How to Get a Business Loan with No Credit History

Trying to build a business with no credit history can feel like a bad joke: lenders want history before they lend, but you need funding to create that history. The good news is that “no credit” is different from “bad credit” — and there are specific paths that actually work when you’re starting from scratch.

No credit history vs bad credit: Why it matters

Lenders view “no credit” and “bad credit” very differently. With no credit history, they don’t have proof of how you handle debt — which makes them cautious, but not automatically hostile. With bad credit, they see evidence that payments were missed or debts went into default, which is a bigger red flag.

That difference affects your options. A thin or nonexistent file usually means higher scrutiny and possibly higher rates, but it doesn’t shut you out of traditional funding entirely. It just means you need to lean on other strengths: business revenue, collateral, or your personal profile.

What lenders look at when you have no credit

When credit history is missing or slim, lenders shift their attention to everything else they can measure. Expect them to focus on:

• Time in business: Even 6–12 months of consistent operation looks better than a brand‑new entity on paper.
• Business revenue and cash flow: Bank statements, invoices, and payment processing history show whether money is reliably coming in.
• Collateral: Equipment, vehicles, or other assets they can secure the loan against.
• Personal guarantees: You promising to be personally responsible if the business can’t pay.
• Business plan and documentation: A clear, realistic plan can tip the scales when the numbers are thin.

The more you can strengthen those areas, the less your missing credit history dominates the decision.

Realistic loan options with no credit history

Some loan types are almost impossible to get without credit history. Others are built to work around it. Focus your energy where you actually have a shot.

1. Microloans and community lenders

Nonprofit lenders, community development financial institutions (CDFIs), and some local programs offer small loans to newer businesses that don’t fit big‑bank credit boxes. They often care more about your story, plan, and local impact than your FICO score alone.

Loan amounts are usually modest — think a few thousand to low five figures — but that’s often enough for equipment, inventory, or a first marketing push. More importantly, paying these back on time helps build your business credit profile.

2. Online alternative lenders

Many online lenders use non‑traditional underwriting, leaning heavily on your revenue and bank activity. If your business account shows steady deposits, they may be willing to extend short‑term loans or lines of credit even with thin credit history.

The main trade‑off: cost. These loans can be more expensive than traditional bank loans, with shorter terms and higher effective APRs. Used carefully and paid off quickly, they can be a bridge — not a permanent solution.

3. Equipment financing

If your business needs specific equipment — like tools, vehicles, or machines — equipment financing is sometimes easier to secure without deep credit history. The lender uses the equipment itself as collateral.

That lowers their risk, which can make them more flexible on credit. You still need to show that your business can afford the payments, but the underwriting bar is often lower than with a generic term loan.

4. Business credit cards for new owners

Some business credit cards are designed for newer owners and lean heavily on your personal profile. If your personal credit is at least fair, you might qualify even if your business has no credit file yet.

Limits may be modest at first, but responsibly using and paying off a business card is one of the fastest ways to build both personal and business credit — opening the door to larger loans later.

5. Secured business loans and secured cards

With a secured product, you put up a cash deposit or collateral. For a secured business credit card, that might mean a deposit equal to your credit limit. For a secured loan, it might be a savings account or other assets.

This structure gives the lender a safety net, which makes them more willing to work with someone who has no credit history. Over time, many secured products can graduate to unsecured as you prove yourself.

Non‑loan funding options worth considering

If traditional loans feel out of reach on day one, that doesn’t mean your business is stuck. Other funding paths can help you get off the ground while you quietly build your credit profile.

• Vendor and trade credit: Getting net‑30 or net‑60 terms with suppliers and paying on time can build business credit.
• Business grants: Competitive, but free money if you qualify — especially for certain industries or underrepresented founders.
• Crowdfunding and pre‑sales: Collecting orders and funding from customers up front instead of borrowing.
• Friends and family loans: Risky for relationships, but sometimes the only option. Always treat it like a real, documented loan.

These sources don’t replace a bank entirely, but they can help you skip predatory debt while you build a track record.

How to make your application stronger without credit history

If you’re going to apply for a business loan anyway, you want every piece of your application to quietly say, “I’m serious, I’m prepared, and I can repay this.” That means doing more than filling out online forms.

• Separate your business finances: Open a business bank account and run all business income and expenses through it.
• Prepare clean financials: Even simple profit‑and‑loss statements and cash‑flow summaries help.
• Write a concise business plan: Focus on how you make money, who your customers are, and how the loan will be used.
• Show skin in the game: Lenders like seeing that you’ve invested your own time and money.

When your numbers are thin, professionalism and preparation can be the edge that separates you from a stack of half‑baked applications.

Risks and traps to avoid when you’re desperate for funding

• Daily payment loans: Some short‑term products draft payments every business day, which can crush cash flow.
• Confusing factor rates: Offers quoted as “1.3x” or “1.5x” your advance can hide very high effective APRs.
• Stacking multiple advances: Taking on more than one high‑cost loan at a time can spiral quickly.
• Signing personal guarantees lightly: Remember that a personal guarantee follows you even if the business fails.

A smaller, safer amount from a more conservative lender is often better than a flashy offer that quietly bleeds your business.

Building toward better loans over the next 12–24 months

The first loan you get with no credit history isn’t the endgame — it’s a stepping stone. Your goal is to turn that early, imperfect funding into a track record that qualifies you for better, cheaper options.

• Make every payment on time, without exception.
• Use less than your full credit limits when possible.
• Ask vendors that report to business bureaus to extend you terms.
• Periodically check your business credit reports and correct errors.

Over a year or two, those habits can move you from “no history” to a solid, predictable borrower in the eyes of traditional lenders.

FAQ: Business loans with no credit history

Can I really get a business loan with no credit at all?

Yes, but the options tend to be smaller, more expensive, or more specialized. Microloans, equipment financing, and certain online lenders are often the most realistic starting points.

Will I need to use my personal credit?

Often, yes. Many early‑stage business loans rely heavily on the owner’s personal profile and a personal guarantee, especially when the business has no credit history of its own.

How big of a loan can I expect as a brand‑new business?

Realistically, first loans for brand‑new businesses tend to be modest — enough for a key piece of equipment, starter inventory, or initial marketing. Larger amounts usually come after you’ve proven revenue and repayment behavior.

How long does it take to build business credit?

If you use credit responsibly and work with vendors or lenders that report to business bureaus, you can start seeing a meaningful profile within 6–12 months, with stronger options opening up over 1–3 years.

Is it better to wait until I have credit before applying?

Sometimes. If you’re not in a rush and can grow more slowly with internal cash or smaller funding sources, waiting can help you qualify for better terms later. If an opportunity won’t wait, a carefully chosen starter loan can still make sense.

Conclusion: Start where you are, build what you need

Getting a business loan with no credit history is less about finding a magic lender and more about matching the right type of funding to where your business is right now. Microloans, equipment financing, and revenue‑based lenders can help you bridge the early gap, but the real long‑term play is building a track record lenders trust.

If you focus on clean finances, consistent payments, and strategic use of smaller credit lines, “no history” becomes “reliable borrower” faster than you think. That’s how a tiny first loan turns into the funding engine for the business you’re actually trying to build.