Revenue is one signal, not the only one
Many funding options are built around a business's deposits. When you have none yet, lenders look elsewhere: your personal credit profile, what you are buying and whether it can secure the financing, and how clearly you can explain the plan.
Paths worth understanding
- Owner-based credit. A syndicated line of credit is usually based on the owner's personal credit, which can work for a newer business.
- Equipment financing. When the money is for equipment, the equipment usually helps secure it.
- SBA microloans. Smaller SBA-backed loans offered through community lenders, covered on our startup funding page.
- Later, revenue-based options. Once deposits come in steadily, options like a revenue-based line of credit may open up.
Plan your cash before you plan your loan
Before you take on any payment, map out your first few months: what you expect to come in, what has to go out and where the tight weeks fall. A 13-week cash flow plan does exactly that, and it shows you what payment your plan can carry comfortably.
Ask the one question that matters
For any offer, ask for the total payback: everything you will pay back, start to finish. It is the simplest way to compare options fairly, especially when you are new to all of this.