Best Business Loans for Startups With No Revenue

Why It’s Hard to Get a Loan With No Revenue

Lenders typically evaluate a few key criteria:

• Cash flow & repayment ability — if you have no revenue, demonstrating ability to pay is harder

• Credit history — your personal or business credit may be a primary factor

• Collateral and guarantees — lenders may require assets or personal guarantees

• Business plan, projections, and founder strength — your story, traction, and team matter A LOT

Because of that, many traditional term loans are off the table early. But there are options.

Top Loan & Funding Options for Startups With No Revenue

These are the best paths for very early-stage ventures:

1. SBA Microloans

These are small loans (up to $50,000) made via intermediaries (nonprofits, community lenders). The SBA does not lend directly. Small Business Administration
Pros: more lenient standards, mission-driven lenders, technical assistance
Cons: lower amounts, shorter terms, may require personal guarantee or collateral

2. Equipment Financing / Leasing

If you must purchase machinery, technology, or equipment, these loans use the equipment itself as collateral, reducing the lender’s risk.
Pros: easier to justify because there's a tangible asset
Cons: can’t use for working capital; terms depend heavily on credit

3. Business Credit Cards

While not a “loan” in the classic sense, a business credit card is one of the few credit instruments new startups might qualify for.
Pros: quick access, revolving credit, rewards
Cons: high interest if you carry a balance, limits may be small

4. Alternative / Online Lenders

Some fintech and nonbank lenders will lend based more on founder profiles, projections, or future potential than current revenue.
Shop lenders that specialize in startup funding or early-stage risk. Be careful of high fees or predatory terms.

5. Peer-to-Peer & Crowdlending

Platforms where multiple investors fund your business (debt crowdfunding) or you borrow from individuals.
Pros: can get capital without traditional bank underwriting
Cons: higher cost, platform fees, and you must convince many small investors

6. Grants & Subsidies

Although not a loan, grants don’t need repayment and are ideal when you can qualify. State, local, or federal programs sometimes offer startup grants, innovation grants, or small-business incentives.
Pros: no repayment, supports legitimacy
Cons: highly competitive, requires strong application and compliance

How to Improve Approval Odds (Fast)

Because you have no revenue, strength in other areas becomes critical:

• Strong Business Plan & Projections: Show how you’ll generate revenue and when

• Personal Credit & History: Your personal credit may carry much weight early

• Personal Guarantee or Collateral: Be ready to back the loan with assets or signature

• Minimal Debt Load: Lenders prefer clean balance sheets

• Traction or Pre-Sales / Letters of Intent: Even nonbinding demand signals help

• Apply to Lenders With Startup / Mission Focus: Microloan intermediaries, CDFIs, nonprofit lenders

What to Watch Out For / Common Pitfalls

• High interest / hidden fees: Startups are often charged premium rates

• Short repayment periods: Some “startup loans” require fast paybacks

• Overborrowing: If revenue doesn’t materialize, debt can sink you

• Predatory models like some MCAs (merchant cash advances): Very high cost and risk, especially for businesses with no revenue