How to Get a Startup Business Loan With No Money or Revenue: 7 Realistic Options
Work out what the money must buy, then match it to what a young file can reach.
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The process in order, from the first figure to year two
Every option for a young business is on startup business funding; with no deposits yet, start at startup funding with no revenue yet.
- Under 12 months: smaller amounts and shorter terms, with some providers
- The owner's credit carries more weight
- Compare offers on total repaid
Rates, factor rates, fees and terms are set by the funding provider that makes your offer and are disclosed in that provider's agreement. Figures on this page are illustrative ranges from providers in our network, not offers. Some providers consider applications at these minimums. Meeting a minimum does not guarantee an offer. Funding times depend on the funding provider and are subject to provider approval and document turnaround. Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders. A home equity line of credit is issued by a third-party lender; Capital Gurus only refers.
Step 1. Work out what the money has to buy
A new business has little history for a provider to read, so the request itself carries more of the file than it would for an established one.
Line 1
The amount
Reached by adding up costs, not by rounding up. Borrowing more than the plan needs adds cost and makes the request harder to place.
Line 2
The purpose
Specific enough to name a supplier, a machine or a first inventory run.
Money to get started — a request a provider cannot follow
The van the first contract needs — one it can assess
Line 3Most skipped
The payment you can carry
Tested against conservative projections, or your weakest month of deposits once there are some.
Run it yourself first · business loan calculator
Step 2. Check where your file sits against the minimums
To a funding provider, a startup is a matter of age and deposits, not the word on your business cards.
| standard time in business | 12 mo |
|---|---|
| standard monthly revenue | $15K |
| credit considered from | 525 |
| bank statements plus a government ID | 3 mo |
Some providers consider applications at these minimums. Meeting a minimum does not guarantee an offer. Bank statements: four in CA, NY, FL and GA with some providers.
Younger than the minimum
Some providers take younger businesses, for smaller amounts and shorter terms, depending on the funding provider.
No deposits yet
No receivables means no advance or revenue-based financing; equipment financing and owner-credit products remain.
Ask whether a provider counts age from registration or from the first deposits.
Bank and SBA loans want a business plan with projections, filed returns, your own money in the business, and several weeks to a few months, subject to provider approval and document turnaround; check it against your opening date. Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders.
Decisions from some providers the same day, depending on the provider. Subject to provider approval and document turnaround.
Step 3. Match the money to one of seven realistic options
Product follows purpose and the file you have. An option you cannot get is not an option, however little it costs.
| Your situation | The option that usually fits | What it rests on |
|---|---|---|
| You need a specific machine or vehicle | Equipment financing for startups, where the asset secures the deal | A vendor quote and the owner's credit |
| Card or bank deposits are already coming in | A business cash advance, a purchase of future receivables rather than a loan, priced with a factor rate | The deposits in the business account |
| Recurring gaps you cannot put a date on | A line of credit for a new business, usually a small first limit | Deposits and the owner's credit |
| No revenue yet, but a strong personal credit file | A product underwritten on the owner's personal credit, which the owner repays personally | The owner's credit and income |
| A full plan and time before you need the money | An SBA loan or an SBA microloan up to $50,000, from participating lenders | A full package, then the lender's review |
| The owner has equity in a home | A home equity line of credit, consumer credit secured by your home, issued by a third-party lender; Capital Gurus only refers | The lender's own review |
| You would rather not take on debt yet | Savings, a partner, a customer deposit, supplier terms or private investors | Your own resources, or a share of the business |
You need a specific machine or vehicle
Equipment financing for startups, where the asset secures the deal
Rests on: A vendor quote and the owner's credit
Card or bank deposits are already coming in
A business cash advance, a purchase of future receivables rather than a loan, priced with a factor rate
Rests on: The deposits in the business account
Recurring gaps you cannot put a date on
A line of credit for a new business, usually a small first limit
Rests on: Deposits and the owner's credit
No revenue yet, but a strong personal credit file
A product underwritten on the owner's personal credit, which the owner repays personally
Rests on: The owner's credit and income
A full plan and time before you need the money
An SBA loan or an SBA microloan up to $50,000, from participating lenders
Rests on: A full package, then the lender's review
The owner has equity in a home
A home equity line of credit, consumer credit secured by your home, issued by a third-party lender; Capital Gurus only refers
Rests on: The lender's own review
You would rather not take on debt yet
Savings, a partner, a customer deposit, supplier terms or private investors
Rests on: Your own resources, or a share of the business
Amounts, costs and terms depend on the funding provider and are disclosed in that provider's agreement, or for a home equity line, in the lender's. Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders.
Why it matters
Choosing the provider first is how a business with an equipment problem ends up with an advance remitting against thin deposits. The purpose narrows the list; the file narrows it again.
Step 4. Get your personal credit ready
On a young file the owner's credit carries more of the decision, because there is little business history to read beside it.
- 1
Pull your reports and dispute what is wrong
An error corrected before you apply is worth more than an explanation after.
- 2
Pay down revolving balances
Utilisation on personal cards is among the fastest-moving parts of a score you control.
- 3
Pay every bill on time
Payment history is what a provider reads first on a file with no business track record.
- 4
Hold off on new credit just before you apply
A new card or account opened the month before reads as fresh borrowing.
Some providers consider credit from 525, depending on the funding provider, and meeting a minimum does not guarantee an offer. Financing underwritten on the owner is financing the owner repays: a personal guarantee is commonly required, and business borrowing on personal credit can appear on your personal file.
Step 5. Build the bank file a provider will read
Providers are not waiting for a profit. They are waiting for deposits they can read.
What the statements should show
- Deposits that repeat
- No negative days
- Revenue in the business account, not a personal one
Match the records
Your legal name, address and EIN should match across the application, bank account and state registration, or the file stalls at verification.
Do not mix accounts
Sales paid into a personal account are invisible in the business statements, so the file looks thinner than the business is.
In parallel, open a business credit file so the bureaus have something to report against. It will not decide this application, but it makes the next one easier.
Step 6. Gather the documents before you apply
Underwriters stop when something does not reconcile, and on a young file every stop is a round trip.
Most bank-statement files
- Three months of bank statements (four in CA, NY, FL and GA with some providers)
- ID and a voided business check
Also asked for
- The statements even if the months are thin
- A vendor quote, if the money is for equipment
Bank and SBA loans add
- A business plan with projections
- Personal and business tax returns
- Financial statements or opening figures
Also asked for
- Keep the projections conservative, and set out the use of funds
- Entity documents, licences and permits
Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders.
Step 7. Apply once, not everywhere
The usual advice to approach several lenders costs a young file more than it costs anyone else.
Applying separately
- Each provider may run its own credit check
- A run of inquiries on a thin file reads as distress
- Each lender asks for the same documents again
One file to a network
- One short application, with a soft credit pull only
- Presented to the providers whose guidelines fit a young business
- 1file
- 1soft pull
- Severalsets of guidelines
Each provider sets its own guidelines and makes its own credit decision.
Step 8. Read the offer on total cost, not on the rate
A young business is often offered less than it asked for, on a shorter schedule. Read every offer in the same order.
- 1
The amount that arrives
It differs from the amount offered whenever a fee is deducted at funding.
- 2
The total repaid in dollars (the payback, on an advance)
The only figure that compares across offers and across structures.
- 3
The payment (the remittance, on an advance) and how often it is taken
Convert a daily or weekly debit into a monthly figure before comparing anything.
- 4
What is pledged, and who signs the personal guarantee
And what the agreement counts as default.
A business in its first year buying a work truck, with two offers on the same invoice.
Illustrative example, not an offer.
With a down payment
- Truck invoice
- $60,000
- Paid at signing
- $6,000
- Financed
- $54,000
- Schedule
- 48 monthly
- Total repaid to the provider
- $68,256
Nothing down
- Truck invoice
- $60,000
- Paid at signing
- Nothing
- Financed
- $60,000 (less favourable)
- Schedule
- 48 monthly
- Total repaid to the provider
- $80,160 (less favourable)
The real question: can the business spare the down payment in its first months, and is the lower total worth it? The down payment is paid on top of the total repaid, and the provider sets the terms of both offers.
Step 9. Use the first financing to reach year two
The first financing is also the next application. What the second file rests on is mostly in your hands.
Pay as agreed
Pay every remittance on time, including the weeks when it is inconvenient.
Do not stack
A second position taken while a first is still remitting can make a serviceable payment unserviceable.
Depending on your funding provider and repayment history, you may become eligible to apply for renewal or additional funding once a substantial portion of your current balance is paid down. If you need more, ask the current provider about a renewal or consolidation first.
What costs a young file: A round number with no arithmetic behind it
What to do instead Add up the costs, then ask for that number
Step 1What costs a young file: Projections that assume the best month every month
What to do instead Conservative figures, with the assumptions written down
Step 1What costs a young file: Assuming every product is open to a new business
What to do instead Match the purpose to what the file can reach
Step 3What costs a young file: New credit opened the month before applying
What to do instead Hold it until the financing is in place
Step 4What costs a young file: Sales collected into a personal account
What to do instead Route every dollar through the business account
Step 5What costs a young file: Applying in several places at once
What to do instead One file, one soft pull, several sets of guidelines
Step 7
Each provider sets its own guidelines and makes its own credit decision.
Key takeaways
- 1
Start with what the money has to buy, and ask for the amount the costs add up to.
- 2
To a provider, a startup is a matter of age and deposits.
- 3
With no revenue yet, equipment financing and products underwritten on the owner's credit are the options that remain.
- 4
The owner's personal credit carries more weight on a young file, so get it ready first.
- 5
Route every dollar through a business account and keep it positive.
- 6
Apply once, and compare offers on the total repaid in dollars.
- 7
Pay the first financing as agreed; it is the next application.
Frequently asked questions
In short
To get a startup business loan, work out what the money must buy, then match it to what your file can reach. Some providers in Capital Gurus' network consider businesses younger than 12 months, for smaller amounts and shorter terms. With no revenue yet, equipment financing and products underwritten on the owner's credit remain. No minimum guarantees an offer.
Can a newly started business get a loan?
Often, though not every kind. Some providers in Capital Gurus' network consider businesses younger than 12 months, for smaller amounts and shorter terms, with the owner's personal credit carrying more of the decision. Equipment financing, a small advance once deposits exist and a startup line of credit are the usual routes. Meeting a minimum does not guarantee an offer; the provider decides.
Can a brand new business get a small business loan?
Sometimes, on a slower timetable. SBA microloans of up to $50,000 are made through participating intermediaries, and SBA loans through participating lenders that want a business plan, projections and the owner's own money in the business; both take longer than online options. Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders. Equipment financing, secured by the asset, is the other common route for a business with no history.
What are the requirements to get a loan to start a business?
Some providers consider 12 months in business, $15,000 a month and credit from 525; meeting a minimum does not guarantee an offer. Under those lines, providers read the owner's personal credit, any deposits, the use of funds and three months of bank statements. Bank and SBA loans add a business plan, projections and filed tax returns.
How hard is it to get a small business loan to start a business?
Harder than for an established business: fewer products, smaller amounts, shorter terms and a higher cost, because there is little history to read. With no revenue at all, the list narrows to equipment financing and products underwritten on the owner's credit. A specific purpose, a clean personal credit file and a business account with deposits in it make the most difference.
How to get a loan with no credit?
With no credit history at all, a provider has little to read, so the options are narrow. Equipment financing, where the asset secures the deal, is the likeliest; collateral or a creditworthy co-owner can also help. Building a file first widens the list more than reapplying does: a secured card paid on time, and a business credit file opened beside it.
Can I get a loan with bad credit?
Sometimes. Some providers in Capital Gurus' network consider credit from 525, depending on the funding provider, and weigh bank deposits more heavily than the score; meeting a minimum does not guarantee an offer. On a new business with little revenue, a weak score narrows the options further. How to get a business loan with bad credit sets out what a lower score changes.
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