Most lenders want to see that you’ve been in business for one to two years before approving you for financing. But some small-business loans are available to startups after just six months.
The trade-off is that you’ll likely face higher interest rates and shorter repayment terms. If you can wait until the one-year mark, you’ll have more (and potentially lower-cost) options to choose from. But if you need financing sooner, you may still have options.
How much do you need?
We'll start with a brief questionnaire to better understand the unique needs of your business. Once we uncover your personalized matches, our team will consult you on the process moving forward.
Why does time in business matter to lenders?
Lenders look at how long you’ve been in business as one way to measure how risky you are to lend to. The idea is that the longer you’ve been operating, the more likely you’ll remain in business and repay your debts.
With only a six-month operating history, it’s harder for lenders to know how your business performs through seasonal changes or supply-chain issues that can arise over the course of a typical year, says Geri Aglipay, senior fellow at Small Business Majority, a nonprofit organization that supports small businesses through education and advocacy efforts.
Still, some loans are available to businesses with three to six months in operation, but they’re harder to come by. More choices will open up at the one-year mark.
Of course, time in business isn’t the only factor lenders use to evaluate your loan application. They’ll also consider your personal credit score and revenue, among other factors. If you have strong finances and credit, it can help you qualify for a loan, even if your business is new.
Where to get a business loan after 6 months in operation
If you have at least six months in operation, you may be able to get a startup business loan from a few sources:
Online lenders
Online lenders tend to have flexible qualification requirements and may work with businesses with three to six months of operating history. But these lenders generally charge higher interest rates, offer smaller loan amounts and require shorter repayment terms.
Alternative lenders offer a variety of loan types, such as:
Among these options, equipment financing, invoice factoring and merchant cash advances may be easier to get as a newer business. These types of financing are backed directly by the asset or sales they’re tied to. For example, the equipment you’re buying, your outstanding invoices or your future credit card sales. This makes lenders more willing to work with a new business.
Just be cautious of online lenders that make financing sound unusually fast or easy, says Heidi Pickman, VP of external relations at CAMEO Network, a nonprofit that connects small-business owners with microlenders and other resources. She recommends borrowers read the fine print carefully before accepting an offer.
❗Keep in mind that merchant cash advances can be extremely expensive. Consider all other options before choosing an MCA.
Community lenders
Nonprofit and community lenders, like community development financial institutions (CDFIs), often focus their lending efforts on traditionally underserved businesses, such as startups, borrowers with lower credit scores and those in low-income communities.
Community lenders are a best-kept secret, Pickman says. While they don’t have the marketing budgets of some of the bigger lenders, they’re driven to support local business owners in their community, she adds.
These lenders may offer a few loan types, including microloans. Microloans function like traditional term loans, but funding usually maxes out at $50,000.
Compared with online lenders, community organizations can be slower to fund but may offer more competitive interest rates and repayment terms. They also typically provide business training, coaching and other resources, which can be particularly helpful for entrepreneurs who are just starting out.
Lending marketplaces
Business lending marketplaces, like NerdWallet Small Business, don’t issue loans themselves but can be a good resource for new companies looking for funding.
When you use a business lending marketplace, you submit one application, receive loan matches and compare multiple options at once. The options available to you will vary depending on your qualifications and the partners the marketplace works with.
Many marketplaces, however, partner with online lenders that have flexible qualifications and may be able to fund startups. Plus, you may be able to work with a dedicated advisor who can walk you through the application process and help you choose the right financing for your needs.
Banks
Some, but not all, banks provide loans to newer businesses. Wells Fargo, for example, offers an unsecured business line of credit for businesses with at least six months in operation.
If you already have a relationship with a bank, especially a local institution, ask about its business loan options. A bank may be more flexible with its requirements if you’re an established customer.
Compared with online and community lenders, banks offer the most competitive rates and terms. However, they are slower to fund and you’ll need to show strong credentials (e.g., credit score, revenue, collateral).
Best loan options available after 6 months in business
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| Product | Min Time In Business | Max Loan Amount | |
|---|---|---|---|
 Fundbox - Line of credit Nerdwallet Rating 4.7 with NerdWallet Small Business | 3 months | $250,000 | with NerdWallet Small Business |
 Fora Financial - Online term loan Nerdwallet Rating 4.7 with NerdWallet Small Business | 6 months | $1,500,000 | with NerdWallet Small Business |
 Giggle Finance - Merchant cash advance with NerdWallet Small Business | 3 months | $15,000 | with NerdWallet Small Business |
 Expansion Capital Group - Merchant cash advance with NerdWallet Small Business | 6 months | $500,000 | with NerdWallet Small Business |
 Uplyft Capital- Merchant cash advance with NerdWallet Small Business | 3 months | $500,000 | with NerdWallet Small Business |
 National Funding - Equipment financing Nerdwallet Rating 4.8 with NerdWallet Small Business | 6 months | $150,000 | with NerdWallet Small Business |
 AltLINE - Invoice factoring Nerdwallet Rating 4.4 with NerdWallet Small Business | N/A | $5,000,000 | with NerdWallet Small Business |
A closer look at our top picks
Fundbox
Best for businesses with at least three months in operation
📋 Key details:
- Loan type: Line of credit.
- Maximum funding amount: $250000.
- Repayment term: 3 or 24 months.
- Speed: Within two business days after drawing on your line.
🔍 Why we like it:
Fundbox is one of the best online lines of credit for startups. Businesses with just three months in business may be able to qualify. Fundbox is also a good option for borrowers with bad credit and businesses with low revenue.
✅ Requirements:
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum monthly revenue: $2,500.
Fora Financial
Best for startups with strong revenue
📋 Key details:
- Loan type: Term loan.
- Maximum loan amount: $1.5 million.
- Repayment term: Up to 18 months.
- Funding speed: Within 24 hours.
🔍 Why we like it:
Fora Financial stands out as a fast funding option for startups and borrowers with bad credit — as long as they have strong revenue. Fora offers large maximum loan amounts and can provide repayment discounts for those who repay early.
✅ Requirements:
- Minimum credit score: 570.
- Minimum time in business: 6 months.
- Minimum monthly revenue: $20,000.
Giggle Finance
Best for self-employed individuals
📋 Key details:
- Loan type: Merchant cash advance.
- Maximum funding amount: $15000 (up to $20,000 for repeat customers).
- Repayment term: Payments are based on your business’s revenue. You’ll make weekly payments until you repay the full advance amount.
- Speed: As soon as the same day.
🔍 Why we like it:
Giggle Finance is specifically designed to offer small amounts of funding to freelancers, contractors and self-employed individuals. The company is also a standout option for borrowers with bad credit, as it doesn’t check your credit. Instead, Giggle uses your bank information to determine eligibility.
✅ Requirements:
- Minimum credit score: No minimum.
- Minimum time in business: 3 months.
- Minimum monthly revenue: $2,500 (and at least $3,000 in your business bank account).
Expansion Capital Group
Best for fast financing
📋 Key details:
- Loan type: Merchant cash advance.
- Maximum funding amount: $500000.
- Repayment term: 3 to 12 months.
- Speed: As soon as the same day.
🔍 Why we like it:
Expansion Capital Group offers fast, same-day funding. The company has a simple and streamlined application process and may be able to issue funding within hours after you sign your agreement.
✅ Requirements:
- Minimum credit score: 500.
- Minimum time in business: 6 months.
- Minimum monthly revenue: $8,000.
Uplyft Capital
Best for bad credit
📋 Key details:
- Loan type: Merchant cash advance.
- Maximum funding amount: $500000.
- Repayment term: 6, 12 or 18 months.
- Funding speed: Within 24 to 48 hours.
🔍 Why we like it:
Uplyft Capital stands out for its particularly low credit score requirement, making it a good option for borrowers with bad credit. The company provides quick access to funds and, unlike many lenders, doesn’t require a personal guarantee.
✅ Requirements:
- Minimum credit score: 500.
- Minimum time in business: 3 months.
- Minimum monthly revenue: $10,000.
National Funding
Best for equipment financing
📋 Key details:
- Loan type: Equipment financing.
- Maximum loan amount: $150000.
- Repayment term: 24 to 60 months.
- Funding speed: As fast as 24 hours.
🔍 Why we like it:
National Funding offers fast equipment loans to newer businesses and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment and, unlike some equipment lenders, doesn’t require a down payment.
✅ Requirements:
- Minimum credit score: 600.
- Minimum time in business: 6 months.
- Minimum monthly revenue: $12,500.
AltLINE
Best for B2B businesses
📋 Key details:
- Loan type: Invoice factoring.
- Maximum funding amount: $5 million in invoices per month.
- Funding speed: Within 24 to 48 hours of invoice submission.
🔍 Why we like it:
If you run a business-to-business company with capital tied up in unpaid invoices, altLINE can provide fast access to cash. The company focuses on the creditworthiness of your customers, rather than traditional business loan requirements. This makes it a worthwhile option for B2B startups or borrowers with bad credit.
✅ Requirements:
- Minimum credit score: No minimum.
- Minimum time in business: No minimum.
- Minimum monthly revenue: No minimum.
How to get a business loan after 6 months in operation
If you can’t wait at least a year to get financing, try these tips to improve your chances of getting approved sooner:
Leverage your personal credit
Your personal credit score is an important factor a lender considers when evaluating your loan application. And with a shorter time in business, your personal credit history will be even more significant to show a lender that you can repay your debts.
If your personal credit isn’t quite where you’d like it, try these steps to build your score:
- Identify any errors on your credit reports (e.g., payments marked late when you paid on time, someone else's credit activity mixed with yours) and dispute them with the appropriate credit bureau.
- Make debt payments more frequently.
- Get added as an authorized user on a credit card of someone you know and trust who has a strong credit score.
Demonstrate your business’s financial health
Showing a lender that you have strong business revenue can improve your chances of getting a loan. That means you’ll have to provide accurate and up-to-date business bank statements and financial statements.
And if your business hasn't made any money yet? You should have a detailed business plan that shows how you expect to generate revenue and eventually pay back the borrowed funds, says Karla De Leon, chief lending officer for Working Solutions and Main Street Launch, two California-based community development financial institutions (CDFIs).
Other things that can help? Outside income, relevant business experience and evidence of upcoming revenue, such as purchase orders or signed contracts, De Leon says.
🤓Nerdy Tip
A business credit card can help you bridge the gap before you apply for a loan. You can use a business credit card to make everyday purchases and earn rewards on your spending. Responsibly using one of these cards can also allow you to build business credit, which can help you qualify for financing in the future. Just be sure that you can pay off your balance every month, as APRs on business credit cards can be high.Offer collateral
If you have substantial business assets, such as equipment or real estate, you might consider using them as collateral on a potential loan.
Offering collateral provides security for the lender and may make them more likely to approve your application, even with just six months in business.
Keep in mind, though, that if you default on the loan, the lender can seize your collateral to recover its losses.
Start building lender relationships early
The best time to start looking for financing is when you don’t need it, Aglipay says. That means building relationships with lenders early.
Contact your current bank and reach out to other local or national lenders you’re interested in and tell them about your business. These conversations can help you understand what different lenders require and what other services they offer before you’re ready to borrow. By the time you have more business history under your belt, you’ll be in a better position to shop around and compare your options, Aglipay says.
