Business Loan Requirements: Complete Checklist for 2026
Knowing what lenders require before you apply saves time and increases your chances of approval. This guide covers the requirements for every major business funding product, from easy-to-qualify MCAs to the more stringent SBA loan process.
Universal Requirements (All Products)
Regardless of the product, most lenders require: a registered business entity (LLC, Corp, or sole proprietorship), a business bank account, an EIN or SSN, and basic identification. Beyond these basics, requirements vary significantly by product type.
Requirements by Product
Merchant Cash Advance
Credit Score: 500+ (some have no minimum) | Time in Business: 3+ months | Monthly Revenue: $10,000+ | Documents: 3 months bank statements | Collateral: None
Business Line of Credit
Credit Score: 600+ | Time in Business: 6+ months | Monthly Revenue: $10,000+ | Documents: 3-6 months bank statements | Collateral: Usually none
Short-Term Loan
Credit Score: 550+ | Time in Business: 6+ months | Monthly Revenue: $8,000+ | Documents: 3-6 months bank statements | Collateral: None to minimal
SBA Loan
Credit Score: 650+ | Time in Business: 2+ years (preferred) | Annual Revenue: Varies by program | Documents: Tax returns, financial statements, business plan, personal financial statement | Collateral: Required when available | Personal Guarantee: Required from 20%+ owners
Equipment Financing
Credit Score: 600+ | Time in Business: 1+ year | Documents: Bank statements, equipment quote | Collateral: The equipment itself
Invoice Factoring
Credit Score: Any (client credit matters) | Time in Business: 3+ months | Documents: Outstanding invoices, client info | Collateral: The invoices
How to Prepare
Before applying, gather 3-6 months of bank statements, ensure your business bank account is in good standing (no NSFs), know your monthly revenue numbers, and have your business registration documents handy. For SBA loans, prepare tax returns and a business plan.
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