The credit score needed for a secured loan varies from case to case and is typically dependent upon specific requirements between lenders. As a standard, business credit scores range from 0 to 100, with higher scores indicating lower risk. A score of 50 and above is generally considered below average risk, while 80-90 is low risk, and 90-100 is very low risk.
Several factors determine your credit score, including payment history, credit utilisation, and the length of credit history. Responsible financial management and a strong credit history will contribute to a good score. Scores below 50 are seen as above average risk but may still meet our criteria.
At Nucleus, we recognise that unforeseen situations can sometimes lead businesses to face challenges. Nevertheless, we evaluate each application individually, taking into account the various factors involved in securing loans. As a result, there could be circumstances where a business owner with a high-risk or lower credit score may still qualify for financing.