Getting a Startup Business Loan with No Revenue

A business loan with zero revenue may seem challenging; however, it’s easier than you imagine. Owners who have taken the necessary steps to launch their businesses own over 31.7 million small businesses in the United States.

Finding the most suitable finance options is vital in getting your startup off on the right foot. It is crucial for your company to identify the most suitable kind of loan at any given moment.

In this article, we will go over invaluable information for business owners who are looking for financing, such as:

  • What tools are available for financial planning and startup business loans with no revenue that do not require cash backing, have low income, or no income?
  • How do I get a small-business credit with no revenue or money?
  • Why would you need an unsecured business loan that does not require cash?

Let’s start!

Business Loans that require no Money, Low Earnings or even no income

If you have no funds, you’ll unlikely be able to obtain an SBA or conventional term loan. However, even if you don’t have income or cash in the bank, you can avail of other forms of financing. For instance, if you are borrowing money to fund your business and need to finance it, you could utilize your credit card as financing.

Using credit cards will incur an interest rate, but at a minimum, you have credit in your account and can charge it upfront whenever you need to. A responsible credit utilization policy is crucial to owning a small business.

Business owners might also consider accepting personal debt from family or friends when they’re willing and able to afford it. But, if there are better fits than these choices, these resources may be the best options for your business.

Business Credit Cards

Using a business credit line wisely could boost your credit score, making you more able to get future loans from companies (which generally will require you to pay your credit card bill at the time and in full each month).

Credit card companies focus on cash flow but are more concerned with your creditworthiness. You will likely need an excellent credit score to qualify for most business credit cards (a FICO score of 690 or more). Small businesses that earn no money can also benefit from corporate credit cards. They can make use of these cards to fund their initial business costs. However, be aware that unpaid balances can result in an interest rate significantly more than they would otherwise be paying.

Credit responsibly is crucial in business, but banks seek good credit-worthy customers.

Equipment Financing

An equipment loan is different from financing a typical term loan. By using an item as collateral, the lender can cover up to 100 per cent of the price of the equipment.

Due to this distinction, lenders are likely to be less concerned about the machine’s value than they do with the stability of your company’s finances. The credit score of your personal and corporate records. The number of years that the equipment was in use. And the extent to which the equipment is integrated within your overall business strategy. Can all impact your loan terms. Cash flows have a relatively minor effect.

The presence of assets that could use as collateral is crucial. You could initially save cash by using these assets to secure financing. These can be fixed assets such as buildings or inventory such as furniture.

There are alternative options, such as microloans, that are available.


Microloans are small loans, generally with a limit of $50k in the case of less. Small-sized businesses with no funds or revenue usually appreciate the low-interest rates of these loans. Microloans are typically available to businesses in areas that are not served too.

To be eligible for one of these loans, you’ll require a personal guarantor willing to pay the loan if you fail to pay the loan. It is also possible to require collateral, such as bonds or stocks, in case you do not have any other assets.

However, microloans could be a perfect opportunity for startups with no revenue since they could assist in establishing credibility and the opportunity to access capital.

How to Apply for a Small-Business Business Loan without Income or Money

Businesses require financing for several reasons, but all lenders require them to be able to repay their loans. There are, however, possibilities to obtain a company loan if you need more income for a loaner to believe it will be. They can help you raise funds for your startup or purchase inventory and equipment without having to spend your money.

It starts by taking an honest and thorough look at your company’s transactions to understand your resources.

Review your assets

The lenders are at risk every time they grant loans. Banks require evidence that the borrower can repay the loan completely. The majority of lenders base their decisions on the likelihood of earning income.

If you’re not, think of other benefits you could provide the lender, such as credit or collateral, to create the impression of an experienced borrower. Ultimately, those who are creditworthy tend to secure the money they require.

Look at ways to limit the risk for yourself, and also work with a lender who is familiar with the situation.

Determine Whether You’ll Be Able to Repay Based on a Lender’s Requirements

They usually publish their requirements for loans. So, knowing if you meet the conditions and can pay on-time payments is crucial.

Before considering granting loans, many lenders require borrowers to have a certain amount of cash in their business bank accounts. Other lenders might know more about the cash flow if applicants meet the requirements or have great personal credit.

Starting a business world can be difficult. Before having funds to fund your venture, you could allow a small-business loan without generating any income.

Before applying, ensure you know what a lender is looking for.

The Reasons Why Take a Business Loan even if you have no money

In exceptional situations, seeking a business loan is logical, even if you have little or no earnings.

Many companies operate on a contract basis, and sometimes, payment can be delayed for months or even weeks after services are delivered. But, they remain stable and frequently require financial tools.

A business loan that does not require funds is an option in these scenarios.

Alternatives for Obtaining A Business Loan With No Cash

A different approach to a business loan that doesn’t require any cash may be a good option for a business that still needs to profit.

Think about financing with zero debt, like crowdfunding or equity offerings, in a startup with no income.

Examine if your business is already established and you are eligible for a small-business grant. Even though funding is accessible, not all companies can benefit from it due to the intense competition for this money.


Working with the staff of Commercial Lending USA can put you in touch with experts. Who know what they are doing. To make the best decisions to start your business, reduce costs or keep your business running smoothly, you’ll need the right bank for your requirements.

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