Financing Options for Pre-Revenue Startups

Administered by the Small Business Administration, this program provides loans of up to $50,000 through intermediary nonprofit community-based organizations. It is ideal for startups needing small amounts of capital to purchase inventory, supplies, or equipment.

Kiva offers zero-interest microloans up to $15,000 to under-served entrepreneurs. While not a traditional bank, it provides accessible capital for startups with no revenue, relying on community funding and social impact assessments.

Wellfound connects startups with investor networks and offers specific financing products tailored for tech startups. They assess growth potential and founder background rather than current revenue, making it suitable for early-stage ventures.

OnDeck offers unsecured business loans and lines of credit, often approving applicants with minimal credit history or short operating lifespans. They use technology to quickly assess cash flow and digital footprint instead of traditional collateral.

Fundbox provides lines of credit that can be used for various business expenses. They analyze real-time bank data and accounting software integrations to determine creditworthiness, bypassing the need for historical tax returns or revenue.

BlueVine offers fast approvals for business lines of credit up to $250,000. They prioritize recent bank statements and invoicing activity over long-term profitability, making them a viable option for bootstrapped startups.

Novatio Capital specializes in revenue-based financing and merchant cash advances for startups with minimal credit history. They focus on the business model and future potential, providing capital in exchange for a percentage of daily sales.

CDFIs are locally-based, non-profit financial institutions that provide responsible lending to underserved markets. They often offer flexible terms and mentorship to startups that traditional banks might reject due to lack of revenue.

Now part of LendClub, StreetShares focuses on small business lending and has specific products for veterans and small enterprises. They evaluate online reputation and financial stability through alternative data points beyond standard revenue.

Kabbage, acquired by American Express, provides lines of credit based on a business's online metrics. They integrate with accounting and e-commerce platforms to assess health in real-time, requiring minimal documentation for early-stage founders.

While primarily a payment processor, Payoneer offers working capital advances to sellers and freelancers based on transaction history. This serves as a vital liquidity source for service-based startups with no traditional business revenue.

SBDCs provide free consulting and can connect startups with local lenders willing to take a chance on new businesses. They help prepare business plans that convince local banks to consider character and capacity over collateral.

Charger Financial offers merchant cash advances to businesses with less than two years in operation. They rely on daily bank deposits and transaction volume to determine funding limits, bypassing traditional revenue requirements.

Ramp offers a business credit card with no annual fee and significant limits based on cash flow projections and personal credit. It provides immediate access to capital for operational expenses without requiring business revenue.

Brex provides corporate credit cards and cash management accounts tailored for startups. They extend credit based on raised venture capital and company valuation rather than traditional revenue or personal guarantees for qualified tech startups.

Dividend Capital offers revenue-based financing for SaaS and e-commerce businesses. They assess recurring revenue streams and growth trajectory, providing capital that scales with the business without fixed monthly payments or equity dilution.

Lendio is a marketplace that connects borrowers with multiple lenders. It is valuable for startups with no revenue as it compares dozens of options, including government loans and alternative lenders, increasing the chance of approval.

This entity, backed by the Treasury Department, provides grants and low-interest loans to small businesses affected by economic disruptions. Eligibility often extends to startups with limited operational history if they meet specific criteria.

Credit unions are member-owned and often more flexible than commercial banks. Many have specific startup programs or community lending initiatives that prioritize local economic impact over strict revenue thresholds.

Platforms like Funding Circle connect small businesses with individual investors. They assess the business plan and founder experience, offering loans to startups that may not yet have revenue but show strong potential for growth.