What lenders actually look at: a small-business qualification checklist

Before you apply for business financing, know what underwriters check — time in business, revenue, credit, and cash flow — and how to strengthen each one so you qualify for better rates.

Applying for business financing feels like a black box, but underwriters are really answering one question: can this business comfortably repay what it borrows? Almost every approval comes down to four things. Here's what they check, what "good" looks like, and how to strengthen each before you apply.

Key takeaway

Lenders weigh time in business, monthly revenue, credit, and cash flow. You don't need all four to be perfect — strength in one area can offset weakness in another — but knowing your numbers before you apply gets you better offers and fewer surprises.

The four things underwriters check

General benchmarks across the financing network — specific lenders set their own minimums.
Factor	Often qualifies	Unlocks the best rates
Time in business	6+ months	2+ years
Monthly revenue	$15K+	$50K+ and consistent
Personal credit	580+	680+
Cash flow	Positive most months	Steady surplus after expenses

How to strengthen each one before you apply

Clean up your business bank statements

Underwriters pull the last 3–6 months of statements. Avoid overdrafts and negative days in the run-up to applying, and keep deposits flowing through one primary business account so your revenue is easy to verify.

Know your numbers cold

Be ready to state your average monthly revenue, time in business, and rough monthly expenses. Applications that match the bank statements move faster; mismatches trigger manual review and lower offers.

Protect your personal credit

Most small-business approvals still rely partly on the owner's personal credit. Pay down revolving balances and avoid new hard inquiries in the weeks before you apply.

Ask for the right amount

Requesting far more than your revenue supports is a fast way to a decline. Size your request to roughly what your cash flow can service, and you'll see stronger, more realistic offers.

Strong file vs. thin file

Pros

2+ years in business with consistent, verifiable deposits
Personal credit above 680 with low revolving balances
Clean bank statements — no overdrafts or negative days
A funding request sized to actual revenue

Cons

Under 6 months of history limits options and raises pricing
Frequent overdrafts signal repayment risk to underwriters
Stacked existing advances reduce how much you can add
Requesting far more than revenue supports invites a decline

Checking won't cost you a point

Seeing what you qualify for through Tera Loans uses a soft credit pull, so you can compare offers without touching your score. A hard inquiry only happens if you choose to move forward with a specific lender.

See how much your numbers can support

Use the calculator to sanity-check a monthly payment against your cash flow before you apply. If the payment is comfortable in a normal month, your request is probably well sized.

Estimate your monthly payment

A representative estimate at 10%–36% APR. Actual rates and terms vary by business and product.

Amount

Term (months)

$2,290– $1,613 / mo (est.)

Apply once, compare many

Instead of applying to lenders one at a time — and risking multiple hard pulls — use a marketplace to compare offers from a single soft-credit application.

Knowing your numbers turns an anxious application into a quick one. When you're ready, Tera Loans matches you with options across our lending network from one short form.

Find out what your business qualifies for

Get matched to business financing in about 2 minutes. No upfront fees.

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What credit score do I need for a business loan?

It varies by product. Working capital and merchant cash advances can work with personal scores in the high 500s; bank term loans and SBA loans typically want 650+ with strong financials. Higher scores unlock lower rates across the board.

How long do I need to be in business to qualify?

Most online financing options require at least 6 months of operating history. Bank and SBA loans usually want 2+ years. Newer businesses still have options — they're just narrower and priced higher until you build a track record.