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Starting or running a business with no liquid capital can be challenging, but it’s possible. One way to get the funding you need is to get a startup business loan with no money.

Yeah, that’s right. While it’s true that most lenders require borrowers to have some collateral or a proven track record of revenue.

Some lenders are willing to provide loans to startups with no money. These lenders typically have stricter requirements and higher interest rates, but they can be a good option for startups that can’t qualify for a traditional loan.

In this guide, we’ll share some tips on how to get a startup business loan with no money. We’ll also cover some alternative funding options that you may want to consider.

But first…

What is Cash Flow, and Why is it Important?

Cash flow is the balance between a business’s income and expenses.

When a business maintains a positive cash flow, it means that its earnings exceed its costs, indicating financial stability. Conversely, a negative cash flow, where expenses surpass revenue, raises red flags for lenders.

Lenders place great importance on cash flow when it comes to providing financial aid. 

Businesses with healthy cash flow are typically considered to be dependable borrowers. Lenders find them to be trustworthy candidates for their financial support.

On the flip side, when a business grapples with negative cash flow or overall lack of funds, it often gives lenders pause when considering loan approvals.

When Should You Get a Business Loan?

More often than not, embarking on a new business venture requires massive capital injection to kickstart and expand operations.

When Should You Get a Business Loan?

For new business owners lacking startup funds, a potential solution could involve borrowing the required capital to be repaid at a later time.

Depending on your business prospects and the lending institution’s policies, a business loan or startup funding can still be feasible options, even if you have limited initial capital. 

These alternatives can prevent you from depleting your savings to get your business up and running. That said, it’s vital to only borrow what you are confident you can repay according to the agreed terms.

Financing Options for Businesses with No Money

Let’s quickly review the financing alternatives you can explore to get funding for your business when you have little to no revenue.

Business loans

Traditional business loans often come with stringent requirements, including a minimum annual revenue threshold that can be challenging for many prospective borrowers to meet. 

Nevertheless, some lenders are open to offering small business loans to startups that have yet to generate revenue.

For new businesses and startups in this category, lenders willing to consider their applications will likely request additional documentation. 

This documentation might include financial projections and a comprehensive business plan. These extra documentation are required to demonstrate your business’s ability to meet its debt repayment obligations.

Equipment Financing

Equipment financing allows you to fund the purchase of essential equipment for your business, whether it’s small electronics or large manufacturing machinery. 

The equipment you’re financing serves as collateral — something valuable that the lender can take back to cover any potential losses, thus securing the loan.

Since collateral lowers the risk for lenders, equipment financing providers may be more inclined to approve new businesses or startups that have limited or no cash flow. 

To get equipment to refinance, you’ll also need to provide financial projections and a comprehensive business plan that demonstrates your business’s ability to meet its debt obligations.

Business credit cards

Similar to personal credit cards, business credit cards allow you to borrow up to a predetermined credit limit. 

You’re responsible for clearing your balance by the end of each month, and any unpaid amounts will start accruing interest until fully settled. 

Essentially, you can avoid interest charges entirely by paying your balance in full monthly. Business credit card providers consider only your income and personal credit score for approval, which can be advantageous for businesses with limited or no cash flow. 

Consequently, you won’t be required to provide documentation demonstrating your business’s monthly or annual revenue. 

Most business credit cards have a minimum personal credit score requirement of 670, but a higher score can secure more favorable terms.


Crowdfunding has emerged as a non-traditional yet increasingly popular method of securing funds for businesses. 

Here’s the basic process: 

  • You select a platform such as Kickstarter or Wefunder, then curate a post outlining your product or service. 
  • You set a fundraising goal and establish tiered rewards for contributors based on their donation size, which might include early product access, special features, or merchandise.

One downside of crowdfunding is that you typically need to reach your fundraising target to receive any funds. If you fall short of your goal, most platforms refund the contributors, leaving you with nothing. 

However, the upside is that the money raised through crowdfunding is essentially donations, and you aren’t obligated to repay it to the contributors.

Additionally, crowdfunding tends to be cost-effective. Instead of paying interest to a bank, you typically pay a percentage of the funds you raise, often ranging from 3% to 5%. If your campaign isn’t successful, no fees are imposed.

Nevertheless, it’s important to note that crowdfunding doesn’t guarantee success. Statistics show that only about 23.3% of all crowdfunding projects achieve their goals. 

Technology, games, and design projects are the most favored categories, so if your business doesn’t fall into these niches, your chances of success with crowdfunding may be somewhat lower.

See: Business Continuity Plan Vs Disaster Recovery Plan Vs Incidence Response

How to Repay Your Business Loan

Repayment responsibilities should not be taken with levity when obtaining a loan, especially if your cash flow is limited. Before committing, carefully assess both your current and anticipated cash flow to ensure you can comfortably manage the repayments. 

It’s crucial to maintain realistic expectations in your financial projections. Missing a payment can negatively impact your credit and potentially hinder your eligibility for future credit offerings.

In the event of default, if you’ve personally guaranteed the loan, you’ll be obligated to repay the amount using your funds, such as those from your checking or retirement account.

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