Small Business Loans Are Highly Driven By Credit Score
Regardless of how well the business is doing in terms of profitability and even balance sheet strength, a key factor that goes into getting the lower cost financing provided by small business loans is the credit score and credit profile of both the business and the business owner.
For most institutional lenders, which are the only real providers of small business loans, the average required minimum credit score is 650. There are many lenders that will not consider an application, no matter how strong in other aspects, if the credit score does not meet or exceed the minimum standards required.
