Situation

Business funding with 600 credit score: how it is read and what helps.

A score of 600 or higher opens more options and better offers, which is why it is a sensible target.

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

How this is read

A score of 600 or higher opens more options and better offers, which is why it is a sensible target.

At 600 and above, the credit score stops being a reason for extra caution and becomes a plus. More structures are available, including revenue-based financing, and pricing tends to improve.

What helps

Steady deposits across four months
Time in business over a year
A clear use and a modest request
No new open obligations

What hurts

Recent hard inquiries from many applications
High utilization on personal credit
Unexplained deposit swings

A sensible plan

If you are around 590, a few months of on-time payments and lower card balances may push you over. If you are already above, focus on request size and statement quality to get the best price.

Illustrative arithmetic

A boutique retailer depositing about $50,000 a month asks for $25,000 for seasonal inventory. At a 1.2 factor the payback is $30,000, a cost of $5,000. Over roughly 6 months that is about $238 per business day, or close to 10% of monthly deposits.

Total payback: $30,000.
Cost: $5,000.
Payment: about $238 per business day, close to 10% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Common questions

Is 600 a hard line?

No. It is a point where more options and better offers become available.

Will I get a lower factor at 650?

Pricing tends to improve with strength across the file, not only credit.

Does credit matter more than deposits?

For these products, deposits and account health carry the most weight.

Keep reading

Underwriting situationsCredit, NSFs, time in business and more Funding requirementsTypical starting points for Canadian files Documents you needWhat to have ready before you apply Bad credit business fundingHow files with weaker credit are read GlossaryPlain-language definitions

Educational information only. It is not legal, tax or accounting advice.

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