Five Common Credit Factors for Qualifying for a Small Business Loan

There are five basic factors that all lenders look at before they will agree to loan you money for your business:

1. Credit history. One of the primary factors lenders look at is the condition of your personal and business credit. This is reflected in your credit score. Before you even start shopping for a loan, request a copy of your credit report from all three major reporting agencies: Equifax, Experian, and TransUnion. Review it carefully for mistakes, and resolve any discrepancies before you start the application process. Learn more about Cleaning Up Your Credit Record.

Your personal credit score is associated with your Social Security number, but business credit reports are tied to your tax ID number. If you have not established business credit, the first step is obtaining a tax ID number from the IRS. To apply, complete Form SS-4 (PDF) and submit it to the IRS.