Startup now has 6–12 months of revenue? Once consistent deposits begin appearing in the business bank account, funding paths may expand beyond the options available to a pre-revenue company.
Startup with little or no revenue? Business credit cards and SBA microloans can have very different requirements. Strong personal credit, business registration, repayment ability and a clear business plan may shape which path is worth exploring.
Can a new business get a business credit card using personal credit before it has revenue? Some issuers may consider startups when the owner’s personal credit is strong, commonly around 740+.
Launching a business with little or no revenue but strong 740+ personal credit? Some business credit card issuers may consider new businesses based heavily on the owner’s personal credit profile.
No business revenue yet? The funding source says some business credit card issuers may consider startups with strong personal credit, while SBA Microloans may also be available to qualifying startups with a business plan and repayment ability.
One year in business with $100K+ annual revenue and positive cash flow? A business term loan may become relevant even if your company is not yet ready for stricter traditional bank credit.
New Business With Strong 740+ Personal Credit? Business Credit Cards May Be Your First Funding Option
A new LLC may have fewer traditional loan options, but strong personal credit can make business credit cards relevant while some alternative lenders may consider companies after six to twelve months in business.
Before approaching venture investors, founders should be able to explain the problem, market, traction, scalability, competitive advantage, capital requirement and milestones the investment will fund.
If your company is newly formed and has not generated meaningful revenue yet, many traditional business loans may be difficult to qualify for. But one funding category can work differently: business credit cards. Thomas Abelsen’s funding guide identifies business credit cards as typically one of the easiest forms of business financing to qualify for. Strong…
