Owners often hold off applying for funding because they worry about the hit to their credit. With a soft pull, there is no hit. Here is what the term means and why it matters.
Soft vs hard
A hard inquiry happens when a lender pulls your full report to make a credit decision; it appears on the report and can trim a few points. A soft inquiry retrieves the same information for review but is not visible to other lenders and does not affect the score.
Why revenue-based lenders use soft pulls
When the decision rests on bank deposits, the credit report is context, not the verdict. Affirmative Funding uses a soft pull to confirm identity and check for serious issues such as open bankruptcies, and the deposits do the rest.
What this means for you
- You can apply to see your offer without any impact on your score
- You can apply again later, after a season of growth, without a trail of inquiries
- A declined application leaves no mark
When a hard pull may happen
Some long-term products, including SBA loans and bank lines, require a hard inquiry at closing. A specialist will tell you before anything other than a soft pull is run.
What to watch for elsewhere
Brokers who send your application to many funders can trigger multiple hard inquiries from different companies. Applying with one direct lender avoids that.
Next step
See what your business qualifies for
Businesses with $20,000+ in monthly revenue and six months of history qualify. Three minutes, three bank statements, decision in minutes.