# Startup business loans

Source: https://businessloanbroker.ai/business-loans/startup-business-loans/
Site: BusinessLoanBroker.ai (powered by Levr)

> Most lenders decline businesses under a year old. The startup loans that do approve: SBA microloans, equipment financing, business credit cards and more.

Most lenders decline businesses under a year old, and most banks decline under two. The startup loans that do approve lean on something other than your business history: your personal credit, an asset you are buying, a plan a nonprofit lender believes in, or revenue you already have. Realistic amounts are $5,000 to $250,000 at roughly 8% to 35%. This page lists what works, what gets declined, and how to improve your odds.

## Key facts
- **Amounts:** $5,000 to $250,000 for most startups; more with equipment or a strong SBA file
- **Typical cost:** 8% to 13% on microloans, 6% to 25% on equipment, 18% to 30% on credit cards
- **Terms:** Months to 7 years depending on the product
- **Time to fund:** Days for cards and equipment; 2 to 12 weeks for microloans and SBA
- **Minimums most lenders use:** Owner credit of 650 to 700, a written plan, 10% to 30% of your own cash in the business

## What is a startup business loan?

There is no single product. A startup business loan is whichever financing will approve a company with less than a year or two of history. The realistic list is short: [SBA microloans](https://businessloanbroker.ai/business-loans/sba-microloans/) up to $50,000 from nonprofit lenders, [equipment financing](https://businessloanbroker.ai/business-loans/equipment-financing/) secured by what you buy, [business credit cards](https://businessloanbroker.ai/business-loans/business-credit-cards/) based on your personal credit, SBA 7(a) loans for well capitalized owners with experience, and revenue based financing once sales exist.

Online lenders advertising startup loans usually mean a short term loan or merchant cash advance after six months of deposits, at 30% to 80% APR. Read [financing a startup with no revenue](https://businessloanbroker.ai/situations/startup-no-revenue/) for the pre revenue version.

## Who qualifies for a startup business loan?

Without business history, lenders underwrite you. Owner credit of 680 or higher opens most doors; 650 opens some; under 620 leaves microloans and secured equipment. Cash you have put in matters, usually 10% to 30% of what you need. Industry experience, a written plan with a 12 month cash flow projection, and a registered business with its own bank account are the other basics.

- Declined most often: no personal cash invested, a plan with no projections, credit under 620, recent bankruptcy, and owners who cannot explain how the loan is repaid before the business is profitable.
- Home equity helps with SBA lenders, who will usually ask for a lien on it.

## What does a startup business loan really cost?

Three typical examples. An SBA microloan of $50,000 over six years at 10% costs about $925 a month and roughly $16,700 in interest. Equipment financing of $60,000 over five years at 12% costs about $1,335 a month and roughly $20,000 in interest. A business credit card with a $20,000 limit at 0% for 12 months costs nothing if you pay it off in time, and about 24% a year after that.

Compare those with an online short term loan at 50% APR, where $50,000 over 12 months costs over $13,000 in fees. Before choosing, run each through the [business loan calculator](https://businessloanbroker.ai/tools/business-loan-calculator/) and read [the first time borrower guide](https://businessloanbroker.ai/guides/first-time-borrower/).

## How do you qualify, and what documents do you need?

A business plan with a 12 month projection, your personal tax returns for two years, a personal financial statement, proof of your cash injection, formation documents, a business bank account, and any contracts or letters of intent from customers. Equipment lenders add the vendor quote. SBA lenders add industry experience evidence and a resume.

Pull the list from our [document checklist](https://businessloanbroker.ai/guides/document-checklist/). The most useful step before applying is to open a business bank account and run every sale and expense through it for three to six months; clean statements are what turn a startup from unfundable to fundable at most online lenders.

## How long does a startup business loan take?

Business credit cards are often approved instantly and arrive in a week. Equipment financing closes in one to ten days. Microloans take two to six weeks because nonprofit lenders underwrite by hand and may require training first. SBA 7(a) startup loans run 60 to 120 days, since the lender has to build a case without returns.

Timing shapes the strategy. Many owners open a card and an equipment loan first, then apply for a microloan or SBA loan with a few months of bank history behind them. See [how long business loans take](https://businessloanbroker.ai/guides/how-long-it-takes/).

## When should you choose something else?

Choose [revenue based financing](https://businessloanbroker.ai/business-loans/revenue-based-financing/) if you already have six months of recurring sales; it ignores the age of the business. Choose an [SBA 7(a) loan](https://businessloanbroker.ai/business-loans/sba-7a-loans/) if you have 680 credit, 20% to 30% cash and relevant experience, since it is the only startup product that reaches into the hundreds of thousands at a reasonable rate.

Choose no loan if the plan does not yet show how the payment gets made. Grants, customer prepayments, friends and family, and a smaller first version of the business are not failures; they are how most funded businesses reached the point where a lender said yes.

## How do you apply for a startup business loan?

Apply once on this site and your application reaches the lenders that actually approve new businesses: microloan intermediaries, equipment lenders, card issuers and SBA lenders that take startup files, rather than banks that will decline on day one. It is free for your business, and we are paid the same whichever lender you choose. Or ask your AI assistant to apply through our [MCP server](https://businessloanbroker.ai/agents/): it reads your plan and statements, fills the application and submits it.

| Option | Amounts | Typical cost | Speed | What it relies on |
|---|---|---|---|---|
| SBA microloan | Up to $50,000 | 8% to 13% | 2 to 6 weeks | Your plan and character |
| Equipment financing | $10,000 to $500,000 | 6% to 25% APR | 1 to 10 days | The equipment as collateral |
| Business credit card | $2,000 to $50,000 limits | 18% to 30% APR, 0% intro offers | Days | Your personal credit |
| SBA 7(a) startup loan | $100,000 to $5M | Prime plus 3% to 6.5% | 60 to 120 days | Your cash, credit and experience |

## Questions and answers
**Can I get a business loan with no revenue?**

From a few lenders, yes: SBA microloan intermediaries, equipment lenders when the equipment is strong collateral, and card issuers based on your personal credit. Everyone else needs deposits to underwrite. Grants and customer prepayments fill the rest of the gap.

**Will a lender give me a startup loan with bad credit?**

Rarely. Under 620, most startup products are closed, because your credit is the only history a lender has. Secured equipment financing with 20% down and some microloan intermediaries are the exceptions. Spend six months improving the score before applying elsewhere.

**Should I use a personal loan to start my business?**

We only help with business financing, so we cannot arrange one. Be careful either way: a personal loan is debt in your own name with no business protection, and it does not build business credit. A business card or microloan usually serves the same purpose better.

**Are there startup loans in Canada?**

Yes. Futurpreneur lends to founders aged 18 to 39 with BDC adding a matching loan, BDC itself has startup financing, and the Canada Small Business Financing Program covers equipment and leaseholds for new businesses through banks.

## Related
- [SBA microloans](https://businessloanbroker.ai/business-loans/sba-microloans/)
- [Equipment financing](https://businessloanbroker.ai/business-loans/equipment-financing/)
- [Business credit cards](https://businessloanbroker.ai/business-loans/business-credit-cards/)
- [Startup business loans with no revenue](https://businessloanbroker.ai/situations/startup-no-revenue/)
- [Business loans under one year in business](https://businessloanbroker.ai/situations/under-one-year/)
- [Business loans for first time borrowers](https://businessloanbroker.ai/guides/first-time-borrower/)

## Apply
Apply for the business: https://apply.businessloanbroker.ai/signup?utm_source=direct&utm_medium=organic&utm_content=md-startup-business-loans
MCP server for AI agents: https://mcp.businessloanbroker.ai/mcp (docs: https://businessloanbroker.ai/agents/mcp/)