Business Loan Requirements: What You Need to Qualify in 2026

Requirements at a glance

Requirements vary more by product than by lender. Here are typical 2026 minimums for each:

• Revenue-based financing: 3+ months in business, $10K+ monthly revenue, 500+ credit, 3 bank statements.
• Merchant cash advance: 3+ months, $7.5K+ monthly card sales, 500+ credit, 3 bank + processing statements.
• Business line of credit: 6–12+ months, $15K–$25K+ monthly revenue, 600+ credit, 3–6 bank statements.
• Short-term loan: 6+ months, $10K+ monthly revenue, 550+ credit.
• Term loan (online): 1–2+ years, $20K+ monthly revenue, 620+ credit, tax return and P&L.
• Equipment financing: 6+ months (startups accepted with down payment), 580+ credit, equipment quote.
• Invoice factoring: B2B invoices to creditworthy customers; your credit is secondary.
• SBA 7(a): 2+ years, profitable, 650–680+ credit, full financial package, personal guarantee.
• Bank term loan: 2+ years, profitable, 680+ credit, collateral, full financial package.

Time in business

Lenders count from your first business bank deposit or your incorporation date, whichever they can verify. Three months is the practical floor for any funding; 12 months unlocks lines of credit and better pricing; 24 months unlocks banks and SBA. If your business is younger than 3 months, see our guide to startup business loans.

Monthly revenue

Revenue is measured as deposits into your business bank account, not what your accounting software says. Funders typically average the last three months and may exclude transfers from personal accounts, loan proceeds, and unusually large one-time deposits. Consistency matters: a business depositing $12,000 every month looks stronger than one alternating between $4,000 and $20,000.

Credit score

Alternative funders use your personal FICO as a tiebreaker, not a gate. Banks use it as a gate. Most funders pull a soft inquiry at pre-qualification and a hard inquiry only when you accept an offer. Business credit (Dun & Bradstreet PAYDEX, Experian Intelliscore) helps for larger term loans and bank products but is rarely required for revenue-based funding.

Documents checklist

• Last 3 months of business bank statements (6 for lines of credit, 12 for SBA).
• Driver’s license or passport for each 20%+ owner.
• Voided business check.
• Business tax return and YTD P&L for amounts over $150,000.
• Accounts receivable and payable aging for factoring and larger lines.
• Equipment quote or invoice for equipment financing.
• Articles of organization or incorporation (sometimes requested).

Common disqualifiers

• More than 5 NSF or overdraft occurrences in the last 90 days.
• Open bankruptcy (discharged bankruptcies older than 1–2 years are usually fine).
• Active tax liens without a payment plan.
• Three or more existing merchant cash advances (stacking).
• Restricted industries: adult, firearms, cannabis (in some states), gambling, and certain financial services.
• Default on a previous business loan or advance within the last 2 years.