How to Get a Startup Business Loan with No Money (And Other Funding Hacks)

16 min read

Starting a business is thrilling. You have the idea, the passion, and the drive. But then reality hits—you need capital. And if your bank account is looking a little lean, you might be wondering if your dream is dead in the water.

It isn’t.

While banks often want to see a hefty down payment or years of revenue, the financial landscape is shifting. It is entirely possible to secure funding without a massive pile of cash or a perfect credit score. You just need to know where to look.

Whether you’re exploring microloans, government-backed programs, or creative alternatives like crowdfunding, there are paths forward for every aspiring entrepreneur.

This guide will walk you through exactly how to get a startup business loan with no money, uncover hidden funding gems, and help you decide if a loan is even the right move for you. Let’s get that business funded!

Understanding What Lenders Actually Want

Before you start filling out applications, you need to get inside the head of a lender. When you ask for money without having money, you are essentially asking them to take a risk on you. Your job is to make that risk look as small as possible.

Lenders typically focus on the “5 Cs” of credit, but for a startup with no revenue, three things matter most:

Credit Score

If you don’t have business revenue yet, your personal credit score is your golden ticket. It tells lenders how reliable you are with debt.

Most traditional lenders look for a score of at least 680, but some online lenders and micro-lenders are more flexible. If your score is lower, don’t panic—learning how to get a business loan with bad credit is possible, and we will cover those options shortly.

A Bulletproof Business Plan

You can’t just walk into a bank with a napkin sketch. You need a roadmap. Lenders want to see exactly how you plan to make money.

Your business plan should detail your market research, financial projections, and exactly how you’ll repay the loan. If you are seeking startup business loans with no revenue, your projections need to be grounded in reality, not fantasy. You need to show potential if you can’t show history.

In one of our blog posts, we explain how to write a business plan and provide a detailed example to help you get started right away.

Collateral (or lack thereof)

This is the sticky part. “No money” usually means you don’t have cash for a down payment, but do you have assets?

Collateral is something of value—like a car, real estate, or equipment—that lenders can seize if you default. If you don’t have collateral, you’ll need to look for “unsecured” loans, which often come with higher interest rates to offset the lender’s risk.

How to Get a Startup Business Loan with No Money: Explore Your Options

So, where do you actually go to get this money? Forget the big banks for a second; they are often the hardest nut to crack for a new startup.

Instead, focus on these three accessible avenues that specifically cater to entrepreneurs asking how to get a startup business loan with no money.

Microloans: Small Amounts, Big Impact

Microloans are exactly what they sound like—smaller loans, typically under $50,000. They are designed specifically for startups and small businesses that might not qualify for traditional bank loans.

The SBA Microloan Program is a fantastic place to start. The U.S. Small Business Administration provides funds to nonprofit intermediary lenders who then lend to you.

Loan limit: Up to $50,000 (though the average is around $13,000).
Terms: Maximum repayment term is 6 years.
Interest rates: Generally between 8% and 13%.

These lenders often care more about your character and your business plan than a perfect credit score. Plus, many provide free business training to help you succeed.

If you’re not in the US, look for microloan programs in your country. These can be provided by government agencies, nonprofits, or even banks.

SBA Loans: The Gold Standard

If you need more than a microloan, look at the SBA 7(a) loan. This is the SBA’s primary program for providing financial assistance to small businesses.

Here is the catch: The SBA doesn’t lend you money directly. They guarantee a portion of the loan for the bank, which reduces the bank’s risk. This makes banks more willing to lend to startups.

Guarantee: For standard 7(a) loans, the SBA guarantees 85% of loans up to $150,000 and 75% of loans greater than $150,000.
Personal guarantee: Be aware that for most SBA loans, anyone owning 20% or more of the business must provide an unlimited personal guarantee. This means you are personally liable if the business fails.

Outside of the US, government agencies also offer similar programs to support small businesses.

For example, in Canada, the Canadian Small Business Financing Program provides financing for businesses that are unable to secure traditional bank loans. In the UK, there is the Enterprise Finance Guarantee, which offers a government guarantee on loans provided by participating lenders.

Online Lenders

Online lenders are the speedboats compared to the cruise ships of traditional banks. They are fast, agile, and often have less stringent requirements. Many use technology to analyze alternative data points beyond just your credit score.

Pros: Fast approval (sometimes within 24 hours) and higher approval rates for startups.
Cons: Higher interest rates and shorter repayment terms.

If you are researching how to get a business loan with bad credit or struggling to find startup business loans with no revenue, online lenders might be your best bet for a quick injection of cash. Just always remember to read the fine print on fees!

Alternatives to Startup Business Loans with No Revenue

Maybe the idea of debt makes you sweat. That is totally fair. Taking on a loan isn’t the only way to launch. In fact, some of the most successful businesses started without borrowing a dime from a bank.

Crowdfunding

Why ask one person for $10,000 when you can ask 1,000 people for $10? Platforms like Kiva allow you to crowdfund loans with 0% interest and no fees.

The Kiva model: You can borrow up to $15,000. The catch? You have to get a small number of friends and family to lend to you first to prove your “social credit.”
Reward-based crowdfunding: Platforms like Kickstarter or Indiegogo allow you to pre-sell your product. You get the money to manufacture it, and your backers get the product once it’s made. It’s revenue, not debt!

To learn more about crowdfunding platforms and get some tips for running a successful campaign, check out our blog post below.

Angel Investors

Angel investors are individuals who invest their own money into startups in exchange for equity (ownership) in the company. They aren’t looking for monthly repayments; they are looking for a big return down the road when your company explodes in value.

Best for: High-growth startups with the potential to scale quickly.
The trade-off: You give up a slice of your company and often some control over decision-making.

Grants

Free money? Yes, please! Grants are funds given by government agencies, foundations, or corporations that you do not have to pay back.

The reality: Competition is fierce. You will spend a lot of time writing proposals.
Where to look: Check out Grants.gov for federal grants, or look for corporate grants from companies like FedEx or Visa, which often run small business grant contests.

Check out the blog post below to learn how to find small business grants and how to apply for them.

Tips for Preparing Your Loan Application

You only get one chance to make a first impression. Don’t rush your application.

Create a Solid Business Plan

Your business plan proves you aren’t just winging it. Include realistic financial projections for the next 3-5 years. Show lenders you understand your market size, your competitors, and your profit margins. If you are hunting for startup business loans with no revenue, this document acts as your proof of potential.

Improve Your Credit Score

If you can wait a few months before applying, work on your credit. Pay down personal debts, fix any errors on your credit report, and keep your credit utilization low. Even a 20-point bump can unlock better interest rates.

Demonstrate Potential for Revenue

Do you have a waiting list of customers? Letters of intent? A successful beta test? Any proof that people want what you are selling goes a long way. It shows the lender that the cash flow is coming; it just hasn’t hit the bank account yet.

When to Consider Alternatives to Loans

Is a loan really the right move?

Avoid a loan if:

You are unsure if your product will sell.
The interest payments will crush your margins.
You can bootstrap (self-fund) by starting smaller.

Consider alternatives like:

Bootstrapping: Use your savings and reinvest every dollar of profit back into the business. It’s slower, but you keep 100% ownership and have $0 debt.
Friends and family: A “love loan” can be easier to get, but treat it like a real business transaction to avoid awkward Thanksgiving dinners. Put everything in writing!

If you’re searching for how to get a business loan with bad credit, these options above might be better for you because they don’t require a credit check. However, if you do decide to take out a loan, make sure you shop around for the best interest rates and repayment terms.

Get Funded and Start Your Business

Now that you know how to get a startup business loan with no money, it’s time to start!

Securing a startup business loan with no money is a challenge, but it is far from impossible. First, understand what lenders need, then explore options like SBA microloans and online lenders, and consider creative alternatives like crowdfunding. This approach will help you find the fuel to launch your dream.

Remember, money is just a tool. The real magic is your vision. So polish that business plan, check your credit, and go get the capital you deserve! And if you’re ready to start selling immediately without massive overhead, you can always set up your online store quickly and easily with Ecwid.

Ecwid by Lightspeed is a great option for small businesses on a budget. This affordable and easy-to-use ecommerce platform allows you to launch your online store in under an hour.

With features like multi-channel selling, multiple payment options, and inventory management tools, Ecwid is the perfect solution for entrepreneurs looking to launch their business without breaking the bank.

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Business Finance

Jan 15, 2026

About the author

Anastasia Prokofieva is a content writer at Ecwid. She writes about online marketing and promotion to make entrepreneurs’ daily routine easier and more rewarding. She also has a soft spot for cats, chocolate, and making kombucha at home.