Where can I get a startup business loan?

In March 2025, 452,255 new business applications were submitted, up 6.4% from the previous month, according to US Census Bureau’s business organization data. Starting up is exciting, but securing funding for startups is also extremely challenging.

One reason is that many traditional lenders, such as banks and credit unions, may not want to work with the company if they have no track record of business success. Luckily there are other options, such as online lenders, personal loans, crowdfunding, and venture capital, to ensure that your startups have the right funding success.

Startup Business Loan Online Lender

Online lenders are ideal for startup businesses as these lenders tend to provide generous eligibility guidelines. In other words, they are more likely to embrace startups than traditional banks and credit unions. They also tend to provide rapid funding. Some online lenders will decide on your loan within one day. If approved, you will receive your money in one or two days.

However, in exchange for quick access to fundraising, prepare to deal with potentially higher interest rates, such as over 30%, or shorter repayment windows, such as under 24 months. Online lenders to consider:

Applications for a startup loan for small businesses is fairly simple and involves submitting your application online. Some online lenders will decide on your loan within one day. If approved, you will receive your money in one or two days. However, in exchange for quick access to fundraising, prepare to deal with potentially high interest rates or shorter repayment windows, such as 24 months or less.

Strong Points

• Easier to qualify than some other business loans
• Provides quick access to cash
• It’s easy to apply and manage these loans online

Cons

• Interest rates may be higher than bank loans
• A short repayment period can mean a high payment
• You cannot discuss loan options directly at a physical branch

SBA Startup Business Loan

Small Business Administration (SBA) supports small business loans known as SBA loans, helping businesses cover large purchases and expand their operations. The loan is distributed by traditional and online lenders approved by the SBA. These loans can take 30-90 days to approve, but if you can wait, you can ensure competitive interest rates and long repayment terms. The SBA allows the cap lender to charge interest rates, effectively lowering the cost of business loans.

However, qualifying as an SBA loan startup can be challenging, as lenders often need to spend the minimum time in their business. Consider using multiple SBA lenders to see if you can obtain approvals such as:

If you are unable to qualify with a standard SBA lender, consider the SBA Microloan program. The SBA Microloan Program offers small businesses up to $50,000 to get off the ground. SBA Microlenders tend to be nonprofits that accept high-credit risk startups and business owners.

Strong Points

• Lower, upper limit interest rate
• Fees are less than other loan types
• Microloans help young businesses to launch and expand

Cons

• Many lenders need at least two years of business history
• It can take up to 90 days to receive the funds
• Some SBA loans require a down payment

Startup crowdfunding

If you are not eligible for traditional funding, you can try crowdfunding. Start by signing up for crowdfunding sites such as Kickstarter and Indiegogo. Next, set up a fundraiser campaign. This should include the amount of your target dollar and the deadline for your donation.

It is also common to encourage supporters for financial support. This is a specific reward for stocks (a small interest in the company) and products sold or stolen items.

Alternatively, you can run a debt-based crowdfunding campaign. This campaign essentially gets startup business loans from individual investors. Microrender Kiva can use this approach to get zero-in test loans up to $15,000, as long as there is a strong personal network to achieve funding.

Strong Points

• No need to pay back your money through stock, donation or reward-based crowdfunding
• Provides the opportunity to create early customers and fans for your brand
• No credit checks or collateral required
• Open to all businesses, including startups

Cons

• Some crowdfunding websites charge high fees
• To raise fully funds, you need a strong network and community
• This way you can put a lot of time and effort into raising funds.

Personal loans to start a business

If you have strong personal credit, you can use it to your advantage, take personal loans and fund your business. Financial factors, including your income and debt-to-revenue ratio, will affect your lender’s decisions.

Typically, you need at least a fair personal credit score (over 580) to get a personal loan compared to a personal loan. Personal loans may also offer low loan amounts, such as under $100,000, and may offer limited repayment terms between two and seven years.

One important note: Some lenders are unable to use personal loans to start business or other commercial purposes. Check the fine prints in the terms of your loan to see if there are rules to use for your business. If you have any questions or doubts, ask the lender directly.

Some of the personal loan lenders to consider include:

Strong Points

• No business history required
• Many lenders make it quick and easy to apply online
• Money can be deposited in your bank account within a few days

Cons

• Small loan amount
• If you have bad credit, interest rates may be high
• If you are unable to repay your personal loan, you may face legal action and be personally liable.

Venture Capital

Several startups with potential for growth can turn to venture capital companies, develop products, and get the money to get the money to get off the ground. Investors usually provide funds in exchange for ownership of the business. These investors may have some control over business management or provide mentorship to help your business succeed. VCs usually close within a few years.

With investments surged, VCS is usually looking for groundbreaking ideas and businesses that are likely to be in a high-value market. You need to network with VCS and provide a strong resume and business plan to qualify for fundraising.

Strong Points

• Funding to help you develop your product and get off the ground
• VCs are usually veteran experts who provide expertise to help your business grow
• This funding is specifically designed for startups

Cons

• Investors will take ownership of some of your business.
• Investors usually want high returns to offset the high risk of their investment
• Investors are not long-term business partners

How to get a lender for a startup business

To get a startup business loan, you need to do research and evaluate multiple lenders to see which lenders work with you. The process of getting a startup business line includes:

1. Decide what money you need. There is a limit to the amounts that each lender can borrow, so choose one that provides enough capital to cover the costs. Next, use a business loan calculator to estimate monthly payments and determine if they fit your budget. Also, if you need money right away, look for a loan that can be funded in days rather than weeks or months.
2. Make sure you meet the minimum lender requirements. It is common for lenders to set eligibility criteria during their time of business, credit history and revenue. You may be able to find lender requirements online, especially if you are applying with an online lender.
3. Think of the trade-offs you are willing to do. Business loans for startups can be difficult to find, so you may need to be creative when evaluating your loan options. For example, if you’re used to putting your credit on the line, your personal loan may work. Or, if you are willing to exchange capital and rewards for funding, crowdfunding could be a good option.
4. Compare options. Before deciding on that, create a professional scam list of interest rates, repayment periods and fees for each startup. If possible, qualify with your lender in advance to check the terms and prices of loans offered without a hard credit check. If you can’t prequalify, apply multiple lenders and compare loan offers to find out which features and interest rates you’re looking for.

Can I get a startup business loan without money?

It is possible to find a startup business loan without spending money on hand, but it is rare. If you can provide collateral to support the loan, you are more likely to get a business loan without money.

Additionally, if you get a specific type of loan backed by your assets, there is a higher chance of approval. For example, equipment loans are protected by the equipment being purchased, and invoice funding is protected by unpaid invoices. Merchant Cash Advances also provides funding based on past sales and is repaid at a percentage of future sales. These types of loans tend to provide generous eligibility requirements for these types of loans.

Conclusion

Getting approval for a startup business loan may be more difficult than a more established business, but that’s not impossible. You can achieve some degree of success by exploring non-traditional options such as online lenders and crowdfunding, or considering startup-friendly programs such as SBA microloans.

Once you have decided on the type of loan, you can take the next step to get a startup business loan. Check to see if you meet the lender’s minimum requirements for eligibility and collect and apply the loan document.

Frequently Asked Questions about where to get a startup business loan