Funding option
Startup Funding (Under 1 Year in Business)
Under twelve months most lenders say no. Here is what actually says yes: microloans, community lenders, 0% cards, revenue-based advances and grants.
Updated September 2026. Details vary by lender and change often; confirm terms with the provider.
The realistic menu at 0–12 months
| Option | What you need | Amount | Notes |
|---|---|---|---|
| 0% intro APR business card | 670+ personal credit | $5k – $50k | Free capital for 9–18 months if paid off |
| SBA Microloan | plan, personal credit, intermediary in your area | up to $50k | 8–13% typical, offered by nonprofits, includes coaching |
| CDFI / community lender | mission fit (location, owner demographics) | $5k – $250k | Slower, friendlier underwriting, often the best rate you can get |
| Revenue-based advance | 3–6 months of $10k+/mo deposits | 50–150% of monthly deposits | Expensive; only for a clear, fast return |
| Grants and competitions | eligibility fit, a good application | $1k – $50k | Free money, low odds, worth a few hours a month |
| Equipment financing | 600+ credit, down payment | cost of the equipment | Approvals at 6+ months are common |
| Personal loan / HELOC | personal credit and income | $5k – $100k+ | You are personally on the hook; price it honestly |
What to do in the first year
- Open a dedicated business bank account on day one. Every lender underwrites off those statements.
- Get an EIN and a D-U-N-S number, then a business card that reports to the business bureaus.
- Avoid overdrafts and negative balance days. They are the first thing advance and line underwriters look for.
- Apply for grants in batches, not one-offs. Build one master application and adapt it.
- At month 6 with steady deposits, revisit the 60-second match: a line of credit becomes possible; at month 12, term loans open up.
What to avoid
- “Guaranteed approval” startup loans that charge an upfront fee. See how to spot funding scams.
- Stacking two or more advances in your first year. It is the fastest way to a business that only works to pay funders.
Frequently asked questions
Can I get a business loan with no revenue?
Almost never from a commercial lender. Pre-revenue funding comes from personal credit (cards, personal loans), friends and family, grants and competitions, crowdfunding, and microloan programs that lend on a business plan and your personal profile.
How many months of deposits do advance funders want?
Typically 3 to 6 months of business bank statements showing consistent deposits of $10,000+ per month. If you are there, an advance becomes an option even under a year.