Whether you need $10,000 for inventory or $2 million to open a second location, every funding provider asks the same core question: can this business comfortably repay? Knowing how they answer it — and what they need from you — is the fastest way to get approved on good terms.
1. Monthly revenue
Revenue is the single biggest factor for most business funding. Providers look at your average monthly deposits over the last few months to size an offer. Higher, steadier revenue generally means larger approvals and lower costs. Many products are available to businesses bringing in around $10,000 or more per month.
2. Time in business
A longer track record lowers risk. Traditional bank and SBA loans usually want two years or more. Alternative funding is far more flexible — many products are available once your business reaches 6 months, and more options open up after the one-year mark.
3. Credit profile
Credit matters, but less than most people think. Banks often require strong scores, while revenue-based products focus on business performance. Business owners with scores as low as 550 can still qualify for several options, and a stronger score unlocks lower rates and longer terms.
4. Business bank statements
Your last 4 months of business bank statements are the heart of most applications. Underwriters review deposits, average daily balance, negative days and any existing loan or advance payments.
5. Existing debt
Current loans or advances aren't a deal-breaker, but they affect how much more you can take on. Be upfront about balances — it helps your advisor match you with providers who can work with your position, or consolidate what you already have.
6. Collateral (sometimes)
Many products, like merchant cash advances and revenue-based financing, don't require collateral. Others are secured by the asset itself — the equipment in equipment financing, your receivables in invoice financing or the property in a commercial mortgage.
Requirements by funding type
| Funding type | Time in business | Credit weight | Typical speed |
|---|---|---|---|
| Merchant Cash Advance | 6 months+ | Low | Same day possible |
| Revenue-Based Financing | 6 months+ | Low | Same day possible |
| Business Line of Credit | 6–12 months+ | Moderate | Hours to days |
| Term Loan | 1 year+ | Moderate | Same day to days |
| Equipment Financing | Varies | Moderate | 24–72 hours |
| SBA Loan | 2 years+ | Higher | Weeks |
Your application checklist
- Legal business name, address and EIN
- Business start date and industry
- Owner name, home address and ownership percentage
- Last 4 months of business bank statements
- Details of any current loans or advances
- How much you need and what it's for
Get matched in minutes
You don't have to figure out which product you qualify for on your own. One Sterling Advance application is reviewed against options from our network of lending partners, with no hard credit pull and approvals in as little as 3 hours. Explore all 9 funding products or apply now.
*Starting rates reflect current published market ranges and are for reference only — not an offer or commitment. Actual rates, terms and eligibility depend on your business's qualifications and the funding provider. This article is for general information and is not financial, legal or tax advice.
