Can You Get Startup Business Loans with No Revenue or Credit?

You may have heard that you need revenue and good credit to qualify for a loan and it’s impossible to get startup business loans with no revenue. However, this isn’t always the case – especially regarding startup loans

Whether you’re looking for funding to get your business off the ground or need some working capital, options are available even if you don’t have revenue or excellent credit. Keep reading to learn more about how you can get a loan for your startup business.

woman applying on phone for startup business loans with no revenue

Getting Start-up Loan with No Revenue

Many entrepreneurs have great business ideas but face difficulty when it comes to securing funding. In the early stages of a startup, there is often little to no revenue, making it hard to get approved for a loan. 

However, there are a few ways entrepreneurs can get startup loans with no revenue. Let’s take a look at a few of those ways.

Seeking Capital from Family, Customers, and Friends

Your network is the best place to start if you’re seeking startup business loans with no revenue. You can raise money for your startup from friends, family, and future customers in several ways. 

Still, the most well-known ones include traditional donation-based crowdfunding on websites like Kickstarter and GoFundMe and legal crowdfunding on websites like Mainvest and Republic. 

When seeking capital from your network, it’s important to remember that you’re not just asking for money—you’re asking for trust. Be transparent about your plans for the business and what you’ll use the funding for, and be prepared to answer any questions your associates may have.

If you have a solid plan and your loved ones believe in you, you’ll likely get the funding you need to launch and expand your business. With crowdfunding, you have the bonus of being able to offer perks or rewards to those who donate to your campaign. 

Perks or rewards can be anything from a simple thank-you note to a discount on your product or service once you launch. Remember that honesty and transparency are essential, no matter how you seek capital from your network.

Regulation Crowdfunding

Regulation Crowdfunding is a financing method for startup companies that enables them to trade assets for investments from the public. This type of crowdsourcing is governed by the SEC and allows companies to raise up to $5 million annually from individuals. 

Some benefits of this financing include not needing collateral, no minimum credit score requirement, and the ability to get help promoting your investment campaign. 

While this financing can be very beneficial for startup companies, it is crucial to know the risks involved before entering into any agreement. Before taking advantage of regulation crowdfunding, consult an experienced financial advisor to ensure that it is the right choice for your business.

Donation-Based Crowdfunding

Donation-based crowdfunding is a great way to get your startup off the ground. You can raise money from friends, family, and supporters by offering rewards in exchange for donations. 

This is a fantastic alternative for companies with an excellent offering to provide to potential investors and can be a terrific method to launch your startup.

One drawback of donation-based crowdfunding is that it can be difficult to ask friends and family for money if you run a small business without a product to sell and there is no tangible reward. This frequently means putting in a lot of work to meet your financing target. 

However, the rewards of successful crowdfunding can be immense, providing you with the funds you need to take your business to the next level. With creativity and perseverance, donation-based crowdfunding can be an excellent way to finance your startup.

Alternative Business Loans

There are two alternative business loans invoice financing and equipment financing.

Invoice Financing

When you first start a business, obtaining the funding you need to get off the ground can be challenging. Traditional bank loans can be hard to come by, and many new businesses don’t have the collateral to secure a loan. 

However, several alternative financing options can help you get the money you need to start your business. One option is invoice financing. This financing allows you to use your unpaid invoices as collateral for a loan. 

If you have customers paying on a 30-day invoicing cycle, this can be an excellent way to get the funding you need without waiting for payment. Another advantage of invoice financing is that it doesn’t require any collateral, making it an accessible option for many new businesses. 

However, it’s important to note that this type of financing doesn’t make sense for all businesses; if you don’t operate on an invoicing basis, other finance options are likely a better fit for your needs.

Equipment Financing

If you’re a new business owner needing extra cash to finance new equipment, equipment financing might be the right choice. 

This type of loan is available to companies of all sizes. It can be used for various purposes, including purchasing new machinery, expanding operations, or filling inventory requirements.

Additionally, equipment financing doesn’t typically require a startup to generate revenue; many lenders won’t even request your company’s financial records. 

All you need is a solid business strategy and a respectable credit score. Equipment financing can be a great way to get your business off the ground without breaking the bank.

Getting a Startup Loan with No Credit

Getting a loan can be difficult if you don’t have any equity to put up or you have bad credit. However, there are still options available. We’ll explore a few ways to get startup loans with no credit. 

Small Business Loans

Many lending options are available to business owners, but those with poor credit may have the best luck with business lines of credit, ACH loans, or merchant cash advances. 

They have designed these three solutions so that you won’t have to worry so much about your credit score as it is less significant. However, it does not mean you can go in with a bad credit score and instantly be approved for financing.

 If you have some positive stuff on your credit history and experience in your field, you might have a better chance of getting approved. Take the time to research your options and find the best solution for your business needs. 

Then, with careful planning and execution, you can secure the financing you need to keep your business running smoothly.

ACH Loans

ACH loans have become increasingly popular due to their quick funding. Upon approval, you can frequently receive the funds within a few days. This speed can be a significant asset for small enterprises in the early stages of development.

Of course, you pay a premium for that speed, just like with super-fast sports cars. The Lender will make an ACH deduction from your bank account daily or weekly in the amount that has been agreed upon. 

You can typically borrow less money than you might with other loans, but that’s a reasonable trade-off for their ease.

Business Lines of Credit

A business line of credit is an excellent option for small businesses that need access to quick and relatively cheap funding. 

Unlike other forms of loans, lines of credit allow businesses to use the funds for various purposes, whether it’s buying new equipment, increasing inventory, or hiring staff.

 And because lines of credit are usually shorter-term loans, businesses don’t have to worry about being burdened with excessive interest payments.

Instead, they can focus on using the funds to grow their business and achieve their long-term goals. A business line of credit may be the perfect solution if you’re looking for a way to finance your small business.

Merchant Cash Advances

A merchant cash advance could be the right solution for you if you’re looking for a quick and easy way to access funding. 

With funds available in as little as 24 hours, and interest rates starting at 18%, a merchant cash advance can provide the financial boost you need to grow your business.

One of the main advantages of this type of financing is that it’s easy to qualify for – most lenders will only require a few months of bank statements to decide. 

And because repayments are taken as a percentage of your daily credit card deposits, you won’t have to worry about making fixed payments each month. So if you’re looking for a fast and flexible way to finance your business, a merchant cash advance could be the perfect solution.

Getting a merchant account can be difficult if you have bad credit, in such a case you need to apply for an account with a high-risk merchant processor.


Small businesses have several financing options available to them, but securing the right loan can be challenging. ACH loans, merchant cash advances, and business lines of credit are designed to make your credit score less significant. You cannot go in with a bad credit score and instantly be approved for financing but you can still acquire startup business loans with no revenue.

However, you may have a better chance of approval if you have experience in your field and some favorable items on your credit history. 

Take the time to research your options and find the best solution for your business needs. Then, with careful planning and execution, you can secure the financing you need to keep your business running smoothly.