When business owners approach me for funding, one of the first questions I’m asked is: “What credit score do I need to qualify for a business loan?”
It’s a fair question — and one that often reveals how misunderstood credit scores really are when it comes to business finance.
I’ve checked with my funders, and most prefer to see a credit score of at least 620 before considering an unsecured business loan. But in reality, most approved applications fall between 650 and 750. Anything below that usually triggers concern and can slow down or even block the approval process.

Why Your Personal Credit Score Matters for Business Loans

Even though the loan is for your business, funders still look closely at the personal credit record of each director.
They see your personal credit management as a reflection of how you handle financial responsibility. If your personal accounts are consistently up to date, it gives them confidence that you’ll manage business funds with the same discipline.

In unsecured finance, there’s no collateral involved — meaning the funder takes on all the risk. So, your credit score becomes the next best measure of trust.

Your credit report doesn’t just show a number; it tells a story of how you’ve managed your financial obligations over time. It shows whether you’ve made payments on time, how much debt you’re carrying, and whether there have been any defaults, arrears, or judgments.

Funders take this seriously. I’ve seen cases where applications were declined over small outstanding amounts — even those under R500 — until proof of settlement was supplied. Defaults, arrears, or “slow payer” listings are immediate red flags. Everything needs to be in order before a funder will consider an offer.

What Credit Score Range Funders Prefer

For unsecured business finance, the sweet spot is usually between 650 and 750.
Applicants between 620 and 650 sometimes qualify, but approvals are not guaranteed and often depend on how strong the rest of the application is. Anything below 620 tends to fall outside the comfort zone of most private and fintech funders.

That’s not to say it’s impossible to get funding if your score is low — but it usually means you’ll need to address the issues on your credit report first.

Improving Your Credit Before Applying

Over the years, I’ve seen many business owners who thought they were disqualified forever because of past credit issues — including those who went through liquidation or debt review.

But once they took the right steps to fix their credit, waited for the bureaus to update their information, and reapplied, they were approved.

The key is to work with someone who understands how to restore your credit profile correctly and how to position your next application once it’s clean.

Final Thoughts

Most business owners underestimate the role their personal credit record plays in securing business funding.

Those who try to grow too quickly often take on too much credit, both personally and through their business, without protecting their score. When turnover fluctuates, it becomes difficult to keep up — and that’s when things start to spiral.

The good news is that your credit score isn’t permanent. It can be repaired.

If your score is below 620 or you’re unsure what’s holding your profile back, I recommend starting with a free credit repair assessment. Once the issues are resolved, we can reassess your funding options with a much stronger chance of success. You can either book your call online or via WhatsApp using the buttons below.