Starting a business is exciting, and funding it is often the hardest part. Most lenders want history you have not had time to build yet. There are still honest paths for new businesses and new LLCs, including some for owners with little or no revenue so far. This guide walks through what lenders typically look at, which options tend to be startup friendly, and how to prepare. No hard credit pull to start.
Startups with little or no revenue usually rely on the owner's personal credit or on assets. Paths to explore include a syndicated line of credit for owners with strong credit, equipment financing secured by the equipment, a business-use HELOC, and SBA microloans of up to $50,000 through nonprofit lenders. If credit needs work first, credit improvement support is available through our partner ASAP Credit Repair.
By Robbie Garvey, Founder · Last updated
What this means: Paths for new or pre-revenue businesses, often built around the owner.
New to these words? See the glossary. Every decision and every term comes from the lender.
Most business funding is built around track record. Lenders like to see time in business, monthly revenue, bank statements and tax returns that show how the company performs. A brand-new business, or a new LLC that has only been open a few months, usually has a plan and an owner but not much of that history yet.
That does not mean funding is out of reach. It means the conversation shifts. Instead of focusing mainly on the business's numbers, lenders lean more on the owner: personal credit, experience in the industry, money the owner is putting in, and any assets that can help secure the funding. Knowing this up front saves time and frustration, because you can focus on paths built for where you are today.
Every lender sets its own criteria, but these factors come up again and again with new businesses:
Personal credit profile. For many startup options, the owner's personal credit is the single biggest factor. Payment history, how much of your available credit you are using, and recent inquiries all matter.
Industry experience. An owner who has worked in the industry for years, even as an employee, can be a stronger candidate than one starting from scratch.
Owner investment. Putting some of your own money into the business shows commitment. Some programs expect a cash injection.
Collateral and assets. Equipment, vehicles, real estate or home equity can help secure funding when revenue history is thin.
A clear plan. What you sell, who buys it, what the money is for and how it gets repaid. It does not need to be long, but it should be specific.
Early revenue and deposits. Even a few months of steady deposits into a business bank account can open more doors over time.
If your business has not made its first sale, the most realistic paths usually rely on the owner's credit or on assets rather than on business performance. A syndicated line of credit may be an option for owners with strong personal credit. Equipment financing can work because the equipment helps secure the financing. Some owners consider a business-use HELOC, which has real tradeoffs worth weighing carefully.
Options that depend on deposits, such as working capital and a revenue-based line of credit, usually open up later, after the business has several months of consistent revenue. Planning for that next stage now can make it easier when you get there.
Syndicated Line of Credit (SLOC). A SLOC combines credit from more than one lender or issuer, typically based on the owner's personal credit profile. For owners with well-managed credit, it can provide flexible capital before the business has much history. It works best with a clear plan for how the funds will be used and repaid. Learn how a SLOC works.
Equipment financing. If your startup needs a truck, a commercial oven, salon stations, medical equipment or machinery, equipment financing is often one of the more accessible paths for new businesses, because the equipment itself helps secure the financing. A quote from the seller is a great first step. Explore equipment financing.
Business-use HELOC. Homeowners with meaningful equity sometimes use a home equity line of credit to launch or grow a business. It can offer substantial access to capital, and it puts your home on the line, so it deserves a careful, honest conversation and ideally input from a tax professional. Read about the tradeoffs.
SBA microloans. The U.S. Small Business Administration's Microloan program provides smaller loans, up to $50,000, through nonprofit intermediary lenders, and many of those lenders also offer training and support for new owners. Requirements and availability vary by intermediary. It is worth looking into if your needs are modest, and the SBA's website lists participating lenders in every state. For larger plans, some SBA 7(a) lenders consider startups with experienced owners and solid plans, though the process takes longer.
Credit building first, through our partner. If your credit profile is holding you back, the most useful first step may be strengthening it. We can connect you with credit repair support through our partner ASAP Credit Repair, who will explain their process and any costs directly. Results vary for every person. Learn about credit improvement support.
Forming an LLC is a smart early step, and it helps separate your business and personal finances. A new LLC by itself does not usually change how lenders view a startup, though. Lenders still look at the owner's credit and experience until the business builds its own history. Some lenders also want to see a minimum time since the LLC was formed, so it can help to set it up sooner rather than later.
Once your LLC is formed, get an EIN from the IRS, open a business bank account in the LLC's name, and run all business income and expenses through it. Register for any state and city licenses you need. Requirements vary by state and city, so check with your Secretary of State and the city or county where you operate. These steps create the paper trail lenders look for later.
Gathering these items before you apply makes every conversation faster and more productive:
Our free A to Z Funding Prep Checklist covers additional items for later-stage options.
We work with new business owners across the country. Startup paths like a SLOC, equipment financing and a business-use HELOC are available in many states, though each lender sets its own criteria and coverage. Conversations happen by phone, video and email, and applications and documents are handled online, so it does not matter whether you are opening a shop in Phoenix, a clinic in Dallas or a service business in Atlanta.
Every state has free help for new owners, including Small Business Development Centers, SCORE mentors and SBA district offices. For example, owners near our Las Vegas headquarters can use the Nevada Small Business Development Center and the SBA Nevada District Office. We are happy to point you toward the right resource wherever you are, if your next step is planning rather than funding.
Owners in every state can reach us by phone, video and online at (702) 625-2891.
Months 0 to 3: form your entity, get your EIN, open a business bank account, get licensed, review your own credit report and explore startup-friendly options such as a SLOC or equipment financing.
Months 3 to 6: deposit all revenue into the business account, keep clean records and pay every account on time. If your credit needs attention, work on it now.
Months 6 to 12: with steady deposits, options like working capital and a revenue-based line of credit may start to open. Compare them on our business line of credit hub.
Year 2 and beyond: with tax returns and a track record, longer-term paths like SBA loans and real estate financing become more realistic.
We are a business funding broker, not a lender. We listen first, explain options, and look across our network of lending partners for paths that fit where you are right now, along with what may open up later. If the honest answer is that credit building or a few more months of deposits should come first, we will tell you. Every funding decision is made by the lender, and you are never obligated to accept an offer. When it feels right, start your path below.
Credit lines arranged across lenders, built around a strong personal credit profile.
Get the trucks, ovens, units or machines you need. The equipment usually backs the financing.
Credit improvement support through our partner ASAP Credit Repair, when credit is the right first step.
Credit shapes the options open to you. See how lenders look at it, check where you stand and find help if you need it.
Some paths may be possible without revenue, such as a syndicated line of credit based on strong personal credit, equipment financing secured by the equipment, or a business-use HELOC. Each lender sets its own criteria.
Usually the owner's personal credit, industry experience, money the owner is putting in, any collateral, and a clear plan for the funds.
Yes, some options are open to new LLCs. Until the LLC builds its own history, lenders typically focus on the owner's credit and experience.
For most startup options, yes. It is often the main factor lenders review.
The SBA Microloan program offers loans up to $50,000 through nonprofit intermediary lenders, often with training and support. Requirements vary by intermediary.
It can provide meaningful capital, but your home is collateral. It is a big decision worth discussing with your family and a tax professional.
Credit improvement support is available through our partner ASAP Credit Repair. Results vary, and some asset-based options may still be worth exploring meanwhile.
There is no hard credit pull to start. You share your own credit report, and any later checks are explained before they happen.
Yes, by phone, video and online, from our headquarters in Las Vegas.
Applying is free and takes a few minutes. Here is what to expect, step by step.
A short online application, or a call with our team. About the business, what the money is for and how much you have in mind.
My team and I review what you shared and call or text you, usually to ask a few questions and explain what we see.
Usually recent bank statements and your own credit report through our IdentityIQ link. No hard credit pull to start.
We shop your file with lending partners and walk you through any offers, including the total payback.
Take an offer or don't. There is never pressure, and you can stop at any point.
Timing depends on the option and the lender. We'll give you honest expectations once we know your situation. Rather talk first? Book a free 20-minute call.
A short, free application. No hard credit pull to start.
No pressure and no hard credit pulls to start. Tell us where your business stands, and we'll walk the options together.
