New businesses can have a harder time qualifying for a loan because lenders typically have less financial history to evaluate. And with many new businesses facing an uphill battle to stay open, access to affordable financing can be especially important. About 57% of establishments that started in 2018 were still operating five years later, according to the Bureau of Labor Statistics.
The cost of borrowing can also affect how affordable startup financing is. The Federal Reserve cut interest rates multiple times in 2024 and 2025, although it raised its target range in September 2026. Lower interest rates can make borrowing less expensive, but business loan rates also depend on the lender, loan type and borrower’s qualifications.
While traditional bank loans can be harder for brand-new businesses to qualify for, alternative online lenders and personal loan providers may offer other ways to access startup capital.
Personalized, fast funding
Best for small businesses
Fast funding for established businesses
Here’s a list of the ten best funding options for new businesses by category. We also offer a list of alternatives if these picks don’t fit your startup.
Finder’s editorial experts review over 200 business loan providers before selecting the best lenders for new businesses. We pick lenders that have relaxed time-in-business requirements, good customer service and competitive rates. We also review each company’s Better Business Bureau reviews and Trustpilot ratings.
We weigh lenders and financing companies against these factors:
A startup business loan is a type of financing designed to help newer businesses get off the ground or grow. They provide capital to buy a new business or franchise, pay for equipment and fund the day-to-day operations and expansion of the business.
The most common types of startup and new business loans include SBA 7(a) loans, personal loans, equipment loans, lines of credit and business credit cards. There are also portfolio loans and ROBS (rollovers as business startups), which leverage your personal assets to fund a business.
Startup business loans give you access to capital you might not otherwise have — you may even find a business loan without having any money. With it, you can fund your expenses without selling equity, all while improving your business’s positive payment history and building a relationship with a lender.
Business loan requirements vary by lender. However, those available to new businesses focus on the entrepreneur’s history of paying off personal debt rather than the business itself. You’ll have the most options if you meet these criteria.
Be wary of companies that push you to pay in advance to help you shop for a loan, require you to pay fees up front or seem to have unverifiable guaranteed approval. These “lenders” may actually be business loan scams. Learn the warning signs to identify a potential scammer as you shop around.
It’s possible to get a business loan with bad credit, but your options are limited. You may have better luck considering other financing alternatives, such as a rollover for business startups (ROBS) or crowdfunding, which don’t necessarily rely on your credit score.
Microlenders and Community Development Financial Institutions (CDFIs) are also your friend: Many have programs designed to support local entrepreneurs. They typically offer small amounts of financing in exchange for a training course.
You might qualify for some term loans, alternate types of business loans or business loans that don’t require a credit check. But these loans come with a higher price tag — think APRs over 300%. And if you’re just starting, it may be worth improving your personal credit score before borrowing for your business.
Once you know how much you need to borrow and have compared lenders, you’re ready to apply. Applying for a business loan may require extensive documentation, especially for SBA loans, which require SBA-specific forms. While there are a few lenders with low or no required documents, they may not offer the best rates to new businesses.
Follow these steps:
Yes, it’s possible to get a 0% interest business loan. For example, Kiva, a lender on this list, offers a 0% interest small business loan of up to $15,000. Guidant Financial also offers unsecured loans with interest rates starting from 0% to 3% for qualified borrowers. However, these are not specifically startup loans.
You can also look into a 0% introductory rate business credit card to start a business, which may be easier to qualify for than other types of business funding. Other low-interest business loans can be found at banks, credit unions and online lenders — but you typically need good credit to qualify and startups may not be eligible.
Some other ways to finance a startup include:
Some startups may choose to offer investors goods, services or equity in their company in exchange for funding. Crowdfunding also helps companies generate buzz and make connections with potential clients. You have a few options:
And remember, there are plenty of options at every stage of the business process. Read our guide to the best business loans for more options.
Explore the top business loan guides to help you along your business journey. From information on the best business loans on the market or your best startup loan options, to business loans that require little to no paperwork and more.
Looking for fast business funding? Learn about a lender with flexible criteria but frequent repayments.
Get funding of up to $500,000 with the benefit of early repayment discounts for qualifying borrowers.
Square Loans are invite-only for Square sellers, with no credit check required and funding in as little as one to three business days or instantly with Square Checking.
A review of FundThrough invoice factoring including product details, pros and cons.
What to know about Navy Federal’s business loans, benefits, drawbacks and if it’s right for you.
A review of Forward Financing, a fintech company that offers revenue-based financing up to $5 million for small businesses.
A review of Platform Lending, an MCA direct lender that also offers other business loan options from its network of partners.
A review of Lendr, a provider of short-term working capital solutions for small businesses in need of fast, short-term funding.
Achieve your small business goals with a flexible line of credit from Kabbage. Apply online within minutes.
This service has a network of over 75 legit business lenders.
How much can I borrow from a private lender? Until what amount he can give me with my house property as a collateral? Where can I find private lenders that give big amounts of money for business and for buying my instruments, an amount of 1 million with my house property as a collateral?? I want to find a real one because there are a lot of frauds. I am waiting for your urgent response. Thank you!
Hi Faratzi,
Thank you for contacting Finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
Generally, large loan amounts usually have specific eligibility criteria which include a minimum income requirement as this is one way for lenders to make sure their borrowers have the capacity to repay their loan amount. Lenders will also take into consideration your credit standing, employment status, outstanding loan, and other liabilities in their decision-making.
You can compare business loans for options that may suit your needs. You may review and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Go to Site” button.
I hope this helps.
Cheers,
Danielle
Currently I am on employed but intend to start my own online business as an affiliate marketer through a well established training program called Aspire. I have absolutely no personal funds to use to pay for their training program which costs $2000. Although they cannot guarantee instant income, their average affiliates start making $8000 per month in the first 90 days. Also, my credit rating is approximately 560 right now. Where can I possibly get a $2-3,000 start up business loan to start my business?
Hi Laurel,
Thank you for your inquiry.
Many business lenders require that your business has been established for at least six months and that it’s meeting certain revenue minimums. There are some lenders who may consider your business plan and personal credit profile in lieu of business experience to evaluate your loan application and assess risks. We do have a guide about startup loans that will help you understand how you can get a business loan in the early stages. You could also get a personal loan to start a new business.
I hope this information has helped.
Cheers,
Harold