For most all credit applications, you want to find yourself in the low-risk category. Keep in mind the various business credit bureaus may have different scoring systems. Every lender chooses its own standards. So, there may be variations in scoring levels. However, the U.S. Federal Reserve Bank lays out the general rule for the small business lending industry:

Low credit risk: 80–100 business credit score/720+ personal credit score.

Medium credit risk: 50–79 business credit score/620–719 personal credit score.

High credit risk: 1–49 business credit score/less than 620 personal credit score.

Lenders will look at both your personal credit and your business credit as well as your business revenue when making a lending decision. Remember, a personal credit score and a business credit score are completely different things. They use different scoring systems. Even the credit bureaus are different. Some, like Experian, report both types of scores. Dun & Bradstreet is strictly business credit reports. A FICO score is a personal score.

Borrowers who are low credit risks get the most choices of loan products and the best terms. Borrowers who are high risk have few choices and will pay the most. Getting even a small loan for business can be tough for high-risk borrowers but not impossible.

Can I Get a Business Loan with an under 600 Credit Score?

Business owners often want to know: can I get a business loan with a 600-credit score? Or with some other number such as a 500-credit score?

The answer is, yes, but it’s going to be hard. If you have high risk business credit score and/or high-risk personal credit score, the loan amount will be based on your revenue.

If your revenue is less than $10,000 per month, you’ll be able to secure 25%-75% of your monthly revenue. If your revenue is more than $15,000 per month, you’ll be able to secure 100%-200% of your monthly revenue.

If your need for money isn’t urgent, try to improve your credit score enough to get out of the high-risk category. That’s the best long-term option. We offer a free personal credit enhancement eBook if you are interested in improving your personal credit quickly. Just send us an email requesting one.