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.
Here are 12 startup business loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA Microloan with Fundera by NerdWallet | Best for SBA loans for startups | $50,000 | 620 | with Fundera by NerdWallet |
Wells Fargo Small Business Advantage® Line of Credit | 5.0/5 Best for Bank business loans for startups | $50,000 | 680 | |
Headway Capital - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Quick business loans for startups | $100,000 | 625 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Short-term business loans for startups | $250,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Unsecured business loans for startups | $150,000 | 600 | |
Bank of America Cash Secured Line of credit | 5.0/5 Best for Secured business loans for startups | Undisclosed | 670 | |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Startup business loans for bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
American Express® Business Line of Credit | 5.0/5 Best for Streamlined application process | $250,000 | 660 | |
National Funding - Equipment Financing with Fundera by NerdWallet | 4.5/5 Best for Equipment loans for startups | $150,000 | 600 | with Fundera by NerdWallet |
AltLINE - Invoice Factoring | 4.5/5 Best for Invoice factoring for startups | $10,000,000 | 300 | |
Accion Opportunity Fund - Small Business Working Capital Loan | 5.0/5 Best for Startup business loans for low-income entrepreneurs | $250,000 | 570 | |
Huntington National Bank - Lift Local Business Program | Best for Startup loans for veterans, women or minority entrepreneurs | $150,000 | Undisclosed | |
Here are 12 startup business loans
Best for SBA loans for startups
Best for Bank business loans for startups
Max Amount
$50,000
Min. Credit Score
680
Best for Quick business loans for startups
Best for Short-term business loans for startups
Best for Unsecured business loans for startups
Max Amount
$150,000
Min. Credit Score
600
Best for Secured business loans for startups
Max Amount
Undisclosed
Min. Credit Score
670
Best for Startup business loans for bad credit
Best for Streamlined application process
Max Amount
$250,000
Min. Credit Score
660
Best for Equipment loans for startups
Best for Invoice factoring for startups
Max Amount
$10,000,000
Min. Credit Score
300
Best for Startup business loans for low-income entrepreneurs
Max Amount
$250,000
Min. Credit Score
570
Best for Startup loans for veterans, women or minority entrepreneurs
Max Amount
$150,000
Min. Credit Score
Undisclosed
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Our pick for
SBA loans for startups
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
with Fundera by NerdWallet
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
with Fundera by NerdWallet
Our pick for
Bank business loans for startups
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 business loans for startups
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
with Fundera by NerdWallet
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
with Fundera by NerdWallet
Our pick for
Short-term business loans for startups
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
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
with Fundera by NerdWallet
Our pick for
Unsecured business loans for startups
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 business loans for startups
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
Startup business loans 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
with Fundera by NerdWallet
Max loan
$1,500,000
Min. Credit score
570
with Fundera by NerdWallet
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 for startups
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
with Fundera by NerdWallet
Max loan
$150,000
Min. Credit score
600
with Fundera by NerdWallet
Our pick for
Invoice factoring for startups
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
Startup business loans 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
Startup loans 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
What is a startup business loan?
How do lenders define a startup?
Types of startup business loans
SBA loans
Microloans
Online loans
CDFI loans
Equipment financing
Invoice financing
Revenue-based financing
How to qualify for a startup business loan
Check your personal finances
Create a comprehensive business plan with a funding request
Assess any available collateral
Demonstrate strong business data if you have it
Consider a cosigner
How to get a startup business loan
1. Determine what kind of financing you need
2. Evaluate your credentials
- Personal credit score: 500 or higher.
- Annual revenue: $50,000.
- Time in business: Six months.
3. Research and compare lenders
4. 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.
5. Review your options
Steps to 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.