Qualified Applicants Have High Approval Rates
What a small business loan underwriter is looking for:
1. In Business For 1 Year
One year is the minimum amount of historical data needed to show that your business has regular cash flow and revenue. At most retail banks the minimum could be 2-5 years in business to qualify. The underwriters at these institutions consider less then 2 years in business high risk.
2. Personal Credit Score Over 550
At Citi Wide Merchant Funding your personal FICO credit score is not the main determinate in deciding whether your approved or declined for a small business loan. However 550 is the minimum score that fits our risk models. If you are not sure what your credit score is but your business has strong cash flow and revenue we highly encourage you to apply or speak to an Account Executive.
3. Average Monthly Revenue Exceeding $12,000
4. Average Daily Ledger Balance of $2,000
The profile we build of your business is weighted to the strength of your business. An underwriter looks to see that your depositing and keeping cash on hand in the bank. If you are thinking of applying for business financing make to have as few negative days where your account is in overdraft status.
5. Current On Rent/Mortgage
Our business financing programs are unsecured so its very important that your lease and mortgage payments are current.
6. Under $10,000 in Tax Liens or Payment Plan In Place
Retail bank underwriters will automatically disqualify your application if your business has open tax liens. Citi Wide Merchant Funding can work with you to resolve these issues and approve your application.
7. Established and Current Business Trade Lines
Make sure that your business references are up to date and that you are not behind on any payments.
You can apply for our small business loan here.