Startup Business Loans

You’ve got the startup, now get the funding.


Best Startup Business Loans

The type of financing available to your startup will vary depending on how long you’ve been in business, your credit score, and your annual revenue. The following lenders we work with offer a shorter minimum time in business for the business just getting started. 

Last Updated:

Lender/Funder*Best ForLoan/Financing TypeLoan/FInancing AmountMin. Time in BusinessLoan/Financing TermMin. Credit ScoreTime to Funds (After Approval)
Headway CapitalBest line of credit for less-qualified borrowersLine of Credit$5k-$100k1 years12, 18, 24 months620Same day
ClickLeaseBest option for loan requests under $25kEquipment FinancingUp to $20,000Any2-5 years520As soon as same day
CrediblyBest for funding a wide range of credit typesBusiness Cash Advance$5,000-$400,0006 months3-18 months55048 hours
Gillman-BagleyBest for customer experienceInvoice Factoring$50K to $10 million3 months30 daysN/AAs soon as next day
Eagle Business FundingBest for transportation and truckingInvoice FactoringUp to $5 millionAnyNone, they take on the invoice repaymentN/AAs fast as 48 hours

Headway Capital – Line of Credit

Funding amount

$5,000-$100,000

Term

12, 18, 24 months

Min. credit score

620

Time to funding

As fast as 24 hours after approval

Headway Capital offers a true revolving line of credit. Their monthly payments and ongoing access
to capital make it a great product for those who want to be able to access funds at any time. With
their fast and easy application and funding process you can have funds in your account within one
business day.

 

Pros:

  • Best line of credit for less-qualified borrowers
  • Weekly or monthly repayment options available
  • Just 1-year minimum time in business required

Cons: 

  • Not available to businesses in Arkansas, Connecticut, Michigan, Montana, North Dakota, Nevada, Rhode Island, South Dakota, and Vermont
  • Lower max loan amount
  • Draw fees may apply
  • Terms and fees vary depending on what state you operate out of
  • Minimum first draw amount
  • 2% draw fee in some states

 

 

Headway Capital Logo

Headway Capital – Line of Credit

Read Our Review Apply Now

Funding amount

$5,000-$100,000

Term

12, 18, 24 months

Min. credit score

620

Time to funding

As fast as 24 hours after approval

Headway Capital offers a true revolving line of credit. Their monthly payments and ongoing access
to capital make it a great product for those who want to be able to access funds at any time. With
their fast and easy application and funding process you can have funds in your account within one
business day.

 

Pros:

  • Best line of credit for less-qualified borrowers
  • Weekly or monthly repayment options available
  • Just 1-year minimum time in business required

Cons: 

  • Not available to businesses in Arkansas, Connecticut, Michigan, Montana, North Dakota, Nevada, Rhode Island, South Dakota, and Vermont
  • Lower max loan amount
  • Draw fees may apply

  • Terms and fees vary depending on what state you operate out of
  • Minimum first draw amount
  • 2% draw fee in some states

 

 

ClickLease – Equipment financing

Funding amount

Up to $20,000

Term

24-60 months

Min. credit score

520

Time to funding

As soon as same day

If you need a new piece of equipment, then equipment financing is a fantastic way to finance that. You can go with a company like ClickLease to help you buy the item you need and pay it back over time. ClickLease has flexible terms and rates for a variety of business owners. 

Pros:

  • Best option for loan requests under $25k
  • No hard credit pull
  • Potentially tax deductible financing
  • Flexible terms and credit score
  • Monthly payments

Cons: 

  • Restricted to equipment purchases
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

One-time documentation fee

 

Clicklease Logo

ClickLease – Equipment financing

Read Our Review Apply Now

Funding amount

Up to $20,000

Term

24-60 months

Min. credit score

520

Time to funding

As soon as same day

If you need a new piece of equipment, then equipment financing is a fantastic way to finance that. You can go with a company like ClickLease to help you buy the item you need and pay it back over time. ClickLease has flexible terms and rates for a variety of business owners. 

Pros:

  • Best option for loan requests under $25k
  • No hard credit pull
  • Potentially tax deductible financing
  • Flexible terms and credit score
  • Monthly payments

Cons: 

  • Restricted to equipment purchases
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

One-time documentation fee

 

Credibly – Cash Advance

Funding amount

$5,000-$400,000

Term

3-18 months

Min. credit score

550

Time to funding

As little as 48 hours after approval

Credibly works with financially healthy businesses to provide fast financing based on receivables, and the minimum time in business is just six months. However, there is a monthly administrative fee to be aware of when comparing your options.

Pros

  • Best for funding a wide range of credit types
  • Accepts credit scorres starting in the 500s
  • Quick application and decision times
  • $400,000 advance amounts available

Cons 

  • More frequent payments (daily or weekly) than with traditional loan products
  • Potentially costly factor rates compared to other types of financing

2.5% set up fee, plus $50 monthly administrative fee

Credibly – Cash Advance

Read Our Review Apply Now

Funding amount

$5,000-$400,000

Term

3-18 months

Min. credit score

550

Time to funding

As little as 48 hours after approval

Credibly works with financially healthy businesses to provide fast financing based on receivables, and the minimum time in business is just six months. However, there is a monthly administrative fee to be aware of when comparing your options.

Pros

  • Best for funding a wide range of credit types
  • Accepts credit scorres starting in the 500s
  • Quick application and decision times
  • $400,000 advance amounts available

Cons 

  • More frequent payments (daily or weekly) than with traditional loan products
  • Potentially costly factor rates compared to other types of financing

2.5% set up fee, plus $50 monthly administrative fee

Gillman-Bagley – Invoice Factoring

Funding amount

$50,000 to $10 million

Term

30 days

Min. credit score

None, based on your accounts receivable

Time to funding

As soon as same day

Gillman-Bagley offers invoice factoring, meaning you could sell them your unpaid invoices and they would pay a percentage of what those are worth. In this scenario, collection is then out of your hands, and Gillman-Bagley goes on to handle the collection of those invoices. Your customers know another company was working to get your invoices paid. Result: you accelerate your cash flow and spend less time and resources tracking down clients for payment.

Pros:

  • Best for customer experience
  • Builds business credit
  • No minimum credit score
  • No minimum amount of time in business

Cons: 

  • Minimum funding amount of $50,000
  • Doesn’t work with medical offices or construction
  • No facility or processing fees
Gillman Bagley

Gillman-Bagley – Invoice Factoring

Apply Now

Funding amount

$50,000 to $10 million

Term

30 days

Min. credit score

None, based on your accounts receivable

Time to funding

As soon as same day

Gillman-Bagley offers invoice factoring, meaning you could sell them your unpaid invoices and they would pay a percentage of what those are worth. In this scenario, collection is then out of your hands, and Gillman-Bagley goes on to handle the collection of those invoices. Your customers know another company was working to get your invoices paid. Result: you accelerate your cash flow and spend less time and resources tracking down clients for payment.

Pros:

  • Best for customer experience
  • Builds business credit
  • No minimum credit score
  • No minimum amount of time in business

Cons: 

  • Minimum funding amount of $50,000
  • Doesn’t work with medical offices or construction

  • No facility or processing fees

Eagle Business Funding – Invoice factoring

Funding amount

Up to $5 million

Term

No term, they take on your invoices

Min. credit score

None, based on invoices

Time to funding

As little as 48 hours after approval

Invoice factoring allows you to sell your outstanding invoices to a company for a lump sum of cash. They, of course, take a percent of those invoices, but then they handle the collection. Eagle Business Funding can do exactly that for your business if you decide to pass your invoices along to a third party.

Pros:

  • Best for transportation and trucking
  • No waiting around for your customers to pay
  • Fast funding
  • No credit score requirement

Cons: 

  • Doesn’t build business credit (business owner may be able to self-report)
  • Don’t operate in California

No additional fees

Eagle Business Funding – Invoice factoring

Apply Now

Funding amount

Up to $5 million

Term

No term, they take on your invoices

Min. credit score

None, based on invoices

Time to funding

As little as 48 hours after approval

Invoice factoring allows you to sell your outstanding invoices to a company for a lump sum of cash. They, of course, take a percent of those invoices, but then they handle the collection. Eagle Business Funding can do exactly that for your business if you decide to pass your invoices along to a third party.

Pros:

  • Best for transportation and trucking
  • No waiting around for your customers to pay
  • Fast funding
  • No credit score requirement

Cons: 

  • Doesn’t build business credit (business owner may be able to self-report)
  • Don’t operate in California

No additional fees

Launch Your Startup To Greatness

Transforming your business from an idea into reality can be expensive, but a startup business loan might be exactly what you need to make it happen. Fortunately, we’re here to help you find the perfect one and easily apply.

Check Eligibility

Options For Startup Financing

The majority of financing options available will require that you have an operating business with regular monthly revenue. The chart below provides an overview of the types of funding typically available based on how long you’ve been in business. Actual approval will also depend on your credit score and revenue.

Personal Investment

In the first three months, most business owners rely on personal investment and friends & family for funding.

Time In Business

Any

Minimum Credit Score

N/A

Minimum Monthly Revenue

N/A

Crowdfunding

Utilizing crowdfunding platforms such as Kickstarter and Indiegogo can be advantageous for entrepreneurs who aim to collect small amounts of funds from a wide range of individuals.

Time In Business

Any

Minimum Credit Score

N/A

Minimum Monthly Revenue

N/A

Invoice Financing

Sell your outstanding invoices to get cash flowing now. This is a great option for businesses with large accounts receivable.

Time In Business

Any

Minimum Credit Score

N/A

Minimum Monthly Revenue

$8,333

Equipment Financing

Finance your purchase of business equipment, vehicles, and electronics. Pay your loan back in regular monthly payments over a set term plus interest.

Time In Business

0-1 Year

Minimum Credit Score

520

Minimum Monthly Revenue

$0 – $8,333

Business Credit Card

A business credit card helps you track expenses, build a strong business credit history, and increase your working capital so you can reap the literal rewards.

Time In Business

0-2 Years

Minimum Credit Score

650

Minimum Monthly Revenue

Varies

Business Cash Advance

Get an advance on your future sales earnings to get fast financing, and pay it back with a fixed daily percentage.

Time In Business

6 Months

Minimum Credit Score

500

Minimum Monthly Revenue

$8,333

Business Line of Credit

Get a revolving amount of funds to borrow from when you need to and pay back later. Great for working capital and regular short-term expenses.

Time In Business

6 Months

Minimum Credit Score

600

Minimum Monthly Revenue

$6,000

Business Term Loan

A term loan provides a lump sum that gets repaid in regular intervals over a set amount of time, also known as the loan term.

Time In Business

1 Year

Minimum Credit Score

600

Minimum Monthly Revenue

$8,000

SBA Loan

Invest in longer-term small business growth or even refinance existing debt with a loan that is partially government-backed. An SBA loan has stricter requirements and is usually paid back over a longer term with lower rates than other loans.

Time In Business

2 Years

Minimum Credit Score

640

Minimum Monthly Revenue

$8,000

How To Apply For A Startup Business Loan

Sure, you can go the bank route with a long application process and 75% rejection rate. But if you’re looking for financing in this lifetime, Lendio offers a faster, easier application process.

STEP
1
Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

STEP
2
Receive matches.

We pair you with loan options from our network of 75+ lenders. Our dedicated funding managers can help you weigh the pros and cons of each option.

STEP
3
Get funded.

Once you’re approved, you’ll be able to access your capital in as little as 24 hours.

Apply Now

Know How Much You Can Afford

Borrowing only what you know you can repay is always a good idea, but it’s especially important when you’re starting a business. Before signing on the dotted line, make sure you’ve calculated how much financing your small business can afford.

In addition to your loan amount, startup loans are determined by your interest rate, term, and collateral. These factors can vary substantially depending on the type of startup loan you choose. You can use our startup loan calculator to estimate your monthly payments.

Calculate your loan

Minimum Requirements For A Startup Loan.

If your business doesn’t match any of the qualifiers below, you may not be able to receive funding from our lending partners.

CREDIT SCORE

600 or higher

AVG. MONTHLY REVENUE

at least $6K

TIME IN BUSINESS

3 months or more


Not qualified yet? We can help.

Lendio’s mobile app can help get your business ready for financing. Open a business bank account, get cash flow insights and stay connected to get updated when you have offers available.

Download on the App Store
Get it on Google Play
Know where your business stands with a centralized dashboard & relevant business insights.
Start separating personal & business expenses, with a no fee business checking account.
Projections for what to charge your customers, when to hire employees and upcoming expenses.

How To Get A Startup Business Loan

Step 1: Create a business plan.

Financiers will want to see what you plan to do with the funds and projections for growth. Learn more about writing a business plan for funding.

Step 2: Decide what type of financing you need.

There are multiple types of business financing options. Evaluate which type of financing is best suited to your needs and that you are likely to qualify for based on your time-in-business, monthly revenue and credit score.

Step 3: Gather documentation.

Typical documentation you will need to apply for a startup loan include three months of business bank statements, your driver’s license, proof of business ownership, and your social security number.

Step 4: Compare lenders.

There are many different types of lenders from banks and credit unions to online lenders. Lendio makes it easy to compare lenders through a single application.

Step 5: Finalize the loan.

After you’ve selected an offer from a lender, you’ll sign a final loan agreement and the funds will be dispersed.

How To Qualify For A Business Startup Loan

To qualify for a startup business loan, business owners will want to focus on both building financial health and establishing clear financial documentation.

Increase Your Credit Score: Most lenders will look at your credit score along with your business’s credit score. If your credit score is below 700, work on improving your credit by paying bills on time, consolidating and refinancing current debt, and using a credit card for regular expenses to build a credit history.

Manage Cash Flow: The amount of cash coming into your business plays a huge role in your ability to pay your bills and pay back a lender. Follow this guide to learn effective cash flow management strategies.

Set up a business bank account: Creating a separate bank account for your business will allow you to better track income and expenses and predict cash flow.

Establish bookkeeping records: Lenders will want to review your business’s key financial statements, so having good bookkeeping practices in place will make it easier to compile the documentation you need when you apply for the loan. Dive into bookkeeping best practices here.

Tips For Comparing Startup Loans

Businesses should evaluate multiple factors when considering a business loan including the overall cost and unique position of the business. Reviewing the following factors can help you narrow down which lenders are right for you. 

Minimum Requirements: Each lender will have its own set of minimum requirements to qualify for a loan. Check to see if you meet basic requirements for time in business, monthly revenue, and credit score. Consider if it may be worth waiting for a longer time in business or repairing your credit score, so you can qualify for a loan type with better terms.

Business Need: Certain loan products, such as equipment financing, can only be used for a specific use case. Others will have a longer application process. Consider your use case for the funds, and how quickly you need access to them before selecting a vendor.

Industry: Some lenders restrict working with certain industries while others specialize in industries such as healthcare or eCommerce. Check to see if a lender works with your industry to improve your chances of approval.

Why Use Lendio?

$12+ BILLION

funded through us

75+

lenders in our network

300,000+

loans funded

“The Lendio process was amazing”

Sterling Hannemann
Co-Owner of Seven Brothers

“Lendio literally saved my business.”

Chloria Chandler
Owner of Bobbee O’s BBQ

Startup Loan FAQs

A startup loan empowers you to invest in your own business. Instead of giving up equity to investors, a startup loan lets you keep it while providing access to the working capital your startup needs. That means you’ll have the freedom to move into a larger office space or order the inventory you need to fulfill those massive purchase orders that keep rolling in.

Startup loans are awarded based on the business owner’s personal credit history. That’s one of the aspects that makes startup business loans such an accessible financing option for new businesses.

If you have a poor credit history, you may still qualify. Before you commit to a startup loan, you’ll want to consider what’s affected your credit history in the past. If you have a history of late payments, it’s in your best interest to consider whether you can afford the loan and if you can meet the payment schedule. For those looking to build credit, a business credit card can be an excellent fit because it provides access to financing and an opportunity to build credit for your business—and you’re not required to use the capital.

The process to get a startup loan or something exciting like an SBA or government loan can be a stressful venture. Fortunately, rather than spending days or weeks hunting for the right loan, you can easily apply through Lendio, and we’ll help you choose the best startup solution for your unique situation.

Loan types and amounts vary depending on your situation. Through Lendio, you can find loan options that offer up to $2,000,000. With that chunk of change, you could build the business of your dreams, but the first step is to apply.

While some loans may require some money upfront, you likely won’t need to worry about that with many of your startup lending solutions. That said, the best way to know for sure is to get your free application in and speak to one of our loan experts.

Crowdfunding on websites like Kickstarter and Indiegogo are helpful when an entrepreneur focuses on raising small amounts of money from a large number of people. This can result in a large influx to the financing aspirations of a small business.

Both these sites and many others allow businesses to pool small investments from a number of investors instead of forcing companies to look for a single investment. There are many different ways to crowdfund as this method of financing is typically available to any type of startup business. Some rely on the strength of their campaign, some offer rewards and incentives to their supporters, and others provide shares of their business.

A startup business loan can be used for working capital, equipment, or other expenses of a new business. The structure of the loan will depend on the loan type. In general, businesses with a longer time in business will qualify for more loan offerings than those just getting started.

Yes, it can be difficult to get a business loan to start a business. While a handful of lenders will work with businesses from day one, the majority want to see a business with a history of at least 6 months along with a steady stream of monthly revenue. The owner’s credit score also impacts eligibility. 

*Disclaimer

The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (July 13, 2023). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.

Quickly Compare Financing Options from Multiple Funders

Applying is free and won’t impact your credit

Talk to a rep at (855) 853-6346
Mon-Fri 7:30am-5pm MST