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Can You Get a Startup Business Loan Without Money?

You have a dream of a magnificent startup but no money to get that vision moving forward. If you are wondering if you can get a startup business loan in New Jersey without money, don’t worry. You can. And remember: Apple and Amazon were launched out of garages and Samsung was once a grocery store. The best things often start out small, which is why most startup and small business loan providers are willing to give you a hand. In fact, even if you have zero or bad credit and minimal revenue, there are still loan options available to you. Let’s dive right in.


Key Takeaways


  • Despite lacking initial capital, startups can access funding through various avenues such as equipment financing, SBA microloans, and lines of credit.
  • While it can be challenging for startups to secure loans without established revenue, presenting a solid business plan and exploring alternative lenders can improve the likelihood of approval.
  • Understanding the potential downsides of loans without collateral or credit, such as higher interest rates and stricter terms, is crucial for informed decision-making.

Loans to Startup When You Have No Revenue

Starting a business without revenue can be challenging, but there are several financing options available to help you get off the ground.


Equipment Financing

One option you have is known as equipment financing, which is ideal for purchasing the equipment you need to begin your business. The way it works is that the equipment itself serves as collateral, making it easier to secure the loan. This option helps preserve cash flow and can be easier to qualify for even without revenue, as the equipment reduces the lender’s risk.


SBA Microloans

Another option is an SBA microloan. Such loans are designed for small businesses and startups needing smaller loan amounts. Administered through non-profit community lenders, these loans can go up to $50,000. They offer lower interest rates and longer repayment terms, often accompanied by business training and counseling, which can be invaluable for new entrepreneurs.


Lines of Credit

The last option available to small businesses are lines of credit. This option provides flexible access to funds for various business expenses. Once approved, you can draw funds up to a set limit and only pay interest on the amount borrowed. This option offers flexibility and can be reused as funds are repaid, making it a versatile financing option for managing cash flow or unexpected expenses.

How to Get a Startup Loan When You Have No Money

How to Get a Startup Loan When You Have No Money

The options that exist do limit how much money you can receive, but with the right amount of planning, you can get funds to open the doors. Here are some things to keep in mind when applying for a startup business loan in New Jersey without money:


Figure Out How Much You Require

The key to receiving a decent loan is knowing how much you need and how that money will be used. Lenders want to see a solid business plan, especially when you are asking for greater amounts. When you know how much you need, you can also start selecting the lenders who provide options tailored to your needs.


Calculate a Budget

The next thing is to see what numbers are going to give you the greatest advantage. Utilize the loan calculators online and compare as many loans as you can. You want to make sure you can handle the repayment fees, as well as the interest rate.


Determine a Timeline

The last piece is the timeline. When do you need the money? How soon can you pay it off? Time is definitely money, and if you need that money soon to open your business’s doors, then you will mostly need to use an alternative lender, not a traditional one.


Is It Hard for a Startup to Get a Business Loan?

There is no point in sugar-coating it. If you are new and don’t have a lot of revenue to work with, it can be difficult to secure a small business loan in the beginning. Traditional lenders want to see businesses that have proven profits and ongoing cash flow, as that makes you the more reliable choice. Unfortunately, as a startup, profit and cash flow are two things that you have yet to establish. The good news is that you can increase the probability of being accepted for a loan if you provide a guarantee of collateral and layout a solid business and repayment plan.


Can You Get a Startup Loan Without Collateral?

Yes, you can. Receiving a startup loan when you don’t have any money or collateral is challenging but not impossible. In fact, there are a variety of unsecured financial loans out there that you can research and choose from. Most unsecured financial loans are going to rely on your credit score and the overall potential of your business. When a lender decides to provide you with an unsecured loan, they are looking to the future.


The only downside to receiving a loan without collateral is that the interest rates are higher. Repayment terms may also be more strict than a secured or collaterialized loan.


Can You Receive a Startup Loan Without Credit?

Again, it is not impossible. Credit scores are only one part of the application for a loan. Not having one will make the lenders scruntize your other information harder, but if you provide a strong business plan and show off the potential of your industry, it’s possible to get a loan without a credit score. The downside to this is the increase in interest rates—due to the risk to the lender—and the strict conditions.


Contact a New Jersey Business Loan Provider Today

While securing a startup business loan in New Jersey without money presents challenges, it’s not insurmountable. By exploring various financing options like equipment financing, SBA microloans, and lines of credit, startups can acquire essential funding even without revenue. Strategic planning, including determining funding requirements, calculating budgets, and establishing realistic timelines, is crucial. Despite potential hurdles, persistence and strategic thinking can lead to successful funding outcomes. Contacting a New Jersey business loan provider like New Bridge Merchant Capital can provide tailored financial solutions to kickstart your entrepreneurial journey.


You can reach us by calling 844-228-0593 or by filling out the contact form. It’s time to launch your business and rise to new heights.

Work With a Leading Commercial Lender

At NewBridge Capital Solutions, our loan products can help businesses of all sizes. With our exceptional customer service and reputable funding, we have become a trusted leader in the commercial finance industry. If you want to apply for a term loan that can provide working capital for your business, make sure to contact us.
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