How to get a business loan with no money 2023

Business loan in the absence of cash, it is unlikely that you will be able to secure any loan for your business. The majority of lenders require an increase in revenue and profits to be able to decide if you are eligible as a candidate for a loan. However, certain business loans and alternative financing may allow some borrowers to receive loans that would not normally be considered. However, you’ll need a well-thought-out strategy for repaying any loan you obtain.

Here’s an overview of how to start your own business without money.

Important lessons to take away

  • Lenders typically set minimum duration in the business, credit score and income standards.
  • You might require a specialized lender or a specific type of loan to get approved
  • Future income or assets may assist you in getting the funds needed to repay a loan
  • Examine your business’s budget to assist you in managing the repayments

How do you get a small-business loan without revenue or cash?

small-business loan without revenue

For a small-business loan that startup business loans with no revenue in mind, you’ll have to pay attention to what assets you have as well as the other requirements of your company.

Here are some suggestions to help you determine the best way to be eligible for the loan you need:

Research lender requirements

Each lender has its lending criteria that it accepts for loans to businesses. Whether you’re a new business or lack funds, you should find out if your business has met the minimum requirements.

Pay attention to the cash flow and assets.

Although most lenders require you to prove a present flow of revenue or capital to qualify for the loan, certain loans examine the receivables on your account and other types of assets.

Credit for accounts receivable lets you utilize unpaid invoices or future sales for financing. You can use this income to pay back the finance company.

Additionally, secured business loans could help you obtain loans without a down payment since their assets secure them. Some lenders are more likely to offer 100% financing since they can use collateral to repay the loan if you don’t manage to pay it.

Find out more below about specific business loans.

Consider how much you can pay for a loan.

how much you can pay for a loan

Whatever amount a lender allows for your loan amount, be sure the loan’s payments fit into your budget for business expenses. You can utilize an online Business loan calculator to estimate monthly payments and the total interest cost on business loans without income.

You can also determine whether your loan payments are easily manageable by looking at your projected debt payments about your revenue. Lenders often use these ratios to determine if you’re eligible for financing.

  • Debt-to-income ratio (DTI). Your DTI can be calculated as the monthly debt payment by your gross income. A DTI that is 35 per cent or less is considered healthy. However, certain lenders might accept higher amounts.
  • The ratio for debt coverage (DSCR). The DSCR considers your net revenue, or EBITDA, divided by monthly debt payments. Most lenders prefer a DSCR of 1.25 or greater.

8 financing options to consider if your business isn’t able to raise funds

There are a variety of business loan that need minimal capital or income:

8 financing options to consider if your business


A microloan can have a smaller loan amount than traditional term loans. There is no set amount for how big the loans are. However, getting an SBA microloan that is as high as $50,000 is possible.

Microloans are typically offered by non-profit or community-based lenders or as programs specifically designed for small businesses that need better service. These loans may require business owners to undergo training or one-on-one coaching to ensure the business succeeds.

Examples of microlenders are:

  • Accion Opportunity Fund offers loans of up to $100,000, with an APR from 5.99 to 17.99 per cent.
  • Kiva, The peer-to-peer lending platform, gives loans of up to $15,000 and does not charge interest.
  • Hoover National Bank With this Lift Local Business Loan, minorities who own businesses can get up to $150,000 in investment.

Business loan

A small business loan is a great alternative if you need more cash because grant companies generally award money for free to businesses they choose. However, you must be prepared to compete for grants.

The grant is awarded to businesses that meet the grant’s requirements. You might also be required to submit the grant with a complete company plan or be present at business meetings or contests. All documents you submit must demonstrate your company is distinct and have a clear plan to grow.

Credit cards for business

Many business owners carry at least one or two personal credit cards for business in their purses. It is especially true for those new to the business and seeking cash fast. Contrary to a business credit card, there is business loan with no money in advance for most credit cards.

The only exception is the secured credit card that will require you to put up money to secure it, for example, $1,000. For those who don’t possess great credit scores but do not want an unsecured card, some alternatives are not secured, such as the Spark Classic 1%, geared towards those with fair credit.

You can utilize a business’s credit card to pay for short-term expenses, and you don’t need to pay the credit card in a single day. You can pay the entire amount or make minimum payments if the balance is due.

If you make your payment in full, you won’t have to pay the interest your credit card charges on those purchases. Additionally, you’ll get additional time to pay off the balance without accruing interest charges. Credit card issuers must send you a statement at least 21 days before the due date. The 21-day grace period time frame is similar to obtaining an instant loan but without interest.

Equipment loans

An equipment loan is a loan for a business guaranteed by the commercial machinery you’re purchasing. Since it’s secured, it’s more attainable than other business loan. Some lenders will lower the requirements, for instance, one year in the business and a revenue of $100,000. You can also get 100% financing, which means you don’t need to make any down payments on the loan.

Invoice financing

Invoice financing is a form of financing for accounts receivable that uses your invoices that are not paid to be accepted. Finance companies will review your client’s payment history and invoices to allow your company to be eligible. They then advance between 80 to 90 per cent, which you can use however you like.

The payment structures vary from business to company, but most require you to pay back the amount your customers pay you. However, fees can be costly. Businesses typically charge a one-time fee as a percentage of total invoices. Some charge an additional percentage every week that the invoice remains unpaid.

Cash advances from merchants

A type of financing accounts receivable, also known as a credit card advance for merchants, allows you to get funds by relying on previous credit and debit card transactions to get approved. There is no need for money in advance. However, for the majority of MCAs, they will offer an energizing daily or weekly repayment plan.

Payments can be either a percentage of sales or a fixed instalment. Percentage-based MCAs do not come with any set repayment terms, which means you can pay off the loan at speed or in a manner as a sales permit.

Venture capital

Venture capital is an alternative to financing a startup provided by venture capitalists or individual investors. Venture capitalists can provide financing typically in exchange for a large percentage of equity in the business.

You’ll need to have a plan for high growth to please investors. You also get mentorship and business resources to boost your growth and give you a competitive edge over smaller businesses that are who are trying to do it by themselves.


If you need a little capital to start your company or expand, consider the crowdfunding route. Crowdfunding is a way to raise money for your company from anyone interested in investing in your business, including family or friends and investors.

Using crowdfunding platforms such as Kickstarter and Kiva to locate interested individuals is possible. The typical reward for small-scale business investors by offering incentives like a product, swag, or equity based on the investment level.

How do you get a business loan that does not require funds?

The most important thing to consider when applying for an unsecured business loan that does not require cash is that you must be able to repay the loan. Ultimately, it is based on whether you are eligible and how sure you can repay the loan.

Although there is a chance of taking out a loan if you don’t have an ongoing flow of income, Here are some scenarios where it’s possible to obtain an enterprise loan:

  • The signed contracts with the clients are for work to come.
  • Unpaid invoices for work that was already completed
  • A history of consistently increasing revenue
  • A market-based startup business plan with significant development potential

Bottom line

It’s possible to be imaginative with the funds you have available. However, securing commercial financing with little or no revenue is possible. Consider whether you can get the work contract in advance or repay an investment or loan from future sales, which opens up opportunities.

However, the longer you’re in business and the more, the more revenue you can accumulate, the greater number of business loan options are at your disposal and the lower risk you’ll have to take when paying back the loan.

Related Articles

Leave a Reply

Back to top button