When you start a business, you need money to get started. However, getting the funds to pay for things such as inventory and equipment is not always easy. The good news is there are several options available that don’t require you to put up collateral. Here are some of the startup business loans with no revenue:
Crowdfunding
Crowdfunding is a way for an entrepreneur to raise money for their business by getting small amounts of funding from many people. This is different from traditional banks and lenders, which require collateral and don’t want to lend to startups.
These days, there’s a crowdfunding platform out there for just about everything—and they all have their pros and cons. So you can choose which one you think will work best for your business and your situation.
In order to get started with crowdfunding, you need the following:
- Some type of video or presentation that explains what your company does (the “elevator pitch”).
- A plan on how much money you’ll need as well as how long it’ll take until the project is finished; this should be presented in clear language so anyone can understand it.
- A clear description of what investors will receive in exchange for their investment(s).
Business Credit Cards
Business credit cards are a great way to get cash quickly. They can be used to buy inventory, pay employees and suppliers, and make critical business purchases.
- You can only use the card for business expenses. If you have good credit and haven’t maxed out your limits on other cards, this is a proper way to keep cash in your bank account while you wait for an investor or loan approval.
- Be cautious not to spend too much money! You’ll need every penny when it comes time for taxes at the end of the year—having too much debt will eat away at any profits you make in those months before getting paid back by customers.
Startup Business Loans
Several options are available if you’re looking for a startup business loan with no revenue to get your startup up and running. The very common type of small business loan is the microloan, which ranges from $100 to $35,000. These loans are often awarded by non-profit organizations like microlending institutions that help low-income people start businesses by providing them with funding and education on how to build their businesses successfully.
Another popular option is an SBA (Small Business Administration) loan, which is a federal government program designed specifically for small businesses.
“Even with bad credit, it may be possible to secure startup business loans with no collateral that could help you with your launch without putting your personal assets on the line,” as Lantern by SoFi experts stated.
Angel Funding
Angel funding is when an angel investor invests in a startup. Angel investors are high-net-worth individuals who invest their own money in startups, usually in exchange for equity.
Angel investors are looking for a return on their investment, meaning they will want to see a positive ROI. However, unlike venture capitalists (VCs), angel investors aren’t required to disclose their investments publicly and don’t need SEC registration or approval before investing.
This article will surely help you to understand the different types of startup loans without collateral. As always, if you have any questions or concerns, you can research more online regarding the same.
