What Are the Eligibility Requirements

When you ask a lender “What are the eligibility requirements?”, you’re finding out what boxes you need to tick before they’ll even consider your application.

Here’s what you should expect them to cover:

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1. Credit Requirements

• Credit score → Minimum personal or business credit score (e.g., 650+).
• Credit history → Length of credit history, payment track record, bankruptcies.
• Ask:
  • Do you check both personal and business credit?
  • What’s the minimum score you accept?

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2. Time in Business

• Many lenders require 6 months to 2 years in business.
• Startups may need to apply for specific “startup loans” or use personal credit.

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3. Revenue or Income

• Minimum annual revenue (e.g., $50,000 to $250,000+ for business loans).
• Proof via tax returns, bank statements, or profit-and-loss statements.

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4. Collateral

• Some loans require assets (property, equipment, inventory) as security.
• Ask if personal guarantees are required.

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5. Legal & Compliance

• Business must be registered and in good standing.
• No outstanding legal issues that could affect repayment ability.

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6. Industry Restrictions

• Some lenders avoid “high-risk” industries like cannabis, gambling, or adult entertainment.

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💡 Why this question matters:
If you don’t meet the eligibility requirements, you could waste time applying, damage your credit with unnecessary inquiries, or miss better-fitting options.

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If you want, I can give you a Pre-Loan Eligibility Checklist so you can see in 2 minutes whether you’re likely to qualify before approaching a lender. That way you don’t apply blindly.

Different lenders have varying eligibility criteria that determine whether your business qualifies for a loan. These requirements can include:

• Credit Score: Lenders often have minimum credit score requirements. A higher credit score can help you secure better interest rates and terms.
• Revenue Requirements: Some lenders require a minimum annual revenue to ensure your business can generate enough cash flow to repay the loan.
• Business History: The length of time your business has been operating is another key factor. Lenders typically prefer businesses with a proven track record.
• Collateral Requirements: Secured loans require collateral, such as real estate or equipment, which the lender can seize if you default. Understanding what collateral is needed helps you prepare and evaluate the risk.