By Gayle SatoHow to Get a Startup Loan With No Money
Starting a business costs money. Whether those costs come in the form of equipment or office space, advertising or inventory, your startup will require capital to get off the ground.
Getting a business loan when you don't yet have revenue or business assets is definitely more challenging, however, and may come with additional eligibility requirements. Here's where to start.
Can You Get a Startup Business Loan With No Money?
It's possible to get a startup loan with no revenue or assets, but you may have limited choices and pay higher interest rates and fees than you would on a traditional business loan. Although requirements vary, traditional business loans from banks and credit unions typically require good credit, being in business for at least one to two years and having substantial revenue. Online lenders may be more forgiving.
When you're just starting out, focus on lending options that work for new businesses. In some cases, you may need to use your personal credit and a personal guarantee to secure financing for your startup.
Compare personal loan rates
Find APRs from 4.99% to 35.99% and flexible terms of 12 to 120 months. Loan amounts range from $1,000 up to $250,000, with funding available the same day or up to 7 days.
Offers from our partners
Est. APR6.70 - 35.99%
Loan amount$1,000 - $50,000
Est. monthly payment$1,806 - $31
Term36 - 60 mo
Est. APR5.99 - 35.99%
Loan amount$2,000 - $50,000
Est. monthly payment$1,806 - $61
Term36 - 60 mo
Est. APR4.99 - 32.39%
Loan amount$1,000 - $60,000
Est. monthly payment$2,030 - $44
Term24 - 60 mo
Est. APR8.74 - 35.49%
Loan amount$5,000 - $100,000
Est. monthly payment$3,237 - $228
Term24 - 84 mo
Est. APR6.45 - 33.64%
Loan amount$1,000 - $50,000
Est. monthly payment$1,731 - $31
Term36 - 60 mo
Est. APR8.99 - 35.99%
Loan amount$2,000 - $50,000
Est. monthly payment$1,806 - $91
Term24 - 60 mo
Est. APR7.70 - 24.50%
Loan amount$5,000 - $50,000
Est. monthly payment$1,453 - $225
Term24 - 60 mo
Est. APR11.11%
Loan amount$1,000 - $15,000
Est. monthly payment$327 - $88
Term12 - 60 mo
Est. APR7.99 - 35.99%
Loan amount$5,000 - $40,000
Est. monthly payment$1,445 - $226
Term24 - 60 mo
Est. APR7.99 - 35.99%
Loan amount$2,000 - $30,000
Est. monthly payment$1,187 - $90
Term24 - 48 mo
Est. APR6.99 - 26.99%
Loan amount$15,000 - $50,000
Est. monthly payment$1,526 - $672
Term24 - 60 mo
Est. APR9.95 - 35.95%
Loan amount$2,000 - $35,000
Est. monthly payment$1,264 - $92
Term24 - 60 mo
Est. APR6.39 - 24.99%
Loan amount$20,000 - $250,000
Est. monthly payment$5,686 - $390
Term60 - 120 mo
Est. APR10.24 - 26.39%
Loan amount$3,000 - $50,000
Est. monthly payment$1,390 - $139
Term24 - 72 mo
Est. APR9.99 - 35.99%
Loan amount$1,000 - $35,000
Est. monthly payment$1,264 - $32
Term36 - 60 mo
Est. APR8.47 - 33.64%
Loan amount$1,000 - $50,000
Est. monthly payment$1,731 - $32
Term36 - 60 mo
Est. APR18.00 - 35.99%
Loan amount$1,500 - $20,000
Est. monthly payment$723 - $54
Term36 - 60 mo
View all of our Best Personal Loans for 2026 to see what you’re likely to qualify for, and the rates and terms you might get.
Types of Startup Business Loans With No Revenue Required
Here are four types of business loans that may not require revenue (or much revenue) for qualification:
SBA Microloans
The U.S. Small Business Administration (SBA) acts as an intermediary on microloans of up to $50,000 for small businesses that need funds for working capital, inventory, supplies, furniture, equipment and more. Lenders (and lending criteria) vary. Microloans are generally available through nonprofit community organizations that specialize in lending and business management assistance.
Equipment Loans and Leasing
If you need to purchase equipment to launch your business, ask your equipment vendor(s) if they have financing or leasing options. Although leasing is more like renting than borrowing, it can be a workable option for cash-strapped startups. Additionally, some (but not all) financing companies and banks provide startup loans for the purchase of equipment, trucks, software and more, with the equipment acting as collateral on the loan.
Invoice Financing or Factoring
If you've invoiced clients for completed orders but you're waiting extended periods to be paid, invoice financing might help. Also called accounts receivable financing, this approach pays you an advance on a portion of your outstanding invoices and collects the money when your invoice is paid, plus interest and service fees.
Alternatively, an invoice factoring company may purchase your outstanding receivables from you, pay you an advance of 80% or more, and give you the remaining balance (minus fees) when they collect payment from your clients.
Nonprofit Microloans
Small business microloans of $50,000 or less may be available through nonprofit community lenders or peer-to-peer lending platforms. In addition to loans, these lenders may provide access to business education and advice.
How to Get a Startup Business Loan With No Money
The steps to getting a startup loan with no money are essentially the same as shopping for any loan, but potentially requires more detective work and extra steps to document your business and personal finances.
1. Create a Simple (But Solid) Business Plan
You may want to start by creating a business plan, whether your lender requires one or not. When you don't have a long track record in business, substantial revenue or business credit, a business plan helps your lender understand your vision—and gauge the likelihood that you'll be able to repay your loan. At the same time, writing a business plan helps you get a clear handle on your finances, your market and your new business, which can help you with the next step, analyzing your needs.
Learn more: What Is a Business Plan?
2. Assess Your Finances
Determine how much money you need to borrow and how much you can afford to repay. Use your business plan and business financials to pinpoint the expenses you need to cover and what they'll cost, then look at your cash flow to figure out whether repaying your loan will be feasible. Use an APR calculator to estimate monthly loan payments and gauge affordability.
3. Check What Funding Your Eligible For
Look around for loan options. Your bank or credit union, online lenders, online marketplaces and the SBA are all good starting points, but be prepared to do some additional legwork. The more options you develop, the better.
Lenders usually have minimum requirements for credit scores, time in business and annual revenue. If you're using collateral—including equipment or invoices—to secure your loan, check for details. You probably won't be eligible for every business loan, but keep looking for startup-friendly sources. You may need to get funding from more than one source to reach your financing goals.
4. Gather the Required Documents
Lenders generally want to see documentation on the financial health of your startup and, more than likely, your personal finances and credit as well. Requested documents may include:
- Income statement
- Cash flow statement
- Business balance sheet
- Business and personal tax returns
- Bank statements
- Articles of incorporation or partnership agreement
- Business licenses
- Business plan
Every lender has its own requirements, so check with individual sources for details on what's needed.
5. Compare Lenders and Apply
Gather up your potential loan options and compare them side by side. Consider annual percentage rates (APRs), loan terms, monthly payments, fees and penalties. Also try to evaluate eligibility requirements, to size up which sources might be most likely to approve your loan for the amount you're seeking.
Learn more: Small Business Startup Loans: How to Compare Options
Tips for Boosting Your Odds of Approval
Lenders typically use a business' experience, revenue, assets and credit history to evaluate creditworthiness. When you're a startup, you're likely to be thin on all of these measures. To improve your chances of being approved, here are a few strategies that can boost your odds:
- Improve your credit score. If your business is new, lenders are likely to consider your personal credit score and history. Checking your credit score and report can help you get a handle on your credit. You can also take steps to raise your credit score to put yourself (and your loan application) on better footing. As your business takes root, work on building your business credit, so you'll be in a stronger position for future loans and lines of credit.
- Offer a personal guarantee. A personal guarantee is a promise that you will personally repay a loan if your business defaults. If your business has little or no revenue and hasn't been in business for long, lenders may require a personal guarantee. Be aware, though, that your lender may report a default on your personal credit history, which could damage your personal credit.
- Find a cosigner. A cosigner puts their good credit and personal guarantee on the line to help you get your loan approved. Getting a friend or family member to cosign can help improve your odds of getting a loan but proceed with caution: Cosigning is a big commitment for your cosigner.
- Keep your loan amount small. The smaller your requested loan amount, the more likely you are to qualify—and the easier it will be to repay. Wherever you can, try to minimize borrowing; you can seek additional funds as your business grows.
- Add collateral. Loans secured by collateral may have more favorable rates and terms, and may be easier to get. But collateralized loans also put your assets at risk. If you can't repay your loan, you'll lose the collateral you used to secure it.
Learn more: What Can Be Used as Collateral on a Personal Loan?
Should You Get a Startup Business Loan With No Money?
Weigh the risks and benefits before taking out any business loan, but especially one that's funding a startup. While securing a loan might be necessary to pay for equipment, inventory, location or payroll, loan payments also make it more difficult to reach profitability—or even stay afloat. If you use a personal guarantee to get approved for financing, you'll be on the hook for repaying the loan whether or not your business survives.
Before making a decision, think about the pros and cons of getting a startup loan:
| Reasons to Get a Startup Loan | Risks to Getting a Startup Loan |
|---|---|
| You need financing for equipment, inventory or working capital to launch your business | You may need a personal guarantee to secure a loan, which makes you responsible for repaying the loan even if your business fails |
| A loan or line of credit can help with cash flow, if you have a "gap" between invoicing and getting paid | If you use collateral to secure a startup loan, you could lose your collateral if you aren't able to pay the loan back |
| Your existing business needs an infusion of cash to grow, so you can expand payroll, buy more inventory or open a new location | Adding debt payments to your operating budget makes it harder to turn a profit or break even |
| You have a clear plan for repaying your loan | You may get better loan terms if you wait until your business meets regular business loan guidelines, if it's possible to wait |
Alternative Ways to Finance a Startup Business
If you aren't able to find enough funding through small business loans, you may want to consider alternative financing, such as crowdfunding or taking out a personal loan. Here are five alternative ways to fund your startup:
- Crowdfunding: Use a crowdfunding platform to raise money from multiple small contributors. Depending on the campaign, you can ask for microloans, donations or equity investments in your business.
- Personal loans: An unsecured personal loan can help fund your business without putting your home, car or other assets at risk. But, getting one means you'll need to repay your debt from personal funds even if the business closes, and any repayment problems you have will affect your personal credit. Some personal loans don't allow funds to be used to finance a business, so check your loan terms before you sign.
- Borrowing from friends and family: Loans from friends and family don't require income verification or credit checks, but they can carry a different kind of risk. If you can't repay your loan or your business fails, you'll do damage to your loved ones' finances—and, potentially, your relationships.
- Business credit cards: Getting a business credit card that's separate from your personal accounts can be a good idea regardless of your other funding options. The downsides: Your credit limit may be low to start (especially if you don't have revenue) and interest rates can be high.
- Startup grants: Government and community organizations, nonprofits and private groups may offer small business grants that support startups. Unlike loans, grants don't have to be repaid. Check local and state resources as well as Grants.gov for grant opportunities that might work for you.
Frequently Asked Questions
The Bottom Line
Getting a startup business loan when you don't have much revenue or a track record may mean relying more heavily on your good credit. Check your business credit report and credit score, as well as your personal credit report and score, so you know what to expect when applying for startup loans. Whether you end up using a personal loan (and your personal credit) or a business startup loan that builds business credit, making on-time payments and managing your credit wisely helps improve your credit over time.
Bankroll your big idea with Fundera by NerdWallet
Get matched with the right small business financing product and a dedicated personal funding advisor—for free.
Learn more
About the author
Gayle Sato
Gayle Sato writes about financial services and personal financial wellness, with a special focus on how digital transformation is changing our relationship with money. As a business and health writer for more than two decades, she has covered the shift from traditional money management to a world of instant, invisible payments and on-the-fly mobile security apps.
Read more from Gayle