The short answer

There is no single number. Banks generally want a personal score of 680 or higher, SBA lenders commonly work from the mid-600s up, and online lenders will consider applications down into the low 600s and sometimes below. But the score is only the doorway. Cash flow, time in business, and existing debt decide what happens once you are through it. This guide breaks down the real thresholds by lender type and what to do if you are under them.

Personal vs. business credit: which one matters?

For most small businesses, the owner's personal credit score carries the weight. Lenders reason that a young company's payment behavior is really its owner's payment behavior. Your business credit profile, built through vendor trade lines, business credit cards, and payment history reported under your EIN, matters more as the company matures, and some larger facilities check both. If you have never established business credit, start now: open trade accounts with suppliers that report, keep them current, and the profile builds while you run the business.

Typical minimums by lender type

  • Banks and credit unions: roughly 680 and up for unsecured term loans and lines. Relationship history can stretch this slightly.
  • SBA lenders: commonly mid-600s, with many lenders using a floor in the 640 to 660 range alongside the SBA's own pre-screening score for smaller 7(a) loans. Details in our guide to how SBA loans work.
  • Online term lenders: often 600 to 640 minimums, priced accordingly.
  • Equipment financing: frequently approves scores banks decline, because the asset secures the loan.
  • Revenue-based and invoice financing: lean on receipts and receivables more than score, useful when credit is the weak link but revenue is not.

Why two applicants with the same score get different answers

Underwriting reads the file behind the number. A 650 with clean recent history, low card utilization, and strong deposits often beats a 680 with a recent late payment and maxed personal cards. Recency matters most: lenders forgive an old problem faster than a current pattern. The same logic applies to the business side; consistent bank balances and no overdrafts can offset a thin score, while negative balance days can sink a good one. See the full list of dealbreakers in why business loans get declined.

How to improve your odds in 60 to 90 days

  • Cut personal card utilization below 30 percent. This is usually the fastest large score move available, often worth 20 to 40 points.
  • Dispute reporting errors. Pull all three personal reports, free at AnnualCreditReport.com; errors are common and removals post within weeks.
  • Stop applying while you repair. A burst of hard inquiries reads as distress.
  • Keep every account current. One new late payment outweighs months of cleanup.
  • Build the business file. A couple of reporting trade lines and a business card used lightly start a profile lenders can check.

If your score is not there yet

You still have routes: equipment financing for asset purchases, invoice financing when receivables are strong, revenue-based options when deposits are healthy, or a smaller starter facility to build history. Our guide on getting a business loan with bad credit walks through each path, and the step-by-step application guide covers preparing the rest of the file so the score carries less weight.

The other half of the file: your bank statements

Whatever your score, lenders read your last three to six months of business bank statements as a live credit report. Average daily balance, deposit consistency, negative balance days, and overdraft fees tell them how the business behaves between tax returns. Strong statements can rescue a mediocre score, especially with online and revenue-based lenders, while weak statements can sink a strong one at a bank. Before any application, run one clean quarter: keep a cash buffer in the account, eliminate overdrafts entirely, and avoid large unexplained transfers. It is the cheapest credit improvement available, because it costs discipline rather than money, and it starts working within ninety days.

Frequently asked questions

Do business loan applications affect my personal credit?

The initial check is often a soft pull, with a hard inquiry at final underwriting. Personal guarantees, standard on most small business loans, mean defaults can reach personal credit, but normal repayment usually does not appear there.

What score do I need for an SBA loan?

Most SBA lenders want to see the mid-600s or better, though there is no absolute government minimum and strong cash flow can offset a modest score.

Can I get a business loan using only business credit?

Rarely for small companies. Most lenders require the owner's personal score and a personal guarantee until the business has substantial revenue and an established credit file of its own.