How to Qualify for a Business Loan

Lenders evaluate business loans using the 5 C's: Character (credit history, business history), Capacity (cash flow to repay), Capital (owner's investment in the business), Collateral (assets to secure the loan), and Conditions (industry, economic conditions, loan purpose).

To improve your chances: maintain a business credit score above 80, keep personal credit above 680, show 2+ years of tax returns with consistent revenue, have a clear loan purpose, and prepare a business plan for larger loans..