Best Business Loans for Startups with No Revenue
Best Business Loans for Startups with No Revenue| Starting a business is exciting, but one of the biggest challenges new entrepreneurs face is securing funding—especially when the business has no revenue yet. Traditional banks often require proof of steady income, making it tough for startups to qualify for loans. However, there are still options available for new businesses looking to get off the ground.
This guide will walk you through the best business loan options for startups with no revenue, including alternative financing solutions and tips to improve your chances of approval.
Understanding Startup Business Loans
A startup business loan is designed for new businesses that need funding to cover initial costs like inventory, marketing, equipment, or operational expenses. Unlike established businesses, startups usually don’t have financial history or revenue to prove their ability to repay a loan.
So how do startups qualify? Lenders will focus on:
✔ Personal credit score (since business credit isn’t established yet).
✔ Business plan (to show potential for success).
✔ Collateral (assets like property, equipment, or savings).
✔ Alternative funding options (such as grants or crowdfunding).
Now, let’s dive into the best loan options for startups with no revenue.
1. SBA Microloans
The Small Business Administration (SBA) offers microloans designed for startups and small businesses that need funding but lack revenue or financial history.
Key Features:
✔ Loan amounts up to $50,000
✔ Lower interest rates than traditional loans
✔ Longer repayment terms (up to 6 years)
✔ Funds can be used for working capital, inventory, or equipment
Who Can Qualify?
- Startups and small businesses
- Businesses with a solid business plan
- Entrepreneurs with good personal credit (above 600)
💡 Tip: SBA loans are not issued directly by the government but through approved nonprofit lenders—so researching the right lender is key!
2. Business Credit Cards
A business credit card can be a great funding option for startups with no revenue. While it’s not technically a loan, it provides access to immediate capital and helps build business credit.
Key Features:
✔ Instant access to funds for small purchases
✔ Some cards offer 0% intro APR for 12+ months (great for startups)
✔ Helps separate personal and business expenses
✔ Cashback and rewards programs
Who Can Qualify?
- Entrepreneurs with a strong personal credit score (650+ recommended)
- Businesses that need flexible financing
💡 Tip: If you’re approved for a 0% APR business credit card, pay off the balance before the promotional period ends to avoid high interest rates.
3. Personal Loans for Business Use
If your startup isn’t generating revenue yet, you might qualify for a personal loan to use for your business. This is a common option because personal loans don’t require business financials.
Key Features:
✔ Loan amounts range from $5,000 to $100,000
✔ No need for business revenue or history
✔ Funds can be used for any business-related expense
Who Can Qualify?
- Entrepreneurs with good personal credit (660+ preferred)
- Those who can prove personal income (from a job or investments)
💡 Tip: Be cautious—mixing personal and business debt can be risky. If your business struggles, you’ll still be responsible for repaying the loan personally.
4. Crowdfunding (No Credit Check Required!)
Crowdfunding is an alternative way to raise money without taking on debt. Instead of borrowing, you collect small amounts of money from individuals who believe in your business idea.
Popular Crowdfunding Platforms:
- Kickstarter – Best for product-based businesses
- Indiegogo – Ideal for creative and tech startups
- GoFundMe – Suitable for nonprofit and community-based projects
Who Can Qualify?
- Startups with an innovative or unique idea
- Entrepreneurs who can market their business to attract backers
💡 Tip: Success depends on your ability to promote your campaign and convince people to invest in your vision!
5. Equipment Financing
If your startup needs expensive equipment (like computers, machinery, or vehicles), equipment financing might be the best option.
Key Features:
✔ The equipment itself acts as collateral
✔ No revenue required—lenders focus on the equipment’s value
✔ Loan amounts depend on the cost of equipment
Who Can Qualify?
- Businesses needing specific equipment to operate
- Startups with decent credit scores (600+ recommended)
💡 Tip: If your business fails, lenders can repossess the equipment—so only borrow what you truly need.
6. Business Grants (Free Money!)
Unlike loans, grants don’t need to be repaid. There are many grant programs specifically for startups, minorities, women entrepreneurs, and nonprofit businesses.
Best Grant Programs for Startups:
🏛 Small Business Innovation Research (SBIR) Program – For tech-based startups
💼 Amber Grant – $10,000 grants for women-owned businesses
🌱 Local Government Grants – Many cities offer small business grants
Who Can Qualify?
- Startups that meet specific grant requirements
- Businesses in sectors like tech, healthcare, or education
💡 Tip: Grants are competitive—have a strong business proposal when applying.
7. Startup Business Loans from Online Lenders
Many online lenders offer startup loans with more flexible requirements than banks. Some even provide funding within 24 hours!
Best Online Lenders for Startups:
💰 Lendio – Compares multiple loan offers
🚀 Kiva – Offers 0% interest microloans up to $15,000
🔹 BlueVine – Provides quick lines of credit
Who Can Qualify?
- Startups with decent credit or strong business plans
- Entrepreneurs looking for fast approval
💡 Tip: Be mindful of higher interest rates with online lenders. Always read the terms before accepting an offer.
How to Increase Your Chances of Approval
If your business has no revenue, here are ways to improve your loan eligibility:
✔ Build Your Personal Credit – A higher personal credit score (700+) can improve approval chances.
✔ Offer Collateral – Pledging assets (like property or savings) can make lenders more willing to approve your loan.
✔ Get a Co-Signer – If you have a trusted partner with strong credit, a co-signer can help you qualify.
✔ Strengthen Your Business Plan – A detailed business plan shows lenders that your startup has potential.
✔ Start with Small Loans – Applying for a microloan or business credit card first can help build credit history.
Final Thoughts: Choosing the Best Loan for Your Startup
Even without revenue, startups still have loan options. The key is to explore alternative funding sources, improve your credit, and prepare a strong application.
Best Loan Options Based on Your Needs:
- ✅ For Fast Cash: Business Credit Cards or Online Lenders
- ✅ For Government-Backed Support: SBA Microloans
- ✅ For No Credit Check: Crowdfunding or Business Grants
- ✅ For Buying Equipment: Equipment Financing
- ✅ For Flexible Borrowing: Business Line of Credit
Starting a business is challenging, but securing funding is possible even if you don’t have revenue yet. Research your options, compare lenders, and borrow wisely