How to Get A Start-Up Business Loan with No Money

By Minh Tong Reviewed by Nima Vahdat Updated Nov 15, 2023
How to Get A Start-Up Business Loan with No Money

Getting a business loan with no money or revenue can be challenging, but there are options available!

Many start-ups encounter their first major hurdle even before they take off – lack of funds. 

Starting a new business often requires a financial boost to turn your entrepreneurial dreams into reality. 

But what if you have a brilliant idea and the drive to succeed but no capital to invest? Can you get a start-up business loan with no money?


  • While it can be challenging to obtain a start-up business loan with no money, there are alternative funding options available.
  • Consider the unique financial situation of your business and the potential risk involved when exploring different funding sources.
  • Debt relief solutions, including debt settlement and debt consolidation, can be valuable in managing business debts effectively.

Can You Get A Start-Up Business Loan with No Money? 

Obtaining a traditional start-up business loan with no money upfront can be quite challenging, as most lenders expect business owners to invest some of their capital. 

Another challenge that often confronts entrepreneurs is that their new businesses have not had the opportunity to build a credit history that demonstrates their credit management capabilities.

However, there are alternative funding options designed to support entrepreneurs with innovative ideas, even if they lack significant initial funding.

How Does A Start-up Business Loan Work? 

Start-up business loans typically provide new business owners with the necessary capital to cover various expenses such as equipment purchases, working capital, and initial operating costs. 

These loans can come from various sources, including traditional banks, online lenders, and alternative financing platforms.

When You Might Need to Get a Business Loan with No Money 

You might need to explore business loans with no money upfront in the following situations:

  • Your business idea is promising, but you lack the personal savings to invest.
  • You want to avoid using your personal savings entirely.
  • Traditional lenders are hesitant to provide funding without a substantial personal investment.

Funding Options for Start-ups with No Revenue

There are many funding options available to small business owners with no money.


Microloans are small loans offered by nonprofit lenders, community-based organizations, or online platforms. They are designed to support disadvantaged communities and entrepreneurs who might not qualify for traditional bank loans.

An SBA 7(a) loan, for instance, provides up to $25,000 in financing to small businesses without asking for collateral.

The criteria for eligibility for a microloan can differ from one lender to another. Some may examine your credit score and personal financial situation to determine your loan eligibility, while others might prefer a more extensive financial track record for your business.

Even if certain lenders don’t necessitate a positive business cash flow, they may still request a personal guarantee/collateral to secure the loan.

Invoice Financing

If your business provides goods or services to clients and generates invoices, invoice financing, also known as accounts receivable financing, allows you to receive a portion (80-90 percent) of the invoice’s value upfront.

With this type of funding, you can use your unpaid invoices as collateral to get a loan from a lender.

Equipment Financing

Equipment financing allows you to purchase necessary equipment by using the equipment itself as collateral, reducing the risk for the lender. These can be new or used vehicles, machinery, technology, and other tools. 

Depending on the lender, you may likely require decent personal credit to qualify for this funding option.

Small Business Credit Cards

Small business credit cards can provide a source of funding for initial business expenses, even if you don’t have significant capital.

Business credit cards come with many perks, including cashback rewards, competitive interest rates, and flexible repayment options. 

Furthermore, some business credit cards provide introductory 0% APR periods, providing an excellent means to finance your start-up without the weight of interest charges.

The requirements to qualify for certain business credit cards may involve having a strong personal credit score (690 or above). 

However, there are alternatives, such as secured business credit cards, available for small business owners who have limited or poor personal credit.

Steps to Get A Start-up Business Loan with No Money

Step 1: Check the Eligibility Requirements of Different Business Lenders

When you seek a business loan, numerous commercial lenders will delve into your credit history to gauge your past debt management. Examining your credit history and evaluating your credit scores is a means for lenders to assess potential risks.

Certain lenders might also request a personal guarantee or collateral as part of the loan agreement. Ensure you have a clear understanding of the lender’s stipulations concerning these aspects.

Research and compare various lenders to understand their specific eligibility criteria and application requirements.

Step 2: Evaluate Your Cash Flow And Assets

Be prepared to demonstrate your business’s potential, even if you lack significant upfront investment.

Assess the assets at your disposal that could potentially serve as collateral for a loan. This can encompass cash, stocks, bonds, real estate, and other investment holdings. 

Step 3: Understand That You’ll Likely Be Asked to Sign A Personal Guarantee

Many lenders may require a personal guarantee or a Uniform Commercial Code (UCC) lien, making you or your business responsible for the loan.

A personal guarantee is as straightforward as it sounds: a commitment that you’ll personally assume responsibility for repaying the debt acquired by your business. 

On the other hand, a Uniform Commercial Code (UCC) lien functions somewhat differently. It serves as a comprehensive lien, granting the lender the authority to lay claim to any or all of your business assets if you happen to default on a loan.

Step 4: Decide What You Can Afford to Repay Comfortably

Prior to seeking a business loan, ensure you have a comprehensive grasp of the amount you need to borrow. A common mistake made by start-ups is underestimating or overestimating their financial requirements.

Ensure you can manage the loan repayment without putting your personal finances at risk.

Step 5: Read Over the Loan Terms and Fine Print Carefully

Thoroughly review the loan Terms and Conditions (T&Cs) to avoid any surprises down the road.

Pay special attention to the interest rate, the annual percentage rate (APR), the payment timetable, and the duration of the loan.

Should You Get A Business Loan with No Money?

Determining whether you should get a business loan with no money depends on your business’s unique situation. 

Consider the potential risks and rewards, as well as your ability to manage the loan responsibly.

Alternatives to Business Loans with No Money

Small Business Grants

Grants can be an attractive funding option for start-ups as they don’t require repayment. 

However, they often come with stiff competition, making it challenging for your business to stand out from other grant applicants.

Venture Capital

Venture capital involves seeking investments from venture capitalists in exchange for equity in your business.


Crowdfunding platforms like Kickstarter and IndieGoGo can help you raise money from a large number of individuals interested in your business idea.

Peer-To-Peer Lending Platforms

Peer-to-peer lending platforms connect you with individual investors willing to fund your business.

Investors collaborate to collectively fund the loan, and business owners repay it like any other conventional loan, with added interest. 

The distinctive feature of these loans is that they are unsecured, implying that no collateral is required.

Merchant Cash Advances (MCAs)

Merchant cash advances provide upfront funds based on your future sales. 

Securing these advances is often a straightforward process, and they provide speedy access to the funds you need.

Conclusion About How to Get A Start-Up Business Loan with No Money

Securing funding for your start-up when you have limited capital may be challenging, but it’s not impossible.

By considering alternative funding options and carefully evaluating your business’s unique situation, you can make informed decisions to support your entrepreneurial journey. 

If you’re facing personal or business debts that have become unmanageable, it’s important to know you have several options available. 

At Americor, we understand the importance of managing your finances wisely. 

As America’s trusted source for debt relief solutions, we aim to empower you with financial knowledge that can lead to informed decisions, whether it’s about savings, investments, or managing debt.

If your debt has become unmanageable and you have difficulty making your debt payments each month, then you should consider a free consultation call with one of our certified Debt Consultants, who can provide personalized advice tailored to your specific needs.

By taking proactive steps today, you can put an end to your financial stress and work towards a brighter financial future. 

Remember, there is always hope for debt relief, and our team of experienced professionals are ready to guide you on your journey to regaining control of your finances.

For more information on Americor’s debt relief services, contact us today to see how we can help you eliminate your debts, and get on the fast-track to becoming completely debt-free!


Minh Tong

Minh leverages decades of experience in marketing, sales management and technology to provide high-level advice and lead new initiatives. Minh has a Bachelor of Science in Business/Managerial Economics from University of California at Irvine. He brings over 20 years of sales and executive management experience to the company and his responsibilities include customer service improvement, professional development, and carrying out communications and marketing. Originally from the east coast, Minh resides in southern California and enjoys spending time with his family, going to the beach, and playing a variety of sports.