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Can You Get Startup Business Loans with No Money?

Katie Ziraldo
Written by Katie Ziraldo
Laura Roden
Written by Laura Roden
Dawn Daniels
Edited by Dawn Daniels
Updated on:
January 28, 2025
Content was accurate at the time of publication.
We are committed to providing accurate content that helps you make informed money decisions. Our partners have not commissioned or endorsed this content. Read our editorial guidelines here.

While some lenders offer startup business loans with no revenue, profits, cash flow or assets required, these loans might come at a higher price and have fewer options. If you can afford to wait until your business is more established with a solid cash flow, you can likely secure lower interest rates and better terms.

Funding options for startups with no revenue

If you’re a newly established business without a proper cash flow, you might struggle to qualify for a traditional business or SBA loan. Fortunately, there are other startup business financing options you can explore. Just keep in mind that even if the business lender doesn’t require your business to generate much revenue, you still need a plan to repay the loan.

Equipment financing

If you need to purchase expensive equipment for your business, equipment financing might be an option for companies with no revenue. 

Because the equipment acts as collateral to secure the loan, reducing the lender’s risk, some companies are willing to lend to startups. Equipment leasing may also be an option for newer businesses. For both options, though, lenders will often have a minimum credit score, especially if they lend to startups.

Microloans

Microloans are loans of up to $50,000 that can help startups tackle small funding needs. Because they are geared toward startup businesses, they may not have revenue requirements to apply. Microloans are available from the SBA, as well as other government, nonprofit and peer-to-peer agencies.

Small business credit cards

Business credit cards function like personal credit cards, allowing you to borrow up to a predetermined credit limit. Some may have valuable perks for startups, such as cash back that you can use for office supplies, travel or other business purchases.

Eligibility for business credit cards is usually based on your credit score and future revenue, and you may need to apply for an EIN if you don’t already have one. To avoid interest charges, pay your balance in full each month.

Accounts receivable financing

Accounts receivable financing allows you to use your unpaid invoices as collateral to secure a small business loan — often between 70% and 80% of the invoice amount. Since these lenders focus on the value of your invoices as opposed to your business history, cash flow and credit score, startups might have better luck qualifying for accounts receivable financing than with traditional financing.

But while this can help if you don’t have any revenue yet because none of your invoices have been paid, it won’t help if you’re a brand-new company without any clients to bill.

How to get a startup business loan with no revenue

If you have limited revenue and can’t provide adequate collateral, you’ll need to prove your creditworthiness in other ways. Here are some basic steps to apply for a small business loan without money.

  • Know your cashflow and assets
    Lenders want to understand where the money for loan repayment will come from. You can get ready to explain this by creating a budget for future cash flows and assets. You can also supply a business plan outlining how you plan to spend the funds.
  • Get your documents together
    While small business loan requirements vary based on the lender and loan type, lenders typically evaluate the following criteria before when reviewing a business loan application:
    • Personal credit score
    • Business credit history 
    • Available collateral (not required for unsecured business funding)
    • Capacity to repay from future revenues or savings
    • Length of time in business

      Have information on yourself and your business ready to go to help save time when filling out funding applications.
  • Calculate what you can afford to repay
    Loan payments are based on the loan amount, business loan interest rate, repayment frequency and total time to repay the debt. Try your best to crunch the numbers in advance to ensure you have enough to cover essential startup costs while also staying within your budget. If your estimated payment is more than you can afford, try finding a lender offering a rate and repayment term that fits your needs.
  • Compare lenders
    Once you have your paperwork ready to go, you understand your cashflow, assets and budget and you’re prepared to sign, you’ll want to compare lenders to get the best deal. You can approach lenders individually or you can use a marketplace like LendingTree to compare offers from multiple lenders.

Should you get a business loan with no money? 

While you can typically access a broader range of loan options with a more robust income stream, here are some scenarios where it could be worth considering small business financing with no revenue. 

You’re trying to get your business off the ground

Most businesses need some money to open their doors — for rent, inventory, equipment, payroll services and other operational expenses before you generate sales. If you foresee a short timeframe to ramp up income for loan payments, it may be worthwhile to borrow money.

You need the money to grow

You may find you need money to fund additional facilities, inventory, payroll, working capital and more during your business’s early stages. If you haven’t accumulated much savings yet, loans could help act as catalysts for your business growth.

You’re waiting to get paid

In many companies, customers expect you to send an invoice that may not get paid for several weeks. If you have cash locked up in unpaid invoices, consider invoice factoring or accounts receivable financing to help convert them into cash. You’ll sell a portion of your invoices to a factoring company in exchange for an advance of a portion of the invoice.

You have a solid plan to repay the debt

If you don’t have revenue, you’ll still need a way to repay your business loan, whether that’s from business savings or personal savings. Be realistic about what you can afford to pay and how you’ll pay it before taking out a loan. If you don’t have any plan in place for how you’ll handle your repayments, a loan probably isn’t a good idea.

Risks of getting a business loan with no money

While it’s possible to get a business loan with no money or collateral, this can significantly increase your risk as a borrower. This is because these loans often require a personal guarantee to secure. 

Personal guarantees make you personally responsible for repaying your loan even if your business fails. This puts your personal assets at risk, giving your lender the right to seize personal assets, such as your car or home, to recoup their losses if the loan defaults. A personal guarantee can also have a negative impact on your credit score if you fail to make timely payments. 

To make the best long-term decision for your business, consider these risks alongside the potential rewards of a startup business loan. If you can afford to wait for financing, giving your business time to mature can help you obtain more favorable loan terms without putting your personal finances at risk. 

Alternatives to no-revenue business loans

The best way to secure competitive financing for your company is to wait until your business meets a lender’s annual revenue and other requirements. However, not everyone has the luxury of putting their business plans on hold. In that case, here are some alternative ways to access capital for your business.

Early stage businesses

Startups who are not yet earning revenue can try obtaining funds through venture capital or crowdfunding. 

  • Personal loans: These loans are typically easier to qualify for than business loans. Because qualification is based on your personal financial background, this is one way to bypass time in business and annual revenue requirements. However, failing to make payments on a personal loan will have a significant impact on your personal credit score.
  • Venture capital: With venture capitalism, you can receive money for your startup in exchange for a piece of ownership in the business. No interest is charged or repayment required, but you give up a portion of equity in your business. Venture capital investors look for companies that will quickly grow in value and can be sold for a more significant profit. Venture capital deals can also be hard to get.
  • Crowdfunding: You can solicit donations from friends, family and community members to support your business with crowdfunding. While you don’t have to repay the funds, creating a successful campaign can take significant time and effort. 

Established businesses

You will likely have more financing options at your fingertips the longer your business operates, especially if you have a proven cash flow. Here are some options to consider once your business has been in operation for at least a few months.

  • Short-term business loans: Lenders typically require at least three months to a year or more of business history and a credit score above 500 to qualify for short-term loans. Most lenders also have minimum revenue requirements, though they can vary quite a bit from one lender to the next.
  • Business lines of credit: Businesses can access revolving funds, similar to a credit card, with a business line of credit. Generally, you’ll only pay interest on the amount you withdraw. Many lenders require a year or more of business history, though there are some that lend to new businesses.
  • Small business grants: Grants provide free money that you don’t need to repay, and the awarding organization takes no ownership of the business. Depending on your business, there may also be additional minority business grants available.

Frequently asked questions

Yes, there are several types of business loans for startups with no collateral requirement, such as unsecured business loans. Lenders may focus instead on credit score, expected future cash flows and a personal guarantee.
While some lenders offer bad credit business loans or no-doc business loans for companies with a spotty or limited credit history, there really aren’t business loans with no credit check. Low-credit-score borrowers can typically find starter loans with an online lender, but should be prepared to pay higher interest rates with shorter repayment terms.
You need a steady cash flow from somewhere to stay on top of your business loan payments — either from the business or you personally. So, while figuring out how to start a business with no money, assets or collateral is possible, you need to carefully consider your repayment obligations before signing on the dotted line.

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