There are multiple credit criteria in banks’ credit assessment and underwriting. These are not made public and differs from each bank. Common factors that banks evaluate on include: Age of business: At least 6 months to 1 year old but most banks will prefer minimum 2 to 3 years. Business industry: Different banks might have different outlook on the same industry. The industry you are in could be deemed favorable to some banks, but might be classified as high risk to other banks. Sales revenue turnover: Most banks require applicants to have at least a bare minimum annual revenue of $200K. However, many banks do set a higher benchmark and common minimum revenue requirement could be up to $700K to $1M per year for some banks. Bank statements: Almost all banks will assess the latest 6 months operating bank statements of applicant company. Figures that are taken into consideration include average daily balances maintained, month end balances, any excess or overdrawn account due to insufficient funds, total crediting amount per month and cash flow volatility. In general, the higher the better for average cash floats maintained and total crediting amount. Most banks typically require a minimum of $10K average daily balances maintained in the latest 6 months bank statements. Credit score: The business owner’s personal credit score is a critical component in banks’ credit evaluation. Most banks will not be able to finance companies where the keyman has a credit bureau score of HH, the worst grade. Past adverse defaults, recent discharged bankruptcies and multiple late payment records on current personal credit facilities are all flagged out as rejection causes. Financial performance: Financial figures that are commonly assessed include profitability, net profit margin, gearing ratio, inventory cycle and working capital cash flow. Most banks will require the business to be profitable and with positive equity in the last financial year.