Need a $100K–$250K Business Line of Credit? See What Banks Typically Look For

If your business needs revolving capital for payroll, inventory, expansion, seasonal expenses or ongoing operating needs, a traditional business line of credit can be attractive because capital can generally be accessed as needed rather than through a single lump-sum loan.

What Does It Take to Qualify for a Business Line of Credit?

Traditional bank business lines of credit generally have stronger qualification requirements than many online funding products. Common benchmarks include personal credit around 720 or higher, approximately one to two years in business and annual revenue in the $100,000 to $250,000+ range.

Banks also commonly look for positive cash flow, an established business checking account and a borrower profile without major recent credit problems such as bankruptcies or tax liens.

What Documents Can a Bank Request?

Business owners may be asked for one to two years of business tax returns, personal tax returns, profit and loss statements and business bank statements. Lenders can also evaluate debt-service coverage, current business debt, industry risk and cash-flow consistency.

Before applying, owners should know their current Experian FICO score, annual revenue, time in business, banking institution and the balances on all existing business credit cards, lines of credit and loans.

What If You Do Not Meet Traditional Bank Requirements?

Not meeting traditional line-of-credit benchmarks does not automatically mean that a business has no financing options. Working capital loans, online business loans and other products can use different qualification criteria.

If your business needs revolving capital and you want to understand whether a traditional line of credit or another funding product may fit your current profile, connect with EIN Business Funding.

FAQs

What credit score is commonly needed for a traditional business line of credit?
Approximately 720 or higher is a common benchmark, although each bank and financing provider establishes its own requirements.

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

What if my business does not qualify for a bank line of credit?
Other financing categories such as online business loans or working capital products may use different credit, revenue and time-in-business requirements.