As stated on Wikipedia, "…according to Experian (using the Fair Isaac risk model) the average credit score is 678." Though the credit rating chart lists a 678 credit score as "good credit," many banks require borrowers to have excellent scores in order to qualify for business loans.
Liz Pulliam Weston, author of the newly updated edition of Your Credit Score: Your Money and What's at Stake, said, the troubled economy has caused the importance of credit scores to accelerate beyond her expectations, during an AP interview.
"And the line for good scores has moved up. It used to be if you had scores of 700 to 720 and up, you got pretty good rates and terms," said Weston during the interview. "It's probably moved up now to where you probably want to have a credit score of 740 or above to get the best rates and terms, sometimes 760. If you're in the 600s and below, all of a sudden you are in a world of hurt. You're having more trouble getting financing…"
Therefore, based on the average credit score, the average American would have extreme difficulties securing a traditional bank loan.
The Merchant Cash Advance Difference
Small business owners with credit scores as low as 500-550 can qualify for merchant cash advances. Even small business owners with scores of 600 or higher may be eligible for premium advances, where they are offered the lowest rates in the industry and the opportunity to choose terms of up to 12 months.
Qualified merchant cash advance applicants will process a minimum of $5,000 in monthly credit card sales, have at least one year remaining on their businesses’ leases and have no unresolved bankruptcies. Applicants must have also owned their businesses for at least six months to be eligible for a merchant cash advance.
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