What Is Required for a Business Line of Credit?
Out of all of the business loans and other funding solutions on the market, a line of credit will be one of your most flexible options.
With a business line of credit, you receive a credit line in a specified amount, and you can draw funds (in any amount, up to your limit) whenever you need them. You’ll only need to pay back the funds you draw and you only accrue interest on those funds, as well.
You might consider a business line of credit if you’re looking for financing for your business, whether to support your cash flow, purchase inventory, or upgrade equipment.
Here are the business line of credit requirements you need to know:
- Personal credit score: Ideally 660 or higher
- Annual revenue: $75,000 or higher
- Time in business: Ideally six months or more
- Collateral: To secure your line of credit
- Current debt schedule: To determine if you can afford to pay back the line of credit if you draw from it
- Basic personal and business information: A form of identification and possibly your EIN
Additional Requirements
Ultimately, some of the business line of credit requirements you’ll need to meet will depend on the lender.
Based on 1800Bizfund’s experience, however, most customers who were approved for business lines of credit had:
- Over one year in business
- Over $180,000 in annual revenue
- 630+ credit score
- Driver’s license
- Voided business check
- Bank statements
- Balance sheet
- Profit and loss statements
- Credit scores
- Business tax returns
- Personal tax returns