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Best Business Loans for Companies With Low Revenue

By Rosalie Murphy, Randa Kriss
Last updated on March 15, 2024
Edited bySally Lauckner
✅Fact checked and reviewed

⏰ Estimated read time: 7 minutes

There are some business loans available to companies with low revenue, but the higher your revenue, the more options you’ll typically have.

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Although criteria can vary, many lenders will require you to have a minimum annual revenue of $100,000 to qualify for a business loan. Lenders use your revenue information to determine your ability to repay potential new debt.
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 8 low-revenue business loans

LenderNerdWallet Rating▼Max loan amount▼Min. credit score▼Next steps

American Express® Business Line of Credit

5.0/5

Best for Average monthly revenue as low as $3,000

$250,000660

SBA Microloan

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Best for SBA loans

$50,000620

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Headway Capital - Line of credit

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5.0/5

Best for Startups

$100,000625

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Bank of America Cash Secured Line of credit

5.0/5

Best for Building business credit

Undisclosed670

Fundbox - Line of credit

5.0/5

Best for Borrowers with bad credit

$150,000600

OnDeck - Online term loan

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5.0/5

Best for Short-term loans

$250,000625

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Funding Circle - Online term loan

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4.5/5

Best for Long-term loans

$500,000660

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Bank of America Business Advantage Unsecured Term Loan

5.0/5

Best for Established businesses

Undisclosed700

Here are 8 low-revenue business loans

Best for Average monthly revenue as low as $3,000

American Express Business Blueprint™

Max Amount

$250,000

Min. Credit Score

660

Best for SBA loans

U.S. Small Business Administration

Max Amount

$50,000

Min. Credit Score

620

Best for Startups

Headway Capital

Max Amount

$100,000

Min. Credit Score

625

Best for Building business credit

Bank of America

Max Amount

Undisclosed

Min. Credit Score

670

Best for Borrowers with bad credit

Fundbox

Max Amount

$150,000

Min. Credit Score

600

Best for Short-term loans

OnDeck

Max Amount

$250,000

Min. Credit Score

625

Best for Long-term loans

Funding Circle

Max Amount

$500,000

Min. Credit Score

660

Best for Established businesses

Bank of America

Max Amount

Undisclosed

Min. Credit Score

700

I'M INTERESTED IN:

Our pick for

Average monthly revenue as low as $3,000

American Express offers a line of credit to businesses with an average monthly revenue of at least $3,000.

American Express® Business Line of Credit

5.0
NerdWallet rating 
Max Loan Amount
$250,000
Min. credit score
660
The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.
5.0
NerdWallet rating 

Max loan

$250,000

Min. Credit score

660

The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.

Our pick for

SBA loans

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

SBA Microloan

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Max Loan Amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%
SBA microloans are small-sized loans funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders.

Max loan

$50,000

Min. Credit score

620

Apr range

8.00-13.00%

SBA microloans are small-sized loans funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders.

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Our pick for

Startups

Headway Capital’s line of credit is available to companies with at least 6 months in business and a minimum annual revenue of $50,000.

Headway Capital - Line of credit

5.0
NerdWallet rating 

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Max Loan Amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%
Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.
5.0
NerdWallet rating 

Max loan

$100,000

Min. Credit score

625

Apr range

35.00-80.00%

Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.

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Our pick for

Building business credit

New businesses with a minimum annual revenue of $50,000 and at least six months in operation may be able to qualify for Bank of America’s cash secured line of credit. This credit line (which requires a minimum deposit of $1,000) can allow you to pay for operating expenses while establishing a positive account history.

Bank of America Cash Secured Line of credit

5.0
NerdWallet rating 
Max Loan Amount
Undisclosed
Min. credit score
670
Bank of America’s Cash Secured line of credit can help startups cover working capital needs and establish business credit.
5.0
NerdWallet rating 

Max loan

Undisclosed

Min. Credit score

670

Bank of America’s Cash Secured line of credit can help startups cover working capital needs and establish business credit.

Our pick for

Borrowers with bad credit

Although Fundbox requires a minimum annual revenue of $100,000 (which is higher than some other options), you may be able to qualify for a line of credit with a personal credit score of 600 or higher.

Fundbox - Line of credit

5.0
NerdWallet rating 
Max Loan Amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
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

36.00-99.00%

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

Our pick for

Short-term loans

OnDeck requires you to have at least $100,000 in annual revenue and one year in business to qualify for its short-term loan. These loans are a good option for specific investments in your business.

OnDeck - Online term loan

5.0
NerdWallet rating 

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Max Loan Amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
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

27.20-99.90%

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

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Our pick for

Long-term loans

Funding Circle offers loan terms up to seven years and doesn’t have a minimum annual revenue requirement. You will need to be in business for two years and have good credit to qualify.

Funding Circle - Online term loan

4.5
NerdWallet rating 

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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
4.5
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.

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Our pick for

Established businesses

Companies with two or more years in business, good credit and at least $100,000 in annual revenue may be able to qualify for this loan from Bank of America.

Bank of America Business Advantage Unsecured Term Loan

5.0
NerdWallet rating 
Max Loan Amount
Undisclosed
Min. credit score
700
Bank of America’s term loan offers competitive interest rates and flexible repayment terms — with no collateral required.
5.0
NerdWallet rating 

Max loan

Undisclosed

Min. Credit score

700

Bank of America’s term loan offers competitive interest rates and flexible repayment terms — with no collateral required.

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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. Other 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 such as bank statements and business tax returns to back up your revenue estimates. Your accounting software or bookkeeper can generate some of the documents you’ll need to share with lenders, like a profit and loss statement and a cash flow statement.

Business loans with no revenue requirements

SBA loans are government-backed loans issued by financial institutions, usually banks. The U.S. Small Business Administration does not set a minimum annual revenue requirement, instead, SBA loans actually have a maximum revenue requirement by industry, because they’re only intended for small businesses.
But — SBA lenders can set their own requirements for borrowers. They are likely to have strict credit score and time in business requirements, and may also have similar minimum revenue standards.
If you’re a startup or 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.
Similar to the SBA, some online lenders may not set revenue requirements. For example, Funding Circle doesn’t have a minimum annual revenue requirement for its term loan, but it does consider it along with other factors when qualifying you for a loan. You will need to have been in business for a minimum of two years and have a credit score of 660 or higher to be eligible.
» MORE: How to get a business loan with no money

Business loans with low annual revenue requirements

The smaller the revenue amount generated by your business, the more limited your loan options. But some lenders offer products for businesses with less than $100,000 in annual revenue.
For example, Headway Capital only requires that you have an annual revenue of $50,000 to qualify for its business line of credit — which translates to a monthly revenue of approximately $4,167. When you apply, Headway will provide a pre-qualified offer based on your self-reported revenue information. If you choose to continue the application, you’ll provide financial statements to verify your revenue.
Bank of America also offers a secured line of credit option for new businesses with low revenue. The Cash Secured line of credit is designed to help companies with six or more months in business establish positive payment habits so that they can access other loan options.
With this product, you’re required to provide a minimum deposit of $1,000 which serves as your credit line. You can then use this credit line to pay for daily operating expenses. After you’ve made regular payments for at least 12 months to build your credit, Bank of America will review your account and if satisfied with your performance, refund your deposit — allowing you to graduate to an unsecured business line of credit.

Business loans with revenue requirements of $100,000 or more

Once your business breaks $100,000 in annual revenue, you’ll have access to more funding options — even if you have bad credit or just a few months in business.
For instance, Fundbox only requires you to have a minimum credit score of 600 and six months in business to qualify for its line of credit. You’ll have to make weekly repayments on this online credit line, though, and loan terms max out at 24 weeks.
Similarly, online lender OnDeck has a line of credit of up to $100,000 and a term loan of $5,000 to $250,000. Both have a minimum annual revenue requirement of $100,000 and maximum repayment periods of 24 months.
You’ll also begin qualifying for some business bank loans when your annual revenue level reaches $100,000. 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 types of business financing 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.

Small business grants

Instead of taking on additional debt when your business is struggling to generate revenue, you might consider applying for small-business grants. Grant recipients don’t have to repay the funds they receive, but competition for this free money is stiff and the application process can be time-consuming.

Merchant cash advances

A merchant cash advance company will give you a lump sum of capital, then recoup payment by taking a percentage of your credit card sales until the funds and interest are paid off. While merchant cash advances 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 15, 2024

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

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
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