The 5 C's of Credit

What lenders are actually looking for.

Character Capacity Capital Collateral Conditions

Key Metrics

The numbers that determine approval.

680+ Personal FICO

155+ FICO SBSS (SBA)

1.25x Min. DSCR

Debt Service Coverage Ratio (DSCR):
(Net Operating Income) ÷ (Total Debt Service) must be ≥ 1.25.
Example: If your annual debt payments are $100k, you need $125k in Net Operating Income.

Documentation Checklist

Have these ready to speed up funding by weeks.

Business Tax Returns (3 Years) - Signed and dated.

Personal Tax Returns (3 Years) - For all owners with >20% equity.

Interim Financials - YTD Profit & Loss and Balance Sheet (dated within 45 days).

Business Debt Schedule - List of all current notes payable.

Bank Statements (3-6 Months) - To verify revenue and check for NSFs.

Loan Qualification Checklist | LoanCompare

The Underwriting Gauntlet

Qualifying in 2025: Credit Scores, DSCR, and the Documentation You Need.

The 5 C's of Credit

What lenders are actually looking for.

Character Capacity Capital Collateral Conditions

Key Metrics

The numbers that determine approval.

680+ Personal FICO

155+ FICO SBSS (SBA)

1.25x Min. DSCR

Debt Service Coverage Ratio (DSCR):
(Net Operating Income) ÷ (Total Debt Service) must be ≥ 1.25.
Example: If your annual debt payments are $100k, you need $125k in Net Operating Income.

Documentation Checklist

Have these ready to speed up funding by weeks.

Business Tax Returns (3 Years) - Signed and dated.

Personal Tax Returns (3 Years) - For all owners with >20% equity.

Interim Financials - YTD Profit & Loss and Balance Sheet (dated within 45 days).

Business Debt Schedule - List of all current notes payable.

Bank Statements (3-6 Months) - To verify revenue and check for NSFs.