One of the most common questions we receive is “What are the business loan requirements?”

Most companies simply mention the need for 3-6 months bank statements, an application, and proof of ownership. But does this really answer the question well? Answer is NO.

First of all, there are several types of programs. Short term funding, business line of credit, term loan, and MCA consolidation. All of which have some different requirements which are all outlined on our types of funding page. The goal is to make sure business owners do understand the requirements, to help avoid wasting their own time.

The most important business loan requirements:

• Must use a business checking account. We see often the use of personal accounts, which may seem easy and with no downside, however until money is going into a business account, it will never be considered actual revenue. The easiest solution is taking your business license, or SS4 form from the IRS to your bank, and asking to open one. This is a great idea for many reasons outside of getting funding.
• Must be generating revenue. there is no HARD line number, but anything under $5000 a month in deposits generally speaking will not get much. Depositing over $10,000 a month will ensure you have access to many more programs, and create more success in funding your business. This is one of the most important business loan requirements, as programs are not in place for starting a business or restarting one.
• The 3 months bank statements. It is true, everyone will ask for this no matter who you apply with. What is required, is consistently hitting the above mentioned deposit numbers, into a business account. Generally speaking, 2-3 deposits per month should be the minimum to have success.
• Time in business. This one is one of the top business loan requirements, and not one that you can do much with outside of wait. To get started 6 months in business is required. At 1 year, better opportunities open, and at 2 years all options open up. Our expert funding advisors have a stellar track record of helping walk every client through all the ins and outs of how time in business will impact their exact scenario, and is one of the most valuable aspects of working with Ballpoint Capital over others.
• Personal Credit. Yes, also true here, your personal credit matters. With a lot of inaccurate information floating around the internet, it is important to know that your credit will dictate what you can and can’t do in business funding. You can get funded even with credit in the 500s, but other factors have to look good, such as strong time in business, strong revenue etc.