Commercial Loan Credit Score: What You Need to Know to Get Approved

When you're applying for a commercial loan credit score, a numerical rating that tells lenders how risky it is to lend you money for business or investment property. It's not the same as your personal score, but it often starts with it—especially if you're a small business owner without years of financial history. This score doesn't just decide if you get approved—it shapes your interest rate, down payment, and even how much you can borrow. If your score is below 680, most lenders will either deny you or hit you with high rates. A score above 720? You're in the sweet spot.

Commercial loan requirements, the set of conditions lenders demand before approving funding for business or real estate projects go way beyond your credit score. They look at your business’s cash flow, how long you’ve been operating, your debt-to-income ratio, and the property’s income potential. If you’re buying a retail space, they’ll check the occupancy rate and lease terms. If you’re financing a warehouse, they’ll want to see your tenant history. It’s not just about you—it’s about the asset you’re buying.

Business credit score, a separate financial rating tied to your company, not your personal finances matters more as your business grows. Once you’ve built it, lenders stop relying on your personal history. But building it takes time: you need a business EIN, a dedicated business bank account, and a track record of paying vendors and suppliers on time. Many small business owners don’t realize they’re still using their personal score until they hit a wall trying to get a larger loan.

And here’s the thing—your commercial real estate financing, the process of securing funds specifically for buying or improving income-producing property isn’t like getting a home mortgage. There are no standardized rules. One bank might want 25% down. Another might accept 15% if your tenants have long-term leases. One lender cares about your personal net worth. Another only looks at the property’s NOI (Net Operating Income). That’s why knowing your loan approval criteria, the specific factors lenders use to decide whether to fund a commercial loan is critical. Don’t just apply randomly. Know what each lender prioritizes.

You’ll find posts here that break down real cases—how someone with a 650 credit score got approved by negotiating better lease terms, how a landlord improved their business credit score by 80 points in 10 months, and why one investor was turned down despite having a 780 score because their property’s cap rate was too low. These aren’t theory pieces. They’re real stories from people who’ve been in your shoes.