Guide · Whether you'll qualify
Can you get business funding with a 580 credit score?
By Alex Makowski Updated
Yes. Revenue-based funders approve businesses in the 500s routinely, because they underwrite on your bank deposits rather than your personal credit file. A 580 score rules out bank loans and most lines of credit, but it does not rule out a merchant cash advance, working capital, or equipment financing.
In this guide
- 01What a 580 actually rules out
- 02What they look at instead
- 03What it costs you
- 04What actually improves the answer
- Won't affect your credit
- Free, no obligation
- Up to $500K
01
What a 580 actually rules out
Bank term loans and SBA lending are effectively closed at 580. Most SBA lenders look for 650 or better, and a bank will decline before it looks at your revenue.
A business line of credit is the one non-bank product where score genuinely matters — a revolving facility carries more risk for the lender, so many providers set a floor around 600.
Everything else stays open. Merchant cash advances, working capital loans and equipment financing are all underwritten primarily on revenue, and several providers set no minimum score at all.
| Personal credit score | Usually open | Usually closed | What moves the price |
|---|---|---|---|
| Under 550 | Merchant cash advances and working capital from providers with no minimum; some look for 500 or above | Bank and SBA loans; most lines of credit | Deposit consistency, time in business and no existing advances; expect the upper end of the 1.1 to 1.5 factor range |
| 550 to 599 | Merchant cash advances, working capital and equipment financing | Bank and SBA loans; most lines of credit, which often set a floor around 600 | The same; equipment financing in the high teens to twenties, with a larger down payment |
| 600 to 649 | All of the above, plus a line of credit with many non-bank providers | Most bank and SBA lending, which typically looks for 650 or better | Time in business, often a year or two for a line of credit |
| 650 and up | Bank and SBA lending become possible, alongside everything above | Nothing is ruled out by the score alone | For equipment, a strong file (two years, a resaleable asset) sees high single digits to low teens |
02
What they look at instead
Monthly deposits, and their consistency. Three to six months of statements showing steady money in matters more than any single number on your credit report.
Time in business. Six months of trading opens most options; under that narrows them sharply.
Whether you have existing advances outstanding. Stacking is the single fastest way to get declined, and it is visible in your statements.
Your industry and state, which determine which funders can write your deal at all.
What each underwriter weighs
03
What it costs you
A weaker credit file does not usually change whether you are approved, but it does change the price. Expect a factor rate toward the upper end of the 1.1 to 1.5 range rather than the lower.
On a $50,000 advance, the difference between 1.25 and 1.40 is $7,500 in total repayment. That is worth knowing before you accept the first offer that arrives.
04
What actually improves the answer
Time and deposits, not credit repair. Another three months of trading history and consistent revenue moves an offer more than a twenty-point score improvement will.
Having your last six months of bank statements ready. It is the slowest step in every application and the one entirely within your control.
Written by
Alex Makowski, Owner
Alex Makowski owns and runs Business Loans for America and has been placing funding for U.S. small businesses since 2021. Businesses he has worked with have secured $50M+ in financing across 1,200+ placements. He writes and reviews every guide on this site.
FAQ
Related questions.
- Is there a minimum credit score for a merchant cash advance?
- Many providers set none at all. Those that do typically look for 500 or above. Revenue and deposit consistency carry far more weight than the score itself.
- Will a business funding application lower my score further?
- Checking your options results in a soft review, which leaves no mark. A hard pull only happens if you accept an offer from a lender that requires one, and you are told before it happens.
- Should I fix my credit first?
- Usually not, if you need the money now. Score improvements take months and move the price rather than the decision. If you can wait, adding trading history helps more than the score does.
Guides
More on whether you'll qualify
Can you get a business loan after only 8 months?
Does applying for business funding hurt your credit score?
How much can you borrow on $40,000 a month in revenue?
Before the first dollar of revenue
Who funds a business that has not opened, and why it is not us yet.
The revenue floor
Around $10,000 to $15,000 a month in deposits opens most doors. Under that, one product still does.
Overdrafts and negative days
More than three returned items in ninety days downgrades a file. The fix takes one clean quarter.
Sources
- Consumer Financial Protection BureauFederal consumer-finance regulator. Publishes guidance on credit terms and disclosure.
- U.S. Small Business Administration — LoansFederal loan programmes, eligibility and what the SBA does and does not guarantee.
One application, every lender we work with
Find out what you qualify for before you need it.
Eleven questions, about two minutes. You see offers side by side and take one, or none.
- Won't affect your credit
- Free, no obligation
- Decisions usually inside 24 hours
- Up to $500K