$300K is the threshold where business lending gets more serious. Below $250K, online lenders and MCA funders dominate. Above $500K, banks and SBA take over. $300K sits in the middle — accessible through multiple paths, each with different qualification requirements.
The realistic bar depends on which lender you're applying to. Below is a breakdown of what each type of lender requires for $300K.
Path 1: Bank Term Loan ($300K)
Realistic bar:
- 700+ FICO (some banks 680+)
- 3+ years in business
- $1M+ annual revenue (some banks accept $500K+)
- Profitable last two tax years
- Personal financial statement showing $200K+ net worth (some collateral or net worth threshold)
- Personal guarantee from owners with 20%+ equity
- Business bank account at the same institution helps significantly
Documentation required:
- 3 years business tax returns
- 3 years personal tax returns (all 20%+ owners)
- Year-to-date P&L and balance sheet
- 3 months business bank statements
- Personal financial statement
- Business plan or use-of-funds memo for the $300K
- Articles of incorporation, EIN, business license
Cost: 8-12% APR, 5-10 year term. Timeline: 21-45 days.
Path 2: SBA 7(a) ($300K)
Realistic bar:
- 650+ FICO (some PLPs 640+)
- 2+ years in business
- Profitable on at least one of last two tax returns
- Personal financial statement showing acceptable net worth
- Personal guarantee from owners with 20%+ equity
- Adequate collateral (cash flow can substitute for some collateral)
- No prior SBA defaults
Documentation required:
- 3 years business tax returns
- 3 years personal tax returns
- Year-to-date P&L and balance sheet
- Business debt schedule
- SBA Form 1919 (Borrower Information)
- SBA Form 413 (Personal Financial Statement)
- Use-of-funds breakdown
- Resumes of owners
Cost: 11-13% APR, 7-25 year term depending on use. Timeline: 30-90 days at PLP, 60-120 at non-PLP.
Path 3: Online Term Lenders ($300K)
$300K is the upper edge of what most online lenders fund. Funding Circle, OnDeck, Bluevine, Credibly, Fundbox.
Realistic bar:
- 650+ FICO (some 600+)
- 1-2+ years in business
- $200K+ annual revenue
- Personal guarantee
Cost: 12-25% APR. Timeline: 1-7 days. Term: 1-5 years.
Online lenders are 5-10x cheaper than MCA for similar size loans, with stricter underwriting but faster timeline than bank or SBA.
Path 4: MCA / Revenue-Based Financing ($300K)
$300K MCAs are common for businesses with $200K+ monthly revenue.
Realistic bar:
- No FICO floor
- 4+ months in business (most prefer 12+ for amounts this size)
- $200K+ monthly deposits typical for $300K advance
- US business bank account
- Personal guarantee
Cost: 1.20-1.40 factor, equivalent to ~50-90% APR depending on term. Timeline: 24-72 hours. Term: 6-15 months.
Path 5: Commercial Real Estate / Equipment-Backed
If the $300K is for real estate or equipment (and you have either as collateral), specialty lenders fund at lower rates with less documentation.
Cost: 7-12% APR for collateralized loans. Timeline: 14-30 days. Term: 5-25 years.
What Lenders Actually Look At
For a $300K loan, underwriters focus on:
- Debt service coverage ratio (DSCR). Annual cash flow ÷ annual debt service. Banks want 1.25-1.50x; SBA wants 1.15+. For a 5-year $300K loan at 11% APR, annual debt service is ~$80K. DSCR of 1.25x requires $100K+ annual free cash flow.
- Loan-to-revenue ratio. Loan amount as percentage of annual revenue. Banks rarely exceed 10-15%; online lenders sometimes hit 25-40%.
- Trend in revenue. Revenue growing year-over-year is a strong positive. Flat or declining is a yellow flag.
- Personal credit. 700+ FICO opens bank doors; 650+ opens SBA; 600+ opens online; below 600 narrows to MCA.
- Industry risk. Some industries (restaurants, construction, trucking) carry higher risk and price worse despite same financials.
Realistic Path Decision
700+ FICO, 3+ years, profitable, $1M+ revenue: Bank or SBA. Best math.
650-700 FICO, 2+ years, profitable, $500K+ revenue: SBA 7(a). Best math available.
600-650 FICO, 1-2 years, $200K+ revenue: Online term lender. Faster than SBA, 5-10x cheaper than MCA.
Sub-600 FICO or under 1 year: MCA. Higher cost but available when others aren't.
Need it this week regardless of credit: MCA. Only fast option for amounts this size.
Sources & References
- Bank denial and small business credit access figures cited in this piece are derived from the Federal Reserve Small Business Credit Survey. Approval rates for small business credit applications at large banks have ranged from approximately 13%-31% across recent survey years, depending on bank category and reporting period.
- Small business finance landscape and lending program data: SBA Office of Advocacy.
- Merchant cash advance industry standards and disclosure practices: Small Business Finance Association (SBFA).
- Commercial financing disclosure regulations referenced (NY FAIR Act, CA SB 1235/666/362, VA, UT) are summarized from the published statutes; consult counsel for specific compliance application.