he Startup Struggle

You’ve got the big idea, the passion, and the vision. But here’s the kicker—you don’t have revenue yet. Can you still get a business loan? The short answer is yes, but it’s not as straightforward as walking into a bank and walking out with cash. Let’s break it down.

What Do Lenders Usually Look For?

Lenders are traditionally risk-averse. They want to see revenue, profitability, and a proven business model. For them, revenue is proof that your business is viable and can repay its debts.

But not all funding sources follow the same playbook.

Is It Possible to Get a Business Loan Without Revenue?

Yes, it is possible—but you’ll need to be strategic and understand what lenders do value if revenue isn’t part of the equation. Think personal credit score, business plan, collateral, and financial projections.

Common Loan Options for Pre-Revenue Startups

If you’re just starting out, here are some loan types that might still be on the table:

Personal loans used for business purposes
Business credit cards
Microloans from nonprofit lenders
SBA microloan program
Equipment financing, if you’re buying something tangible

Want to see all your options? Here’s a helpful guide on the different types of business loans available.

Understanding the Risks Involved

Loans without revenue often come with higher interest rates and stricter terms. Since the lender is taking on more risk, they may require a personal guarantee or collateral.

Key Factors That Can Help You Qualify

If you don’t have revenue, here’s what can make you stand out:

A strong credit history
Collateral (like property or equipment)
A well-thought-out business plan
Experience in the industry
Support from mentors or investors

How to Improve Your Chances Without Revenue

Start by showing the lender that you’ve done your homework. This includes:

Clearly defining your business model
Demonstrating market demand
Showing realistic financial projections
Highlighting any early traction (like a waitlist, pre-orders, or pilot programs)

Collateral and Personal Guarantees: Are They Required?

Often, yes. Lenders may want a personal guarantee or business assets as collateral. If you default, they want to know they have a way to recoup their losses.

Crafting a Solid Business Loan Proposal

Even without revenue, a great loan proposal can win over lenders. Your proposal should outline your vision, market analysis, financial projections, and use of funds.

Check out this guide on writing an effective business loan proposal to boost your chances.

Top Types of Business Loans for New Startups

Depending on your needs and resources, here are the top contenders:

Startup business lines of credit
Invoice financing (if applicable)
Friends and family loans
Community development financial institutions (CDFIs)

Need a breakdown of each? You can find a detailed explanation of various business loan types here.

Documents You’ll Need When Applying

Even without revenue, paperwork still matters. At a minimum, be ready to provide:

Business plan
Financial projections
Personal and business tax returns (if applicable)
Bank statements
Credit report

Here’s a full list of documents you’ll need to apply for a business loan.

Alternative Funding Options Beyond Loans

Can’t get approved? You’ve got other options:

Angel investors
Crowdfunding
Grants
Venture capital (for scalable tech startups)

How to Show Lenders You’re Worth the Risk

Your goal is to minimize risk in the eyes of the lender. You can do this by:

Offering collateral
Building a stellar credit profile
Demonstrating deep market knowledge
Backing your projections with data

How Credit Scores Come Into Play

Without revenue, your personal credit score becomes one of the most important factors. Aim for a score of 680 or higher for better approval odds.

Mistakes to Avoid When Applying Without Revenue

Overestimating your projections — Stay realistic.
Applying without a business plan — It’s non-negotiable.
Ignoring your personal credit — It’s a big part of the equation.
Failing to explore other funding avenues

Success Stories: Startups That Got Funded Without Revenue

Think of companies like Airbnb or Dropbox. In their early days, they had ideas—not revenue. But they had strong plans, early traction, and compelling pitches.

Conclusion: Getting Funded Is Possible—If You’re Prepared

You can get a business loan without revenue—but you’ll need more than just a dream. With the right documents, a strong proposal, and an understanding of alternative funding paths, your startup can go from an idea to a funded reality.

FAQs

1. Can I apply for a business loan with no revenue and no credit history?

It’s tough, but not impossible. Consider microloans, personal loans, or using a co-signer.

2. Do I need a business plan to apply for a loan without revenue?

Absolutely. A solid business plan is crucial to convince lenders you’re serious.

3. Is collateral always required?

Not always, but it significantly improves your chances of approval if you don’t have revenue.

4. What is the best type of loan for a new business?

That depends on your business type and needs, but microloans and business credit cards are good places to start.

5. What should I include in my loan proposal?

Business description, market research, revenue projections, funding needs, and how you’ll use the funds.

Startups & Funding: Getting Business Loan Without Revenue