Why Bad Credit Operators Still Qualify
Personal credit is one input among many. We weight monthly revenue, time in business, deposit consistency, average daily balance, and NSF history more heavily than FICO. A FICO 540 operator doing $80K monthly with clean bank statements out-qualifies a FICO 720 operator with thin deposits and frequent overdrafts.
Bad credit is often the residue of a past business cycle, divorce, medical event, or downturn — none predict future business performance.
FICO Tier × Funding Reality
- 500-579 (Poor): Eligible. Smaller initial amounts ($25K-$100K), higher cost. Build a track record and refinance.
- 580-619 (Fair): Eligible. Mid-range funding ($25K-$500K).
- 620-679 (Acceptable): Eligible across all programs.
- 680+: Premium pricing available.
What Bad-Credit Operators Should Avoid
- Stacking applications across 10 lenders simultaneously — creates underwriting noise.
- Hard credit pulls before confirming approval.
- Predatory factor rates above 1.55.
- Brokers refusing to disclose total dollar cost.
- Lenders requiring upfront fees before approval.
Refinancing Path
Start small, repay clean for 6-12 months, refinance into larger lower-cost product. Most operators see meaningful pricing improvement on the second program.