A credit score is just one piece of the picture. Lenders look at your whole business — and you — before deciding whether to make a loan. Here’s some of what actually goes into that decision.
What do lenders look for beyond my credit score?
Lenders want to know they’ll be repaid, so they look at several things together: your cash flow, how much you’ve personally invested in the business, your track record of following through on commitments, the context behind any credit issues, and what collateral you can offer. No single factor makes or breaks a decision — lenders weigh them as a whole.
How much does my cash flow matter compared to my credit?
A lot. Lenders need to see that your business generates enough cash to make loan payments now and in the future — that’s often the first thing they check. Strong, steady cash flow can outweigh an imperfect credit history. A mission-driven lender like Craft3 will look at your historical cash flow and, if that’s not quite enough to cover loan repayment, will also consider your projections.
Can I get a loan with bad credit or past collections?
Yes. Credit challenges don’t automatically disqualify you. Context matters. If you have a good explanation of what happened, many lenders will factor that in. Craft3, for example, is often able to finance good businesses with credit blemishes when there’s a strong opportunity and a plausible explanation. Craft3 also understands that medical debt can be outside of one’s control.
What does “skin in the game” mean, and why does it matter?
“Skin in the game” means how much of your own time, money, or effort you’ve put into the business. Lenders see this as a sign of your commitment — if you’ve invested your own resources, you’re likely more invested in making the business succeed and repaying the loan. This can include cash you’ve put in, unpaid hours you’ve worked, or personal assets on the line.
Do I need collateral to qualify?
Not always. Some lenders can work with little to no collateral. That said, offering personal assets as collateral signals confidence in your own business, which can strengthen your case with a lender. If you don’t have much collateral to offer, a strong cash flow and clear business plan become even more important.
How much do my track record and experience matter?
Quite a bit. Lenders want to understand how your skills, experience, and temperament will help you succeed — including how you’ve handled challenges in the past. Coming to a lender conversation able to speak clearly and confidently about your business history and how you’ve navigated setbacks makes a real difference in how your application is received.
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