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Startup Business Loans with No Revenue:  How to go about it

It can feel like an impasse when starting a business. That’s because, in the majority of businesses, you require a sizable initial investment to establish a business. If your company doesn’t have the support of kind investors, you’ll need to apply for a business loan, which normally has minimum revenue requirements.

This difficulty in getting approved may frustrate start-up companies or would-be entrepreneurs, but there are still financing possibilities for companies that don’t have any cash.

Cash Flow: How Crucial Is It to Business Lenders?

The income-to-expense ratio of a business is referred to as cash flow. A company may have a positive cash flow, which indicates that its total income exceeds its total expenses, or a negative cash flow, which indicates that its expenses exceed its revenue.

Businesses with a healthy cash flow are more likely to be responsible debtors who can repay their loans, making them reliable applicants for lenders. Lenders are often reluctant to offer credit to a business with a negative cash flow, or no money. Lenders ultimately want to make sure that borrowers will be able to repay their debts without any problems.

When to Consider Getting a Business Loan If You Have No Money

New companies can be looking for finance that helps them to expand their operations and get off the ground. If beginning capital is not secured, it is likely that new business owners will have to rely on the money they can borrow now and repay later.

Even if you don’t have any money, a starting company loan or a startup business loans with no revenue may be an option for you depending on the lender and your future business plans. This can assist you in avoiding using your savings to launch your firm. Only borrow the money you are confident you can repay on time, though.

Alternatives For Funding Small Businesses Without Money

Here are the best methods for obtaining a company loan with little to no income.

Loans to businesses

It is often difficult to obtain a traditional business loan since many business lenders demand that prospective borrowers achieve minimum yearly revenue requirements in order to qualify for a loan. However, some financial institutions are ready to lend money to start-up companies that have no existing revenue.

Business lenders who believe new enterprises and startups are eligible for application will probably want additional documentation in the case of these companies. These companies lack proof of annual revenue. For instance, businesses often need to present financial predictions and a thorough business plan to show the company’s capacity to pay back its debts.

Commercial Credit Cards

Similar to personal credit cards, business credit cards allow you to make purchases up to a set credit limit. Your balance is due in full at the end of each month, and any amounts that are not repaid will start to accrue interest until they are. This implies that if you pay off your balance in full each month, you can completely avoid paying interest.

Credit card issuers often utilize your personal income and personal credit score to determine your eligibility, unlike business loans, making them a feasible choice for companies with little to no cash flow. This implies that you won’t be required to present proof of your company’s monthly or yearly earnings. A minimum personal credit score of 670 is needed for the majority of business credit cards. However, the best terms come from a higher score.

Also Read: Dot Business Cards

Finance for Equipment

You can finance the acquisition of equipment required for your company’s operations using equipment financing. This might cover everything from modest electronics to substantial manufacturing equipment. The piece of equipment you’re financing secures the loan and serves as collateral—something of value the lender can seize to recuperate any losses.

Equipment financing lenders may be more inclined to approve small enterprises or startups with little to no cash flow because collateral lowers the risk you offer to lenders. To prove that they can afford their debt obligations, these companies would often need to produce financial predictions and a thorough business strategy, much like with corporate loans.

Recognize Your Repayment Duties

Although getting a loan is simple, paying it back is significantly more difficult—especially if you have limited cash flow.

Make sure you can afford the payments before making any final decisions by assessing your existing and projected cash flow before going for a startup business loans with no revenue. Be conservative in your projections. Missing a payment may damage your credit and make it more difficult for you to get other credit products in the future.

If you fail to repay the loan and have personally guaranteed it, you will be required to use your own money, such as that from your checking or retirement account.


Calculate your ability to repay the loan based on your present cash flow before obtaining a startup business loan with no revenue for your firm. Consider the worst-case scenario and determine if you could make the payments. A company loan could be a good choice if you can. The last thing you want is to be saddled with a debt you can’t pay back and all of its consequences.