{"id":2304,"title":"Can You Get a Startup Business Loan With No Money?","slug":"can-you-get-a-startup-business-loan-with-no-money","lang":null,"description":"It can take time for a new business to earn revenue. And while it’s possible to get a startup business loan with no money, you’ll likely qualify for better rates and terms once your business’s finances are stronger.\n\nIf you can’t afford to wait for a small-business loan, there are some financing options available for businesses without revenue.","content":"

Business loan options for startups with no revenue

If you’re a startup — which most banks define as a business under two years old — with limited funds, you likely won’t qualify for a traditional term loan.

You may, however, be able to access these other financing solutions without money in the bank or revenue.

Microloans

Microloans are smaller loans (typically $50,000 or less). The lenders that issue them are usually nonprofits and mission-based organizations, such as community development financial institutions (CDFIs). These loans tend to be low cost and are often designed for businesses in traditionally underserved communities.

Compared with other types of business loans, microloans tend to have more flexible qualification requirements. Lenders who offer microloans may be willing to work with startups and/or businesses with no revenue.

Some lenders even specialize in it. Karla De Leon, chief lending officer for Working Solutions and Main Street Launch, two California-based CDFIs, says, “We fund pre-revenue startups all the time. … This is actually one of our specialties.”

Equipment financing

With equipment loans, the lender fronts you cash to fund up to 100% (or more) of the equipment cost.

Because the equipment serves as collateral for the loan, lenders are just as concerned with the value of the equipment as they are with your business's financial performance.

The terms of an equipment loan are based on credit (both business and personal), time in business and how well the equipment fits into your business plan. Revenue may not be as big of a factor.

Business credit cards

A business credit card can grow your credit score and help your startup qualify for more business loans in the future if you use it responsibly (which, in large part, means paying your credit card bills in full and on time every month).

Your business’s revenue can be important to credit card issuers, but many tend to care more about your personal creditworthiness. You’ll likely need good personal credit (a score of 690 or above) to qualify for most cards.

Invoice financing

Invoice financing, also known as invoice discounting, uses a business’s unpaid invoices as collateral. In exchange, invoice financing companies front you a percentage of your unpaid invoices.

Invoice financing companies are focused on the value of your invoices as well as your business’s finances. As a result, startups with limited cash flow may have an easier time qualifying for this type of funding.

Invoice factoring

Similar to invoice financing, invoice factoring also uses unpaid customer invoices to provide capital for a business. With factoring, however, a business owner sells the unpaid invoices to a third-party factoring company. The factoring company then collects payments from the business’s customers.

Like invoice financing companies, factoring companies typically focus on the creditworthiness of your customers and the age of your receivables. This can make factoring a good choice for startups with limited revenue and poor credit.

How to get a startup business loan with no money

While lenders use revenue to gauge how likely you are to repay borrowed cash, it’s not the only factor they weigh. Here are some ways to boost your odds of getting a startup loan if your business isn’t making money yet.

Show evidence that revenue is coming

Lenders may be more willing to fund a pre-revenue startup if they know revenue is on the horizon, De Leon says. Even if your business hasn’t made any money yet, you may be able to show proof of future revenue through:

Signed customer contracts.
Purchase orders.
Preorders.
Wait lists.

A detailed business plan can also help. De Leon says having one is key, since it shows lenders you’ve thought through your idea and how you’ll eventually repay borrowed funds. Your local small business development center (SBDC) can provide no-cost help developing and refining your plan.

Don’t quit your day job just yet

Having a secondary source of income is especially important for pre-revenue startups, De Leon says. “We'll be having a conversation with someone and they say, ‘All right, I'm going to quit my job and just go all in on this.’ And we say, ‘Pump the brakes. Don’t quit your job just yet.’”

Hanging onto your day job can give you another way to cover expenses (like loan payments) while you validate your business idea and work toward consistent revenue. This can help lenders feel more secure about offering money to a pre-revenue startup.

Offer collateral

Collateral is any valuable asset that a lender can use to recover its losses if you don’t repay your loan. Offering collateral like equipment, real estate or cash can improve your chances of getting approved for a startup loan, even without revenue. Offering collateral can also help you get better rates and terms.

Consider adding a co-signer

A co-signer agrees to step in and make loan payments on your behalf if you miss a payment. Adding one to your loan application can help lenders feel more comfortable about approving you, especially if your co-signer has excellent credit, large assets or both.

But consider this option carefully as co-signers are often trusted family members or friends who believe in your business. Make sure you have the ability to repay borrowed funds so you don't harm your relationships. Defaulting on the loan will affect your co-signer’s finances as well as your own.

De Leon says having a business partner can also help lenders feel better about lending cash to a pre-revenue startup, since there are more people on the loan that can pay it back.

Know a lender’s requirements

Some lenders require borrowers to have a certain amount of money in their business bank accounts before they'll even consider extending a loan. But other lenders are a little more forgiving of cash flow if borrowers have a strong personal credit history or meet other business loan requirements. Make sure you know what a lender is looking for before you apply.

Determine whether you’ll be able to repay

If you’re not confident you’ll be able to repay a loan without money in the bank, you may end up having to borrow more to pay off your existing debt, which can trap you in a debt cycle. In addition to covering your loan payments, you’ll also need to be able to cover your day-to-day expenses.

Loan payments vary based on your funding amount, interest rate and repayment term. Though you won’t know your exact numbers until your loan is approved, you can estimate your payments with our business loan calculator.

Some lenders may offer monthly payments, but startup business loans are more likely to require weekly or daily payments. If you can’t afford your potential loan payments, you might try searching for a more competitive option — or look for an alternative way to fund your business.

Consider waiting until you build revenue

If you don't need money right away, it’s probably worth waiting until you can access cheaper financing in the future.

“A lot of young businesses start up saying, ‘I need $100,000 to get my business off the ground,’” says Heidi Pickman, VP of external relations at CAMEO Network, a nonprofit organization that connects small-business owners with microlenders and other resources. A better approach, she says, is to ask what you can build with the resources you already have and grow the business from there.

Pros and cons of startup loans with no money

Pros

Getting even a small amount of startup funding can help get your business off the ground.

You keep full ownership and control of your business, unlike using equity financing.

Paying off a business loan can establish business credit, which can help you get better financing in the future.

Cons

Startup loans can come with higher rates and fees, making them an expensive form of financing.

Many require daily or weekly repayments and have much shorter repayment terms than traditional loans.

You’ll probably have to sign a personal guarantee or offer collateral.

Should you get a business loan with no money?

It depends. In certain situations, it makes sense to get a business loan without revenue. However, it’s not always the answer.

Borrowing may make sense when…

You need money to grow your business.
The loan is funding a specific need or investment that will generate revenue.
You have outside income or cash reserves to make payments initially.
You understand the costs involved and know how loan repayments will fit into your budget.

Waiting may make more sense when…

You still aren’t sure how your business will generate revenue, even with borrowed cash.
You’re borrowing mainly to cover losses.
You’re not sure if you can afford loan repayments.
You don’t really need the money.

Alternatives to getting a business loan with no money

Here are some other ways to get funding if you’re still pre-revenue:

Equity financing. Equity financing can be used to raise funds by selling shares or a stake in your business. This may be an option if you’re unable to find startup business loans with no revenue. Although you won’t incur loan debt, investors who have purchased stock will receive an ownership share in your business.
Crowdfunding. If you’ve just launched your business, you might consider crowdfunding, another zero-debt financing option that lets others invest in your idea. Not only can it help you raise capital for your business, but it may also be a way to raise awareness of your products and services.
Business grants. More established businesses with no revenue might try to qualify for small-business grants. Not every business will meet eligibility requirements — and competition can be fierce for this free money — but startup grants are available.

Frequently asked questions

Can you get a startup business loan with no revenue and bad credit?

Yes, some lenders offer business loans for bad credit to startups with limited revenue. You’ll likely need at least six months in business and a credit score of 600 to qualify.

These options, however, may have higher interest rates and shorter repayment terms.

Do you need a personal guarantee for a business loan with no revenue?

Yes. In general, most lenders require borrowers to sign a personal guarantee. If you have no revenue, you pose a greater risk to the lender, which means they’re even more likely to ask you to sign a personal guarantee.

Can you get a no credit check business loan with no revenue?

It’s very unlikely to get a no credit check business loan with no revenue. Most lenders will require a credit check at some point in the application process, even if it’s only a soft pull that doesn’t impact your credit score.

Although there are some loans available that don’t require a credit check, these are typically offered by payment processors who evaluate eligibility based on sales you make through their platform.

How do I start a business with no money?

When you have no startup money, consider launching a scaled-down version of your business or side hustle — and keep your full-time job. You’ll also want to create a basic business plan and take advantage of the free resources offered by the SBA, like advisory services from your local small business development center.

","type":"normal","status":"published","published_at":null,"rac":"Can You Get a Startup Business Loan With No Money?","keyword_set":null,"feature_media":"https://fnetstats.info/media/posts/4a33021b-4538-419a-afea-d565e89dcb7e.webp","style":null,"channel":null,"campaign_id":null,"account_id":null,"gtag":null,"ggid":null,"fbid":null,"ttid":null,"traffic_type":null,"created_at":"2026-10-01T09:23:16.000000Z","updated_at":"2026-10-02T04:41:10.000000Z"}