Credit

Best business loans for a 650 credit score

650 clears Tier 1 — the cheapest money on the sheet.

✓ Checking what you qualify for does not affect your credit score.

What a 650 actually means

650 clears Tier 1 — the cheapest money on the sheet.

Line of credit $10,000 to $350,000 from 1% per month on the drawn balance, or a term loan $10,000 to $250,000 at 0% origination.

The trade-off at this level

Clearing 650 does not approve the file. Three years in business and $25,000 a month sit alongside it.

At this level the bank statements are the whole conversation.

Average daily balance of $5,000, or 10% of monthly revenue, whichever is greater. Up to 3 negative days a month, 9 per six months and up to 6 NSFs a month, 24 per six months.

What the account needs to show

$300,000 a year or $25,000 a month, 8+ deposits, $5,000 average balance or 10% of monthly revenue.

The score decides which product the file is read against. The statements decide the rest.

Line of credit and term loan: 650 FICO, 3 years in business, $300,000 a year or $25,000 a month, 8+ monthly deposits

Revenue-based funding: 600 FICO, 6 months in business, $60,000 revenue, $800 minimum daily balance

Renewal: 550 FICO, 2 years in business, once 50% of the original balance is repaid

Restricted regardless of score: new residential construction, residential remodelling, long-distance (TL or LTL) trucking, used car dealers, and real estate agents, brokers, managers or lessors. Funding in all 50 US states.

Where this sits against everything else

The minimum FICO is 500. The 650/600/550 tiers are product criteria that decide which product a file is read against, not a floor on the business. Scores in the 500s are placed routinely and are read on revenue, deposit consistency and time in business rather than on the score alone.

Questions

Can I get a business loan with a 650 credit score?

Line of credit $10,000 to $350,000 from 1% per month on the drawn balance, or a term loan $10,000 to $250,000 at 0% origination. The minimum FICO is 500. The 650/600/550 tiers are product criteria that decide which product a file is read against, not a floor on the business. Scores in the 500s are placed routinely and are read on revenue, deposit consistency and time in business rather than on the score alone.

What would move me up a tier from 650?

At this level the bank statements are the whole conversation.

How fast is a decision?

Same day on a complete file — the application plus three months of business bank statements.

Will checking affect my credit?

No. Checking what you qualify for does not affect your credit score.