Find a startup business loan with no revenue by looking in the right places and offering collateral along with compelling forecasting to placate investor woes. As your new business, you don’t have the advantage of a long revenue history, but you can find a way forward when it comes to financial growth and lending opportunities.
For startups, there are many options to get the funds you need to build your business. This article discusses the best places to obtain financing and gives tips on how you can apply.
Many small business loans require that a business has been operating for one to two years. However, it’s best to shop around and see the exact terms banks and lenders can offer if your startup has no money yet. Here are the best places to apply:
The application process for startup loans is one of creativity and alternative options. Unlike loans that come after years of developing steady revenue, startups walk an uncertain path. As such, you’ll want to show lenders your capabilities to increase their investment and provide them with high returns.
Here are a few important ways to increase your likelihood of receiving a loan:
A similar option to a loan is a business line of credit with no revenue. This is essentially putting startup costs on a credit card in order to hedge the bet that increased profits will come soon. These lines of credit are a great option because you only pay interest on the amount you take out.