How Can I Get A Business Loan With No Money?

When it comes to setting up a business, it can be quite costly. Even if you keep your budget to a minimum, there are still many things you will need to pay for. Given this, many people cannot afford to pay for these costs outright.

If you are one of these people, then you will know that one of the easiest ways to set up a business is by using a business loan. These are fairly straightforward to apply for. However, many business loans require you to have some form of down payment or collateral present.

How Can I Get A Business Loan With No Money

This helps lenders to understand that you are serious about the loan, as you are willing to put some of your own money towards the payment too.

If you are someone that is keen to set up their own business, but do not have the funds to place a down payment on a loan, it can be quite disheartening. You may feel as though there are no options available to you.

There are a handful of different options that are available, even without a down payment. While it is more difficult to secure a loan without a down payment, in this article, we will talk you through some of the options that are available to you.

How can I get a business loan with no money?

When it comes to being accepted for business loans, as we have already discussed, the majority of lenders will expect you to place money down as collateral.

This ensures to the lenders that you are serious about your business, because you have provided proof that you are willing to risk your own money for the investment. 

When it is possible, we would always recommend saving up the funds to be able to provide this collateral for your business loan, this will put you in the best position overall.

You will be more likely to be offered a better loan, and in addition to this, if you meet all the criteria, you will have a wider range of loan options available to you. This will put you in a better position overall. 

We also understand that this is not always possible. If you are unable to provide collateral or a down payment, you will still want to ensure that you have a good credit score.

This will put you in a better position with the lenders as this will prove that you are capable of paying the monthly repayments back. 

It helps the lenders to know that you are a trustworthy person. If your credit score is not great, we would recommend that you ensure to improve it as much as possible before applying for a loan, this will help to put you in a better position overall.

As we have mentioned in the introduction, there are a few alternative options if you are unable to pay the collateral. 

Some of these include:

SBA 7 (a)

Typically Small Business Loans do require some form of down payment. However, there are options available that do not necessarily require this, such as the SBA 7 (a). What is great about these loans is that they will offer you a good amount of money to borrow.

Instead of being a shorter loan, these then have a longer repayment length to make up for the lack of down payment.

In addition to this, they have a guarantee from the government, which helps to give you peace of mind. It is worth noting that even though some lenders will offer this without any upfront costs, they are not always accepted.

Business Credit Cards

One way in which you can receive money for your business if you currently have no money is through a business credit card.

While this is different to a loan, they do act in a similar sort of way as there is a set amount of money you can borrow, and you will need to pay the card off monthly in order to keep up with the debt. 

When it comes to credit cards, having a good credit score is vital. If you have a bad track record with keeping up with payment plans, or not paying back credit cards regularly, this will have an effect on you being accepted for a business credit card, which you should keep in mind.

If you are looking to pay for smaller transactions, such as purchasing furniture, or covering the cost of small outgoings, a business credit card would be a great option for you.

However, if you are looking for a significant amount of money to cover set up costs or your payroll, this is not a suitable option.

In general, business credit cards are a great option to have if you are accepted as they will help to improve your credit score if you are keeping on top of your repayments. In addition to this, many have benefits that can help your business too. 

Equipment Financing 

Equipment financing is a very specific type of loan, and will only cover you for any type of business equipment you need.

If you do not have the funds for equipment, this is a great option for you. It can help to get your business up and running, and provide you with the essentials you need. 

The equipment that it will cover will vary depending on the type of business that you own. However, you typically do not have to provide any collateral to be accepted for this.

In the vast majority of cases, you will be accepted for the loan, which will cover 100% of the costs needed for the equipment.

As this is a specific type of loan, you will need to have proof that the equipment is being purchased for the company, and that you are capable of paying the funds back.

Depending on your situation, the lender will look at both your personal credit score, and your business credit score to ensure that you are capable of paying this loan back.

This is a great option if you do need equipment fairly quickly and do not currently have the funds, granted that you are able to pay off these loans on time.

Invoice Financing

The last way in which you can receive a loan with no money is through invoice financing. Again, this will depend on your personal and business situation, and you will need to prove that your credit score is positive too.

If for example, your business is expecting a payment, but you have not yet received this payment, invoice financing allows you to borrow money to cover these costs while you are awaiting payment. It is a form of collateral loan, as this will be taken from the company invoices.

The lender will typically give you around 80% of the loan, and when the payment from a client is received, this is then given to the lender with any additional fees on top of this.

While this is not the most ideal loan, it is a great way of receiving the funds you need prior to payments you will receive. Many companies do get accepted for this option on the basis of good credit. So if this is a reason why you need to receive a loan, it would be a great option for you.


We hope that you have found this article helpful. As we have discussed, these are the best three options if you do not have the funds to be able to cover your business costs.

However, if you are looking for a start-up loan, it is always best to have the funds available for a down payment. This will help you to receive the best possible loan.

However, if you are looking for a loan to cover invoices or equipment, the options covered in the article are great options for you. If you are looking to cover small costs, then a business credit card would be a great option for you.

In some cases, if you are in need of an SBA 7 (a) loan, you may be able to get accepted without any collateral or down payment, though this is not guaranteed.

Overall, you will want to ensure that you have a good credit score. This will greatly help when you are looking for funding. It will put you in a better position.