A startup can potentially qualify for business financing without having a long operating history, but it may be more difficult than obtaining a loan for an established company. Without years of revenue and financial records, lenders have less historical information to use when assessing repayment risk.
A startup may need to demonstrate a strong business plan, realistic financial projections, sufficient cash flow, relevant industry experience, or other evidence that the business can support the debt. Depending on the lender, the owner’s personal credit and financial history may also play an important role.
Some financing options may be specifically designed for newer businesses, while others may require a minimum operating period or revenue level.
Before applying, determine exactly what the lender requires and avoid submitting applications to lenders whose basic criteria you clearly don’t meet. You can review our guide to business loan eligibility and consider whether the requested loan amount is realistic for your current stage of business.
