Getting financing with just six months under your belt can feel like an uphill battle. Most traditional lenders want at least two years of operating history before they’ll consider your application. But that doesn’t mean you’re out of options.
Here are the most common lenders and loans you can qualify for with only six months in business, what you’ll need to apply, how much you can realistically borrow and alternatives if you don’t yet qualify.
| Lender / Marketplace | Minimum Time in Business | Revenue Requirement | Loan Products Available | Funding Speed | |
|---|---|---|---|---|---|
| Pinnacle Funding | 6+ months | $180K annually | Business expansion, term loan, LOC | 24 hours | |
| BestMoney | 6+ months | Varies by lender | Term loans, LOCs, MCAs and more | Varies by lender | |
| Lendio | 6+ months | Varies by lender | Term loans, LOCs, MCAs, equipment financing and more | Varies by lender | |
| Advance Funds Network | 3+ months | $15K monthly | Term loans, LOCs, MCAs, equipment financing and more | As soon as same day | |
| Kiva | None | None | Microloans (up to $15K) | Several weeks | |
| National Funding | 6+ months | $250K annually | Short-term loans | 24 hours |
Lenders see younger businesses as riskier because there’s less financial history to prove stability. This doesn’t mean you’re automatically declined, but it shapes which loans you can access. Most of the time, the tradeoff is:
Not every financing option is on the table, but several loan types are designed to meet you where you’re at.
Online loans give you fast access to working capital when you need it most. They’re easier to qualify for than traditional loans from brick-and-mortar banks, but usually come with higher costs and shorter repayment schedules.
A line of credit works like a safety net, letting you borrow only what you need. You can reuse funds once you’ve paid them back. It’s a flexible way to cover gaps in cash flow or unexpected expenses.
Microloans are designed for very small or newer businesses that may not qualify elsewhere. They come in smaller amounts, but often with more flexible credit requirements.
With equipment financing, the item you’re buying, like a truck or new machinery, secures the loan. It’s a smart option if you need tools to grow your business but don’t want to drain cash reserves.
An MCA gives you a lump sum up front in exchange for a percentage of your future sales. They’re fast and easy to get, but often the most expensive form of financing.
Invoice factoring lets you turn your unpaid invoices into immediate cash. You sell your invoices to a factoring company, which advances you a percentage of their value up front. When your customers pay, you receive the remaining balance minus the company’s fees.
Invoice financing is a way to borrow money against your outstanding invoices without selling them. You maintain responsibility for collecting payments, but you get cash up front based on the invoices’ value. This method can help maintain customer relationships while giving you faster access to funds.
| Loan Type | Best For | Watch Out For |
|---|---|---|
| Short-term loan | Covering immediate needs | High rates, daily/weekly pay |
| Line of credit | Flexible, recurring expenses | Annual fees, variable APR |
| Microloan | Small, newer businesses | Slower approval, smaller funds |
| Equipment financing | Buying essential tools or vehicles | Only usable for equipment |
| Merchant cash advance | Fast cash when sales are steady | Very high cost of capital |
| Invoice factoring | Businesses with strong cash flow and unpaid invoices | High fees, factoring company may vet customers |
| Invoice financing | B2B companies or businesses with reliable repeat clients | High fees, lenders may check customer payment histories |
Even at six months, most lenders want to see some basics:
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What is your primary need for a business loan?
If your business hasn’t hit lender requirements, you still have ways to access funding:
A business credit card is another quick way to access funding while also building your business credit history. They work best for everyday purchases and smaller, recurring expenses.
If your business is too new to qualify on its own, you may be able to borrow through a personal loan and use it for your business. Approval is based on your income and credit, but you’ll be personally responsible for repayment.
Borrowing from friends or family can give you flexible, low-cost funding without strict requirements. Just make sure expectations are clear and agreements are documented.
Crowdfunding platforms and business grants can provide funding without repayment obligations. They’re competitive but worth exploring, especially if you have a unique story or niche product.
Getting a business loan with only six months of history isn’t easy, but it’s not impossible. The key is to focus on lenders and products that cater to newer businesses, such as short-term loans, lines of credit, working capital loans or microloans. If you’re not quite ready, consider alternatives like credit cards or grants to bridge the gap.
The good news is that there are lenders and loan types designed for newer businesses, and some even offer business loans specifically for startups. Plus, the longer you’re in business, the more funding options become available, and the more leverage you’ll have to negotiate better terms.
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