Companies like Sears and Colgate that have been going strong for over 100 years had to start from scratch, and then find ways to keep building. Business growth occurs when companies have the funds to reinvest in their business, such as hiring more talent, adding new products and services, and clever marketing. After being in business for several years, companies are more likely to secure loans that can help them tap into their potential.
But how can young businesses duplicate that level of success? Companies with only a year or two of experience don’t have the solid foundation of a 100-year-old company to back them.
Here’s the truth: young businesses CAN get a business loan. At Syndicate Lenders, we specialize in saying “yes” when other lenders have said “no”. Let’s look at the minimum business loan requirements you should expect so you can grow when you’re ready:
#1 - At Least One Year in Business
Businesses applying for a loan must be able to prove they’ve been in business for at least one year. Given the fact that about 20% of businesses fail in their first year, setting a one-year benchmark reduces some of the risk associated with lending to young businesses.
Once you make it past your first year, you’ve likely learned a lot about your market, customers, and operations, and can put your funds to better use.
#2 - Monthly Revenue of $15K
If you’re generating at least $15,000 in monthly, revenue, you may qualify for a small business loan. Lenders need to feel confident you’ll be able to pay on your loan each month. Keep in mind, the prerequisite $15K should be earned on a consistent basis. It’s not enough to hit the mark one month and miss it the next.
#3 - Credit Score of 550 or Greater
Credit scores range from 450 up to 850. The lower the score, the worse your credit is. However, if you have a subprime credit score, don’t be discouraged. A score of 550 or greater can still help you get a small business loan.
Bonus points: Taking a small business loan can help you to raise your credit score while also getting the funds you need for business growth.
What If I Don’t Meet These Business Loan Requirements?
The above requirements are the minimum prerequisites when applying for a loan from Syndicate Lenders. Keep in mind there will be additional information on your application that can determine whether or not you receive your desired funds.
If your application is turned down, we present your application to other lenders and allow them to submit offers. We’ll give you the best offer and get your contract rolling.
Click Here to request a no-obligation quote to see how much you qualify for.