Compare The Lowest SMALL BUSINESS STARTUP LOAN Rates Anywhere

What is SMALL BUSINESS STARTUP LOAN?

A small business startup loan is any kind of financing aimed specifically towards startups with little to no business history. Learn more about the 3 different kinds below.

What Do I Need to Qualify?

  • 700+ Credit Score

  • Depends On Lender

Disclaimer: These are general qualifications. Other information might be considered during your application.

HOW DO I APPLY?

You can apply for startup funding at a bank or through online lenders, but you’re more likely to qualify at an online lender as a startup. Apply for multiple options below.

Loans for Business Startups at a Glance

If you're looking for loans for a business startups, we've got three small business startup loan options to help get you the cash needed. These three loan products are a credit line builder startup loan, equipment financing, and business credit cards.

 

These are all great options if you have good personal credit and are looking to build business credit at the same time. 

If your personal credit isn't so good, some other options include private investors, crowdfunding websites, and of course family and friends. Each have pros and cons so make sure to explore each possibility. 

maximum loan amount

$150,000

Loan Term

6 months to 4 years

interest rates

0% - 19.9%

speed

As little as 2 weeks

Pros and Cons of a Startup Business Loan 

Good for young businesses with limited financial history

Interest-free for first 9 to 15 months

No prepayment penalty

Only a credit report needed for

pre-approval

Can take 30 to 45 days to complete financing process

Functions as a high-limit credit card, not as cash

Exceptional credit required

Want to know which Small Business

Startup Loan is right for you?

Who Qualifies for Small Business

Startup Loans?

Although most small business owners think its almost impossible to get approved for loans for business startups, there are actually great options available to young new businesses without revenue to show yet. 

The most important factor to determine your eligibility for startup business funding is your personal credit score. 

The higher your credit score, the better your chances of qualifying for a loan. 

Most Customers who qualified had 

Annual Revenue
Over $75,000
Time in Business
0 Years is Ok
Credit Score
700

What documents will I need to apply? 

  • Driver's License

  • Credit Score

  • Bank Account Number

  • Business Plan

  • Equipment Quote

Find out which Small Business Startup Loans you Qualify for?

How Do Small Business Startup Loans Work? 

Like most small business owners, your probably feeling a little lost when it comes to startup funding options. 

Startup business funding can be very confusing, especially for new business owners just starting out on your own. 

But rest easy, LendingMatchup's loan market place gives you access to 3 different loan options for startup business loans to choose from. 

 

Lets take a look at each option and find out what's best fit for your business startup. 

1. Startup Business Lines of Credit 

 

This is one of the less traditional startup loan products available on our marketplace, but it’s especially useful for new business owners who are careful with their spending.

This is one of the less known loans for business startups available on our marketplace, but one of the best options for startup business owners who are careful with their finances. 

With a Startup Business Lines of Credit, you'll be working with a startup financing company that specializes in helping your business get approved for multiple high limit 0% APR business credit cards for your business. 

Here’s the general idea:

Your total approved funding amount will be the combined maximum amount of all the business credit cards you qualify for. 

 

By leveraging your good personal credit, the financing company will get you approved for 4-5 high limit business credit cards that come with 0% interest promo periods and don't report to your personal credit profile. 

By knowing exactly which lenders offer high limits at 0% APR, the startup financing company may get you approved for as much as $150,000 or more at 0% interest for 12-21 months. 

One major benefit of this type of financing is that you can leverage your good personal credit to get approved for the lines of credit, but they don't actually show up on your personal credit profile.  

It's also possible to borrow cash for less than 3% by getting approved for the right combination of business credit cards that offer 0% promo offers and no cash advance fee. 

While it may seem easy to just apply for your own credit cards, this type of funding is actually very complex and takes an expert to know exactly the right combination of cards to apply for. 

A Few Things to Keep In Mind

Just like personal credit cards help build personal credit, business credit cards help build business credit.

By using your business credit cards responsibly, you'll be able to greatly increase your chances of being approved other types of financing like SBA loans in the future. 

Even if you just started a business and have stated income only (can't show proof of income), as long as you have good personal credit with scores of 680 or above it's still possible to qualify for this type of financing. 

2. Startup Equipment Financing

 

Another good option for a small business startup loan is equipment financing. 

This is a business loan that leverages the equipment your purchasing for your business as collateral.

This allows the lender to invest in a slightly riskier untested business model while still being able to charge a lower interest rate. 

Additionally, As the piece of equipment helps generate new revenue for your business, you'll be able to pay off the cost of the equipment as your utilizing it. 

Applying for Startup Equipment Financing

For this business financing option you'll also need very good credit with scores of 680 or higher. 

To start the submission process for equipment financing, usually you need a vendor quote for the equipment you plan to purchase, a statement of how you plan to utilize the new equipment, and a credit report showing good personal credit. 

Another benefit is that as the equipment you purchased depreciates, you can write it off on your taxes for several years. 

3. Business Credit Cards

Much like a personal credit card, business credit cards allow you to access revolving lines of credit that you can draw from as much as your business needs without the hassle of reapplying each time you need more capital. 

You'll be given an interest rate which can fluctuate or be fixed depending on the card you get approved for, a maximum amount your able to spend, and possibly benefits like 0% APR, free airline miles, or cash back. 

Why Use a Business Credit Card?

If you have great personal credit with scores of 700+ business credit cards can be a great option for your business.

 

Business credit cards can be one of the least expensive ways to borrow money for your business and comes with plenty of advantages for small business startups and existing owners. 

One major benefit is the ability to separate your business finances from your personal which will allow you to start building credit under your business. 

Unlike personal credit cards which affect your credit each time you use them, with the right business credit cards, you can use a large portion of your total credit limit and not affect your personal credit. 

Also with the help of a startup financing company like the ones listed above you can get approved for the right combination of cards which will allow you to borrow cash for your business at 0%-3% which is almost unheard of in the business funding world. 

 

Even though business credit cards can be a great option for a startup business loan, make sure to spend wisely without missing payments.

As long as you control your spending habits and treat your business credit cards with care, you'll be well on your way to getting approved for different types of business financing like SBA loans in the future. 

Want to know what type of Startup

Business Loans you Qualify for?

What Will Loans for Business Startups

Cost You?

1. Startup Business Lines of Credit  

The costs for the startup business financing company are similar to those for business credit cards, with one big difference.

Being Extra Careful With Multiple Credit Cards

Since you’re getting multiple business credit cards at once, you’ll need to be extra cautious when it comes to credit limits and repayments.

One late payment with a business credit card could lower your credit score a bit, but habitually making late payments across several cards will have a much harsher effect.

Build Your Business Credit

If you keep your spending in check and make your payments on time, though, you’ll benefit from the fast credit building and access to capital that the credit line builder provides.

You’ll also have to pay the financing company a one-time origination fee calculated as a percentage of your approved amount, in return for the business credit card applications they strategically filed for you.

2. Startup Equipment Financing

The interest rates for equipment financing fluctuate, but an average rate for startup equipment financing is about 20%.

Though a bit costly, this financing option will still help you offset some of those initial startup costs.

An Example of Startup Equipment Financing

If the equipment you’d like to purchase costs $20,000 and you’re getting 100% of that equipment financed—at 20% interest—you’ll be paying back a total of $24,000.

And loan terms are usually based on the expected life of that collateral equipment.

Assuming the startup loan term is 5 years, you’ll be making monthly payments of $400…

Not too bad for a vital piece of equipment for your startup business.

3. Business Credit Cards

APRs for business credit cards generally fall between 13 - 20%, although you should also keep an eye out for foreign transaction fees, late fees, balance transfer fees, and annual fees you’ll pay to renew the card each year.

No-Interest Loans with Business Credit Cards

Many business credit cards come with 0% introductory APRs for 9 months or a year, however, essentially letting you take out interest-free loans.

You can and should take advantage of this to make smart purchases for your business, but take care not to lose track of when that grace period ends or you’ll pay the price.

Watch for Changing Interest Rates & Due Dates

Also, you’ll want to keep an eye on your business credit card’s interest rate, as it might be subject to change.

You’ll generally be given a warning if it fluctuates, but in the end it’s on you to monitor.

Most importantly, as with any small business loan, don’t delay on your credit card payments unless it’s unavoidable.

 

 LenCred
PERFECT 9.6/10

Pre-Qualify with No Affect to Credit Score

401 reviews by trustpilot

LOAN AMOUNT: $5,000 - $250,000

INTEREST RATE: 0% for 9 to 15 months

REPAYMENT TERM: MONTHLY

NO UPFRONT FEES

9% ORIGINATION FEE ONLY

  • STARTUPS OK

  • INCOME NOT VERIFIED

  • 680+ CREDIT ONLY

 Fundwise Capital
Excellent 8/10

Pre-Qualify with No Affect to Credit Score

144 reviews on Trustpilot 
  • STARTUPS OK

  • INCOME NOT VERIFIED

  • 680+ CREDIT ONLY

LOAN AMOUNT: $5,000 - $300,000

INTEREST RATE: 0% for 9 to 15 months

REPAYMENT TERM: MONTHLY

$495 UPFRONT FEE (REFUNDED IF NOT FUNDED)

9% BACKEND FEE 

Pre-Qualify with No Affect to Credit Score

Excellent 8.5/10
16 reviews on Trustpilot

 Fast Unsecured
  • STARTUPS OK

  • INCOME NOT VERIFIED

  • 680+ CREDIT ONLY

LOAN AMOUNT: $5,000 - $300,000

INTEREST RATE: 0% to 15.25%

REPAYMENT TERM: MONTHLY

NO UPFRONT FEE

15% BACKEND FEE

READY? Its Free - Prequalify without affecting your credit score 

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