in Business
Time in business is the first filter almost every lender applies, because it is a proxy for survival odds. A traditional bank line usually wants two or more years of operating history. Online and revenue-based lenders relax this sharply — many will underwrite a file at 6 months, and marketplaces built around cash flow will look at deposits before they look at your incorporation date.
What underwriters are really testing: has the business survived a full seasonal cycle, and is revenue repeatable rather than a one-time spike? If you are under a year old, lead with the metrics that prove durability — month-over-month deposit consistency and a growing (or at least stable) trailing 90-day average.
Underwriter tip: the clock usually starts at your business bank account opening or your EIN registration, not the day you had your first idea. Have both dates ready.
Requirement 2: Consistent Monthly Revenue
Revenue is the engine of any line of credit — it is what the lender expects to service the draws. Banks look at annual revenue on tax returns; revenue-based lenders look at your trailing monthly revenue and how steady it is. A common working floor across revenue-based programs is roughly $10,000 per month in gross deposits, with stronger offers unlocking as monthly volume rises.
Steadiness beats peaks. A business doing $18,000 one month and $4,000 the next reads as riskier than one doing a flat $11,000 every month, even though the second has lower revenue. If your business is seasonal, expect underwriters to average across the trailing period rather than credit your best month.
For a deeper breakdown of how funders read top-line numbers, see our business funding requirements pillar.
Requirement 3: Healthy Business Bank Deposits
This is the single most important requirement for revenue-based approval, and it is where many bank-declined owners actually clear. Underwriters pull your last 3–6 months of business bank statements and read three things:
- Deposit frequency — regular deposits across the month signal ongoing sales, not a lump-sum event.
- Average daily balance — a cushion shows you can absorb a repayment draw without going negative.
- Negative days and NSFs — a handful of overdrafts is survivable; a pattern of them is a decline trigger.
Because approval here rests on deposits and revenue rather than credit score, a revenue-based marketplace can say yes to files a bank line would reject on FICO alone. The trade-off is that pricing reflects the added risk — you are buying speed and access to capital, priced against your cash flow.
Requirement 4: Personal Credit (FICO)
Credit still matters, but the cutoff depends entirely on the lender type. A bank or credit-union line typically wants a personal FICO in the 670+ range and may pull business credit too. Revenue-based and MCA-style marketplaces set the bar far lower — often 500+ — because they lean on your deposits instead of your score.
What a soft or hard pull tells the underwriter is less about the number and more about the story behind it: recent bankruptcies, open tax liens, or a current default on another advance will weigh more heavily than a middling score by itself. If your FICO is in the 500s, your bank statements have to carry the file — which loops back to Requirement 3.
Requirement 5: Clean, Complete Documentation
The fastest approvals share one trait: complete files. Missing or inconsistent paperwork is the most common cause of a stalled or withdrawn application. At minimum, have ready:
- The most recent 3–6 months of business bank statements (all pages, not screenshots)
- A government-issued photo ID for each majority owner
- A voided business check or bank verification for funding
- Your EIN and basic entity details (formation state, ownership %)
- For larger requests, tax returns and a current balance sheet
Consistency across documents matters as much as the documents themselves — the business name, address, and ownership on your ID, bank statements, and application should all match. Mismatches force manual review and slow everything down.
Decision Framework: When Each Path Fits
A traditional bank line of credit and a revenue-based marketplace solve different problems. Use the fit below rather than defaulting to whichever answered first.
A revenue-based / MCA marketplace works best when:
- You need capital in 24–48 hours, not weeks
- Your FICO is 500–660 but your deposits are strong
- You have 6–18 months in business and can't yet meet a bank's two-year rule
- You want approval driven by cash flow, not collateral or tax returns
- You need at least ~$10,000 and have $10k+ in monthly deposits
Avoid it — go to a bank instead — when:
- You have 2+ years, a 670+ FICO, and time to wait for the lowest cost of capital
- You want a true revolving line you draw and repay repeatedly at bank pricing
- Your revenue is thin or highly erratic and any repayment draw would strain daily balances — fix the cash-flow base first
Approval through a revenue-based marketplace is never guaranteed; it depends on what your statements show. But for owners who fall outside bank boxes, it is frequently the difference between funded and declined.
Example: How Two Files Get Read
These are illustrative profiles, not offers — they show how the five requirements combine in real underwriting.
| Requirement | Applicant A (bank-ready) | Applicant B (revenue-based fit) |
|---|---|---|
| Time in business | 3 years | 9 months |
| Monthly revenue (for example) | $40,000, steady | $14,000, steady |
| Bank deposits | Strong balance, no NSFs | Regular deposits, 1 negative day |
| Personal FICO | 710 | 545 |
| Documentation | Full returns + statements | 4 months of statements + ID |
| Likely best path | Bank line of credit | Revenue-based marketplace |
| Typical speed | 1–3 weeks | 24–48 hours |
Applicant B would likely be declined by a bank on FICO and time in business alone — yet clears a revenue-based program because the deposits tell a clean, repeatable story. Same owner, same business; the difference is which requirement the lender weights.
Frequently asked questions
What credit score do I need for a business line of credit?
For a traditional bank line, plan on a personal FICO around 670 or higher. Revenue-based and MCA-style marketplaces set the bar far lower — often 500+ — because they underwrite on your business bank deposits and cash flow rather than your score. A middling FICO can still be approved if your statements are strong.
How much revenue do I need to qualify?
Bank lines look at annual revenue on tax returns. Revenue-based programs look at trailing monthly deposits, with a common working floor near $10,000 per month. Steadiness matters as much as the amount — consistent monthly deposits underwrite better than one large spike.
How long does approval take?
A bank line of credit typically takes one to three weeks. A revenue-based marketplace can often reach a decision and fund in 24–48 hours once your bank statements, ID, and voided check are in. Complete documentation is the biggest driver of speed.
Can I qualify if I've been in business less than a year?
Often yes, through a revenue-based path. Many programs will underwrite at six months in business if deposits are consistent. Banks generally want two years, so a newer business with strong cash flow is usually a better fit for a marketplace than a bank.
What documents do I need to apply?
At minimum: the most recent 3–6 months of business bank statements (all pages), a government-issued photo ID for each majority owner, a voided business check, and your EIN. Larger requests may also need tax returns and a balance sheet. Make sure the business name and details match across every document.
Will overdrafts or negative days hurt my application?
A handful of negative days is usually survivable, but a repeated pattern of overdrafts or NSFs is a common decline trigger because it signals thin cash flow. If your recent statements show frequent negatives, it's worth stabilizing balances for a month or two before applying.
Is a revenue-based line the same as a bank line of credit?
No. A bank line is typically a lower-cost revolving facility underwritten on credit and collateral. A revenue-based marketplace prices against your cash flow and funds faster with looser credit requirements. They solve different problems — use the decision framework above to match the tool to your situation.
Are approvals guaranteed?
Never. Any lender that promises guaranteed approval is a red flag. Legitimate approval always depends on what your bank statements, revenue, and overall file show. A revenue-based marketplace simply weights deposits and cash flow more heavily, which opens the door for many owners banks decline.
