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How to Get a Business Loan With No Money

Moneymagpie Team 30th Oct 2023 No Comments

Reading Time: 4 minutes

Want to start a business but lack the capital? That’s where business loans come into play. When you have no money, business loans might be the only way for you to acquire the capital necessary to get your business off the ground.  

Unfortunately, you need money to make money. This means that if you don’t have a lot of money it’s harder to get approved for a large business loan. What’s more, you might not get approved for a small loan if you don’t have an income or a good credit score. 

That said, there’s no need to panic because we’re here to help. We’ll take you through everything you need to know about getting a small business loan with no money. 

What Is a Business Loan?  

Business loans are loans that businesses take out. While it sounds simple and easy, there are different requirements to get a business loan compared to a more traditional loan. This means that you’ll need to have collateral, a down payment, or other factors before applying. 

That said, business loans work in similar ways as other loans. Businesses enter an agreement with a lender and can get a lump sum of money or cash flow paid in instalments. These loans are useful for expanding a company’s operations with new locations, equipment, and other necessities. Business loans have to be used for the business. 

What Are the Requirements for a Business Loan? 

Businesses that want a business loan have to navigate through a handful of requirements. Like a traditional loan, good credit and a low income-to-debt ratio are important. That said, there are some additional requirements for many business loans. 

We list these requirements below. 

  • Credit Score: Most business loans require good or excellent credit, which is 690 or higher. 
  • Income and Assets: Lenders want to see that a business has the cash flow and assets to accommodate the loan. 
  • Business Plan: Lenders often want to see what the loan is for before funding it. 
  • 2 Years in Business: Most lenders want to see that you’ve been in business for two years before providing you with funding. 

These are the basic requirements to get a business loan. However, requirements may vary depending on the lender.  

How to Check if You’ll Qualify for a Loan 

Before you apply for a loan with no money, make sure you know if you’ll qualify. Doing so helps you determine the steps you can take to get funding and which route is the best. Below we show you how to check to see what you’ll qualify for. 

Credit Profile  

Always start with your credit profile. Use Credit Karma, Experian, or another provider to check your credit score. A low score makes it challenging to get approved but a score that’s over 690 is usually enough to get a business loan. Some subprime lenders may offer loans to people with lower credit scores. 

Public Records 

One of the best ways to check if you’ve learned all you could from your credit score is to check your public records. This will show you what people find out about you when they run a background check.  

If you’re looking for money from an investor or applying for a grant it’s necessary to know this information. You could use Information.com’s public records search tool if you plan on running a search. 

How to Get a Business Loan With No Money

Getting a business loan with no money is a simple process if you know where to look. Plus, there are always a handful of options you can try if one method doesn’t seem to work.  

That said, before you start we always recommend checking your records before applying for a loan. Viewing things like your credit score, assets, and other information can help you determine if a loan is possible before getting a hard inquiry on your credit report. 

Learn more about how to get a business loan with no money below. 

Apply for a Personal Loan 

A personal loan application can be your best friend. Personal credit scores and business credit scores are separate, so if your business doesn’t get approved for a loan you still might have a chance. You’ll have to fund the business yourself if you go this route and you expose yourself to liability if you can’t pay it back. 


Depending on your company you can go the investor route. Investors can help you fund your business in a similar way as a loan.  

You’ll have to agree with an investor before they find your company and this varies depending on who you work with. Some examples may include investors gaining shares in the company and being able to sell them when the company reaches a certain size. 

Offer Collateral 

Some business loan providers allow you to offer collateral. This can be an asset or anything else that’s worth money. If the collateral is worth enough the lender may provide you with the loan. However, failing to pay the loan will result in the lender taking the collateral. 


Business grants are programs that allow people to be rewarded with money to fund their businesses. State governments offer grants, like New York, which offers select small businesses up to $50,000. However, companies like Amazon also offer these grants. 

SBA Loans 

The Small Business Association (SBA) has several loan programs available. These programs help small businesses get loans without money down, like the disaster relief program, which helps companies that experience a sudden disaster. Some pandemic programs also allow companies to take out loans if necessary. 

Credit Cards 

While not a loan, opening up several credit cards can help your business get out of a pinch. This should only be used as a last resort because credit cards have higher interest rates when compared to loans.  

Subprime credit cards have even higher interest and sometimes an annual fee. Still, using credit cards can help you improve your company’s credit score if you’re smart with them. 

These are some of the best ways to get a business loan without spending money. 

Get Your Business Loan Today 

There are a lot of factors that contribute to getting approved for a business loan, so you can get your business loan with no money down. However, it’s best to make sure you have a strong business plan and a good personal credit score. Additionally, do your best to put something down or have something as collateral if you need a large sum of money. 

Also, look for small business programs like the SBA disaster loan program, which can be used in some circumstances. Following any of the tips we provided will also help you find the funding you need. 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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