Funding guide
Startup Business Loans: Funding Options for New Businesses
Startup business loans are harder to get because most lenders want at least 6–24 months of history, but new businesses do have options: SBA microloans, equipment financing with a down payment, business credit cards, and — once you have a few months of deposits — revenue-based products like merchant cash advances.
Last updated October 23, 2026
What is a startup business loan?
Without revenue history, lenders rely on your personal credit, industry experience, business plan and collateral.
As soon as you have 3+ months of consistent bank deposits, more options open up.
- Amount
- $5k – $250k
- Term
- 6 months – 7 years
- Cost
- Varies widely
- Speed
- 1 day – 8 weeks
- Credit
- 650+ preferred
Source: industry estimates compiled by BusinessFundingQuote.com; actual terms are set by each provider.
Requirements
- Strong personal credit (650+ ideal)
- Business plan and projections
- Down payment or collateral
- Industry experience
Pros and cons
Pros
- Gets you started
- Builds business credit history
Cons
- Limited options
- Personal guarantee almost always required
- Smaller amounts
Who it's best for
- Owners with strong personal credit
- Equipment-heavy startups
- Franchise buyers
Startup Business Loans vs alternatives
| Option | Amount | Term | Typical cost | Speed | Credit |
|---|---|---|---|---|---|
| Startup Business Loans | $5k – $250k | 6 months – 7 years | Varies widely | 1 day – 8 weeks | 650+ preferred |
| Equipment Financing | $5k – $5M | 2 – 7 years | 6% – 30% APR | 1 – 10 days | 600+ |
| SBA Loans | $50k – $5M | 10 – 25 years | Prime + spread (capped) | 30 – 90 days | 680+ |
| Business Line of Credit | $10k – $500k | Revolving; draws 6–24 mo | 10% – 60% APR | 1 – 7 days | 600 – 680+ |
| Merchant Cash Advance | $5k – $500k+ | 3 – 18 months | 1.10 – 1.50 factor | 24 – 72 hours | 500+ often accepted |
Frequently asked questions
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Written by
BusinessFundingQuote Editorial Team
Small business finance writers
Reviewed by
Funding Review Desk
Reviewed for accuracy against current market practices
Rates and ranges on this page are typical market estimates for educational purposes, not offers. How we make money.