Business Credit Line

Funding Without Revenue

by Maria Alegria Jun 03, 2024

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Obtaining a Business Credit Line with

No Revenue Requirements



Starting a business is exciting, but it often requires money. Many new entrepreneurs find themselves in a tricky spot: they need funds to grow but don't have sales yet to show for it.

It might seem like a tough situation, but there are ways to get around this hurdle.

One important fact to remember is that loans for young companies without revenue are indeed available. From microloans under $50,000 aimed at helping smaller ventures in underserved communities to options like equipment lending and invoice financing, these financial aids are designed with startups in mind.

This blog will guide you through the different types of funding you can explore, strategies for making your loan application strong even without sales records, and alternatives if traditional loans don't work out for you.

Get ready to fuel your venture's growth with the right financial push!

Key Takeaways

  • You can get a business loan even if your company has not made any money yet. Options include microloans, equipment financing, and invoice financing.
  • Using something valuable as collateral or finding someone with good credit to cosign can improve your chances of getting a loan.
  • It's important to have a strong business plan and financial projections ready when applying for a loan. This shows lenders how you plan to make money.
  • Crowdfunding and peer-to-peer lending are creative ways to raise money without traditional loans. They allow you to connect directly with people who want to support your business.
  • Building good personal and business credit scores helps in getting future loans with better terms. Paying bills on time and using credit wisely are key steps.

Understanding c with No Revenue

Startup business loans with no income help new companies get money. This is key for businesses to start strong without waiting for sales.

Definition and Overview

A business loan helps companies get money to grow. Startups, or businesses in their early stages, can also find loans even if they haven't made any money yet. These special loans are for businesses less than two years old that need cash but don't have sales to show for it.

Most times, the person owning the business has to promise they'll pay back the loan themselves if the business can't.

There's always a way to fund your dreams, even without a dollar in revenue.

For these startups with no revenue, getting a loan might seem tough because banks usually want to see how you're making money first. Yet options exist like microloans, equipment financing, and credit cards designed specifically for business needs.

While finding a bank loan without income is hard because of credit checks and interest rate concerns, other ways like crowdfunding or help from investors can provide necessary funds without typical borrowing requirements.

Importance for New Ventures

Moving from the basic understanding of startup loans with no revenue, it's key to highlight how critical these funding sources are for new companies. Early-stage enterprises often don't make money right away.

This makes finding cash hard. Startup loans fill this gap, letting owners put money into their operations without waiting for sales to start rolling in. They can buy what they need, pay people, and keep the lights on.

This kind of support is crucial in the risky early days.

These financing options also give entrepreneurs a chance to grow without giving up part of their company too soon. By choosing loans over selling shares, founders keep control and stand a better chance of making big decisions on their own terms later.

As the enterprise strengthens financially, it might get access to even more favorable lending conditions like lower interest rates or additional credit lines. This financial boost at just the right time can make all the difference between staying small and scaling up fast.

Types of Financing Available for Startups Without Revenue

Financing Available for Startups Without Revenue


Startups without money coming in still have options to get funding. They can choose from small loans, getting money for their equipment, sending out future payment requests early, or using company credit cards.


Microloans are small loans, often not more than $50,000. These loans come from nonprofits and have easier rules for getting them. They help people who want to start or grow their own company but don't have a lot of money yet.

You can use microloans for many things like buying tools or paying for ads.

Credit scores matter less with microloans, making them good for those just starting out. Nonprofits that give these loans also offer advice and training to help your business do well.

This makes microloans not just about the money but also about supporting you on your journey to success in business.

Equipment Financing

Moving from microloans, startups also have the option of equipment financing. This type of loan lets businesses buy the machinery they need by using that same machinery as a guarantee for the loan.

The conditions for this loan depend on your credit score, how long you've been in business, and how well the equipment fits into your business plan. It's great for new companies that need special tools but don't have much money yet.

Offering collateral like big machines can make it easier to get a loan.

Interest rates change a lot for these loans. But having the right equipment can help your business grow quickly. Plus, since the equipment itself backs up the loan, lenders might see you as less risky even if you're just starting out.

Invoice Financing and Factoring

Shifting from equipment financing, invoice financing and factoring offer another route for startups to gain funds. These methods turn unpaid bills into immediate cash, helping businesses manage their money flow better.

With invoice financing, a company can get a part of the amount it is owed upfront. This helps keep the business running smoothly without waiting long for customers to pay.

Factoring is slightly different as it involves selling these unpaid bills to another company. This option fits well with new companies that might not have much money coming in or those with weak credit scores.

It quickly fills in cash flow gaps, especially for businesses that deal with other businesses (B2B). Instead of juggling finances while waiting on payments, startups can continue operating effectively by choosing one of these routes.

Business Credit Cards

Moving from invoice financing and factoring, another great option for startups is business credit cards. These cards not only give businesses a quick way to access money, but they also help in building a company's credit history.

By using business credit cards wisely, companies can show they are reliable. This makes it easier to get more funding in the future.

Business credit cards often come with benefits like cash back or rewards on purchases. They allow for flexible spending on both small and large expenses without needing immediate cash.

For startups working towards growing their financial footprint, these cards are tools that can pave the way for larger lines of credit and loans down the line by improving their credit scores through consistent use and on-time payments.

Key Strategies to Secure a Startup Loan with No Revenue

Secure a Startup Loan with No Revenue

To get a startup loan without making money yet, you can use things like your property as collateral, find someone who promises to pay if you can't, make a strong plan for your business, and show how you think it will earn money in the future.

Explore ways to grow your new company now!

Offering Collateral

Offering collateral can help you get a business credit line, even if your new venture has no revenue. Collateral includes things like big machines, properties, or money. By offering these assets, you make the loan less risky for the lender.

This means they might be more willing to give you the loan.

Banks and other financial places often ask for collateral for startup loans. Using something valuable as security shows that you are serious about paying back what you borrow. Next up, we'll talk about how adding a co-signer can also boost your chances of getting a loan.

Adding a Cosigner

Getting a loan for your startup can be easier if you add someone with good credit as a cosigner. This person promises to pay back the loan if you can't. Lenders feel safer when there's a cosigner involved because it lowers their risk of losing money.

If your business is new and doesn't make money yet, having a cosigner with strong credit or valuable assets might be the key to getting approval.

After adding a cosigner, it's crucial to prepare a solid business plan.

Preparing a Strong Business Plan

After considering the option of adding a cosigner, focus shifts to drafting a strong business plan. This document shows how you will make your startup successful. Include clear goals, and steps to meet them.

Describe your product or service and what makes it special. Also outline who will buy it and why.

Next, detail how you plan to market your offering and handle operations. Add financial predictions for income, costs, and profits over the next few years. If writing this seems tough, many online guides can help simplify the process.

A solid business plan is key in convincing banks or investors that your venture deserves funding without existing revenue streams.

Creating Financial Projections

Creating financial projections means you guess your business's future money situation. You list expected income and expenses to show banks how you plan to make money. This part of your business plan lets lenders see your potential for making profits.

To make these guesses, use facts about similar businesses and market research. Think about costs like inventory, rent, and paying workers when estimating expenses.

You also decide how much cash you'll need to keep things running each month. Don't forget to consider seasonal changes in sales or unexpected costs. This careful planning helps convince lenders that you can pay back what you borrow on time.

Using tools like spreadsheets can make this task easier by organizing all your numbers clearly.

Exploring Loan Alternatives

Looking for startup funds? Check out crowdfunding and sites where people lend to each other. Big investors and government programs can also help you start your business without traditional loans.

Crowdfunding and Peer-to-Peer Lending

Crowdfunding platforms give you a way to raise money from many people over the internet. This method works well for starting businesses without upfront cash. You share your business idea online, and people who like it can give you money to help start it.

Some popular sites for this are Kickstarter and Indiegogo. They allow entrepreneurs to set up campaigns asking for funds. In return, backers might get early access to products or unique rewards.

Peer-to-peer lending is another option that matches borrowers with individuals willing to lend money. It's not like traditional loans from banks but rather involves getting a loan directly from another person through platforms like Prosper and LendingClub.

This approach can be quicker than bank loans and offers competitive interest rates.

Every successful venture starts with a great idea and the courage to bring it into reality.

Venture Capital and Angel Investors

Moving from crowdfunding and peer-to-peer lending, startups can consider venture capital firms and angel investors for funding. These investors do not require a startup to have revenue before they offer money.

Instead, they look at the potential for growth and success in the business idea or model. Venture capitalists invest large amounts of money in exchange for equity in the company. They often also bring expertise and connections that can help the business grow.

Angel investors work similarly but usually deal with smaller amounts of cash compared to venture capital firms. They might be successful entrepreneurs themselves who want to support new businesses.

Meeting with these individuals offers a chance to get valuable advice alongside funding. Attending incubator programs is one way startups can connect with both venture capitalists and angel investors, improving their odds of getting funded without current income.

Government Grants and Programs

Shifting from venture capital, startups have another great funding option through government grants and programs. These programs offer funds without needing you to show income first.

One key player is the U.S. Small Business Administration (SBA), which sets up loans fitting for small ventures with maximum revenue guidelines in place. This means even if your business doesn't make money yet, you can still qualify for help.

Besides loans, there are many business grants available that don't require returning the money like a loan does. The SBA also gives out free advice and resources to help get your startup off the ground.

This support ranges from financial planning to how to grow your business wisely. With these options, new businesses can find solid ground without worrying about income right away.

The Role of Personal and Business Credit Scores

Your personal and business credit scores show lenders how well you handle money. These scores affect whether you get a loan or not. Keep reading to understand more about how this works in getting a business credit line.

Building from Scratch

Building business credit from the ground up means starting with basic steps. First, create accounts with suppliers and make sure you pay them on time. These actions show that your business is reliable.

This foundation can help improve your company's credit scores.

Having a solid credit score can open doors to more financing options in the future. For example, using business charge cards wisely boosts your credit standing. It makes getting more loans possible down the line.

Aim for timely payments to keep building a positive financial history for your company.

Impact on Loan Approval

Good credit scores play a big role in getting a loan approved. Lenders look at your credit score to decide if they should give you money. If you have a high score, you're more likely to get a good deal on a loan.

This means lower interest rates and better terms for paying back the money.

For example, American Express® Business Credit Line needs you to have a credit score of 660 or higher and make at least $3,000 each month. OnDeck wants your score to be 625 or more within one year of running your business.

Adding someone else with excellent credit as a cosigner can also help your chances of getting the loan.

Next comes understanding what lenders want when you apply for a loan.

Navigating the Loan Application Process

Learn what lenders want and how to impress them for a smooth loan approval. Keep reading to find out more!

Understanding Lender’s Requirements

Lenders look at many things before they decide to give you a loan. They want to make sure you can pay it back. Most ask for a personal promise that you will repay the money. This is common when your business doesn't make money yet.

They check how good you are with money, looking at your credit score and past financial choices.

Getting a loan involves more than just asking for money; it's about showing lenders that paying them back is something you can do.

Next, we'll share tips on making your loan interview successful.

Tips for a Successful Loan Interview

Dress professionally and arrive on time for your loan interview to make a good first impression. Show the lender that you respect their time and are serious about your request. Bring important documents, like your business plan and financial projections, to show you have done your homework.

These papers help the lender see your vision and how you plan to make money.

Speak clearly about why you need a loan and how you will use it to grow your business. Be ready to explain parts of your business plan in detail, especially how you expect to earn revenue even if you are just starting out.

Also, practice answering common questions lenders might ask so you can respond confidently during the interview.

Next, let's discuss managing your loan and future financing needs.

Managing Your Loan and Future Financing Needs

Keep your loan in check and plan ahead for more money needs.

Strategies for Successful Repayment

To pay back a business loan successfully, start by making financial forecasts. These projections help you see how your business can grow and handle the loan payments. You should also set aside money regularly to cover your future financing needs.

Create a plan that includes regular savings for paying off debt and securing more funding in the future.

Next, explore different ways to bring in more money or cut costs. This could mean finding new customers, offering new products, or spending less on business expenses. Planning ahead makes it easier to manage loans and keep your business running smoothly.

Now let's look into planning for future financing.

Planning for Future Financing

After paying off your initial loan, consider what's next. Better rates and terms await as your business finance gets stronger. Evaluating how fast you can get funds and reading reviews about them will guide your decisions.

Networking with potential backers and joining incubator programs also boost your chances for next time. Keep an eye on the growth of your venture to know when it’s right to seek more money.

Use a business credit card wisely to lift your credit score high. This makes getting future loans easier. Planning ahead keeps you ready for opportunities or challenges that come up.

Always check how different options affect your business finance before making a choice.


Getting a business credit line with no money coming in might seem tough, but it's doable. Startups have options like microloans and equipment lending. You also learned about offering up something valuable to get a loan and finding someone to sign with you.

Writing a solid business plan can make a big difference too. Have you thought about how these steps could work for your venture? Crowdfunding or getting help from investors are other paths to explore.

Take the first step today towards securing your startup's future.



1. What is a business credit line?

A business credit line is like a pot of money that businesses can use when they need it. They only pay interest on what they take out, not the whole pot.

2. Can I get a business credit line if my company doesn't make money yet?

Yes, some financial options don't require your business to make money first. These include crowdfunding, advances from future sales, and loans based on promises or goods you will sell later.

3. What are cash advances and how do they work for new businesses?

Cash advances give you upfront cash based on future sales or payments coming in. It's a quick way to get money, but watch out for high fees.

4. How does invoice factoring help my startup get funding?

Invoice factoring lets you turn unpaid bills into immediate cash by selling them at a discount to someone else who will collect them later. This helps improve your cash flow without waiting for customers to pay.

5. Are there any special banks or groups that help small businesses with no revenue yet?

Yes! Groups like community development financiers and peer-to-peer lending platforms offer loans and support to startups and small enterprises even if they're just starting out.

6. What should I consider before getting financing for my startup with no income?

Think about how much debt your business can handle, compare interest rates (APRs), understand all fees involved, and have a plan for paying back what you borrow without putting your venture at risk of failing.



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