How to Get a Business Loan With Excellent Credit?
If you’re one of those diligent and prepared business owners with excellent credit, the options for small business financing are abundant. Whether you’re looking for business loans, a business line of credit, SBA loans, or something beyond, your credit score can significantly impact your loan options, interest rate, and overall freedom for growing your business.
Here at AdvancePoint Capital, we make acquiring business loans for your business fast and convenient. You’ll get to enjoy all of the benefits of working with an alternative lender while gaining access to the best business loans available in the marketplace.
While having excellent credit scores can undoubtedly make dealing with banks and traditional lenders less difficult, these lending outlets still make business owners jump through countless hoops, slowing down access to capital. Banks will want to see that you own a successful, established business before offering any capital, and your time in business will be a major factor.
AdvancePoint Capital speeds up the process of getting the money your business needs. Running a small business requires an incredible amount of initiative, bravery, ingenuity, and support. We’re here to offer that support by providing a wide range of financing opportunities from our network of online lenders to help with expansion, renovations, equipment purchases, working capital, and more. When you have the credit to grow, we’re here to give you the tools and resources you need to expand operations and catapult your business to the next level.
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AdvancePoint Capital makes the loan application process a simple, straightforward experience.
How Your Credit Score Impacts Small Business Loans
Credit bureaus run calculations to determine a business and personal credit score for small business owners. The FICO score is a universally understood measure of individual creditworthiness, ranging between 300-850. On the other hand, business credit scores typically fall between zero and 100.
It should come as no surprise that the higher your score, the more attractive your business will look to a lender. Lenders will evaluate both your business and personal credit score to determine whether or not you’re a solid candidate for loans or financing.
Both traditional lenders and alternative lenders like AdvancePoint Capital will closely evaluate the personal credit score of a business owner. While it won’t play a significant role in certain financing products like merchant cash advances or short-term business loans, an excellent personal credit score can open doors for a wide range of attractive funding options with great rates.
The Best Small Business Loan
Options for Excellent Credit
Emergency Line of Credit
Small Business Administration (SBA) Loans
Long-Term Small Business Loan (Traditional Loans)
Business Credit Card
How to Look For the Best
Small Business Loans
There is a wide range of factors to consider when looking to obtain the very best small business loan possible from a financial institution.
Time in Business
Time in business and how established your small business is will be a big factor for most lenders as they want to see a track record they can evaluate.
Your small business revenue should help guide your business financing decision-making. Some factors to consider are the amount of revenue, how frequent your deposits are, the average daily balance, and any cash reserves left in your business bank account. Use this information to make decisions about how much you need and as supplemental information for loan underwriters. Alongside other qualifying factors, they will use business revenue to determine risk.
There’s a significant difference between revenue and profitability, but both still play their role. Business revenue doesn’t always paint the most vivid picture of a company’s overall health. To qualify for small business financing for excellent credit, you’ll need to have solid profits. If you’re struggling in this department, other options provide flexible financing, such as small business lines of credit or short-term loans.
Certain industries have an easier time obtaining small business loans, while others may have a more difficult journey ahead. When looking for financing options that fit your particular small business, it’s essential to know that your industry can play a role in qualifying factors.
Knowing just how much you need is crucial during the research and discovery phase. Using some of the factors we mentioned, like business revenue, profitability, and industry type, can certainly help. Calculating the amount you need will help determine what kind of financing can best suit your business, whether a line of credit, term loans, SBA small business loans, and beyond.
Frequently Asked Questions
Advice, Tips, and Warnings for
Excellent Credit Small Business Funding
Having excellent credit can make it seem like your small business options are limitless. While you certainly have more choices than those barely scraping by the minimum credit score requirements, you can still run into issues with small business lenders if you don’t play it smart. Make sure to ask questions like:
- What does my cost vs. analysis look like?
- Can I profit from this financing opportunity?
- What long-term benefits can I expect?
- Are the costs, terms, and fees worth it?
- Do I need a lump sum vs. revolving line of credit?
- Can I use this capital for more than one use?
- Is a personal loan a better option?
Asking yourself these difficult questions can help prepare you for growing and expanding operations. AdvancePoint Capital is here to make your financing journey simple for those with good credit.
operations. AdvancePoint Capital is here to make your financing journey simple for those with good credit.