Prepare your business and finances to improve your chances of loan approval and get better terms.
To get ready for a business loan, follow this checklist: (1) Check and improve credit scores (personal and business), (2) Organize financial documents (bank statements, tax returns, financial statements), (3) Build consistent revenue (6+ months of $10k+/month), (4) Reduce existing debt to improve debt-to-income ratio, (5) Prepare a clear use-of-funds plan, (6) Ensure business is in good standing (no liens, judgments, or tax issues), (7) Build cash reserves. Start preparing 3-6 months before applying for best results.
Review your personal credit (FICO) and business credit (Paydex). Aim for 650+ personal credit for best rates. Pay down debt, dispute errors, and make on-time payments.
Learn how to build business credit and how to improve your credit score.
Gather and organize all required documents:
See complete documents checklist and how to prepare financial statements.
Show 6+ months of consistent revenue ($10k+/month minimum). Lenders want to see stability and growth potential. Avoid applying during slow seasons if possible.
Pay down existing debt to improve debt-to-income ratio. Lower debt service improves your ability to take on new debt and gets better rates.
Have a clear plan for how you'll use the loan funds. Lenders want to see specific, legitimate business purposes (equipment, inventory, expansion, working capital).
Resolve any liens, judgments, or tax issues before applying. Lenders check business credit and public records. Clean up any issues that could disqualify you.
Having cash reserves (3-6 months expenses) shows financial stability and improves approval chances. It also provides a buffer if cash flow tightens.
Lenders evaluate these factors when reviewing applications:
Learn more about what lenders look for in loan applications.
Ideally 3-6 months. This gives you time to improve credit, build revenue history, organize documents, and resolve any issues. However, you can apply sooner if you already meet basic requirements.
Some lenders are more flexible than others. Alternative lenders may approve with lower credit or shorter time in business, but rates will be higher. Consider business loans with bad credit options.
You can, but you're more likely to be denied or get worse terms. It's better to wait and strengthen your application. Use our business loan readiness checklist to assess readiness.
Complete checklist to assess your loan readiness.
Step-by-step guide to the loan application process.
Understand qualification requirements and improve your chances.
Complete list of required documentation.
Once you're prepared, apply now and get a decision in 24-72 hours.
Fast decisions • Clear terms • Real people