# Startup Business Financing: Options for Businesses Under Two Years Old and How to Qualify

Startup funding is what providers in our network consider for businesses under two years: equipment financing, small advances, personal-credit products. Amounts sit at the small end of $10K to $10M, depending on the funding provider. Cost is an interest rate, lease rate or factor rate. Some providers give same-day decisions, subject to provider approval and document turnaround.

[See your financing options](https://capitalgurus.com/apply/) · [(725) 425-4307](tel:+17254254307)

Soft credit pull only, no obligation.

- Same-day decisions from some providers. Subject to provider approval and document turnaround.
- 700+ industries served

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. Which products a young business is offered, and on what terms, is decided by the funding provider that reviews the file.

## In this section

- [Compare all financing options](https://capitalgurus.com/loans-and-financing/)

## At a glance

- **Typical amount**: Smaller than at the standard minimums, depending on the funding provider
- **Speed**: same-day decisions from some providers, subject to provider approval and document turnaround
- **Minimum time in business**: 12 months standard; some providers go younger
- **Minimum monthly revenue**: $15,000, considered by some providers
- **Credit considered from**: 525, considered by some providers
- **Collateral**: Usually none; equipment secures equipment financing. A personal guarantee is commonly required
- **Cost expressed as**: An interest rate, a lease rate, or a factor rate on an advance
- **Structure**: A loan, a lease, or a purchase of future receivables

**No single price fits: there is no single product.** Some providers consider applications at these minimums. Meeting a minimum does not guarantee an offer.

## How startup funding works

**Definition** There is no product called a "startup loan". Startup funding is shorthand for the products a funding provider will consider for a business too young, or too small, for its usual guidelines. The provider decides, and its agreement sets the cost and the terms.

### What counts as a startup to a funding provider?

Age and deposits. Some providers in our network take businesses under 12 months old, with smaller amounts and shorter terms.

Providers also measure age differently: some from the date the entity was registered, some from the first deposits in the business bank account. On a young file, the months between those dates are the whole question. [What providers ask for in an application](https://capitalgurus.com/guides/business-loan-requirements/) sets out the rest of the checklist.

### What can a business with no revenue at all get?

Very little of what the rest of this site covers, and it is better to read that plainly than to find it out after four applications.

With no receivables there is nothing to purchase, so no advance or [revenue-based financing](https://capitalgurus.com/blog/what-is-revenue-based-financing/); a [business line of credit](https://capitalgurus.com/loans-and-financing/line-of-credit/) and a [business term loan](https://capitalgurus.com/loans-and-financing/term-loans/) rest on revenue history. What is left:

- **[Equipment financing](https://capitalgurus.com/loans-and-financing/equipment-financing/)**, where the asset carries part of the risk.
- **A product underwritten on the owner's personal credit.**
- **SBA microloans through participating lenders.** Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders.

[Startup funding with no revenue yet](https://capitalgurus.com/solutions/startup-no-revenue/) takes that case further.

### How much does the owner's personal credit matter?

More than on any other kind of file: there is less business history beside it to read.

[Business credit versus personal credit](https://capitalgurus.com/blog/business-credit-vs-personal-credit/) explains how the two are read together; [how to get a business loan with bad credit](https://capitalgurus.com/guides/business-loan-with-bad-credit/) covers weaker profiles.

### What do the business bank deposits show?

Everything a provider cannot get from a short trading history.

Providers read how many deposits there are, whether they repeat, whether the account goes negative, and whether the money moves through a business account rather than the owner's personal one.

### How do you build the file so that year two is easier?

Use one business account, keep it positive, and open a business credit file.

[How to open a business credit file](https://capitalgurus.com/blog/how-to-open-a-business-credit-file/) walks through it; [what working capital is](https://capitalgurus.com/guides/what-is-working-capital/) shows how an underwriter reads your statements.

[Estimate a payment](https://capitalgurus.com/calculators/business-loan-calculator/): Put the amount, term and cost from a loan offer into the business loan calculator and see the total you would repay.

## How much a young business can get

A young file is funded at the small end of whichever range applies, depending on the funding provider.

The amount offered follows:

- Your deposits
- Time in business
- The owner's credit
- What the money is for
- Your industry

### Now, or at the standard minimums?

- **Before the minimums**: Smaller amounts and shorter terms, at the harder end.
- **At the minimums**: The main products and larger amounts.

[How much a business can borrow](https://capitalgurus.com/guides/business-loan-amounts/) covers how providers size a request.

### Two habits matter more than the size of the deposits

- Keep business income in a business account from the first dollar.
- Keep the account out of overdraft: regular deposits beat one strong month.

Decisions from some providers the same day, depending on the provider.

Subject to provider approval and document turnaround.

[Get my options](https://capitalgurus.com/apply/) · [(725) 425-4307](tel:+17254254307)

## What startup funding costs

Cost depends on the product the provider offers — often a small advance, equipment financing or a product based on the owner's personal credit — and it is disclosed by that provider in the agreement you sign.

- **Equipment financing**: An interest rate, or a lease rate on a lease, plus any documentation, lien or titling fee. (The equipment secures it)
- **An advance**: A factor rate, not an interest rate, set in your agreement. See the [merchant cash advance](https://capitalgurus.com/loans-and-financing/merchant-cash-advance/) page. (Not a loan)
- **A loan or a line**: An interest rate or a fixed cost of funds, plus any origination fee the provider charges. (Opens up as the file ages)

What a short history changes, depending on the funding provider:

- The harder end of the range
- Smaller amounts
- Shorter terms

Compare that against waiting for a fuller file.

The three vocabularies **are not interchangeable**: compare what each offer asks of the business.

[Compare the products](https://capitalgurus.com/loans-and-financing/startup-funding/#routes)

### Payment example: the same need, two shapes

- **Equipment financing of $20,000:** an interest rate plus any fees, a fixed monthly payment, secured by the equipment.
- **A small advance of $20,000:** a $27,000 payback amount, collected by daily or weekly remittance from the deposits.

Illustrative example, not an offer. A merchant cash advance is not a loan and carries no interest; any annualized figure is shown for comparison only.

## Who qualifies for startup funding

- **12 mo** time in business
- **$15K** monthly revenue
- **525** credit score

Plus three months of bank statements and a government ID. Some providers work with businesses younger than the time-in-business minimum.

Some providers consider applications at these minimums. Meeting a minimum does not guarantee an offer.

### If you do not fit

Three routes are worth reading before you apply.

- No tax returns or financial statements? [low-doc business financing](https://capitalgurus.com/solutions/no-doc/)
- No asset to pledge? [unsecured business financing](https://capitalgurus.com/solutions/unsecured/)
- Credit under 525? [business financing with bad credit](https://capitalgurus.com/solutions/bad-credit/)

[How to get a startup business loan](https://capitalgurus.com/guides/how-to-get-a-startup-business-loan/) walks through the same decision at more length.

### What strengthens a young file

In roughly the order providers weigh it.

- **Deposits in a business account.**
- **Clean personal credit.**
- **No negative days or overdrafts.**
- **Matching entity details.** Name, address and EIN consistent everywhere.
- **A specific use of funds.** "A second van for a signed contract", not "working capital".
- **An industry the provider accepts.** One provider's restriction is routine for another.

## How to apply for startup funding

We check your options with a soft credit pull only, so looking does not change your score.

### What you'll send

- Three months of bank statements — If the business is younger, every month it has
- A government ID

Bank and SBA lending also ask for

- A business plan

[See your financing options](https://capitalgurus.com/apply/)

### Worth knowing before you sign

A personal guarantee is commonly required on products for new businesses: [personal guarantees explained](https://capitalgurus.com/blog/personal-guarantees-explained/). To read an offer with a specialist, [talk to a funding advisor](https://capitalgurus.com/contacts/).

1. **Apply once** (About 5 minutes): One file reaches the providers whose guidelines fit your age, revenue and industry.
2. **Send your statements**: Complete months, all pages, no screenshots.
3. **Review the file** (Same-day decisions from some providers): A specialist confirms the amount, the use of funds and which products fit. Depending on the funding provider, subject to provider approval and document turnaround.
4. **Compare the offers and sign**: You sign with the provider you choose, and that provider funds your account.

## When startup funding is the right tool, and when it is not

It fits a specific, small, near-term need that produces revenue.

| Ask yourself | Good use | Not for |
| --- | --- | --- |
| Is the need concrete? | **A van, a second set of tools or the first inventory run.** | **Funding an idea.** No provider treats a projection as deposits. |
| Will the money start earning quickly? | **The insurance and licenses for a contract already signed.** | **Covering an operating loss.** It makes a gap that is not closing worse. |
| Is it urgent? | **The deposit on a lease you have already costed.** | **A long, planned build-out.** Waiting for the standard minimums usually buys a longer term and a lower cost. Wait for: [business term loan](https://capitalgurus.com/loans-and-financing/term-loans/) |

### Better fit elsewhere

- One specific machine or vehicle: Use instead [Equipment financing for startups](https://capitalgurus.com/loans-and-financing/equipment-financing/startups/), structures for short histories
- No revenue yet: Use instead [Startup funding with no revenue yet](https://capitalgurus.com/solutions/startup-no-revenue/), what is realistic before the first sale
- Sales flowing, uneven week to week: Use instead [Revenue-based financing](https://capitalgurus.com/loans-and-financing/merchant-cash-advance/revenue-based/), remittance follows sales

A merchant cash advance is not a loan: it is priced with a factor rate rather than an interest rate and has no maturity date.

- [Types of business loans](https://capitalgurus.com/guides/types-of-business-loans/)

## Statements, a connected account or an SBA microloan

Three routes reach a young business.

### A provider reading your statements

Same-day decisions from some providers

Decides on deposits, the owner's credit and the use of funds, subject to provider approval and document turnaround.

### The small-ticket route

Same-day decisions from some providers

Connect the bank account, not documents: small amounts, subject to provider approval and document turnaround. Not in every state.

### An SBA microloan

Several weeks to a few months

Small amounts, with a business plan. Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders.

Whichever route fits, the provider decides.

### Comparing the products a new business can reach

| Compare | [Equipment financing](https://capitalgurus.com/loans-and-financing/equipment-financing/) | [A small advance](https://capitalgurus.com/loans-and-financing/merchant-cash-advance/) | [Line of credit](https://capitalgurus.com/loans-and-financing/line-of-credit/) | [Term loan](https://capitalgurus.com/loans-and-financing/term-loans/) |
| --- | --- | --- | --- | --- |
| Typical amount | Up to $500K on the application alone | $10K–$500K | $10K–$5M | $10K–$10M |
| Cost expressed as | An interest rate or lease rate, plus fees | A factor rate, not an interest rate | A rate or fixed cost of funds, plus any draw fee | An interest rate or fixed cost of funds, plus any origination fee |
| Typical speed | Same-day decisions from some providers | Same-day decisions from some providers | Slower to open | Larger amounts take longer |
| Realistic before year two | Often: the asset carries part of the risk | Sometimes, once there are deposits | Rarely | Rarely |
| Best for | A specific piece of equipment | A short, revenue-generating need | A recurring gap, later | A costed project, later |

Depending on the funding provider. Network ranges, not offers; a young file is offered the small end. Speeds are subject to provider approval and document turnaround.

[Types of business loans](https://capitalgurus.com/guides/types-of-business-loans/)

## Related financing

- [equipment financing](https://capitalgurus.com/loans-and-financing/equipment-financing/): Let the equipment pay for itself over its working life.
- [business line of credit](https://capitalgurus.com/loans-and-financing/line-of-credit/): Standby capital you draw only when you need it, then draw again.
- [working capital financing](https://capitalgurus.com/loans-and-financing/working-capital/): Cash for payroll, stock and the gaps between deposits and bills.

## Startup funding by industry

The first ticket tends to be one asset.

- [Cleaning & Janitorial Services](https://capitalgurus.com/industries/cleaning/): Equipment, supplies and the insurance a first contract requires.
- [Landscaping & Lawn Care](https://capitalgurus.com/industries/landscaping/): Mowers, a trailer, a truck; seasonal deposits, read carefully.
- [Beauty Salons, Spas & Barbershops](https://capitalgurus.com/industries/salons/): Chairs, equipment and a build-out.
- [Daycare & Childcare](https://capitalgurus.com/industries/daycare/): Licensing, fit-out and the gap to a full roster.

Also [e-commerce](https://capitalgurus.com/industries/ecommerce/) and [auto repair](https://capitalgurus.com/industries/auto-repair/). Capital Gurus works with businesses in over 700 industries.

[All industries](https://capitalgurus.com/industries/)

## Can a new LLC or a business with only an EIN get funding?

Yes, and the entity type is rarely what decides it. Providers work with LLCs, corporations and sole proprietors. An EIN on its own is not enough: the provider verifies the owner, reviews personal credit, and wants a business bank account with activity in it.

[Can you get a business loan with your EIN number](https://capitalgurus.com/blog/business-loan-with-ein/)

## Keep reading

### Guides

- [how to get a startup business loan](https://capitalgurus.com/guides/how-to-get-a-startup-business-loan/)
- [writing a business plan for a loan](https://capitalgurus.com/guides/business-plan-for-a-loan/)
- [how to build business credit](https://capitalgurus.com/guides/how-to-build-business-credit/)

### From the blog

- [Can You Get a Business Loan with Your EIN Number](https://capitalgurus.com/blog/business-loan-with-ein/)
- [Can I Get a Business Loan Without a Business?](https://capitalgurus.com/blog/business-loan-without-a-business/)
- [Do You Really Need Money in the Bank to Secure a Business Loan?](https://capitalgurus.com/blog/business-loan-with-no-income/)

[Startup Funding](https://capitalgurus.com/blog/category/startup-funding/)

## Startup funding questions

### Can a new LLC get a business loan?

Sometimes, but not for most standard products, which ask for 12 months in business and $15,000 in monthly revenue. For a newer LLC, providers in our network look at the owner's personal credit and at whatever deposits are already flowing through the business bank account. Equipment financing and small advances fit first; larger term loans and lines of credit open up as the file ages.

### How long does a business have to be open before a provider will look at it?

Most providers in our network ask for 12 months. Some work with businesses younger than that, with smaller amounts and shorter terms. Providers also count the time differently: some from the date the entity was registered, some from the first deposits in the business bank account. Ask which one applies before you apply, because it can change the answer by months.

### Can I get funding with no revenue yet?

Not from most of the products on this site. An advance is a purchase of future receivables, so with no receivables there is nothing to purchase, and lines of credit and term loans both rest on revenue history. What is left is equipment financing secured by the asset, a product underwritten on the owner's personal credit, and sources that are not financing at all.

### Does my personal credit matter more than my business credit?

On a young file, yes. A business under two years old has little business credit history to read, so the owner's personal credit does more of the work. Some providers in our network consider credit from 525, and weaker credit generally means a smaller amount and a shorter term rather than no option at all. Meeting a minimum does not guarantee an offer.

### Do I need a business plan?

For most products in our network, no: providers decide on bank statements, deposits and credit. A plan is usually required for bank lending and for SBA loans, and it helps on equipment financing, where the provider wants the use of the asset to make sense. Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders. Write one anyway if you intend to raise from a bank.

### Will checking my options hurt my credit score?

Checking your options through Capital Gurus uses a soft credit pull only, which does not change your score. On a young file the owner's personal credit carries much of the decision, so it helps to know where it stands before you apply. Each provider makes its own decision.

### How much should a new business ask for?

Ask for what the next step actually needs, not the largest amount you might be offered. A young file is funded at the small end, and a request that does not match the deposits in the account is a common reason a provider reduces or declines it. Tie the number to one thing: a van, a tool set, the first inventory run.

### What changes once my business reaches the standard minimums?

The product list changes. At 12 months in business and $15,000 a month, providers in our network consider the main products rather than the small-ticket ones, and the amounts are larger. Across all products the network considers $10K to $10M, depending on the funding provider. Cost usually improves too, but that is the provider's decision.

Still have a question? [talk to a funding advisor](https://capitalgurus.com/contacts/)

## Take the first step: see which startup funding options fit your business.

[Apply now](https://capitalgurus.com/apply/) · Call [(725) 425-4307](tel:+17254254307)

About 5 minutes, soft credit pull only. [talk to a funding advisor](https://capitalgurus.com/contacts/)

By the Capital Gurus Editorial Team · Reviewed by Joseph Wartz · [Editorial policy](https://capitalgurus.com/editorial-policy/)

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Source: https://capitalgurus.com/loans-and-financing/startup-funding/ · Last reviewed 2026-10-28 · Capital Gurus is not a lender.