Need a Business Line of Credit? See If You Meet the Typical Bank Profile

A business line of credit can provide revolving access to capital for inventory, payroll, seasonal expenses and other operating needs. But traditional bank lines of credit are generally more difficult to qualify for than many alternative financing products.

Typical benchmarks in Thomas Abelsen’s funding guide include personal credit around 720 or higher, one to two years in business and approximately $100,000 to $250,000 or more in annual revenue. Positive cash flow and an established business checking account are also important.

Banks may request one to two years of business tax returns, personal tax returns, profit and loss statements and business bank statements. They can also evaluate debt-service coverage, current business debt, industry risk and the consistency of cash flow.

If you do not currently fit a traditional bank line-of-credit profile, that does not automatically mean your business has no financing options. Alternative working capital loans and online small-business financing can use different qualification standards.

If you need revolving or working capital financing and want to understand whether a traditional line of credit or another funding product may fit, contact EIN Business Funding.

FAQs

What personal credit score is commonly associated with a traditional business line of credit?
The funding guide identifies approximately 720+ as a typical benchmark, although individual lenders can set different standards.

How much annual revenue may banks want to see?
A common range is approximately $100,000 to $250,000 or more in annual business revenue.

What documents may be required for a business line of credit?
Banks may request business and personal tax returns, profit and loss statements and business bank statements.