By Kaylan Pepin, CPA, CMA, Co-founder and CEO of Levr.ai. Kaylan spent his career in commercial banking at RBC, CIBC, and BDC before building Levr.
Most declined applications were never going to be approved, because the business did not meet that lender’s minimums in the first place. Knowing the requirements before you apply saves you the inquiry, the wait, and the discouragement. Here is what lenders actually look at.
The four things almost every lender checks
1. Time in business. Online working capital lenders often want 6 to 12 months. Banks and SBA-style programs usually want two years or more. True startups have a harder road, which we cover in getting a startup loan.
2. Revenue. Minimums vary widely. Many online lenders start around 10,000 to 20,000 dollars in monthly revenue. Larger products want more history and more volume. Lenders care about consistency as much as size, since steady deposits show a loan can be serviced.
3. Credit. For most small business loans the owner’s personal score matters. Roughly: 500s can still qualify for revenue-based products at higher cost, 600s open up most online lenders, 680 plus is where banks and the best pricing live. Weak credit narrows options but rarely closes all of them. See our bad credit guide.
4. Documents. Bank statements, year-end financials, and sometimes tax returns. Clean, complete documents are half the battle, and here is the full list of what to prepare.
Requirements vary a lot by product
A merchant cash advance weighs card sales. Invoice financing weighs your customers’ creditworthiness, not yours. Equipment financing leans on the asset. A bank term loan weighs everything. That is why the same business can be declined by one lender and welcomed by another on the same day. Browse the differences across our loan types guide.
Where are you actually eligible?
This is the matching problem, and it is exactly what Levr does. Tell us about your business once, and we show you only the lenders whose boxes you fit, across the US and Canada, with no credit check to look. If a lender is not a match, you will know why, whether that is revenue, region, or time in business, so you can target the right product instead of guessing. And if you have been declined before, read why loans get declined, because the reason is usually fixable.
Quick answers
Can I get a business loan with less than a year in business? Often yes, through revenue-based products, if your monthly deposits are consistent. Traditional term loans usually want longer.
What credit score do I need? There is no single number. 600s cover most online lenders, 680 plus for banks, and some products barely weigh your score at all.
Do lenders in Canada and the US have different requirements? The mechanics are the same, though programs differ, for example SBA in the US and CSBFP in Canada. Levr matches across both markets.
Find out which lenders your business qualifies with, free and with no credit check. Get started free.
This article is for general education, not financial advice. Every business is different, so talk to your accountant or financial advisor about your specific situation.
