SBA loans & microloans
Education only.
Guide
Funding a new business: what is realistic in year one
A brand-new business has no deposits to underwrite, no receivables to finance, and usually no assets to secure. Most of the products on this site are not available yet, and the ones marketed to startups deserve a careful read. Here is what is realistic and when the doors open.
The two claims to be skeptical of
- "EIN-only, no personal guarantee." A new LLC has no credit history of its own. Almost every lender will underwrite and guarantee the owner. Products that genuinely skip the owner are typically vendor credit (net-30 accounts) or very small starter tradelines.
- "Startup loans with no credit check." With no revenue and no credit check there is nothing to underwrite. Offers like this are usually either expensive advances that will require deposits anyway, or fee-first schemes.
What is realistic, by stage
| Stage | Realistic options | Usually not yet |
|---|---|---|
| Pre-revenue | Personal savings; friends and family with a written agreement; SBA microloans and CDFIs (education); grants and competitions; starter business card; vendor net-30 accounts | Advances, lines, term loans |
| Early revenue (months, not years) | Equipment financing for a specific asset (often with a down payment); starter card; microloans; some platform-based advances for online sellers | Bank loans, most lines |
| Established revenue history | Revenue-based advances (compare total cost carefully); invoice financing if B2B; online lines | Bank term loans at the best pricing |
| Multi-year history with financials | Online and bank term loans; larger lines; SBA 7(a) through a participating lender (education) | — |
Building toward real financing
- Open a dedicated business bank account on day one and run everything through it. Underwriters read that account.
- Get an EIN, register the entity, and list the business with the major business credit bureaus.
- Open two or three vendor accounts that report, and pay early.
- Keep personal credit clean; it will be checked.
- Keep simple books. A profit-and-loss statement you can produce in a day is worth a point on the rate.
Using an advance as a startup
Some providers fund businesses with a few months of deposits. The cost is high and the payments start almost immediately. If you do it, fund only something that generates revenue quickly, and treat it as a one-time bridge. When not to take funding.
What Fast Mula is and isn't. Fast Mula helps you compare business-funding structures and submit one inquiry. Nothing on this site is an offer, approval, guaranteed rate, or guaranteed timeline. Any funding depends on a provider's own review, and terms vary by state.
Common questions
Can a new LLC get a business loan?
A new LLC with an owner who has good personal credit and some collateral or a down payment can often get equipment financing, a starter card, or a microloan. Unsecured working-capital loans generally wait for revenue history.
Are there grants for new businesses?
Some, mainly from local economic-development programs, foundations, and competitions. They are competitive and slow. SBA and state small-business offices list legitimate programs; be wary of paid "grant finders".
Related
Bad-credit business funding
When the owner’s score is the issue.
Business credit score
Building a business file.
EIN-only and identity verification
What is real, and why you are verified.
Gig workers & the self-employed
Making platform income legible.
See which options fit your numbers
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