The Ultimate Guide to Get a Startup Business Loan With No Money!

The Ultimate Guide to Get a Startup Business Loan With No Money!

The Ultimate Guide to Get a Startup Business Loan With No Money

Imagine this – you always had this amazing startup idea but you need a startup business loan with no money as you’re starting fresh. And now, you finally have the chance to make it come true. You know what you want to do and with that idea, you grab all your documents and reach the bank to secure a loan. 

And this is when the reality hits you – getting funding is difficult. Or to be a bit honest, it’s brutal. 

You have no idea which loan is the best. And even if you do find an option, the bank asks you for collateral. But where to get that? The whole process gets frustrating every time you visit the bank. The stress is so much that you even think of dropping the idea. 

If this sounds like you, then stop. Your startup deserves to see success and we are here to make that happen with the ultimate guide on getting a startup business loan with no money. 

Yes, you read it right! You can get a loan for your startup, even when you are starting from scratch. Let’s begin!

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Is It Possible To Get A Business Loan With No Money?

If you have any doubt about the claim, we would like to confirm it again. Yes, getting a startup business loan with no money is possible. There is not just one but several ways through which you can get a sizeable loan. All you need to know is which loan type suits you and your business. 

In this blog, we have discussed five options for getting money when you don’t have collateral. We have also answered some commonly asked questions about startup loans. Let’s begin!

5 Loan Options When You Have No Collateral

Startups need cash at different stages of operation. You might need a loan even before launching a product. Or you might need a little extra cash to hire more people and scale the business once your product is launched. 

That’s why BitX Capital offers different startup business loans with no money options to startups. The loan amount starts from a few thousand dollars and can go up to hundreds of thousands of dollars. 

To understand the loan options better, we are taking the example of Joe – a budding entrepreneur with a business idea and the will to work hard. 

Joe has partnered with an engineer to design a new coffee-making machine. The machine can quickly brew the most tempting coffee in the world. Joe is sure that coffee lovers will pay anything for his machine. But he needs a loan to start the business. 

Let’s see what loan options Joe has:

Personal Term Loans

Personal Term Loans-startup business loans

Joe has been using credit cards for the past nine years. He has always paid his credit bills on time and his FICO® score is 750. Thanks to his great credit score, lenders are ready to give him something called a personal term loan. 

A personal term loan is a loan in which the lenders give you the whole amount at the start and you repay it in small installments. As its name suggests, the loan is given to you instead of your company. 

You can take an unsecured personal term loan as a way to get a startup business loan with no m money or revenue. Which means that you don’t need to offer collateral for the loan.

Eligibility Criteria

When giving a personal term loan, lenders give the loan to you, not your business. So, the eligibility criteria must be fulfilled by you, not your business. To get a personal term loan, you must have a credit score of 700 > or higher. Joe is in luck here, as his credit score is 750.

If you’ve got a personal income of $50k or higher, your chances of getting a personal term loan increase dramatically.

Benefits of Personal Term Loans

Lenders need assurance that a business will repay the loan. They get that reassurance from a good credit history. Like Joe’s startup, most startups don’t have a credit history because they have just launched.

If you can’t show the credit history of your business, you can show your personal credit history. So, a personal term loan’s biggest benefit is that you can get it by showing your credit score instead of your business’ credit score. 

If you meet the eligibility criteria, BitX Capital can help you secure a $25,000 – $500,000 personal term loan.

Credit Card Stacking

Credit Card Stacking-startup business loans

A personal term loan sounds good, but Joe isn’t sure if he wants to take the loan. He wants an option that gives him more flexibility in terms of loan tenure and interest rate. 

Luckily, there is an option that fits these two needs – credit card stacking.

The name credit card stacking pretty much reveals what it is. It means using multiple zero percent business credit cards to finance your startup. Since careless use of multiple credit cards has a bad reputation, this method is also called “FICO lending” or “unsecured business credit line.” This is a great way to get a startup business loan with no money or revenue. 

The trick here is to not apply for multiple credit cards by yourself. Instead, you let BitX Capital shop for cards with soft pulls and stack the cards all at once for maximum approvals and liquidity. Going through a BitX increases your chances of getting more credit cards with higher limits.

Eligibility Criteria

You need a good personal credit score of 700>, consistent personal income, and good business credit history to get zero percent introductory business credit cards. 

A good personal credit history is enough to get you a few credit cards, but the more you can reassure banks that you can repay loans, the higher your chances of getting a high credit limit with multiple cards.

Benefits of Credit Card Stacking

As we mentioned above, lenders want to see the proven track record or credit history of a business before they give out a loan. Startups often have nothing but innovative ideas to show. 

Credit card stacking acts as an unsecured line of credit in such cases. 

Another benefit of credit card stacking is that it isn’t an actual loan. If your business requires money, you can use credit cards as a line of credit, take the money out, and put it back to avoid interest, which makes them very versatile. If you don’t use the cards, the credit card won’t accrue interest like a traditional term loan.

To know more, you can come to BitX Capital instead of going directly to the banks. Banks can hurt your credit score by pulling your credit to issue a credit card. We do something called a soft credit inquiry that doesn’t hurt your credit score.

SBA 7a Loan

SBA 7a Loan-startup business loan

To understand this type of loan, let’s go back to Joe’s story. Assume that Joe applied for multiple credit cards through BitX Capital. He got a $210,000 credit limit with five credit cards. He successfully launched his company Bean Press, investing some personal money and using credit cards. 

It’s been two years since the launch. Joe has sold about 5,000 coffee machines and is getting more orders than he can deliver. He needs more cash to scale. If his calculations are right, he requires a loan of one million dollars!

In this case, personal term loans and credit card stacking aren’t the best options. What caters to Joe’s needs is an SBA 7a loan.

The Small Business Administration (SBA) of the US govt backs SBA 7a loans. The chances of getting SBA 7a loans are lower than other loans because of high competition. But it is worth applying as their interest rates are quite low. 

The maximum loan amount for a 7a loan is $5 million, but that will require collateral. If you don’t have any collateral, you can get a loan of any amount under $25,000.

Eligibility Criteria

To apply for an SBA 7a loan, you need to have the following

  1. FICO score of more than 675
  2. 2+ years in business
  3. At least 250k in annual revenue (not in profits)
  4. Proof that you’ve applied for other loans
  5. A reasonable amount of equity in the business

It is best to apply for an SBA 7a through a small business loan marketplace because the competition is high. Marketplaces often have years of experience in applying for loans for small businesses.

Benefits of SBA 7a Loan

The biggest benefit of SBA 7a loans is their low interest rates. Interest rates for such loans start typically start from 6.75%. 

Another benefit of SBA 7a loans is their long tenure, which can last anywhere from 10 to 20 years. 

BitX Capital has relationships with multiple loan lenders that offer SBA 7a Loans. We can save you time, effort, and money if you apply for SBA 7a loans through us.

Invoice Financing

Invoice Financing-startup business loan

Who knew Joe could get a million-dollar SBA 7a loan easily?  He’s now in the third year of his startup and gets “Thank You” emails from his customers every day. 

His company is growing at a fast pace. So much so that he’s getting bulk orders of thousands of machines. But how can Joe fulfill those orders without a running capital?

The solution is invoice financing.

Invoice financing is the best method to get a loan if your startup is making sales but still needs some cash flow. With invoice financing, you can access capital by borrowing a portion of your business’s unpaid invoices and this is a great way to get access to a startup business loan with no money.

Eligibility Criteria

Your business must have the following to qualify for invoice financing:

  1. Startups welcome 
  2. Good credit rating (600+ Credit Score)
  3. $25K > a month in invoices to finance 

Benefits of Invoice Financing

If you need to buy inventory for your business or pay the employees but don’t have enough cash flow, invoice financing is the fastest method to get your hands on cash. If you apply for invoice financing through BitX Capital, we can help you get the loan within 1 day!

Another benefit is the boost in credit lines as your business’ turnover increases. The credit baseline starts from around $25K> in monthly invoices. 

Equipment Financing

Equipment Financing-startup business loan with no money

Joe needs more and more equipment as his company keeps scaling. Now he needs to buy big pieces of equipment to build more machines. 

At this stage, Joe can easily get access to more capital through invoice financing. But he can also use the equipment-to-be-bought as collateral to take a loan. This type of loan is called equipment financing. 

Lenders require a lien on the equipment you buy to ensure that the loan is paid off on time. And you own the equipment as soon as the loan is fully paid off.

Eligibility Criteria

Your business must have the following to qualify for invoice financing:

  1. Startups and Existing Businesses
  2. Good credit rating (600+ Credit Score)
  3. 10% to 20% down payment

Benefits of Equipment Financing

Just like invoice financing, the biggest benefit of equipment financing is how quickly you can get the loan. In this case, you can have access to capital as quickly as within 2 days of applying for equipment financing. Equipment financing is a great way of starting a startup business loan with no money or revenue. 

Another benefit is the high loan amount. You can get a loan of up to 100% of the equipment value.

BitX Capital’s Equipment Financing Loans specialist can match you up to the appropriate loan if you apply for the loan through us.

How to Know Which Option Is Best For You

Joe’s startup story might have helped you know which loan option is best for you. If not, answer these questions:

  • How much money does my business really need?
  • What is the tenure for which I want the money?
  • Is there any chance that I might not repay the loan?

Each answer should help you narrow down the options. For example, if you want a loan for a long term, credit card stacking can’t be the right choice for you. Or, if there are any changes that you might not repay the loan, you shouldn’t take a personal term loan.

Here at BitX Capital, we have an experienced team of loan specialists who can help startup founders make loan decisions in minutes.

How To Prepare For The Loan?

How To Prepare For The Loan

Preparation before submitting a loan application is crucial because it increases your chances of getting approval. You can prepare for a loan by following these steps:

Check the Credit Score

Lenders take your or your business’ credit score into account no matter what type of loan you’ve applied for. So, check your credit score before you apply for a small business loan. And if your credit score is less than 600, you should wait for the credit score to go up.

Determine the Funding

Determine the minimum amount of money you need for a loan. Setting a bar helps in making decisions quickly. For example, if you require a minimum of $50K cash, but your credit card limit adds only up to $30K, you’ll know that you have to apply for other types of loans. 

Get the Documents and Papers

Based on the type of business loan you’ve applied for, you might need the following documents:

  • Business income tax returns
  • Bank statements
  • Business registration
  • Business licenses
  • Updated business plan
  • Financial statements
  • Loan purpose and use
  • Budget and future cash flow estimate

Challenges You Might Face While Applying For Startup Business Loans

Challenges You Might Face While Applying for Startup Business Loans

Yes, there are many loan options for startups and small businesses. However you might still face many challenges during the loan application process. 

Here is a small list of challenges business owners face while applying for startup business loans:

  • Lengthy procedure
  • Flaws in business plan
  • A short record of credit history requirements
  • Lesser loan amount 
  • Higher interest rate

What If It Doesn’t Work Out? Alternatives to Look For

What If It Doesn’t Work Out? Alternatives to Look For

There are some chances that your loan application may not get approved. In that case, you can look for the following alternatives:

Small Business Grants

SBA offers small business grants to a limited number of eligible startups. If your startup is actively involved in research and development, you might get a special federal grant. Or if you are a service-disabled veteran, you may qualify for grants that are given to community organizations.


The internet has democratized not only entrepreneurship but also investing. Instead of going to traditional banks, startups can now get money directly from retail investors. If your startup pitch is compelling enough, you can either get investment money or get pre-orders in bulk for a product through any popular crowdfunding platform.

Angel Investors

Many entrepreneurs don’t want institutes to invest in their startups because they fear diluting too much equity and losing control over their startups. If this is the reason you are not accepting institutional VC money, you can go to angel investors. 

Angel investors are high-net-worth individuals who can invest a sizable sum for a small stake in your business. 

Personal Savings

If you are sure that you will get a return on your investment, you can take money out of your savings account or 401(k) account. But we advise you to do this only when there is no other option and you have an emergency fund left in your account even after taking out money.

The Bottom Line

Have you finished reading? We’re certain that you’re eager to expand your business. If you’re still feeling uncertain and lost, don’t worry – we have your back.

BitX Capital’s primary goal is to assist entrepreneurs, such as yourself, in obtaining the best financing solutions. Schedule a call with us, and watch all of your financial worries disappear. Our team of startup advisors will not only help you discover the ideal loan option, but they’ll also ensure that you receive the loan promptly.

With years of experience and consistent training, BitX Capital possesses the expertise to become a leading authority in startup loans, even for those without initial capital.

Trusted by numerous satisfied customers on Trustpilot and BBB, our exceptional service has earned us a reputation for reliability and excellence.

Is it too good to be true? That’s our unique selling proposition! We make finance simple and fast for anyone, and now it’s your turn. Let’s have a chat, at 203-763-1430.


What happens if you don’t repay your small business loan?

If you don’t repay an unsecured small business loan, your credit score will take a hit. If the loan is secured, the lender can sell the whole or a part of the collateral. You get the same results if you’ve taken a personal term loan for your business.

What is the minimum requirement of revenue for a business loan?

Short-term business loans require your business to have a minimum monthly revenue of about $8K. If the yearly is around $130k, you can also get long-term business loans.

What is the loan term for pre-revenue business loans?

You can get a personal term loan if your business is at the pre-revenue stage. The loan term for such loans is around 1 to 7 years.

Who is eligible for a startup loan?

The eligibility criteria change according to what type of startup loan you want. Anyone with a good personal credit score is eligible for multiple credit cards. These cards can be stacked and used as short-term loans. To get more details, connect with our experts at BitX Capital.