Financing a brand-new business is genuinely harder than financing an established one — most lenders want to see operating history and revenue, and a startup has little of either. But “harder” isn’t “impossible.” The key is knowing which options are realistic for a young business and leaning on the strengths you do have.
Why startups are harder to finance
Lenders price risk, and a business with no track record is risky to them. They can’t look at years of revenue or cash flow, so they fall back on other signals: your personal credit, any collateral, and how fundable your plan and use of funds look. Understanding that shift tells you where to focus.
Realistic startup financing options
SBA microloans
Made through nonprofit, community-based intermediaries, SBA microloans (up to $50,000) are often the most accessible SBA path for a startup — and many come with mentoring.
Equipment financing
If you need a specific asset, equipment financing uses the equipment itself as collateral, which lowers the lender’s risk and can make approval easier even with limited history.
Community lenders and CDFIs
Mission-driven lenders exist specifically to fund newer and underserved businesses. They’re often more flexible than banks — see the community lenders in our directory.
Business credit cards and personal financing
Not a loan in the traditional sense, but for very early needs, business credit cards (approved largely on personal credit) are a common bridge. Use them carefully.
Franchising
If your “startup” is a franchise, you have an extra, well-trodden path — SBA loans are commonly used to fund a franchise. See franchise financing.
Be wary of 'fast' startup funding
Easy-approval offers aimed at startups — especially merchant cash advances — are often the most expensive money you can take. Understand the cost first; see our merchant cash advance guide.
What lenders look for in a startup
Since they can’t lean on business history, strengthen what they can see:
- Personal credit — often the biggest single factor for a new business.
- A clear, specific use of funds — “$30,000 for ovens and a build-out that lets us open the bakery” beats “money to start.”
- Some skin in the game — your own investment signals commitment.
- Collateral, where relevant.
Our guide on how to qualify for a business loan covers the full picture.
How to start
Compare a few realistic options rather than applying everywhere, and gather your plan and financials first.
Marketplaces that help newer businesses compare lender options. Listed alphabetically — not ranked.
| Provider | Type | Often suits | Visit |
|---|---|---|---|
| Fundera by NerdWallet Comparison marketplace covering SBA loans, lines of credit, and equipment financing. | Marketplace | SBA loan comparison | Visit Fundera by NerdWallet (opens in a new tab) |
| Lendio A free marketplace that matches one application to 75+ small-business lenders. | Marketplace | Comparing many lenders at once | Visit Lendio (opens in a new tab) |
The bottom line
A startup can get financed — just not the same way an established business does. Match yourself to options built for newer businesses (microloans, equipment financing, community lenders), lead with your personal credit and a specific plan, and avoid expensive “fast money” traps. Confirm current terms directly with any provider.
Frequently asked questions
- Can you get a business loan for a startup with no revenue?
- It's difficult, because most lenders weigh revenue and time in business heavily. With little or no revenue, your realistic options lean on other strengths — strong personal credit, collateral (as with equipment financing), an SBA microloan through a community lender, or financing tied to a specific asset. A solid plan and clear use of funds help.
- What credit score do you need for a startup business loan?
- There's no universal cutoff, and it varies by option. Because a startup lacks business history, lenders often lean more on your personal credit — so stronger personal credit widens your choices. Community lenders and microloan intermediaries are typically more flexible.
- Are SBA loans available to startups?
- Yes, though larger SBA 7(a) and 504 loans favor established businesses. SBA microloans, made through nonprofit intermediaries, are often the most realistic SBA option for a startup and frequently come with mentoring.
Sources
Loan programs, rates, and eligibility change. We re-check sources on the “updated” date, but always confirm current terms directly with a provider.