Start Up Business Loans

Get your new business up and running with our options for start up business loans.

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Overview of Start Up Business Loans

It can be difficult to get a start up business loan because a new business doesn’t have a track record. When launching a start up, it’s typically cheapest to rely on personal assets. However, if you’d prefer a business loan, there are options we can help you with to get the capital you need to grow.

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Small Business Financing

How Start Up Business Loans Work

checkboxUsing Personal Assets To Fund a Start Up

We recommend that you first consider personal assets to finance your startup. This is usually cheaper than getting a business loan.

A popular way to use personal assets is with a Rollover for Business Startups (ROBS). A ROBS allows entrepreneurs to invest their retirement money into their business without having to pay any income taxes or early withdrawal penalties. If you have over $50k in retirement accounts, speak to a ROBS professional at Guidant Financial.

Other popular ways to use personal assets is with a home equity loan or a family and friend loan.

A lot of business owners hesitate to invest personal assets in a business, thinking that they will lose those assets if the business fails. However, even if you get a business loan, you will most likely have to provide a personal guarantee. In other words, whether you use personal funds or get a business loan, your personal assets are at stake. Therefore, it makes sense to first assess if you have any personal funds that you can use towards your startup.

checkboxStart Up Business Loans

If you have no personal assets to rely on, we can help you get a start up business loan. Here are some types of business loans we can arrange for your startup:

Personal Loans

Businesses that are pre-revenue (brand new or still in the idea stage) will usually have the best chances of getting a loan by seeking a personal loan. Qualifying for a personal loan typically means having a credit score above 660 (check your's here for free) and having an income. Personal loans will typically have a max size of $50k and an average APR of 14-20%. Online personal loan providers, like Lending Club, offer same-day approval and can have funds in your account quickly.

Small Business Credit Cards

Another good financing option for small businesses that are pre-revenue are small business credit cards. Not only do they give you a flexible line of credit, but many have low introductory rates and generous rewards programs. Qualifying for a good business credit card requires a credit score above 660 (check your's here for free). Find the card that's right for you here.

SBA Loans

SBA loans are typically given to existing businesses, but startups are eligible too. If you have an excellent credit score, a down payment of at least 20 %, and industry or business management experience, you may be able to get an SBA loan for your new business.

Line of Credit

Business owners with strong personal credit scores may be able to qualify for an unsecured line of credit of up to $150,000. Interest rates range from 8-24 %.

Non-Profit Microloans

Brand new startups can get microloans to get their businesses off the ground, and businesses that have been operating for a few months with revenue can get larger amounts of capital.

Invoice Factoring

Invoice factoring lets startups with unpaid invoices turn those invoices into capital. It’s a great way for new businesses to stabilize cash flow while waiting to get paid for goods and services. The amount you can borrow is limited by the value of your outstanding invoices.

Purchase Financing

We can help you buy equipment, inventory, or other essential goods and services for your startup. Purchase financing is available for startups that need to make a one-time purchase or need a continuous line of credit.

Merchant Cash Advances

With a merchant cash advance, startups can get money in exchange for a portion of their daily credit card sales. On days that your business does well, you pay more. On slow days, you pay less. There’s no deadline to pay back the loan. Many startup owners like the flexibility of a merchant cash advance, but they can be really expensive, so we’ll first consider you for lower cost options.

Will I Qualify for a Start Up Business Loan?

Requirements for start up business loans vary significantly, but you typically need a personal credit score of at least 600. SBA loans and non-profit loans may require a significant amount of paperwork. Other options, such as invoice factoring, require less paperwork. You can check your credit score for free by clicking here.

You will also need a good business plan to show lenders how you plan to manage and grow the business. Click here to learn more about how to write a business plan in just a few hours.

Cost of Start Up Business Loans

As with qualification requirements, the cost of a startup loan varies significantly based on the type of loan you get. We have options ranging from 6 % APR for applicants with great credit to much costlier merchant cash advances for applicants who don’t qualify for other types of financing.

Loan Details:


max-loan-amountMaximum Loan Amount
$150,000


loan-termTypical Loan Term
Varies


interest-ratesTypical Interest Rates
Starts at 8 %


speedSpeed
As fast as 1 business day



Down-PaymentDown Payment?
Typically not required.


CollateralCollateral
Typically not required.


Personal-GuaranteePersonal Guarantee?
Sometimes

Have a question?

Pros


small business loansMany different types of financing are available.

small business loans

Can get money quickly.

small business loans

Not a lot of paperwork required for most types of start up business loans.

Cons


small business loansInterest rates can be high on start up business loans, with the exception of SBA loans, which have rate caps.

small business loans

Typically, only small amounts of financing are available for startups.

small business loans

Must have a personal credit score over 500 and even higher to qualify for the best rates.

How to Apply

how-to-apply1Answer Simple Questions
thin-line
how-to-apply2Browse Your Loan Options
thin-line
how-to-apply3Get Funded in Record Time

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Additional Resources

Startup Business Loans: The 9 Best Options

How Can a Startup Get An SBA Loan?

Where to Get New Business Loans

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