How to Get Startup Business Loans with No Revenue: The 2025 Funding Guide
Quick Answer:
Yes, it’s possible to get startup funding without revenue. Options include SBA loans ($30K–$5M), equipment financing (up to 100% of equipment cost), business credit cards ($5K–$50K+), revenue-based financing agreements, and personal-guarantee loans. Most lenders look for credit scores above 650 and a strong business plan.
The Reality of No-Revenue Funding
Banks don’t lend based on potential—they lend based on risk. If you’re asking for money without revenue, you need to offset that risk in other ways. Understanding how lenders think will help you approach the right funding sources.
Why Traditional Banks Decline Startup Applications
Banks evaluate applicants using the “5 C’s of Credit,” which often work against startups:
Capital: You don’t have reserves.
Capacity: No revenue means no proven ability to repay.
Collateral: Many founders don’t yet own valuable assets.
Character: Little to no business history.
Conditions: Market uncertainty raises lender risk.
Knowing this helps you avoid the lenders who will say no—and focus on those who work with early-stage founders.
Startup Loans That Actually Work Without Revenue
1. SBA Loans for Startups
SBA 7(a) loans and Microloans can work for early-stage businesses because they’re based on projected cash flow rather than existing revenue.
Requirements:
• Personal credit score of 680 or higher
• 10–15% down payment
• A detailed business plan and strong financial projections
• Industry experience (not required but very helpful)
Amounts: Microloans up to $50K; SBA 7(a) loans up to $5M
Timeline: 30–90 days
Rates: 11.5%–14.5% (2025)
Tip: Working with a SCORE mentor (free) significantly improves approval odds.
2. Equipment Financing
This type of loan uses the equipment itself as collateral, making revenue less important.
What qualifies:
• Manufacturing machinery
• Commercial vehicles
• Technology and hardware
• Some office equipment
Terms: Up to 100% financing, 2–7 year terms, 6–20% interest
Approval rate: 60–80% for qualified applicants
3. Business Credit Cards
Business credit cards aren’t traditional loans, but they function as flexible working capital.
Strong options for new businesses:
• Capital One Spark Cash Plus (large limits possible)
• American Express Business Gold (no preset spending limit)
• Chase Ink Business Preferred ($5K–$50K limits)
Strategy: Apply for two or three cards at the same time so the credit inquiries hit your report only once. With a 700+ credit score, combined limits of $30K–$100K are realistic.
4. Revenue-Based Financing (RBF) Pre-Commitments
Some RBF companies lend based on future revenue that is already under contract.
Requirements:
• Signed customer agreements or strong letters of intent
• B2B model preferred
• Profit margins of at least 10%
Popular providers: Pipe, Capchase, Lighter Capital
Amounts: Up to three times your contracted annual revenue
Cost: 6–12% of the amount borrowed
5. Online Lenders
These lenders are more flexible but usually more expensive.
Examples and minimum requirements:
• Fundbox: No formal revenue requirement
• BlueVine: About $10K annual revenue (some exceptions)
• Kabbage (American Express): Around $50K annual revenue or $4.2K per month
Reality check: Rates range from 20% to 60% APR. Only use when you have a clear path to quick ROI.
Alternative Funding Strategies
Grants
There are more than $2B in grants available to small businesses every year.
Top opportunities:
• SBIR/STTR: Up to $1.25M for tech and research startups
• FedEx Small Business Grant: Up to $50K
• Amber Grant: $10K monthly for women founders
• State programs: Often $5K–$100K
Approval rates are low (2–10%), but the money is non-dilutive and worth pursuing.
Invoice Factoring for Pre-Revenue Businesses
If you secure a large purchase order, you can finance it before delivering the product.
How it works:
- Get a purchase order from a customer
- A factoring company advances 70–85% of the PO value
- Use it to fulfill the order
- You receive the remaining amount minus fees after delivery
Cost: 2–5% per month
Friends and Family Funding
This is one of the most common early-stage funding methods.
Ways to structure it:
• Standard loans with fixed interest
• Convertible notes that turn into equity later
• Revenue-sharing agreements
Average raise: $25K–$100K
Tip: Always use proper legal documents to protect the relationship.
How to Strengthen Your Application
1. Build Business Credit Early
• Get an EIN and DUNS number
• Open a business bank account
• Apply for vendor credit (Uline, Grainger, Quill)
• Pay invoices early to build history
2. Create Strong Financial Projections
• Use industry benchmarks
• Show conservative, realistic, and optimistic scenarios
• Explain your assumptions clearly
• Consider having a CPA review your projections
3. Leverage Personal Assets When Possible
• Home equity increases approval odds significantly
• 401(k) rollovers (ROBS) can be used as collateral
• Vehicle titles may secure smaller amounts
4. Find a Co-Signer
• A co-signer with a 750+ credit score can unlock better terms
• Ideally someone who is already a business owner
• Put clear agreements in writing
Common Mistakes That Hurt Applications
Applying Everywhere at Once
Each hard inquiry lowers your credit score by 5–10 points. Apply intentionally, not randomly.
Misrepresenting Revenue
Lenders verify everything. Overstating revenue leads to automatic denial.
Ignoring Personal Credit
Most startup loans require a personal guarantee. Your personal credit score matters more than the business’s score at this stage.
Asking for Too Much Too Soon
Start with a smaller amount, build repayment history, and scale up later. The first loan is rarely larger than $50K.
The StartupStage Alternative
For many founders, debt creates more stress than opportunity. Before taking on loans, consider a path that relies on growth—not liability.
At StartupStage, founders get support without taking on debt or giving up equity. This includes:
• Revenue acceleration strategies that fund the business
• Guidance from fractional financial leaders
• Support in forming partnerships to reduce costs
• Customer acquisition systems designed to generate early revenue
More than 347 founders are already building stronger, more sustainable businesses through these methods.
FAQ
What credit score do I need for a startup loan with no revenue?
Most lenders look for 650+. Approval odds rise sharply at 700+ and premium terms often start at 750+.
Can I get a startup loan with bad credit and no revenue?
It’s very challenging. Consider grants, secured credit cards, or revenue-sharing agreements instead.
How much can I realistically borrow with no revenue?
Typically $10K–$100K through a mix of credit cards, microloans, and online lenders. Larger loans require assets or a co-signer.
What documents will I need?
A business plan, financial projections, two years of personal tax returns, several months of bank statements, and any required licenses.
Should I use personal loans to fund my startup?
It’s possible but risky. It reduces legal protection and doesn’t help you build business credit. Keeping finances separate is safer.
Skip the debt trap. Join StartupStage for proven revenue-generation strategies and expert guidance—without loans or equity dilution.
Apply at: https://startupstage.com