How to Get a Startup Business Loan with No Money

Jordan Brooks

Jordan Brooks

— 3 min read
Credit Cards on Table

Estimated Reading Time

7 minutes

Key Takeaways

  • Creditworthy businesses have access to unsecured business loans with no collateral necessary.
  • SBA microloans are an option for new and small businesses with minimal assets.
  • A cohesive business plan is important in order to secure your loan.
  • Also look at non-traditional lending opportunities, which can help expand your funding universe.

Table of Contents

How to Get a Startup Business Loan with No Money

In the world of startups where “no money” often is the name of the game, getting a startup loan can feel like trying to apply for a small-business loan without any credit. But the horizon is not as far off as it might seem. Yes, you can get a startup business loan with no money or collateral: And we’re not talking through with shady individuals; this is even from certified business lenders. Let’s strap up and dive into the awesome opportunities for new entrepreneurs to follow their startup dreams (even with little-to-nothing) to begin with.


Loans for Startups with No Collateral or Money

Let us venture into a hypothetical world in which your dreams aren’t held hostage by the existence of your assets — a world where loan officers accept the potential you possess without any interest in your current position. Ladies and gentlemen, I give you the world of unsecured business loans. These money lines target founders who may not be asset-rich but are full of promise. And at the end of the day, approval relies on your credit and expected income. For those interested in government-backed options, the Small Business Administration (SBA Loans) are available. Collateral is required for many of these loans but a few gems like SBA microloans for less than $50,000 do not attach you to this requirement. They are perfect for new or young businesses without large amounts of assets.


Persistence in Application – How to Get a Startup Loan with No Money

Applying for a startup loan with no money takes a bit of guts and a lot of elbow grease. It’s a deliberate play, starting with a fundamental knowledge of your cash flow and projected financials. Lenders want to have confidence in your ability to repay, and will only find that when they understand in detail how you will spend the funds and have positive cash flows and operating budgets that demonstrate expected inflows and outflows.

  • Develop Your Financial Story
    Understand Your Cash Flow and Projected Financials: Think of lenders as detectives and your business plan as the crime scene board.
  • Arm Yourself With Paperwork
    Get ready to unspool: Personal credit scores. Perhaps anything in the way of a business credit history. A detailed depiction of your business and industry. An excellent business plan and financial forecast.
  • Crunch the Numbers
    Know your money situation. It is to have a sense of what monthly repayment is manageable by balancing anticipated income and core expenses.
  • The Power of Choice
    Shop Lenders: Various lenders have various terms, rates and requirements.
  • Get the Criteria
    Understand Approval Dynamics: Even with no money or collateral are in play, criteria revolve around your personal credit score and the quality of your business plan.


Exploring Your Choices: Common Entrepreneur Cash Crunch Loans

  • Unsecured loans
    No Collateral Required. Typical Range: $20,000 – $100,000. Approval Based: Credit score, plan, potential.
  • SBA Microloans
    No Collateral (for under $50k). Approval Based: Plan, experience, projections.
  • P2P Lending
    No Collateral. Approval Based: Creditworthiness, business plan.
  • Lines of Credit
    No Collateral. Approval Based: Credit score, cash flow projections.


Pro Tips: Sharpen Your Loan Securing Game

  • Build Personal Credit: If your business has no history or assets, this becomes crucial.
  • Refine Your Business Plan: Argue with detailed research in the market, against spreadsheets about financial projections, a pinpoint-clear path to profitability.
  • Small Beginnings: Microloans or small lines of credit are typically easier to get when starting out.
  • From Traditional To Something More: Online lenders and microloan sources are generally more flexible than old-school banking giants and work well for newer businesses.


Frequently Asked Questions

  • Can I get a startup bad credit loan?
    Though it’s difficult, startups with poor credit can look into options such as P2P lending or trying to build credit with a small loan or credit line.
  • What is the best loan for startups with no revenue?
    SBA microloans and some online lenders can help startups without a revenue history, lending based on business plans and credit.

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