Startup Financing
Options commonly explored by businesses with limited operating history or revenue.
Program overview
Startup financing refers to the range of options newer businesses explore when they do not yet have the operating history many programs expect.
How it works
- Providers place greater weight on owner credit, projections, and collateral.
- Amounts are often smaller until a revenue history is established.
- Some options rely on personal guarantees or secured structures.
Common uses
- Initial equipment
- Early inventory
- Launch expenses
- Early working capital
Who may be a good fit
- Businesses under two years old
- Owners preparing for a first financing round
What you may need
- Business plan
- Financial projections
- Personal tax returns
- Identification
- Business formation documents
Potential advantages
- Paths exist for businesses without long histories
- Often paired with technical assistance
Potential drawbacks
- Smaller amounts
- Greater reliance on personal credit and guarantees
Application process
- Formalize the business plan and projections
- Strengthen owner credit and documentation
- Explore microloan intermediaries and community lenders
General qualification considerations
- Owner credit profile
- Business plan and financial projections
- Industry and licensing requirements
- Available collateral or contribution
Alternatives to consider
SBA MicroloansSmaller loan amounts made through nonprofit intermediary lenders, often paired with business assistance.Business Lines of CreditA revolving limit a business can draw from as needed, often used for short-term or recurring cash flow gaps.Equipment FinancingFinancing structured around the purchase of business equipment, where the equipment often serves as collateral.
Frequently asked questions
Can a business with no revenue get financing?
Options are more limited and requirements differ by provider. Preparation, projections, and owner credit typically matter more at this stage.
This is preliminary information, not an eligibility determination, offer, or approval. Final eligibility, terms, rates and approval are determined by the applicable financing provider.