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Best Business Loans for Companies With Low Revenue

Last updated on July 13, 2023
Edited bySally Lauckner
✅Fact checked and reviewed

⏰ Estimated read time: 6 minutes

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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Although criteria can vary, most 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 7 low-revenue business loans

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

American Express® Business Line of Credit

Read Review
4.5/5

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

$250,000660
Read Review

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

$100,000600

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Bank of America Cash Secured Line of credit

Read Review
5.0/5

Best for Building business credit

$0670
Read Review

Fundbox - Line of credit

Read Review
5.0/5

Best for Borrowers with bad credit

$150,000600
Read Review

OnDeck - Online term loan

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5.0/5

Best for Short-term loans

$250,000625

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Bank of America Unsecured Term Loan

Read Review
5.0/5

Best for Established businesses

$100,000670
Read Review

Here are 7 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

Read Review

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

600

Best for Building business credit

Bank of America

Max Amount

$0

Min. Credit Score

670

Read Review

Best for Borrowers with bad credit

Fundbox

Max Amount

$150,000

Min. Credit Score

600

Read Review

Best for Short-term loans

OnDeck

Max Amount

$250,000

Min. Credit Score

625

Best for Established businesses

Bank of America

Max Amount

$100,000

Min. Credit Score

670

Read Review

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

4.5
NerdWallet rating 
Read Review
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.
4.5
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.
Read Review

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

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 pick for

Startups

Headway Capital’s line of credit is available to companies with at least 12 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
600
Est. APR
40.00-80.00%
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

600

Apr range

40.00-80.00%

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 business may be able to qualify for Bank of America’s cash secured line of credit. This credit line allows you to pay for operating expenses while establishing a positive account history.

Bank of America Cash Secured Line of credit

5.0
NerdWallet rating 
Read Review
Max Loan Amount
$0
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

$0

Min. Credit score

670

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

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 
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

Our pick for

Short-term loans

OnDeck requires you to have at least $100,000 in annual revenue 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 
Read Review

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Max Loan Amount
$250,000
Min. credit score
625
Est. APR
35.40-99.90%
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

35.40-99.90%

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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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 Unsecured Term Loan

5.0
NerdWallet rating 
Read Review
Max Loan Amount
$100,000
Min. credit score
670
Bank of America’s term loan offers competitive interest rates and flexible repayment terms — with no collateral required.
5.0
NerdWallet rating 

Max loan

$100,000

Min. Credit score

670

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

How Much Do You Need?

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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 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 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.
» 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, 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 business loan 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. Once you’ve made regular payments to build your credit, Bank of America will review your account and 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 just 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, 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 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.

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 July 13, 2023

Methodology

NerdWallet reviewed both traditional and online lenders in order to create our list of the best low-revenue business loans.
Our list includes a variety of loan options to meet the diverse funding needs of small-business owners, with an emphasis on lenders that offer a streamlined underwriting and approval process.
Each small-business loan option on our list meets the following criteria:
- Maximum loan amount of at least $50,000.
- Transparent rates and repayment terms.
- Funding available within two weeks of applying.
- Personal credit score requirements of 670 or below.
- No more than two years in business required.

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