Insights into the world of small business lending and development
This is your target credit score to secure an affordable business loan
This post originally appeared on the blog of our partner, CDC Small Business Finance.
Think quick — what was your childhood phone number? I bet those 10 digits came spilling out without hesitation.
If you’re in the market for an affordable business loan, you should be able to recall your credit score with similar ease. That’s because your score helps lenders gauge your financial fitness and the likelihood you’ll repay your loan. So if it’s in the right range, you can increase your odds of getting a business loan with great terms.
While traditional lenders require a score of 680 or higher out of 850, community lenders like CDC Small Business Finance, have more flexibility. As a nonprofit backed by the SBA, we consider clients with a minimum score of 620, sometimes lower.
So before you shop around for a business loan, be it online or from a brick-and-mortar lender, know where you stand when it comes to your credit score. It can save you thousands in the long-run.