Guides & Resources

The Truth About What Financing Your Business Can Qualify For

It all starts with applying to the right source. For example, let’s say that your business is highly creditworthy, but if you apply to a broker that has limited experience and a lack of resources, you could be wasting your time (and credit score). The broker may offer you a ridiculously high rate and just hope that you take it. Other companies may promise applicants with the ‘best rates’, and a multitude of ‘different programs’, but this should be a red flag.

John Ever

December 7, 2021

What does it take to get the best business financing? Obtaining the correct business financing for your business is fundamentally limited to two important factors. Number 1 the lender that you apply with and number 2 your business’s creditworthiness.


It all starts with applying to the right source. For example, let’s say that your business is highly creditworthy, but if you apply to a broker that has limited experience and a lack of resources, you could be wasting your time (and credit score). The broker may offer you a ridiculously high rate and just hope that you take it. Other companies may promise applicants with the ‘best rates’, and a multitude of  ‘different programs’, but this should be a red flag. If these lenders have the best rates then wouldn’t they post these on their website? Most brokers offer merchant cash advances (MCA). These advances are high interest and extremely short term. Buyer beware: if you see or hear mention of advance products don’t apply! Line of Credit Depot does not offer merchant cash advances. We only offer lines of credit to our customers. If you aren’t approved with us we will clearly advise you why and what to do in order to get approved.


That brings us to the second fundamental fund regarding obtaining capital for your business. Your business’ creditworthiness is extremely important. Lending, especially to businesses, is extremely risky. Although each lender has different underwriting criteria, here are the general guidelines that your business must reach in order to receive a bank revolving line of credit.


Personal Credit Score: Even though a business line of credit is afforded to a business, the owner’s credit score does play a part in the underwriting process. Why? Because payment decisions and directions are enacted by the owner of the business. If an applicant holds lower than a 680 FICO 8, they may be declined for a credit line. We see it all the time; sometimes the business is very creditworthy, but the applicant’s personal credit is fair to good, and not over 680. In this case we will analyze the personal credit score to see how we can guide the applicant in quickly increasing their score. Usually there are quick fixes that one can do to increase a personal credit score.


Before you apply, check to see if you qualify.

No application or obligation.