Although many lenders require that you have one to two years in business to access financing, there are some small-business loan options available to companies with just six months in operation. Because startups are considered risky, however, lenders will often charge higher interest rates and offer shorter terms than they will for more established businesses.
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Why does time in business matter to lenders?
Lenders use your time in business to help evaluate your risk level — the longer you’ve been operating, the more likely you’ll be able to repay your debts. Some loans are available to businesses with three to six months in operation. However, more choices will open up at the one-year mark, as this amount of time demonstrates to lenders that you have staying power.
Of course, time in business isn’t the only factor lenders will use to evaluate your loan application. They’ll also consider your personal credit score and revenue. If you have strong finances and credit, it can help you qualify for a loan, even if your business is new.
Where to get a business loan after 6 months in operation
If you have at least six months in operation, you may be able to get a startup business loan from a few sources, including online and community lenders.
Online lenders
Online lenders tend to have flexible qualification requirements and may be able to work with businesses with three to six months of operating history. But these lenders will often charge higher interest rates and offer smaller loan amounts, as well as shorter repayment terms.
Alternative lenders may offer a variety of loan types, such as:
Among these options, equipment financing, invoice factoring and merchant cash advances may be more available to newer businesses. These types of financing are backed directly by the asset or sales they’re tied to — the equipment you’re purchasing, your outstanding invoices or your future credit card sales — making lenders more willing to work with a shorter time in business.
❗Keep in mind that merchant cash advances are typically one of the most expensive forms of business financing. You’ll likely want to consider all other options before choosing an MCA.
Community lenders
Nonprofit community lenders often focus their lending efforts on traditionally underserved businesses, such as startups, borrowers with lower credit scores and those located in low-income communities.
These lenders may offer a few different loan types, including microloans. Microloans function like traditional term loans, but funding usually maxes out at $50,000.
Compared to online lenders, community organizations can be slower to fund but may offer more competitive interest rates and repayment terms. They also typically provide business training, coaching and other resources, which can be particularly helpful for entrepreneurs who are just starting out.
Lending marketplaces
Business lending marketplaces, like Fundera by NerdWallet, don’t issue loans themselves but can be a good resource for new companies looking for funding. When you use a business lending marketplace, you submit one application, receive loan matches and compare multiple options at once. The options available to you will vary depending on your qualifications and the partners the marketplace works with. Many marketplaces, however, partner with online lenders that have flexible qualifications and may be able to fund startups. Plus, you may be able to work with a dedicated advisor who can walk you through the application process and help you choose the right financing for your needs.
Banks
Some, but not all, banks provide loans to newer businesses. Bank of America, for example, offers a secured business line of credit designed specifically for companies with at least six months in operation. After providing an initial security deposit, you can use the line of credit as needed and build business credit with timely payments. Responsible spending can also help you transition to an unsecured line of credit in the future.
If you already have a relationship with a bank, especially a local institution, ask about their business loan options. A bank may be more flexible with its requirements if you’re an established customer.
Compared to online and community lenders, banks will likely offer the most competitive rates and terms. However, they are slower to fund and you’ll need to show strong credentials (e.g., credit score, revenue, collateral).
Best loan options available after 6 months in business
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| Product | Min Time In Business | Max Loan Amount | |
|---|---|---|---|
 Fora Financial - Online term loan Nerdwallet Rating with NerdWallet Small Business | 6 months | $1,500,000 | with NerdWallet Small Business |
 Fundbox - Line of credit Nerdwallet Rating with NerdWallet Small Business | 3 months | $250,000 | with NerdWallet Small Business |
 Giggle Finance - Merchant cash advance with NerdWallet Small Business | 3 months | $15,000 | with NerdWallet Small Business |
 Expansion Capital Group - Merchant cash advance with NerdWallet Small Business | 6 months | $300,000 | with NerdWallet Small Business |
 Uplyft Capital- Merchant cash advance with NerdWallet Small Business | 6 months | $500,000 | with NerdWallet Small Business |
 National Funding - Equipment financing Nerdwallet Rating with NerdWallet Small Business | 6 months | $150,000 | with NerdWallet Small Business |
 AltLINE - Invoice factoring Nerdwallet Rating with NerdWallet Small Business | N/A | $5,000,000 | with NerdWallet Small Business |
A closer look at our top picks
Fora Financial
Best for startups with strong revenue
📋 Key details:
- Loan type: Term loan.
- Maximum loan amount: $1.5 million.
- Repayment term: 4 to 24 months.
- Funding speed: Within 24 hours.
🔍 Why we like it:
Fora Financial stands out as a fast funding option for startups and borrowers with bad credit — as long as they have strong revenue. Fora offers large maximum loan amounts and can provide repayment discounts for those who repay early.
✅ Requirements:
- Minimum credit score: 570.
- Minimum time in business: 6 months.
- Minimum monthly revenue: $20,000.
Fundbox
Best for businesses with at least three months in operation
📋 Key details:
- Loan type: Line of credit.
- Maximum funding amount: $250000.
- Repayment term: 3 or 24 months.
- Speed: Within two business days after drawing on your line.
🔍 Why we like it:
Fundbox is one of the best online lines of credit for startups. Businesses with just three months in business may be able to qualify. Fundbox is also a good option for borrowers with bad credit and businesses with low revenue.
✅ Requirements:
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum monthly revenue: $2,500.
Giggle Finance
Best for self-employed individuals
📋 Key details:
- Loan type: Merchant cash advance.
- Maximum funding amount: $15000 (up to $20,000 for repeat customers).
- Repayment term: Payments are based on your business’s revenue. You’ll make weekly payments until you repay the full advance amount.
- Speed: As soon as the same day.
🔍 Why we like it:
Giggle Finance is specifically designed to offer small amounts of funding to freelancers, contractors and self-employed individuals. The company is also a standout option for borrowers with bad credit, as the company does not check your credit and instead uses your bank information to underwrite your application.
✅ Requirements:
- Minimum credit score: No minimum.
- Minimum time in business: 3 months.
- Minimum monthly revenue: $1,500.
Expansion Capital Group
Best for fast financing
📋 Key details:
- Loan type: Merchant cash advance.
- Maximum funding amount: $300000.
- Repayment term: 3 to 12 months.
- Speed: As soon as the same day.
🔍 Why we like it:
Expansion Capital Group offers fast, same-day funding. The company has a simple and streamlined application process and may be able to issue funding within hours after you sign your agreement.
✅ Requirements:
- Minimum credit score: 500.
- Minimum time in business: 6 months.
- Minimum monthly revenue: $8,334.
Uplyft Capital
Best for bad credit
📋 Key details:
- Loan type: Merchant cash advance.
- Maximum funding amount: $500000.
- Repayment term: 6, 12 or 18 months.
- Funding speed: Within 24 to 48 hours.
🔍 Why we like it:
Uplyft Capital stands out for its particularly low credit score requirement, making it a good option for borrowers with bad credit. The company provides quick access to funds and, unlike many lenders, doesn’t require a personal guarantee.
✅ Requirements:
- Minimum credit score: 475.
- Minimum time in business: 6 months.
- Minimum monthly revenue: $8,500.
National Funding
Best for equipment financing
📋 Key details:
- Loan type: Equipment financing.
- Maximum loan amount: $150000.
- Repayment term: 24 to 60 months.
- Funding speed: As fast as 24 hours.
🔍 Why we like it:
National Funding offers fast equipment loans to newer businesses and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment and, unlike some equipment lenders, doesn’t require a down payment.
✅ Requirements:
- Minimum credit score: 600.
- Minimum time in business: 6 months.
- Minimum monthly revenue: $20,834.
AltLINE
Best for B2B businesses
📋 Key details:
- Loan type: Invoice factoring.
- Maximum funding amount: $5 million in invoices per month.
- Funding speed: Within 24 to 48 hours of invoice submission.
🔍 Why we like it:
If you run a business-to-business company with capital tied up in unpaid invoices, altLINE can provide fast access to cash. The company stands out for its flexible underwriting process that focuses on the creditworthiness of your customers, rather than traditional business loan requirements. This makes it a worthwhile option for startups or borrowers with bad credit.
✅ Requirements:
- Minimum credit score: No minimum
- Minimum time in business: No minimum.
- Minimum monthly revenue: No minimum.
How to get a business loan after 6 months in operation
Although waiting until you've been in business for a year to get a loan is often beneficial — think better rates and more flexible terms — these actions can improve your chances of getting financing sooner:
🤓 Nerdy Tip
A business credit card can help you bridge the gap before you apply for a loan. You can use a business credit card to make everyday purchases and earn rewards on your spending. Responsibly using one of these cards can also allow you to build business credit, which can help you qualify for financing in the future. Just be sure that you can pay off your balance every month, as APRs on business credit cards can be high. Leverage your personal credit
Your personal credit score is typically one of the most important factors a lender considers when evaluating your loan application. And with a shorter time in business, your personal credit history will be even more significant to show a lender that you can repay your debts. If your personal credit isn’t quite where you’d like it, you might consider quick steps to boost your score, such as:
- Identify any errors on your credit reports (e.g., payments marked late when you paid on time, someone else's credit activity mixed with yours) and dispute them with the appropriate credit bureau.
- Make debt payments more frequently.
- Get added as an authorized user on a credit card of someone you know and trust who has a strong credit score.
Demonstrate your business’s financial health
Showing a lender that you have strong business revenue can improve your chances of getting a loan. To do this, you’ll need to provide business bank statements and financial statements. You should make sure all of your documents are accurate and up to date. Not only will this speed up the application process, but it will also help prevent automatic rejections from lenders that are using automated underwriting technology.
Even if you’re still building your revenue, you can include documents that will help strengthen your application. You might provide sales projections, as well as a well-organized business plan that demonstrates your company’s ability to meet its financial goals.
Offer collateral
If you have substantial business assets, such as equipment or real estate, you might consider using them as collateral on a potential loan. Offering collateral provides security for the lender and may make them more likely to approve your application, even with just six months in business. Keep in mind, though, that if you default on the loan, the lender can seize your collateral to recover its losses.
