You have a real business to build – you just don’t have sales yet. Maybe you’re waiting on your first signed contract, your buildout is in progress, or you’re stocking inventory before opening day. And now you’re staring at the same catch-22 every founder hits: you need money to launch, but lenders want proof you’ve already launched.
A startup business loan with no revenue is possible, but it rarely looks like a traditional term loan from a bank. The fastest path is usually to match the right product to your situation, show the type of strength underwriters can measure without revenue, and avoid the traps that burn time (and credit).
Can you get a startup business loan with no revenue?
Yes – but the approval logic changes.
When a lender can’t lean on bank statements and consistent deposits, they focus on substitutes: your personal credit profile, liquidity, collateral, industry risk, and whether there’s a clear path to revenue (contracts, licenses, invoices, purchase orders, or a credible launch plan).
That’s why some founders get funded quickly while others get stuck. It’s not always about the idea. It’s about what can be verified today.
What “no revenue” really means to lenders
“No revenue” can mean three different things, and each gets treated differently.
If you truly have zero sales and no contracts, many lenders treat the request like personal-backed financing and will cap amounts or require collateral.
If you have signed contracts, a purchase order, or a service agreement but haven’t collected yet, you’re in a stronger position. You’re still “pre-revenue,” but your future cash flow is easier to underwrite.
If you have revenue that’s irregular or not yet showing in business bank statements (for example, you’ve been paid through a marketplace account or a new bank account), you may not be “no revenue” in a practical sense. Sometimes the fix is documentation, not a different product.
The most realistic funding options (and when they fit)
There isn’t one magic loan type for every startup. Here are the options that most often work when revenue is missing.
Startup equipment financing
If your business needs hard assets – trucks, medical equipment, kitchen equipment, construction gear – equipment financing is often one of the cleanest approvals.
The equipment itself helps secure the deal, so the lender isn’t relying only on revenue. You’ll typically need a quote or invoice from the vendor, and your personal credit and down payment matter. The trade-off is that the funding is tied to the asset purchase, not general working capital.
Business credit cards (0% promos can be powerful)
This isn’t a “loan,” but for true no-revenue startups, credit cards are frequently the first accessible capital.
If you qualify for a 0% intro APR, it can function like short-term financing for inventory, software, ads, or initial operating expenses. The risk is obvious: if you carry balances past the promo period, costs jump fast, and utilization can pressure your credit score. Use this route when you have a tight launch timeline and a disciplined payoff plan.
SBA microloans and certain SBA-adjacent programs
SBA-backed options can work for startups, especially microloans, but they’re rarely “same-day.” They can be a great fit when you can wait through the process and you’re comfortable providing a full package of paperwork.
If speed is your top priority, SBA paths may feel slow. If lowest possible rate is your priority and your timeline is flexible, they’re worth exploring.
Personal loan used for business purposes
Some founders dislike this option because it feels less “business-only,” but for true startups with no revenue, it can be one of the only clean approvals.
The upside is straightforward underwriting and fast funding if your personal credit and income are strong. The downside is you’re personally on the hook, and it doesn’t build business credit the same way as some commercial products.
Secured lending: home equity or other collateral
If you have significant collateral, you may be able to access better pricing and larger amounts than an unsecured startup product.
The trade-off is real: you’re pledging an asset. This is best reserved for situations where the use of funds is high-confidence and the repayment plan is conservative.
Pre-revenue contract or invoice-based funding
If you already have work lined up, invoice factoring (once invoices exist) or certain contract-driven funding structures can be viable. This is common in staffing, trucking, B2B services, and government-adjacent contracting.
This category is less about your credit score and more about the payor and the paper trail. If you can document who owes you and when they pay, lenders have something to underwrite.
Merchant cash advances and “daily pay” products (usually later, not first)
For a true no-revenue startup, these usually don’t fit because they rely on consistent card sales or deposits.
If you’re about to open and expect immediate card volume, you might qualify soon after launch – but this is typically a “month 2 or month 3” tool, not a pre-opening tool. Also, the cost can be high, so it should be paired with a clear margin and repayment plan.
What lenders look at when revenue isn’t there
If you want to stop guessing, focus on what underwriters can verify quickly.
Personal credit and payment history
For startups, personal credit often carries the file. A higher score can expand options and reduce pricing. But even more important than the score is the story: on-time payments, low recent delinquencies, and manageable existing debt.
Cash on hand (liquidity)
Even a great idea looks risky if you have no runway. Many approvals improve when you can show reserves – money to cover early expenses and initial payments.
Industry and use of funds
Lenders price risk differently by industry. A daycare buildout, a restaurant opening, and a solo attorney practice are not underwritten the same way.
Use of funds matters too. Financing equipment with a serial number is easier than financing “marketing and working capital” when nothing else exists yet.
Business setup and documentation
You don’t need a 40-page business plan for every lender, but you do need to look fundable.
That usually means you have your entity formed, an EIN, a business bank account, and any required licenses. If you’re leasing a space, a signed lease helps. If you’re buying equipment, a vendor quote helps. If you have contracts, fully executed agreements help.
Common reasons no-revenue startups get declined
Most denials are predictable.
If your credit has recent late payments or high utilization, you may be forced into expensive options or smaller approvals.
If you’re asking for too much too early (for example, $250,000 for working capital with no collateral and no contracts), the request doesn’t match the risk profile.
If your paperwork is inconsistent – mismatched addresses, incomplete entity documents, unclear use of funds – lenders slow down or walk away.
How to improve your odds quickly (without wasting time)
Start with two questions: “What can I document today?” and “What will the money buy?”
If the funds are for equipment, lead with equipment financing and bring a clean invoice or quote. If the funds are for a buildout, be ready to show lease terms, contractor bids, and your cash contribution.
If you don’t have documentation yet, tighten the basics before applying: open a business bank account, deposit any initial capital, keep your records clean, and reduce revolving credit utilization if possible. Small moves here can change the outcome more than rewriting your pitch deck.
Also, be careful with rapid-fire applications. Multiple hard pulls and scattered submissions can make you look desperate and can lower your score. A controlled approach beats a spray-and-pray approach every time.
What “fast funding” looks like for startups
Speed depends on product type.
Credit-based approvals (like certain unsecured options) can move quickly if your credit and documents are straightforward. Asset-based approvals (like equipment) can also be fast when the vendor paperwork is clean.
SBA and bank-style loans are usually slower because the process is heavier.
If you want speed, your job is to remove friction: clear documents, consistent information, and a request that matches what lenders actually approve for pre-revenue businesses.
A simple way to match your situation to the right product
If you’re pre-revenue and need money for a specific asset, start with asset-backed financing.
If you’re pre-revenue and need flexible working capital, expect more scrutiny and smaller approvals unless you have strong personal credit, meaningful cash reserves, or collateral.
If you’re “no revenue” only because you haven’t collected yet, focus on contract and invoice documentation – that can move you out of the highest-risk bucket fast.
If you want a clean, digital way to see what you actually qualify for without getting bombarded by random broker calls, you can apply once through Finance Parrot and get matched to options based on your profile and timeline.
A smarter mindset for borrowing before revenue
Pre-revenue funding works best when it’s treated like a bridge, not a lifestyle.
Borrow the smallest amount that gets you to the next measurable milestone: opening day, first invoices, first month of deposits, first equipment purchase, first hire that directly produces revenue. Once deposits are hitting your business bank account consistently, your financing menu expands – often dramatically.
The goal isn’t to “win” the biggest loan before you’ve proven demand. The goal is to get to proof as efficiently as possible, with financing you can actually live with when payments start.