When lenders are look to see if a client is fundable, they are looking for one of the 4 Cs.
The first C is Cash Flow. When you have an existing business, with good cash flow, you can qualify for business funding. If you do have verifiable cash flow, this substantially increases your chances of being approved for funding. There are many funding programs you might qualify for with good cash flow.
The second C is Collateral. Collateral is your business assets. Many things can be used as collateral including equipment, purchase orders, even accounts receivables. Having Collateral greatly increases your chances of being approved.
Business Credit is our third C. Lenders will lend you money, with no personal guarantee, based on your business credit profile and score. If you have a good business credit profile you can use that as security to obtain funding.
Personal Credit is the fourth and final C. Maybe you are just starting a new business, and you have no business credit, cash flow, or collateral. In this case you can still qualify for funding. But lenders will use your Personal Credit to qualify you. It is possible for you to secure credit lines with as low as a 650 credit score. These types of unsecured credit lines do not look at revenue or financials. Your credit is all that is used to qualify you for funding.
All you need is 1 of the 4Cs to qualify for business credit