Business Entity must have incorporated at least 2 years ago. No sole proprietorships
Business must have strong verifiable revenues (ideally $300,000 gross/year and up)
Completed pre qualification form
Credit reports from anybody that owns more than 10% of the business. 700+ scores only
Last year’s business tax returns. If the most recent year has not been filed yet, then we need the most recent business tax filing, a YTD P&L, and ideally a P&L from last year also.
*** Additional financial documentation may be requested, depending on the business, location, lenders available, and they amount they are applying for. Strong verifiable revenues can offset some potentially negative personal credit items.
Check cashing, Strip clubs, Bars/night clubs, Liquor Stores, Gas Stations, Medical Marijuana Growers and Dispensaries, Real Estate Flippers (property management companies can be okay), Financial or Investment companies, Laundromats, Anything that competes with banking . If you’re not sure about a company, just ask
Personal Credit Guidelines, for cards and checkbook LOCs
The list below is what the lenders like to see. All positive items are weighed against potentially negative items. If a client is borderline or barely outside of any of these guidelines, they may still be considered for funding if the rest of their credit report is good or if they have strong business financials. Borderline prospective clients should still send in a Prequel and credit report. If they do not qualify themselves, they can always use someone else as guar antor.*
720+ credit score across all 3 bureaus (700+ can sometimes work, it depends on the client)
No missed payments on any account in last 12 months
No Foreclosures, Bankruptcies, or Liens, ever. * Client may be considered if the event was 3+ years ago and client has good history and accounts since then.
At least 3 years personal credit history
At least $5,000 in major bank credit card Limits on Individual or Joint personal credit cards
Usage ratio of less than 30% of available personal credit Limits
Less than 5 inquiries on each credit bureau in the last 12 months