# Business loans under one year in business

Source: https://businessloanbroker.ai/situations/under-one-year/
Site: BusinessLoanBroker.ai (powered by Levr)

> Under a year in business, options open in stages: equipment and cards from day one, advances at six months, online lines and term loans at twelve.

Under one year in business, your options open in stages. From day one you can finance [equipment](https://businessloanbroker.ai/business-loans/equipment-financing/) and get a business credit card on your personal credit. At six months with $10,000 or more in monthly deposits, [advances](https://businessloanbroker.ai/business-loans/merchant-cash-advance/), [revenue based financing](https://businessloanbroker.ai/business-loans/revenue-based-financing/) and some short term loans open up. At twelve months, online lines and term loans follow. Banks wait for two years of tax returns, and nothing you say will change that.

## Key facts
- **Will consider you:** Equipment financing, business credit cards, factoring, advances and revenue based after 6 months
- **Will decline you:** Banks, most SBA lenders, online term lenders and lines before 12 months
- **Typical cost premium:** 1.3 to 2 times a standard borrower until the 12 month mark
- **Fastest realistic timeline:** 1 to 3 days once you have six months of statements
- **What improves odds:** A business bank account from day one, consistent deposits, personal credit above 680

## Can you get a business loan under one year in business?

Yes, in smaller amounts and from specific lenders. Time in business is the first filter every lender applies, and most set it at six months, twelve months or two years. Under six months you are limited to products that lend on an asset or your personal credit. From six months, lenders that underwrite bank statements will consider you if deposits are consistent. Amounts are capped at roughly one month of revenue until you pass a year.

Your odds depend more on your personal credit and your bank statements than on anything about the business, because there is not yet a business to judge. A founder with a 720 score and steady deposits in a business account gets funded at nine months; one with a 600 score and mixed accounts waits. [The first time borrower guide](https://businessloanbroker.ai/guides/first-time-borrower/) explains what lenders look for.

## Which products will consider you, ranked by fit

Ranked by what opens first and costs least:

- Equipment financing, from day one: the equipment is the collateral, so lenders fund new businesses with a down payment and decent personal credit.
- A [business credit card](https://businessloanbroker.ai/business-loans/business-credit-cards/), from day one, on your personal score.
- [Invoice factoring](https://businessloanbroker.ai/business-loans/invoice-factoring/), from your first invoice to a creditworthy business customer, because the factor underwrites the customer.
- Revenue based financing and advances, from about six months with $10,000 a month in deposits.
- Short term loans from online lenders, from six to twelve months.
- SBA microloans, at any stage, for $50,000 or less through community lenders.

## Which products will decline you, so you stop wasting applications

Banks decline on time in business alone, usually at two years, and no package overcomes it. Most SBA 7(a) lenders want two years too, with exceptions for franchises, licensed professions and acquisitions. Online term lenders and lines set a floor at twelve months, sometimes six for the smallest amounts.

Applying to these before you qualify adds hard inquiries and nothing else. If a lender advertises funding for startups with no time in business and no credit check, read [business loan scams](https://businessloanbroker.ai/guides/business-loan-scams/) before you give them anything. [Startup loans with no revenue](https://businessloanbroker.ai/situations/startup-no-revenue/) covers the stage before your first deposits.

## How to improve your odds in 30, 90 and 180 days

In 30 days: open a dedicated business bank account if you have not, and run every sale and expense through it. Get your EIN, register the business, and clean up your personal credit, because every early product leans on it. Finance equipment rather than paying cash, to keep a cushion and start a credit file.

In 90 days: three months of consistent deposits is where the first revenue lenders start looking. Avoid negative balance days entirely. If you invoice businesses, set up factoring so cash flow does not depend on slow payers.

In 180 days: at six months with $10,000 or more a month, advances and revenue based financing open. Take them only for a clear purpose. Keep building toward twelve months, when online lines and term loans arrive at much better pricing.

## What will it cost compared with a standard borrower?

A standard borrower with two years of history pays 8% to 15% APR at a bank. Under one year, equipment financing runs 10% to 20% with a down payment, business credit cards 18% to 29% after any introductory period, and factoring 1% to 4% per 30 days. Advances and revenue based financing at six months price at factor rates of 1.2 to 1.5, which annualizes to 40% to 150% or more. Short term loans run 20% to 60% APR.

The premium is real but temporary. Each month of clean deposits moves you toward products that cost half as much, so borrow the minimum, keep the statements clean, and refinance at twelve months. Use the [MCA true cost calculator](https://businessloanbroker.ai/tools/mca-true-cost-calculator/) before you accept an advance.

## How to apply

Apply once here with whatever statements you have, your personal details and any equipment quote or invoices, and your application reaches the equipment, factoring, revenue based and short term lenders that accept your stage, without being sent to banks that will decline on time in business. Or connect your AI assistant to our MCP server through the [agents hub](https://businessloanbroker.ai/agents/) and let it fill the application from your documents and submit. It is free to the business.

| Stage | Products that open | Typical cost | Typical amounts |
|---|---|---|---|
| Day one | Equipment financing, business credit cards, factoring | 10% to 29% APR, 1% to 4% per invoice | $5,000 to $250,000 on equipment |
| 6 months | Advances, revenue based financing, some short term loans | Factor rates 1.2 to 1.5 | Up to one month of revenue |
| 12 months | Online lines of credit and term loans | 10% to 40% APR | One to two months of revenue |
| 24 months | Banks and SBA 7(a) | 7% to 15% APR | Sized to cash flow, up to $5M |

## Questions and answers
**How long do I need to be in business to get a loan?**

It depends on the product. Equipment financing, business credit cards and factoring work from day one. Advances and revenue based financing want about six months and $10,000 a month in deposits. Online lines and term loans want twelve months. Banks and most SBA lenders want two years of tax returns.

**Does time in business count from registration or from first sales?**

Lenders mostly count from the date on your registration or EIN, but they underwrite on deposits, so a business registered two years ago with six months of sales is treated like a six month old business. Register early, open the account early, and start depositing so both clocks run together.

**Can I use my personal credit to get a business loan under one year?**

Yes, and you will have to. Every product open to a young business relies on the owner's personal credit and a personal guarantee. A score above 680 opens equipment financing with a small down payment and cards with higher limits. Under 620, most early products close until the business has six months of deposits.

**Should I wait until twelve months to borrow?**

If you can, for anything beyond equipment and a card. Products at six months cost two to three times what opens at twelve. If you need money sooner for a clear purpose with a clear payback, a small advance or revenue based deal is workable, but borrow the minimum and plan to refinance it as soon as a line opens.

## Related
- [Equipment financing](https://businessloanbroker.ai/business-loans/equipment-financing/)
- [Business credit cards](https://businessloanbroker.ai/business-loans/business-credit-cards/)
- [Invoice factoring](https://businessloanbroker.ai/business-loans/invoice-factoring/)
- [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-under-one-year
MCP server for AI agents: https://mcp.businessloanbroker.ai/mcp (docs: https://businessloanbroker.ai/agents/mcp/)