Bank Ratings chart

Your business must have at least one bank reference.  In the perfect world, your bank account should have at least a two-year track record, but more importantly, your account should maintain an average balance of at least $7000 for at least the most recent 3 months. Most lenders make credit decisions based on your ability to make installment payments so; obviously, your account’s average daily minimum balance should be higher than the monthly installment payment on a desired loan.

Bank Ratings are categorized as follows:

Bank Rating                                                                             Average Account Balance
Low 4                                                                                      $1,000 - $3,999
Mid 4                                                                                       $4,000 - $6,999
High 4                                                                                      $7,000 - $9,999
Low 5                                                                                      $10,000 - $39,999
Mid 5                                                                                       $40,000 - $69,999
High 5                                                                                      $70,000 - $99,999
Low 6                                                                                      $100,000 - $399,999

According to the chart above, if your loan request involves a monthly installment payment of $2,000, banks will want to see a bank rating on your account in the “low 5” category.  Banks want to see that you have more than enough in your account to cover any installment payment. Experts suggest that a “low 5” rating is the magic number for substantial loan approvals, therefore, it is best to keep an average balance at or above $10,000, but at least above $7,500.