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Best Business Loans for Companies With Low Revenue

By Rosalie Murphy, Edited by Sally Lauckner | Last updated on March 21, 2023
The more revenue your business generates, the more business loan options you’ll likely have. Here are some low-revenue choices.

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Most lenders will require that you have a minimum annual revenue of $100,000 to qualify for a business loan, although some online lenders offer more flexible requirements. But revenue is just one factor lenders consider — qualifications like your personal credit score and business history also matter. So if your revenue is low but your business is otherwise strong, you may be able to find small-business loan options that work for you.
Below, compare some of the best business loans for companies with low revenue.

How much do you need?

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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.

Here are 4 low-revenue business loans

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LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

Funding Circle - Online term loan

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5.0/5

Best for Business loans with no stated revenue requirement

$500,000660

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SBA Microloan

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Best for Government-backed loans with no revenue requirement

$50,000620

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Fundbox - Line of credit

Read Review
5.0/5

Best for Business loans that require annual revenue of $100,000 or more

$150,000600
Read Review

OnDeck - Online term loan

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5.0/5

Best for Business loans that require annual revenue of $100,000 or more

$250,000625

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Here are 4 low-revenue business loans

Best for Business loans with no stated revenue requirement

Funding Circle

Max Amount

$500,000

Min. Credit Score

660

Best for Government-backed loans with no revenue requirement

U.S. Small Business Administration

Max Amount

$50,000

Min. Credit Score

620

Best for Business loans that require annual revenue of $100,000 or more

Fundbox

Max Amount

$150,000

Min. Credit Score

600

Read Review
OnDeck

Max Amount

$250,000

Min. Credit Score

625

Our pick for

Business loans with no stated revenue requirement

Funding Circle’s term loan doesn’t list a revenue requirement, but that doesn’t mean it’s easy to qualify for. You’ll need a strong personal financial history and several years in business.

Funding Circle - Online term loan

5.0
NerdWallet rating 
Read Review

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Max Loan Amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly
5.0
NerdWallet rating 

Max loan

$500,000

Min. Credit score

660

Apr range

15.22-45.00%

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
Read Review

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Our pick for

Government-backed loans with no revenue requirement

SBA microloans are issued by nonprofit community financial institutions, and these loans may be more available to lower-revenue businesses than other government-backed options. The average SBA microloan is around $13,000.

SBA Microloan

Read Review

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Max Loan Amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%
The average microloan is roughly $13,000, according to the Small Business Administration.

Max loan

$50,000

Min. Credit score

620

Apr range

8.00-13.00%

The average microloan is roughly $13,000, according to the Small Business Administration.
Read Review

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Our picks for

Business loans that require annual revenue of $100,000 or more

Once you hit $100,000 in annual revenue, you’ll potentially have a number of additional online business loan options — even if other qualifications (like your credit score) aren’t ideal.

Fundbox - Line of credit

5.0
NerdWallet rating 
Read Review
Max Loan Amount
$150,000
Min. credit score
600
Est. APR
10.10-79.80%
Fundbox offers a business line of credit to fill a cash-flow gap, and qualifying is easier than with other lenders.
May fund quickly
5.0
NerdWallet rating 

Max loan

$150,000

Min. Credit score

600

Apr range

10.10-79.80%

Fundbox offers a business line of credit to fill a cash-flow gap, and qualifying is easier than with other lenders.
Read Review

OnDeck - Online term loan

5.0
NerdWallet rating 
Read Review

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Max Loan Amount
$250,000
Min. credit score
625
Est. APR
29.90-97.30%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
5.0
NerdWallet rating 

Max loan

$250,000

Min. Credit score

625

Apr range

29.90-97.30%

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
Read Review

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How Much Do You Need?

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4.5 out of five star rating on Trustpilot

4.5 Excellent

4.5 out of five star rating on Trustpilot
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What is revenue, and why does it matter to business lenders?

Revenue is the amount of money your business brings in by selling your products or services. Steady and consistent sales show that you’re executing on your business plan. This demonstrates to would-be lenders that you know how to run a small business — and that you’ll be able to repay your debt.
Beyond that, your revenue speaks to your business finances, not just your personal finances. Your credit score can be important in applying for a small-business loan because it demonstrates personal financial security, but lenders want to see that you’re a responsible business owner, too.
Many lenders require that you have at least $100,000 in annual business income, or approximately $8,333 in income per month, in order to qualify for a loan. Some online lenders may have more flexible revenue requirements, however, bank and SBA lenders will likely require a higher annual income.
» MORE: What is operating revenue?

How to enter revenue on a business loan application

If you’re applying for a business loan online, the lender may have you enter your estimated annual revenue during the initial, automated approval process. Accounting software can help you make an accurate revenue estimate, as well as keep your books up to date.
If you’re tentatively approved for a loan, lenders will usually ask for financial statements to back up your revenue estimates. Your accounting software or bookkeeper can generate the documents you’ll need to share with lenders to do this, like a profit and loss statement.

Business loans with no revenue requirement

Funding Circle does not have a revenue requirement. That doesn’t mean these loans are easy to qualify for, though — you will need at least two years in business, as well as a credit score of at least
660
. Funding Circle says its average borrower has annual revenue of $1.46 million and has been in business for 12 years.
SBA loans are government-backed loans issued by financial institutions, usually banks. These loans actually have a maximum revenue requirement by industry, not a minimum one, because they’re only intended for small businesses.
But SBA lenders can set their own requirements for borrowers. They are likely to have credit score and time in business requirements, and may also have minimum revenue standards. If you’re a very small business, your best bet may be SBA microloans, which are the smallest SBA loans but tend to be the easiest to qualify for.
» MORE: How to get a business loan with no money

Business loans with low annual revenue requirements

The smaller your business is, the more limited your loan options are. But some lenders offer products for businesses with less than $100,000 in annual revenue.
For example, the American Express® Business Line of Credit uses a monthly revenue requirement — an average monthly revenue of at least $3,000, which translates to just $36,000 in annual sales. American Express uses your online checking account to verify your cash flow.

If your annual revenue is $100,000 or more

Once your business breaks $100,000 in annual revenue, you’ll have access to more funding options from online lenders — even if you have bad credit or just a few months in business.
Fundbox requires a minimum credit score of just
600
and only six months in business. You’ll have to make weekly repayments, though, and loan terms max out at just 24 weeks.
OnDeck has a line of credit of up to $100,000 and a term loan of $5,000 to $250,000, which both have a minimum annual revenue requirement of $100,000.
You’ll also begin qualifying for some business bank loans at this revenue level. In general, banks require higher credit scores and more time in business than online lenders do. But their interest rates can be significantly lower.

Alternative financing options for businesses with low revenue

If you’re struggling with business loan requirements, other business financing products may be a better fit.

Business credit cards

If you have good personal credit, business credit card issuers may not consider your time in business or revenue history. A business credit card can be a helpful tool for covering cash-flow gaps and making larger purchases while you’re building your business financial history.

Invoice factoring

With this financing method, also known as accounts receivable factoring, your business sells invoices for work you’ve completed to a factoring company. Instead of waiting for your clients to pay you, you can get cash right away, albeit slightly less than you’re owed. This can be a good way to generate cash fast without taking on debt.

Merchant cash advances

A merchant cash advance lender will give you a loan, then recoup payment by taking a percentage of your credit card sales until the loan and interest are paid off. While these loans can be easy to qualify for, their high APRs have the potential to trap you in a cycle of debt.

Find the right business loan

The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Last updated on March 21, 2023

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

Learn more