Understanding the Requirements for Small Business Financing

What You Need to Know Before Applying

Securing financing can feel overwhelming, especially when navigating the requirements set by lenders. At Magenta, we believe in making the process as simple and transparent as possible. By focusing on your business’s revenue and potential, we’ve removed many of the traditional barriers, like credit score minimums.

Here’s what you need to know about the requirements for small business financing and how Magenta stands apart.

Why Credit Scores Lead to Declines

One of the most common requirements for business financing is a minimum time in business (TIB). Many lenders require at least two years, but at Magenta, we work with businesses that have at least one year of operational history. This ensures you’ve established your operations while keeping financing accessible.

Revenue Criteria

Unlike traditional lenders that focus heavily on credit scores, Magenta evaluates your business’s revenue and overall financial health. Consistent revenue demonstrates your ability to repay the financing and is a key factor in our approval process.

No Minimum Credit Score Requirements

For many small business owners, credit scores can be a barrier to financing. At Magenta, we’ve eliminated this requirement, ensuring that your credit score won’t hold you back. Instead, we assess your business’s performance, offering a more inclusive path to funding.

Fast, Flexible Process

Traditional loans can take weeks to process and require mountains of paperwork. Magenta’s process is designed with your time and needs in mind:

• Decision Typically Within an Hour: Our streamlined application ensures a quick turnaround.
• Funds as Soon as the Next Day: Once approved, you’ll have the capital you need to keep your business moving forward.

Documentation You'll Need

At Magenta, we keep the process simple and straightforward. To get started, all we need is:

• Your Recent Bank Statements: This helps us understand your revenue and cash flow.
• Our Simple Application: Complete it in just a few clicks.

Once approved, our typical closing stipulations include:

• Bank Verification: To confirm your account details.
• Voided Check: To ensure seamless funding.
• Driver’s License: For identity verification.

Why Magenta Stands Out

Unlike many lenders, we conduct thorough underwriting upfront to minimize unnecessary declines later in the process. This approach contributes to our strong approval rate, ensuring a smooth and efficient experience for our customers.

Who Qualifies for Magenta’s Revenue-Based Financing?

We work with businesses across a variety of industries, including:

• Retail and eCommerce
• Hospitality and Food Services
• Construction and Trades
• Health and Wellness
• Transportation and Logistics

If your business has been operating for at least one year and demonstrates consistent revenue, you’re likely eligible for our financing solutions.

Conclusion

Understanding the requirements for small business financing is the first step to securing the capital you need. At Magenta, we’ve simplified the process to make financing more accessible, focusing on revenue and potential rather than rigid criteria like credit scores.

Ready to get started? Apply today and experience Magenta. Invest in Possible.