Starting a business is an exhilarating journey filled with dreams of innovation, growth, and success. However, one of the biggest challenges for new entrepreneurs is securing funding, especially when their startup has no revenue. In 2025, the landscape of startup business loans with no revenue has evolved, offering a variety of financing options tailored to early-stage businesses. This comprehensive guide explores the best loan options, eligibility criteria, application tips, and alternative funding strategies to help you launch your venture without a proven track record of income.
Why Startups with No Revenue Struggle to Secure Loans
Traditional lenders, such as banks and credit unions, typically require a history of revenue, profitability, and cash flow to assess a business’s ability to repay a loan. For startups with no revenue, this creates a significant barrier. Lenders view these businesses as high-risk due to the lack of financial history, making it challenging to qualify for conventional financing. However, the rise of alternative lenders, fintech platforms, and government-backed initiatives has opened new doors for entrepreneurs seeking startup business loans with no revenue.
In 2025, lenders are increasingly focusing on other factors, such as personal credit scores, business plans, market potential, and industry trends, to evaluate loan applications. By understanding these criteria and exploring non-traditional funding options, startups can access the capital needed to turn their ideas into reality.
Types of Startup Business Loans with No Revenue in 2025
Several financing options cater specifically to startups with no revenue. Below, we outline the most accessible loan types and their key features to help you choose the best fit for your business.
1. SBA Microloans
The U.S. Small Business Administration (SBA) offers microloans designed for startups and small businesses, including those with no revenue. Administered through nonprofit intermediary lenders, SBA microloans provide up to $50,000 to cover startup costs, such as equipment, inventory, or working capital.
- Key Features:
- Loan amounts: Up to $50,000
- Interest rates: Typically 8-13%
- Repayment terms: Up to 6 years
- Eligibility: Strong personal credit (600+), a solid business plan, and no major credit issues
- Benefits: Flexible terms, business coaching, and technical assistance from intermediaries
- Drawbacks: Limited loan amounts and a potentially lengthy application process
SBA microloans are ideal for startups in underserved communities or those led by minority entrepreneurs. To apply, visit the SBA’s microloan program page or contact a local intermediary lender.
2. Business Credit Cards
Business credit cards are a popular option for startups with no revenue, as they often rely on the owner’s personal credit score rather than business income. These cards provide a revolving line of credit for purchasing supplies, marketing, or covering operational expenses.
- Key Features:
- Credit limits: $500 to $50,000, depending on creditworthiness
- Interest rates: 15-30% APR, but 0% introductory offers are common
- Eligibility: Personal credit score of 600+; no business revenue required
- Benefits: Easy approval, rewards programs, and the ability to build business credit
- Drawbacks: High interest rates if balances are not paid monthly
Examples include the American Express Business Gold Card and the Chase Ink Business Cash Card. To avoid interest charges, pay off the balance in full each month.
3. Unsecured Business Loans
Unsecured business loans don’t require collateral, making them appealing for startups with no revenue or assets. These loans are typically offered by online lenders and focus on personal credit scores and business potential.
- Key Features:
- Loan amounts: $5,000 to $250,000
- Interest rates: 10-40% APR
- Repayment terms: 6 months to 5 years
- Eligibility: Personal credit score of 600+, a detailed business plan, and sometimes a personal guarantee
- Benefits: No collateral needed, fast funding (often within 24-48 hours)
- Drawbacks: Higher interest rates and stricter credit requirements
Lenders like OnDeck and Fundbox are known for offering unsecured loans to startups. Check out OnDeck’s loan options for more details.
4. Revenue-Based Financing
Revenue-based financing (RBF) is a flexible option for startups expecting future revenue but currently generating none. Instead of fixed monthly payments, repayments are based on a percentage of future sales, reducing the burden during lean periods.
- Key Features:
- Funding amounts: $10,000 to $1 million
- Repayment: 5-15% of monthly revenue
- Eligibility: Strong business plan, market potential, and personal credit score of 550+
- Benefits: Flexible repayments tied to revenue, no collateral required
- Drawbacks: Higher overall costs due to revenue-sharing terms
Platforms like Shopify Capital offer revenue-based financing for e-commerce startups. Learn more at Shopify Capital.
5. Equipment Financing
If your startup requires equipment, such as machinery, vehicles, or technology, equipment financing allows you to purchase these assets without upfront costs. The equipment itself serves as collateral, making it easier to qualify even with no revenue.
- Key Features:
- Loan amounts: Up to 100% of equipment cost
- Interest rates: 8-25%
- Repayment terms: 1-7 years
- Eligibility: Personal credit score of 600+, vendor quotes, and a business plan
- Benefits: Low risk for lenders, tax benefits from equipment depreciation
- Drawbacks: Limited to equipment purchases
Lenders like Finance Factory specialize in equipment financing for startups. Visit Finance Factory for more information.
6. Microloans from Nonprofit Lenders
Nonprofit organizations, such as Accion Opportunity Fund and Kiva U.S., offer microloans to startups with no revenue, particularly those owned by women, minorities, or low-income entrepreneurs. These loans often come with mentorship and educational resources.
- Key Features:
- Loan amounts: $500 to $50,000
- Interest rates: 5-15%
- Repayment terms: 1-5 years
- Eligibility: Personal credit score of 500+, a compelling business story
- Benefits: Supportive services, low interest rates, and flexible terms
- Drawbacks: Smaller loan amounts and crowdfunding requirements for some platforms
Kiva’s unique crowdfunding model allows borrowers to raise funds from supporters. Explore Kiva U.S. for details.
Alternative Funding Options for Startups with No Revenue
If traditional loans aren’t viable, consider these alternative funding sources to support your startup:
1. Small Business Grants
Grants provide free money that doesn’t require repayment, making them ideal for startups with no revenue. Federal, state, and private organizations offer grants for specific industries, demographics, or purposes.
- Examples:
- Federal Grants: Available through Grants.gov for technology and research startups
- 37 Angels: Investments of $50,000-$200,000 for women-led startups
- Walmart Spark Good Local Grants: $250-$5,000 for community-focused businesses
- Eligibility: Varies by program; often requires a strong business plan and alignment with grant goals
- Tip: Check with your local Small Business Development Center (SBDC) for grant opportunities.
Don’t qualify for loans? check these business grants.
2. Crowdfunding
Crowdfunding platforms like Kickstarter and Indiegogo allow startups to raise funds from supporters in exchange for rewards or equity. This is a low-risk option for startups with no revenue, as there’s no obligation to repay if the campaign fails.
- Key Features:
- Platforms: Kickstarter, Indiegogo, SeedInvest
- Funding amounts: Varies based on campaign success
- Eligibility: A compelling pitch and marketable product
- Benefits: Retain full ownership, validate market demand
- Drawbacks: Time-intensive campaigns and platform fees
Learn how to launch a campaign at Kickstarter.
3. Angel Investors and Venture Capital
Angel investors and venture capital firms provide funding in exchange for equity. While they often target high-growth startups, some investors are open to early-stage businesses with no revenue but strong potential.
- Key Features:
- Funding amounts: $10,000 to millions
- Eligibility: Scalable business model, strong pitch, and market research
- Benefits: Access to mentorship and networks
- Drawbacks: Loss of equity and control
Connect with investors through platforms like AngelList.
4. Personal Loans
Entrepreneurs with good personal credit can use personal loans to finance their startups. While riskier, this option doesn’t require business revenue or collateral.
- Key Features:
- Loan amounts: $1,000 to $50,000
- Interest rates: 6-36% APR
- Eligibility: Personal credit score of 600+
- Benefits: Quick approval, no business history needed
- Drawbacks: Personal liability for repayment
Compare personal loan options at LendingTree.
How to Qualify for Startup Business Loans with No Revenue
Securing startup business loans with no revenue requires careful preparation. Follow these steps to improve your chances of approval:
1. Build a Strong Personal Credit Score
Since startups lack business credit, lenders rely heavily on your personal credit score. Aim for a score of 600 or higher, and take steps to improve your credit by:
- Paying bills on time
- Reducing credit card balances
- Checking your credit report for errors at AnnualCreditReport.com
2. Craft a Compelling Business Plan
A detailed business plan demonstrates your vision, market potential, and financial projections. Include:
- Executive summary
- Market analysis
- Competitive landscape
- Marketing and sales strategies
- Financial projections for 3-5 years
Use tools like LivePlan to create a professional plan.
3. Offer Collateral or a Personal Guarantee
Providing collateral (e.g., equipment, real estate) or a personal guarantee reduces lender risk, increasing your approval odds. Be cautious, as defaulting could result in asset loss.
4. Research Lenders Specializing in Startups
Choose lenders with experience funding startups with no revenue, such as:
- Online lenders: Fundbox, OnDeck, Bluevine
- Nonprofit lenders: Accion, Kiva
- SBA-approved lenders: Check the SBA Lender Match tool
5. Gather Required Documentation
Prepare the following documents to streamline your application:
- Personal and business tax returns
- Bank statements
- Business plan
- Legal documents (e.g., business licenses, EIN)
- Personal financial statements
Tips for Applying for Startup Business Loans with No Revenue
To maximize your success, follow these application tips:
- Compare Multiple Lenders: Shop around to find the best rates and terms. Use platforms like Lendio to compare offers.
- Start Small: Apply for smaller loan amounts to build credit and establish a repayment history.
- Be Transparent: Provide accurate information to avoid delays or denials.
- Seek Professional Help: Consult with an SBDC advisor or financial broker to navigate the process.
- Monitor Your Credit: Regularly check your credit score to ensure it remains strong.
Common Mistakes to Avoid
Avoid these pitfalls when seeking startup business loans with no revenue:
- Applying for Too Many Loans: Multiple applications can lower your credit score due to hard inquiries.
- Ignoring Terms and Fees: High interest rates or hidden fees can make repayment difficult.
- Overborrowing: Only borrow what you need to avoid excessive debt.
- Neglecting Alternative Funding: Explore grants, crowdfunding, or investors before relying solely on loans.
The Future of Startup Business Loans with No Revenue in 2025
In 2025, the financing landscape for startups with no revenue is expected to grow more inclusive. Trends include:
- Increased Fintech Innovation: Online lenders are leveraging AI to assess creditworthiness beyond traditional metrics.
- Government Support: Expanded SBA programs and state-level initiatives are prioritizing startup funding.
- Focus on Underserved Communities: More loans and grants are targeting women, minorities, and rural entrepreneurs.
- Sustainability Incentives: Lenders are offering favorable terms for eco-friendly startups.
Stay informed by following industry updates on sites like Forbes Advisor or NerdWallet.
Conclusion
Securing startup business loans with no revenue is challenging but achievable with the right approach. By exploring options like SBA microloans, business credit cards, unsecured loans, and revenue-based financing, you can find funding that aligns with your needs. Complement these with alternative sources like grants, crowdfunding, or angel investors to diversify your capital. Prepare a strong business plan, maintain good personal credit, and research lenders carefully to boost your approval chances.
With determination and strategic planning, your startup can overcome financial hurdles and thrive in 2025. Start your funding journey today by visiting SBA.gov or connecting with a local SBDC.
