How To Get Startup Business Loans With No Revenue

Starting a company may be an exciting and demanding venture, but it can also be financially taxing. 

Many entrepreneurs need help to obtain money to get their company off the ground, particularly if they have no sales. 

Business Loans With No Revenue

There are, thankfully, opportunities for starting company financing with no income and obtaining business loans with no revenue, which we highlight below.


Crowdfunding is a popular way to raise capital for a new company without income. You will see crowdfunding in three categories: 

  • Reward-based
  • Equity-based
  • Debt-based

The most common sort of crowdsourcing is reward-based crowdfunding. It enables businesses to provide incentives to supporters in return for their support.

An entrepreneur, for example, may provide a product or service as a prize for supporting their campaign. This crowdfunding is common for product-selling firms like technology or design-based startups.

Entrepreneurs may generate financing via equity-based crowdfunding by selling company shares to investors. Investors acquire a percentage of the company’s ownership in return for their investment. This crowdsourcing is ideal for high-growth firms, such as technology startups.

Entrepreneurs may generate cash via debt-based crowdsourcing by giving loans to investors. In return for their assistance, investors earn a part of their investment as interest. This crowdsourcing is appropriate for businesses with stable cash flow who can repay loans over time.

Crowdfunding may be an efficient approach to generating capital for a new firm with no income. It enables businesses to access a big audience and develop an interest in their business.

Furthermore, crowdfunding may assist entrepreneurs in validating their company concept and gathering input from prospective clients. However, it is crucial to remember that crowdfunding can be time-consuming and resource-intensive, and not all projects are successful.

Related Read: How to get a merchant account with bad credit

Personal Loans

A personal loan is an unsecured loan that people may use for many objectives, including a company startup. Banks, credit unions, and internet lenders often make personal loans available. However, the approval will depend on the borrower’s creditworthiness.

Entrepreneurs with solid credit and a steady salary can apply for a personal loan to get their firm off the ground. Entrepreneurs must disclose their exact salary, complete credit history, and other financial information when applying for a personal loan.

These loans feature lower interest rates than credit cards, making them a more cost-effective way to borrow money. 

Furthermore, borrowers can utilize these loans for a range of company needs, including:

  • Equipment Purchases
  • Staff Recruiting
  • Marketing

It’s worth noting that certain online lending platforms specialize in personal loans for commercial purposes, and their criteria are frequently more flexible than those of traditional banks. They may also provide speedier approval and finance.

On the other hand, personal loans might be challenging to get if an entrepreneur has a limited credit history or a poor credit score. Furthermore, personal loans often have a payback duration of many years, which may be a significant financial commitment for a new firm.

Business Credit Cards

A company credit card is another option. Company credit cards, frequently more accessible than standard business loans, may be used to pay initial expenditures.

A business credit card may also provide incentives and benefits to a new company, such as:

  • Cashback on Business Costs
  • Discounts on Professional Services
  • Reduced Fees

Startup Funding

Samll Business

The Small Business Administration (SBA) is a federal body that offers a variety of lending programs to assist small firms in obtaining cash. The SBA does not provide loans directly but insures the loans that are issued by participating lenders such as banks and credit unions.

This guarantee decreases the lender’s risk, increasing the likelihood that the loan will be approved.

The 7(a) Loan Program is among the most popular SBA loan programs. This program offers cash for a variety of commercial reasons, including starting expenditures. 

The 7(a) loan program may give money to firms with no income if they fulfill the SBA’s creditworthiness standards and have a good business plan. In terms of amount, the 7(a) lending program provides loans up to $5 million with payback durations of up to 25 years.

The SBA’s Microloan program is another option for entrepreneurs with little income. Small enterprises and startups may apply for loans of up to $50,000 under this program and use it for the following:

  • Working Capital
  • Inventory
  • Acquisition of Equipment
  • Purchasing Supplies

The Microloan program intends to assist firms that may be unable to get standard bank loans owing to a lack of collateral or poor credit history.

Merchant Cash Advance

A merchant cash advance (MCA) is a kind of alternative financing in which a company receives an advance on future credit card transactions in return for a portion of those sales.

MCA providers, such as Best Merchant Services, provide this financing, which is often used by firms with a high volume of credit card transactions but lack other types of collateral.

MCA operates by the provider advancing a large amount of money to the company in return for a percentage of future credit card sales. The business repays the loan by subtracting a predetermined portion of the company’s daily credit card sales until they pay the advance in full.

This repayment plan depends on the company’s daily credit card sales rather than set payments, which is advantageous for companies with variable sales.

MCAs might be an excellent choice for organizations with little income or who need help qualifying for regular business loans. They are also a fantastic choice for firms needing cash urgently but wanting to avoid going through the lengthy loan application process. 

These funds may cover a wide range of company expenditures, including: 

  • Inventory
  • Equipment
  • Marketing

Line of Credit

Another option for business loans with no revenue is a line of credit, which enables a company to borrow up to a particular amount and then return it over time.

Opening a line of credit is a terrific choice for companies with everchanging cash flows since it enables them to borrow as required and just pay interest on the amount borrowed.

Final Thoughts

There are several choices for beginning company financing with no income. Entrepreneurs should investigate several financing choices and decide which is ideal for their company.

Whether crowdfunding, personal loans, business credit cards, SBA loans, merchant cash advances, alternative lenders, or a line of credit, each option has pros and downsides that a business owner must consider.

Before making a choice on startup business loans with no revenue, it’s usually a good idea to talk with a financial counselor.


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