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How Hard Is It To Get A Business Loan in 2022?


Whether you’re dreaming of starting a business or you need a cash infusion, you might be wondering how hard it is to get a business loan in 2022. While these loans can be tough, they will cover common areas that might be hurting your chances.

How Hard Is It To Get A Business Loan in 2022?


As you might expect, the first thing most lenders look at is your credit score. A score of 720 seems to be the magic number. So if you have 720 or higher, then getting a loan is much easier. That being said, there are many business loans for bad credit.


According to Lantern by SoFi, “even with bad credit, you can present an in-depth business plan that outlines your strategies for success and how you plan to use the funding.” Alternative lenders might even accept lower credit scores in general, which can be helpful. In general, though, it might be best to work on your credit score before attempting to get a loan.


Cash Flow

This is another important factor that lenders consider. Cash flow is how much money you have to help pay back the loan. As you might expect, having more cash flow is better than having less. Lenders want to make sure that you have enough money to pay them back.


The ratio each lender looks for is different. Some are fine with an equal ratio or having the same cash flow as what you are lending. Most prefer a higher ratio of $1.35 for every dollar that you borrow. This shows that you have a cash buffer in case things go wrong.


Business Plan

Having a solid business plan doesn’t just help you succeed in business. This can also help you secure a better business loan. While some lenders want to see a whole pitch, others just want to make sure that you know what you’re doing.


You might think that it’s smarter to ask for a specific about of money, such as $100,000. It is often better to break it down so that the lender knows where the money is going. For example, you can show how much is needed for advertising, hiring new employees, getting inventory and so on. Lenders often feel more confident if they know that you have a plan for the money.


Loan Applications

Some people like making many loan applications simultaneously, allowing you to pick from the best one. The problem with that is that lenders will be able to see all these applications. So instead of competing with each other, the more common scenario is that they will see you as desperate for money. This will make them feel uneasy about offering you money.


It’s often best to choose just one or two top lenders before starting your application. This gives you a better chance of succeeding.


Securing a business loan in 2022 can be tough, but it’s far from impossible. While having good credit and cash flow is ideal, there are options for securing a loan even if your credit is poor.


Rinku Malik is a regular contributor at and, He is a digital marketer, passionate with his work, and likes to serve the services of SEO, WordPress website management, and Social media marketing.