How to Get a Startup Business Loan With No Money


If you are planning to start a business but don’t have any revenue or money, getting a startup business loan can be a challenge. However, financing options are available that are independent of cash flow.

It is important to note that waiting until your business’s finances are stronger can improve your chances of qualifying for better rates and terms. However, if you need immediate funding, options that don’t require money or revenue are still available.

In this case, it is essential to explore all the viable options and choose the one that suits your needs and financial situation.

How to Get a Startup Business Loan With No Money

How to get a startup business loan with no money or revenue

If you cannot generate enough revenue, you’ll need to convince a lender of the capacity to pay back a loan in different ways. Here’s how to obtain the financing you need for your business

Evaluate your assets

Each time a lender offers loans, it is taking the risk. They must ensure that the borrower can repay the loan in total. The lenders usually determine this in part by how you’re making money. If not, consider the other advantages you could offer the lender. For instance, assets from your business that can be used as collateral or your credit score make you appear more reliable.

Consider a cosigner

Adding a cosigner as a third party who is a cosigner to ensure repayment could aid in trying to get finance with no money or a poor credit score. In general, you’ll be able to benefit from a cosigner who has good credit, large assets or both.

Since cosigners are typically trusted family members or close friends who trust in your company, you’ll need to carefully consider this option and the ability to pay back the loan because defaulting on the loan could impact the finances of your cosigner and your own.

Know a lender’s requirements.

Specific lenders require that borrowers have a certain amount of funds in their company bank accounts before looking at lending. However, other lenders are slightly more lenient with cash flow when borrowers have a solid credit score or fulfil other specific requirements for business loans. Be sure to know what the creditor seeks when submitting your application.

Determine whether you’ll be able to repay

If you’re getting an enterprise loan, you’ll have to be able to pay for the loan’s payments and your daily expenses. The loan payment amount will be contingent on the funding you have received, the rate of interest, and repayment time.

Specific lenders may provide monthly payments; however, small business loans for startups require daily or weekly fees. If you cannot pay for the loan’s costs, you may want to search for a better option or find alternatives to finance your business.

Understand your risks

The terms of a loan are a reflection of the risk. If a loan was deemed risky by the lender, it could be characterized by a higher rate of interest, more frequent payments, and a shorter repayment period than less risky loans. If you’re still determining if you’ll be able to repay a loan in cash in your bank account, you could be forced to take out more loans to repay your existing debt. Ultimately, breaking out of this cycle of debt can be a challenge.

Business loans for startups with no revenue

In the case of a new startup — or even a business with a limited budget, you won’t be able to get an ordinary time loan or an SBA-backed loan. However, you could only use these financing options with funds in the bank or income.


Microloans are less expensive loans (typically $50k or lower), and the lenders who offer them are generally non-profit or mission-based organizations, including Community Development Financial Institutions (CDFIs). They are usually low-cost and are generally specifically designed for companies that are located in communities that are traditionally unserved.

Compared to other kinds of loans for business, Microloans are characterized by more flexibility in terms of qualifications. Lenders who provide microloans will likely assist startups or companies with no income.

Equipment Financing

The process of underwriting to get the underwriting process for a loan for equipment is slightly different from that of an ordinary credit line. The lender will provide you with the money to pay for as much as 100% of the cost of an item of equipment. The equipment itself acts as the collateral to secure the loans.

This is why the lenders are equally concerned about the value of equipment and your company’s financial performance. The loan terms for equipment depend on credit (personal and business), time working in the industry, and how the equipment is integrated into your business plan. Revenue may be less significant of an issue.

Invoice financing

Invoice financing utilizes a company’s invoices that are not paid for collateral. Exchange companies that finance invoices pay you a percentage of unpaid invoices.


Invoice finance companies focus on the worth of your invoices and your company’s financials. Companies with low cash flow might have a better chance of qualifying for this kind of funding.

Business credit cards

An HTML0 business credit card can improve your credit score and allow your business to be eligible for business loans if you utilize it with care (which mostly means paying off your credit card debts promptly and in full each month).

Cash flow is essential to credit card issuers. However, many of them are more about your financial standing. You’ll likely require a good credit score (a score of 690 or higher) to be eligible for most credit cards.

Should you get a business loan with no money?

Taking out a business credit with a low or no income could be beneficial in the following situations.

You’re making your business official.

If you’ve been operating a side hustle or solopreneur enterprise and have decided to move to an actual full-time venture, you’ll need money to begin. For the first time, you can make do with your savings.

After a time, however, you’ll find that starting expenses are costly, and business loans for startups without revenue might be the best solution to get your business off the start.

You’re waiting to get paid.

Many companies (almost all B2B firms, including consulting, trucking, construction, etc.) are contracted and often have to wait several weeks or months after the services are provided to receive payment.

But, these companies aren’t only sometimes waiting until they start the next task, contract or project that incurs costs. The problem with cash flow starts, and a solution such as invoicing, factoring, or financing could be a good idea.

You need resources to grow.

The resources of a startup can’t keep up with the growing demands of business. Businesses with larger sizes require more significant amounts of capital. That is the reason why loans for small businesses are crucial. They can assist in replenishing stocks, recruiting more workers or even opening new locations.

If you’re a new business without a revenue source but have a solid financial plan, you must look into possibilities like micro-loans and corporate credit cards to startups to help inject some cash into your company.

Alternatives to getting a business loan with no money

The most efficient method of getting a business loan that requires no funds is to wait a while, but it’s only feasible for some. There are alternatives to think about:

Equity financing

Equity financing can be utilized to raise money through the selling of shares or an interest in your business. It could be a viable alternative if you can only obtain business loans for startups with income. While you don’t have to take on loans with this funding, investors who purchase shares own a stake in the business’s ownership.


If you’re starting your business, you could think about crowdfunding as an alternative to financing with no debt that lets other people take an interest in the venture. It will assist you in obtaining funds for your business and could also increase awareness about your company’s products and services.

Business grants

Established businesses with no income may be able to apply for a Small-business grant. Some companies may not be eligible, and competition could be fierce for this grant money, but it is possible to get funding.

Family and friends

Inviting friends and family members to invest in your venture is a popular method to get a startup off. To ensure communication with investors in your experience, it is essential to communicate your business plan, be clear about your risks, and reach all agreements on paper.

Find the best business loan

The most beneficial business loan is usually the one that offers the lowest interest rates and optimal conditions. Other factors, like the amount of time needed to fund it and the qualifications of your company, influence which one to choose. We suggests looking at business loans for small businesses to determine the most suitable option for your company.

Frequently Asked Questions

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

Some lenders will offer business loans to those with poor credit to new businesses with low revenue. You will need six months in the business and an average credit score of 600 or higher to be eligible. However, these options might be more expensive in terms of shorter interest and repayment terms.

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

You cannot receive a business loan if you have no income. A majority of lending institutions will ask for a credit screening at some point during the process of applying, even if it’s a slight pull that doesn’t have an impact on your score on credit.

Some loans do not need a credit check. They are generally provided by payment processors that determine eligibility based on the sales you generate through their platform.

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

Yes. Most lenders insist that their customers sign an individual guarantee. If you don’t have any income and you’re not earning any, you’re a higher risk for the lender; that’s why they’re more likely to require you to make a personal commitment.


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