Money & Financing
What credit score do I need?
For SBA acquisition loans, plan on 680+; some lenders go lower.
Practical Explanation
Most SBA preferred lenders look for a personal FICO of 680 or higher, with no recent bankruptcies or charge-offs. Seller-financed deals are more flexible — the seller decides. Strong cash flow in the target business can sometimes offset a weaker credit profile.
Real-World Example
A buyer with a 705 FICO and 10% down is approved for an SBA 7(a) loan in 75 days.
Typical cash required
Not directly related — but lower scores often mean higher down payment.
Experience required
Not directly related.
Advantages
- ✓Predictable benchmark
- ✓Improvable over 6–12 months if needed
Risks
- !Below 650 limits SBA options significantly
- !Hard pulls on credit during shopping
Frequently Asked Questions
What if my score is 620?
Look at seller-financed deals or partner with someone whose credit qualifies for the bank loan.
Related guides
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