Most small business loans in the U.S. come down to five requirements: time in business (usually 6+ months), consistent monthly revenue, healthy business bank deposits, a personal credit score, and clean documentation (bank statements, ID, and often a business license or tax returns). Traditional banks and SBA lenders weight credit and collateral heavily; revenue-based and marketplace funders flip that order — they underwrite on your bank deposits and cash flow first, which is why a business with a 500+ FICO and real monthly revenue can qualify where a bank would decline. This guide breaks down every requirement, what each threshold really means, and how to read your own file the way an underwriter does before you apply.
Key takeaways
- Revenue-based and marketplace funders commonly approve at FICO 500+, versus 660-680+ at banks and SBA lenders.
- Many revenue-based funders use roughly $10,000+ in monthly revenue as a working qualification floor.
- Time in business can be as low as 6 months with revenue-based funding, compared to 2+ years at most banks.
- Underwriters read 3-6 months of business bank statements: deposit frequency, average daily balance, and negative days.
- Revenue-based funding can decision in 24-48 hours because the review centers on bank statements, not tax returns.
- Steady, consistent deposits carry an application further than a strong credit score with erratic banking.
- No legitimate funder guarantees approval; treat any 'guaranteed approval' claim as a warning sign.
The Five Core Requirements Every Lender Checks
Whether you apply to a bank, an SBA lender, or an online marketplace, underwriting rests on the same five pillars. What changes between lenders is how heavily each one is weighted.
- Time in business. Banks typically want 2+ years. Revenue-based and MCA-style funders can work with 6 months of operating history, because they read your deposit trend rather than your track record.
- Monthly revenue. This is the single most predictive line for cash-flow lenders. Many marketplace funders look for roughly $10,000+ in monthly revenue as a working floor.
- Bank deposits and account health. Underwriters pull the last 3-6 months of business bank statements and count deposit frequency, average daily balance, and negative-balance days. Steady deposits beat a single big month.
- Credit score. Banks and SBA loans often want 660-680+. Revenue-based funders commonly approve at FICO 500+ because credit is one input, not the gate.
- Documentation. At minimum: government ID, a voided check or bank login, and business bank statements. Larger or bank loans add tax returns, financial statements, and a business plan.
For a deeper walk through funding types, see our complete guide to small business financing.
Time in Business: Why 6 Months vs. 2 Years Matters
Time in business is a proxy for survival odds. A bank underwriting a 5-year term loan wants to see you've already weathered slow seasons, so the 2-year minimum is common and rarely flexible. SBA 7(a) lenders behave similarly.
Cash-flow lenders think differently. Because the funding is repaid from a slice of ongoing revenue over months — not years — the underwriter cares more about whether deposits are trending up and consistent than about how long you've been open. That's why 6 months of operating history plus real revenue is often enough. If you're newer than 6 months, focus on building a clean deposit record first; it's the fastest path to qualifying later.
Revenue and Bank Deposits: What Underwriters Actually Read
For revenue-based funding, your business bank statements are the application. An underwriter reads them line by line and asks a short list of questions:
- How many deposits land per month, and are they regular or lumpy?
- What's the average daily balance, and how often does it go negative?
- Is revenue flat, growing, or declining across the statement period?
- Are there existing advances or loan payments already pulling from the account?
The takeaway for owners: three months of steady, healthy deposits with few or no negative days can carry an application further than a strong credit score with erratic banking. If your statements are messy, the highest-leverage move before applying is a few weeks of disciplined cash management.
Credit Score: Where the Bar Really Sits
Credit requirements vary more than any other factor. Here's how the tiers break down in practice:
- Banks / SBA: generally 660-680+ personal FICO, plus business credit history and often collateral.
- Mid-market online term loans: roughly 600+.
- Revenue-based / MCA marketplaces: FICO 500+, because approval leans on bank deposits and revenue rather than the score.
A lower score doesn't disappear from the file — it shapes cost and terms. But for owners rebuilding credit or carrying a past hit, a revenue-based funder is usually the realistic door. No legitimate funder can promise approval; be skeptical of anyone who says "guaranteed," regardless of your score.
Document Checklist by Lender Type
Gathering the right documents up front is the difference between a same-week decision and weeks of back-and-forth. Requirements scale with the size and formality of the funding.
| Requirement | Revenue-Based / Marketplace | Online Term Loan | Bank / SBA |
|---|---|---|---|
| Government ID | Yes | Yes | Yes |
| Business bank statements | 3-6 months | 6 months | 12+ months |
| Voided check / bank verification | Yes | Yes | Yes |
| Business tax returns | Rarely | Sometimes | 2 years |
| Personal tax returns | No | Sometimes | Yes |
| Financial statements (P&L, balance sheet) | No | Sometimes | Yes |
| Business plan / projections | No | No | Often |
| Collateral / lien filing | Typically none | Sometimes | Usually |
General ranges; individual funders vary. The pattern is clear: the more documentation a lender demands, the longer the timeline and the higher the credit bar.
Example: Three Applicant Profiles
The same business can be a decline at one lender and a same-day approval at another. These are illustrative profiles, not quotes.
| Profile (for example) | Time in Business | Monthly Revenue | FICO | Best-Fit Path |
|---|---|---|---|---|
| Landscaping LLC | 8 months | ~$18,000 | 540 | Revenue-based funding — deposits carry the file |
| Auto repair shop | 4 years | ~$60,000 | 700 | Bank / SBA term loan or revenue-based, depending on speed needed |
| Boutique retailer | 3 years | ~$12,000 | 620 | Revenue-based or mid-market online loan |
Notice the landscaping LLC: too new and too low on credit for a bank, but its steady $18k in monthly deposits makes it a clean revenue-based approval. Fit is about matching your strongest requirement to the lender that weights it most.
Decision Framework: Matching Your File to the Right Lender
Use your own numbers to route yourself before you apply.
Revenue-based / marketplace funding works best when:
- You have 6+ months in business and roughly $10,000+ in monthly revenue.
- Your credit is 500-650 and credit alone would stall a bank application.
- Your bank deposits are steady, even if not large.
- You need funding in 24-48 hours to catch a time-sensitive opportunity or cash-flow gap.
Avoid revenue-based funding — look at a bank or SBA loan — when:
- You have 660+ credit, 2+ years in business, and time to wait weeks for a decision.
- You want the lowest possible cost and can document tax returns, financials, and collateral.
- Your revenue is seasonal to the point that a fixed multi-year term fits better than repayment tied to daily or weekly deposits.
- You're pre-revenue or under 6 months old — build deposit history first.
The honest rule: if you qualify for a bank loan and aren't in a hurry, price it there. If credit or time in business is your bottleneck and cash flow is your strength, a revenue-based funder is built for exactly that gap.
Frequently asked questions
What is the minimum credit score for a small business loan?
It depends on the lender. Banks and SBA loans generally want 660-680 or higher. Revenue-based and marketplace funders commonly approve at FICO 500+ because they underwrite on bank deposits and revenue rather than the score alone. A lower score usually affects cost and terms rather than being an outright disqualifier.
How much revenue do I need to qualify?
For revenue-based funding, many funders use roughly $10,000+ in monthly revenue as a working floor, and they care as much about consistency as amount. Steady deposits across three to six months of bank statements matter more than one strong month.
How long do I need to be in business?
Banks typically require two or more years. Revenue-based and MCA-style funders can work with as little as six months of operating history, because they read your deposit trend rather than a long track record. If you're newer than six months, focus on building a clean banking record first.
What documents do I need to apply?
For revenue-based funding, the core set is a government ID, three to six months of business bank statements, and a voided check or bank verification. Bank and SBA loans add tax returns, financial statements, and often a business plan and collateral.
How fast can I get funded?
Revenue-based and marketplace funders can often decision in 24-48 hours because the review centers on bank statements. Bank and SBA loans typically take weeks due to heavier documentation and underwriting.
Can I get approved with bad credit?
Often yes, if your cash flow is strong. Revenue-based funders can approve at FICO 500+ when bank deposits and revenue are healthy. No legitimate funder can guarantee approval, so treat any 'guaranteed approval' claim as a warning sign.
Do I need collateral for a small business loan?
Bank and SBA loans usually require collateral or a lien filing. Revenue-based funding typically does not require specific collateral, since repayment is tied to a portion of your ongoing revenue rather than a pledged asset.
Why was I approved by a marketplace funder but declined by my bank?
Because they weight requirements differently. A bank leads with credit, time in business, and collateral; a revenue-based funder leads with bank deposits and monthly revenue. A business with thin credit but steady cash flow can be a clean approval in one channel and a decline in the other.
