The honest answer in plain English. No bank-speak, no fine print buried at the bottom. Here is exactly what lenders look at and what gets you approved.
Meet these four and you are eligible to apply. Missing one does not automatically disqualify you, but it will affect which products are available and the terms you receive.
Most MCA and working capital lenders require at least 6 months of operating history. Equipment financing and lines of credit often require 12 months. The longer you have been open, the better your terms.
Lenders look at your last 3 months of bank deposits to calculate your average monthly revenue. This number drives your approval amount more than anything else: typically 75% to 150% of one month's revenue.
560 is the floor for most short-term products. Equipment financing can go lower because the equipment is the collateral. Lines of credit typically want 600+. Your credit score matters less here than it does at a bank.
This is the only document required for most products. No tax returns, no business plan, no profit-and-loss statement. Just your last 90 days of bank activity. Have them ready before you apply.
Beyond the four basics, here is what actually moves the needle on your approval amount and factor rate.
A business depositing $18,000 every month looks better than one with $40,000 in January and $6,000 in February. Lenders want to see consistent cash flow they can underwrite against. Good: regular weekly or bi-weekly deposits. Red flag: two months of strong deposits followed by a gap.
Lenders calculate your average daily balance across the statement period. Running close to zero between deposits signals cash flow stress. Good: positive balance with cushion most days. Red flag: balance hitting $0 or going negative regularly.
Non-sufficient fund fees are one of the biggest underwriting red flags. Even one or two NSFs per month can reduce your approval amount or bump up your factor rate. Good: zero NSFs in 90 days. Red flag: multiple NSFs per month.
Crossing 12 months unlocks term loans and lower factor rates. Crossing 2 years opens up lines of credit and SBA options. Every 6 months of clean operating history improves what you can access. Good: 2+ years with consistent deposits. Red flag: multiple business closures and re-openings.
Different products suit different business situations. This is the general match. We will confirm the right fit when we review your file.
| Your Situation | Best Product | Why It Fits |
|---|---|---|
| 6-12 months in business, $10K+/mo, any credit 560+ | Merchant Cash AdvanceApproved in 24-48 hrs, $5K-$500K | Revenue-based, fastest approval, no collateral required. Best when you need cash now and have strong monthly deposits. |
| 12+ months in business, $15K+/mo, 580+ credit | Working Capital Loan2-5 days, $10K-$500K | Fixed daily or weekly payments, better rates than MCA, structured term. Good fit when you want predictable payback. |
| Need to buy equipment or vehicles, any credit 540+ | Equipment Financing3-7 days, $10K-$1M | The equipment is the collateral, so credit requirements are lower. Terms match the useful life of the equipment (2-7 years). |
| 12+ months in business, variable cash needs, 600+ credit | Line of Credit2-3 days to open, $10K-$250K | Draw only what you need, pay interest only on what you use. Best for businesses with ongoing, unpredictable capital needs. |
| 2+ years in business, $20K+/mo, 680+ credit, SBA-eligible | SBA Loan2-4 weeks, $50K-$5M | Lowest rates available, longest terms, lowest monthly payments. Takes longer but right for established businesses planning for growth. |
Most declines are preventable. These are the real reasons applications get turned down, not the vague "we could not approve you at this time" language lenders use.
No hard credit pull. A specialist follows up within 2 business hours.