Best Business Loans for Startups and New Businesses
New businesses have fewer financing options than established ones because lenders look for revenue and credit history. These are the most common options for startups and what to know about each.
Startup financing options
| Option | Why it may fit | Consider |
|---|---|---|
| SBA microloans | Small loans available through nonprofit intermediaries, generally up to $50,000 | Smaller amounts; availability varies by region |
| Online term loans | Faster and sometimes more flexible | Higher cost; minimum time in business may apply |
| Business lines of credit | Flexible access for cash flow | Limits may be small at first |
| Equipment financing | The equipment can serve as collateral | Only for equipment purchases |
| Business credit cards | Easier entry point for small spending | Variable APR if you carry a balance |
See our SBA loans, lines of credit and equipment financing pages.
How startups can improve approval chances
- Build a clear business plan and cash flow projections.
- Strengthen your personal credit.
- Separate business and personal finances with a business bank account.
- Prepare for a personal guarantee or collateral.
- Start small and build a payment history.
What to be careful with
- Very high-cost, short-term products that strain cash flow
- Offers with large upfront fees
- Using home equity or personal assets without understanding the risk
Also consider building business credit from day one.
Frequently asked questions
Can I get a business loan with no revenue?
It is difficult. Some options, such as certain microloans or personal-credit-based products, may be available, but terms vary and approval is never guaranteed.
Do startups need collateral?
Often. Requirements depend on the lender and loan type.
What is the easiest way to finance a startup?
A business credit card or a small line of credit may be easier to obtain for small amounts, but compare costs carefully.
Epic Capital Solutions is not a lender, bank or card issuer and does not make credit decisions. This guide is general information, not financial, legal or tax advice. Rates, fees and terms are set by providers and change often.