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.
I'M INTERESTED IN:
Our pick for
SBA loans
The SBA microloan program is designed to offer small loans to new and traditionally underserved businesses. Qualification requirements vary based on lender. In the current 2024 fiscal year, approximately 25% of SBA microloans have been issued to startups.
SBA Microloan
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
Our pick for
Bank loans
This SBA-backed business line of credit offers up to $50,000 for startups with less than two years in operation.
Wells Fargo Small Business Advantage® Line of Credit
Max loan
$50,000
Min. Credit score
680
Apr range
13.00-15.00%
Our pick for
Quick funding
You can apply for a line of credit from Headway Capital with a simple online application, and if approved, receive funding as quickly as the next business day. You may be able to qualify with a minimum of six months in business.
Headway Capital - Line of credit
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
Our pick for
Short-term loans
OnDeck offers loans for businesses that have been in operation for at least one year, with terms up to 24 months. These loans can be approved within the same day.
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
Our pick for
Unsecured loans
Fundbox offers business lines of credit up to $150,000 and does not require physical collateral. You may qualify with a minimum of six months in business.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
Secured loans
Businesses with at least six months in operation may qualify for Bank of America’s Cash Secured Line of Credit. You can use this credit line to establish a positive account history and build business credit.
Bank of America Cash Secured Line of credit
Max loan
Undisclosed
Min. Credit score
670
Our pick for
Bad credit
Fora Financial provides working capital loans for a variety of needs. You may be able to qualify with at least six months in business and a minimum credit score of 500.
Fora Financial - Online term loan
Max loan
$1,500,000
Min. Credit score
570
Our pick for
Streamlined application process
The American Express® Business Line of Credit has a streamlined application process. Owners who started their business at least a year ago may be able to qualify.
American Express® Business Line of Credit
Max loan
$250,000
Min. Credit score
660
Our pick for
Equipment loans
National Funding offers equipment loans of up to $150,000. You may be able to qualify with six or more months in business.
National Funding - Equipment Financing
Max loan
$150,000
Min. Credit score
600
Our pick for
Invoice factoring
AltLINE provides invoice factoring with competitive factoring rates. The lender does not have a minimum time in business requirement for approval.
AltLINE - Invoice Factoring
Max loan
$10,000,000
Min. Credit score
300
Our pick for
Low-income entrepreneurs
Accion is a nonprofit lender that specifically targets low-to-moderate income entrepreneurs, as well as women and minority business owners. It offers funding up to $250,000 for businesses that have been operating for at least 12 months.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-24.99%
Our pick for
Veterans, women or minority entrepreneurs
With reduced fees and free entrepreneurial courses, Huntington National Bank’s Lift Local Business loan program can be a source of startup funding for veteran-, women- and minority-owned businesses.
Huntington National Bank - Lift Local Business Program
Max loan
$150,000
Min. Credit score
Undisclosed
Pros and cons of startup loans
Provides funds to get a business off the ground or grow a young one.
May build business credit history.
Can be helpful in obtaining future funding.
Can be challenging to obtain.
Higher interest rates and shorter terms, typically.
Increases business debt and monthly expenses.
May require personal guarantee and/or collateral.
Types of startup business loans
SBA loans
Microloans
Online loans
CDFI loans
Equipment financing
Invoice financing
Revenue-based financing
How to get a startup business loan
1. Determine what kind of financing you need
2. Evaluate your credentials
- Personal credit score: Although some online lenders offer startup business loans for bad-credit borrowers (those with a personal credit score below 630), be wary of any lender that offers startup loans with no credit check or guaranteed approval. It could be an expensive option — or a scam. You’ll typically need a personal credit score of 500 or higher; otherwise, you may need to build your credit before applying.
- Personal finances. Your personal finances will likely weigh heavily into your startup business loan application. A lower debt-to-income ratio and higher personal credit score are ideal to qualify for the best rates.
- Available collateral. It can be helpful to offer substantial collateral on your loan application, even when it’s not required. In general, anything you can use to show your creditworthiness and ability to repay the financing will help you qualify for a startup business loan — as well as help you access more competitive rates and terms.
- Business data. If you’ve been in business for at least six months, putting in the time and effort to create financial projections not only gives a lender an idea of your business’s potential, but it also demonstrates that you are serious about your growth and success. If you’ve already started your business, you’ll need to provide financial and bank statements as well.
- Consider a cosigner. A cosigner on a business loan acts as a second guarantor and can help improve your chances of approval with a lender. If you know a trustworthy person with good personal credit and assets, it may be worth asking them if they’d consider cosigning your startup loan, if needed. However, keep in mind that if you default on the loan, the cosigner’s credit will be adversely affected in addition to your own.
3. Research and compare lenders
4. Create a comprehensive business plan with a funding request
5. Gather documents and submit your application
- Basic information about you and your business, such as an employer identification number or EIN.
- Business licenses or formation documents.
- Personal and business bank statements.
- Personal and business tax returns.
- Financial statements, such as balance sheets and profit and loss statements (if your business is already operating).
- Cash flow projections.
- A business plan for funding.
- Collateral information.
6. Review your options
Steps you can take if you are denied a startup business loan
Ask the lender what influenced the decision
Try a different type of loan
Start a scaled-back version of your business
- Apply for a business license.
- Open a business bank account.
- Get a business credit card.
- Create a business website and social media profiles.
Strengthen your business plan
Alternatives to startup business loans
Methodology
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.
Frequently Asked Questions
- A personal credit score of 500 or higher.
- Annual revenue of $50,000 or more.
- Six or more months in business.
- Physical collateral.
- A business plan.
- Business and personal tax returns.
- Business and personal bank statements.
- Financial statements.