12 Jul WHAT CREDIT SCORE DO YOU NEED FOR A WORKING CAPITAL LOAN?
Applying for a working capital loan doesn’t have to be an overwhelming process. One of the biggest insecurities for small business owners is their credit score. Luckily, many online lenders weigh other factors in addition to your credit. Here’s everything you need to know about credit scores and working capital loans.
Credit Score Requirements
Most lenders don’t have a set credit score requirement because they’re actually looking at two types of credit: business and personal. Of course, your personal credit score is important, since how you manage your finances in your daily life could be an indication of how you manage your company’s financials.
Business credit scores, on the other hand, use different criteria and even a different scoring system. Each lender has its own unique method for approving business loan applications. It’s fairly impossible to give such broad generalizations. You may have a great personal credit score, but a below-average business credit score, or vice versa. Approving working capital loan applications takes a lot more than just assigning certain number thresholds.
Business Performance Requirements
To lenders like CMS Funding, your company’s performance is much more important. We place greater importance on your revenue than your credit score. As part of our approval process, we look at your most recent tax return and determine a loan amount based on an appropriate percentage of your revenue from that tax return.
You can also qualify for an unsecured working capital loan regardless of your credit score. Without set eligibility requirements, CMS Funding is positioned to help businesses secure the financing they need. Plus, as you repay your working capital loan, you’ll continue to build your business credit score.
With a high approval rate, it’s easy to get funds delivered to your business bank account within days. The approval process is simple, so you can focus on running your business rather than waiting weeks to hear back from a bank or the Small Business Administration.
Contact CMS Funding today to get the financing process started, so you can get the working capital you need.