How To Get A Business Loan With No Money

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Wondering how to get a business loan with no money or revenue? Well, obtaining a business loan when your company has little to no money or revenue can pose a significant challenge.

Nonetheless, there are still potential solutions to explore. It’s important to note that some of the products we discuss here are offered by our partners who provide compensation.

While this may influence the products we feature and how they appear, it does not impact our independent evaluations. Our opinions remain unbiased.

In the world of startups, starting a business and securing a business loan without a financial track record or substantial capital is indeed feasible.

However, it’s essential to consider whether waiting might be a more favorable option if your financial situation allows for it. Building a stronger financial foundation for your business can potentially open doors to better loan rates and terms in the future.

That said, waiting might not always be a viable choice, especially if you require immediate financing.

In such cases, there are alternative options available that may not necessitate a significant upfront investment or revenue. These options can provide you with the financial support you need to get your business off the ground.


How To Get Business Loans For Startups With No Revenue?

For startups or businesses operating on a tight budget, the chances of securing a traditional term or Small Business Administration (SBA) loan are usually quite slim. These loans typically require a solid financial standing, which can be a challenge for businesses with limited funds.

However, there are alternative financing solutions that you can explore even if your bank account is low on funds and your revenue is limited.

These options can provide a lifeline for businesses looking to access capital without meeting the stringent requirements of traditional loans.

Ways to secure business loans for startups with no money:

      • Business Credit Cards
      • Equipment Financing
      • Invoice Financing
      • Microloans

Business Credit Cards:

A business credit card can be a valuable tool for your startup, not only for managing expenses but also for improving your creditworthiness.

If you use it responsibly, which primarily involves paying your credit card bills in full and punctually each month, it can positively impact your credit score. This, in turn, can increase your startup’s eligibility for more substantial business loans in the future.

It’s worth noting that while your business’s cash flow is important, credit card issuers often place greater emphasis on your personal creditworthiness when evaluating your application.

In most cases, you’ll need to have a good personal credit score, typically around 690 or higher, to qualify for the majority of business credit cards. So, maintaining a strong personal credit history is often a key factor in obtaining a business credit card that can benefit your startup’s financial prospects.

Equipment Financing:

When it comes to securing an equipment loan, the underwriting process differs from that of a typical term loan.

With an equipment loan, the lender provides you with the necessary funds to cover up to 100% of the cost of purchasing a specific piece of equipment, and that equipment itself serves as collateral for the loan.

In this scenario, lenders place significant emphasis not only on your business’s financial performance but also on the value and suitability of the equipment you intend to purchase.

The terms and approval of an equipment loan are determined by factors such as your creditworthiness (both on a business and personal level), the length of time your business has been in operation, and how well the equipment aligns with your business plan.

Surprisingly, the revenue generated by your business may not play as significant a role in the approval process compared to other types of loans, as the equipment itself often takes center stage as collateral.

Invoice Financing:

Invoice financing is a financing solution that leverages a business’s outstanding, unpaid invoices as collateral. In return, invoice financing companies provide you with an upfront payment, typically a percentage of the total value of those outstanding invoices.

What’s interesting about invoice financing is that these companies place as much importance on the value of your unpaid invoices as they do on your overall business financials.

This unique aspect of the arrangement can be advantageous for startups or businesses with limited cash flow because it means that you might find it relatively easier to qualify for this type of funding. Essentially, your outstanding invoices serve as a valuable asset that can help you secure the financing you need to maintain and grow your business.


Microloans are a category of smaller loans, typically amounting to $50,000 or less, and they are typically offered by nonprofit organizations and mission-driven entities. These loans are often tailored to be low-cost financial solutions and are particularly targeted towards businesses operating in traditionally underserved communities.

What makes microloans stand out is their flexibility when it comes to qualification requirements. Unlike some other types of business loans, microloan lenders are often willing to collaborate with startups and businesses that may not have a revenue track record.

This inclusivity makes microloans an attractive option for entrepreneurs and businesses that need a financial boost to get started or expand, especially when other lending avenues may seem less accessible.

How to Get a Business Loan With No Money or Revenue?

When your business lacks the necessary revenue, it becomes crucial to demonstrate to potential lenders that you have alternative means to repay a loan. Here’s a roadmap of what you can do to secure financing for your business:

      • Evaluate your assets
      • Know a lender’s requirements
      • Determine whether you’ll be able to repay
      • Understand your own risks

How to get a business loan with no money?

4 tips to secure startup business loan with no money or revenue:

1. Evaluate your assets:

Lenders inherently face a certain level of risk every time they extend a loan to a borrower. Their primary concern is ensuring that the borrower can repay the debt in full.

One of the factors lenders typically consider in assessing this risk is your ability to generate revenue.

If your business isn’t yet generating revenue, it’s essential to think about what other favorable attributes you can bring to the table to make yourself appear as a more secure investment in the eyes of the lender.

These attributes might include offering collateral or demonstrating a strong personal credit history, which can help boost your credibility and make lenders more inclined to consider you a reliable choice.

2. Know a lender’s requirements:

Lenders have varying criteria when it comes to extending loans.

Some might insist that borrowers maintain a specific amount of money in their business bank accounts as a prerequisite for loan consideration.

However, other lenders can be more flexible about cash flow requirements if borrowers have a solid personal credit history or meet other business loan prerequisites. It’s crucial to understand what a particular lender is seeking before you apply for a loan to ensure you meet their specific qualifications and increase your chances of approval.

3. Determine whether you’ll be able to repay:

When you secure a business loan, it’s essential to understand that you’ll be responsible for not only your regular operating expenses but also the loan payments. The specific amount you’ll need to repay each month depends on factors like the loan amount, interest rate, and the term of repayment.

Keep in mind that while some lenders may offer monthly payment schedules, startup business loans often require more frequent payments, such as weekly or even daily.

If you find that these payment schedules are challenging to manage within your business’s cash flow, it’s a good idea to explore alternative loan options that offer more favorable terms or consider alternative ways to fund your business that align better with your financial capabilities. 

The key is to find a solution that allows you to meet your loan obligations while still keeping your business financially healthy.

4. Understand your own risks:

Loan terms are essentially a reflection of the level of risk involved. When a loan is considered to be more risky, lenders may impose higher interest rates, more frequent payments, and shorter repayment periods.

This is their way of mitigating the potential financial risk they’re taking.

If you’re not entirely certain that you can comfortably repay a loan when you don’t have substantial funds in your bank account, there’s a risk that you might need to borrow additional funds to cover your existing debt.

This can create a challenging cycle of debt where you’re continually borrowing to pay off previous loans. Escaping this debt cycle can be quite difficult and potentially detrimental to your business’s financial health.

It’s important to carefully consider the terms and your ability to meet the loan obligations before taking on additional debt to avoid such a situation.

When Should You Get A Business Loan?

Obtaining a business loan with limited or no revenue can be a sensible decision in certain circumstances. Here are some instances where it may make sense:

      1. Startup Capital
      2. Growth and Expansion
      3. Equipment or Asset Purchase
      4. Building Credit History
      5. Short-Term Cash Flow Challenges
      6. Investment in Opportunities

Reasons why you should get a business loan:

1. Startup Capital:

If you’re launching a new business and haven’t generated revenue yet, a business loan can provide the initial capital needed to get your venture off the ground.

2. Growth and Expansion:

Sometimes, established businesses with a solid plan for growth or expansion may require additional funding before the new revenue streams come in. A loan can bridge the financial gap during this period.

3. Equipment or Asset Purchase:

If your business needs essential equipment or assets to operate efficiently and profitably, a loan can be justified, as the equipment itself often serves as collateral.

4. Building Credit History:

Taking out a small business loan and responsibly managing it can help establish or improve your business’s credit history, which can be beneficial for future financing opportunities.

5. Short-Term Cash Flow Challenges:

Temporary dips in revenue due to seasonality or unexpected circumstances may necessitate a loan to cover operational costs until revenue stabilizes.

6. Investment in Opportunities:

An attractive business opportunity might require immediate investment even if your current revenue is limited. In such cases, a well-thought-out loan can be an enabler.

In each of these situations, careful planning, understanding the terms of the loan, and a clear repayment strategy are essential to ensure that borrowing without significant revenue is a wise and manageable decision for your business.

Should You Get A Business Loan With No Money?

Getting a business loan is not viable in many cases. However, you should get a business loan with no money or revenue in the following instances:

      1. You’re making your business official
      2. You’re waiting to get paid
      3. You need resources to grow

Why you should get a business loan with no revenue:

1. You’re making your business official

Transitioning from a side hustle or solopreneur venture to a full-time business is an exciting step, but it often requires capital to get started. Initially, you might rely on personal savings or investments from friends and family to cover your expenses.

As your business evolves, you’ll likely encounter substantial startup costs that personal funds may not fully address. In such cases, a business loan can serve as a valuable resource to help you get your new venture off the ground, even if you haven’t started generating revenue yet.

These loans can provide the financial foundation necessary to fund operations, marketing, inventory, and other essential elements of your business as you work towards profitability. It’s a common and practical way to fuel the growth of your new enterprise when your own resources may be limited.

2. You’re waiting to get paid

A substantial number of businesses, particularly those in the B2B sector such as construction, trucking, consulting, and more, operate on a contractual basis. This often means they provide services and then have to wait for weeks or even months before receiving payment from their clients.

The challenge for these businesses is that they can’t afford to wait idly for payment, especially when they need to kick off new jobs, contracts, or projects that involve immediate expenses. This is where cash flow issues arise.

Invoice factoring or financing steps in as a viable solution to bridge this financial gap. These options allow businesses to access a portion of the funds tied up in their unpaid invoices, providing the working capital needed to continue operations without undue interruption.

It’s a practical way to maintain cash flow and keep business activities running smoothly, even when payments from clients are delayed.

3. You need resources to grow

As a business expands, its needs and financial requirements tend to grow as well. Startup-sized resources often struggle to keep pace with the demands of a growing business.

Larger enterprises need more significant amounts of capital to fuel their expansion, whether that involves replenishing inventory, hiring additional employees, or opening new locations.

Small-business loans play a crucial role in meeting these financial demands. They offer the necessary funding to support a business’s growth and development.

However, for startups with limited or no revenue, but a promising financial forecast, there are alternative options to consider.

Microloans and business credit cards designed for new businesses can inject much-needed capital into your venture, helping you take those crucial steps towards growth and success, even if your financial track record is still in its early stages.

Alternatives to getting a business loan with no money

While waiting might be the most practical alternative to obtaining a business loan when you have no money to invest, it’s not always a viable choice for everyone. In such cases, there are other options to explore, which can help you secure the financing you need to move forward with your business plans.

Here are few alternate options to get a business loan with no money or revenue:

      1. Pre-revenue startups
      2. Established businesses

Alternatives to get a business loan with no money:

1. Pre-revenue startups

For those who have recently launched their business and are short on funds, it’s worth considering zero-debt financing options that allow others to invest in your innovative idea.

Two common approaches are crowdfunding and offering equity in your business.

      • Crowdfunding
      • Equity Offering
Check out the two options:

1. Crowdfunding:

Crowdfunding platforms enable you to present your business idea to a wide audience and invite individuals to contribute small amounts of money to support your project.

This approach can be an effective way to raise capital without incurring debt, particularly if your idea resonates with a broad community.

2. Equity Offering:

Another strategy is to offer equity in your business in exchange for investment. This means that investors receive a share of ownership in your company in return for their financial support.

It’s a way to bring in capital while potentially aligning the interests of investors with the success of your business.

Both options can be advantageous for startups seeking to secure funds without taking on traditional loans or debt. However, it’s essential to carefully plan and execute these strategies to ensure they align with your business goals and the interests of your investors.

2. Established businesses

For well-established businesses that have yet to generate revenue, pursuing small-business grants can be a viable option. While not every business will be eligible, it’s important to recognize that there are opportunities to secure funding through grants.

These grants are essentially free money that you don’t have to repay.

However, it’s essential to note that the competition for small-business grants can be intense, as many businesses vie for these limited resources. To improve your chances of success, it’s crucial to research and identify grants that align with your business’s goals and needs.

Then, put together a compelling application that demonstrates how your business can use the funding effectively to achieve its objectives. Grants can be a valuable source of capital for businesses without revenue, so it’s worth exploring this avenue if you meet the eligibility criteria.

Frequently Asked Questions (FAQs) 

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

Yes, certain lenders do extend business loans to startups even if they have bad credit and limited revenue. Typically, you’ll need a minimum of six months in business and a credit score of around 600 to meet the eligibility requirements for such loans.

It’s important to be aware that these financing options for startups with less-than-ideal credit profiles often come with some trade-offs. You might encounter higher interest rates, which can increase the cost of borrowing, and shorter repayment terms, which means you’ll need to repay the loan more quickly.

While these options can be a lifeline for startups facing credit challenges, it’s essential to carefully weigh the costs and benefits and have a clear plan for how to manage the higher interest rates and shorter repayment periods effectively.

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

Yes, it’s quite common for lenders to request that borrowers sign a personal guarantee when taking out a business loan. This is a standard practice designed to provide the lender with an added layer of security.

When your business has little to no revenue, it’s perceived as a higher risk to the lender, which makes them even more inclined to ask for a personal guarantee.

A personal guarantee essentially means that you, as the business owner, are personally responsible for repaying the loan in the event that your business can’t cover the debt.

It’s a way for lenders to mitigate their risk and ensure they have a source for repayment, even if your business’s financial situation is uncertain. It’s an important aspect to be aware of when seeking business financing, particularly if your business is in its early stages or has limited revenue.

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

Obtaining a no credit check business loan with no revenue is highly improbable. Most lenders, at some stage in the application process, will require a credit check, even if it’s just a soft pull that doesn’t affect your credit score significantly.

While there are loans that don’t mandate a traditional credit check, they are usually provided by payment processors who assess eligibility based on the sales you generate through their platform. In these cases, your sales performance acts as collateral and a basis for evaluating your capacity to repay the loan.

So, while some alternative options exist, they often have unique eligibility criteria that are tied to your business activity.

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