Best Business Loans for Startups With No Revenue

Starting a business is exciting, but finding funding without revenue can feel impossible. Traditional lenders want to see cash flow and profitability - things most startups don't have yet. The good news? There are still several financing options available.

Why It's Hard to Get Startup Funding

Lenders assess risk based on your ability to repay. Without revenue, you can't prove:

•Cash flow to cover payments

•Business viability

•Track record of success

But that doesn't mean you're out of options. Here are the best ways to fund your startup.

1. Personal Loans for Business

**Best for**: Entrepreneurs with good personal credit

Personal loans can be used for business purposes and don't require business revenue or history.

•Amounts: $1,000 - $100,000

•Rates: 6% - 36% APR

•Requirements: Good personal credit (680+)

**Pros**: Fast approval, no collateral needed

**Cons**: Personal liability, may affect personal credit

2. Business Credit Cards

**Best for**: Smaller funding needs and building credit

Many business credit cards are available to new businesses based on personal credit.

•Credit limits: $500 - $50,000+

•Intro offers: 0% APR for 12-18 months

•Rewards: Cash back or points

**Pros**: Flexible spending, rewards, builds business credit

**Cons**: High regular APRs, easy to overspend

3. Microloans

**Best for**: Very small funding needs

Microlenders focus on underserved entrepreneurs and startups.

•Amounts: $500 - $50,000

•Rates: 8% - 22%

•Terms: Up to 6 years

**Pros**: Accessible to startups, may include mentoring

**Cons**: Smaller amounts, limited availability

4. Equipment Financing

**Best for**: Businesses needing specific equipment

The equipment serves as collateral, making approval easier.

•Amounts: Up to 100% of equipment cost

•Rates: 8% - 30%

•Terms: 2-7 years

**Pros**: Equipment is collateral, easier approval

**Cons**: Only for equipment purchases

5. Invoice Factoring (Pre-Revenue Alternative)

**Best for**: Startups with purchase orders or contracts

Some factoring companies will advance funds based on signed contracts.

•Advance: Up to 90% of invoice/contract value

•Fees: 1% - 5% of invoice value

**Pros**: Based on customer creditworthiness, not yours

**Cons**: Need signed contracts or invoices

6. Crowdfunding

**Best for**: Consumer products or businesses with community appeal

Platforms like Kickstarter and Indiegogo let you raise money from supporters.

•Amounts: Unlimited potential

•Cost: Platform fees (5-10%) + payment processing

**Pros**: No debt, market validation, marketing

**Cons**: Requires compelling campaign, not guaranteed

7. Friends and Family Loans

**Best for**: Entrepreneurs with supportive networks

Personal loans from people who believe in your vision.

•Amounts: Varies

•Terms: Negotiable

**Pros**: Flexible terms, often lower rates

**Cons**: Can strain relationships

8. Grants

**Best for**: Specific industries or demographics

Free money that doesn't need to be repaid.

•Amounts: $500 - $100,000+

•Requirements: Vary by grant

**Pros**: Free money

**Cons**: Highly competitive, time-consuming applications

Tips for Getting Approved

1. Build Personal Credit

Without business history, lenders rely on your personal credit. Aim for 700+.

2. Create a Solid Business Plan

Show lenders you've thought through your business model, market, and financials.

3. Provide Collateral

Assets reduce lender risk and improve your chances.

4. Start Small

Get a small loan, repay it, and build up to larger amounts.

5. Consider a Co-Signer

Someone with good credit can help you qualify.

The Bottom Line

Getting startup funding without revenue is challenging but not impossible. The key is matching the right funding option to your specific situation.

Ready to explore your options? Check your rate with FastLoan to see what financing you may qualify for.