Best Business Loans for Companies With Low Revenue of September 2024

Table of Contents

Why does revenue matter to business lenders?

Revenue is the amount of money your business brings in by selling your products or services, before expenses are subtracted. It’s one part of understanding business profit, which is the money left over after you account for all your expenses.

Steady and consistent operating revenue, or sales, show that you’re executing on your business plan, demonstrating to would-be lenders that you know how to run a small business.

Revenue is an indicator — beyond just personal credit score or time in business — of your ability to repay debt, which is why it’s an important component of a business loan application.

Many lenders require that you have at least $100,000 in annual business income, or approximately $8,333 in income per month, in order to qualify for a loan. Online lenders may have more flexible revenue requirements, while banks are likely to be stricter.

How much revenue do you need for an SBA loan?

The U.S. Small Business Administration does not set a minimum annual revenue requirement. However, because most SBA loans are issued by banks, many are bound to have similar revenue requirements as traditional bank loans, in addition to more stringent credit score and time in business requirements.

SBA microloans, which are the smallest SBA loans, tend to be the easiest to qualify for, and can be a good option if you have low revenue.

U.S. Small Business Administration

SBA Microloan

Can you get a business loan with no revenue?

Business financing that has low or no minimum revenue requirements typically offers another risk mitigant, like collateral, to a lender; however, even secured loans or secured lines of credit may still have minimum revenue requirements.

Self-collateralizing loans like equipment loans or invoice financing may be more lenient on qualification requirements, including minimum revenue, because they come with built-in collateral. Equipment loans are secured by the equipment being financed, and invoice financing uses the value of unpaid customer invoices as collateral.

Alternative financing options for businesses with low revenue

Business credit cards. If you have good personal credit, business credit card issuers may not consider your time in business or revenue history. A business credit card can be a helpful tool for covering cash-flow gaps and making larger purchases while you’re building your business financial history.

Small-business grants. Instead of taking on additional debt when your business is struggling to generate revenue, you might consider applying for small-business grants. Grant recipients don’t have to repay the funds they receive, but competition for this free money is stiff and the application process can be time-consuming.
Friends and family loans. If you can make the case to good friends and family members who are willing and able to help your business, you may be able to access capital with a friends and family loan, even with low or no revenue. Just make sure you put your loan agreement in some form of writing to avoid any personal conflicts in the future.
Crowdfunding. Crowdfunding is a form of business financing where you raise money for your business from investors, in exchange for small shares of ownership in your business or other rewards.

NerdWallet writer Rosalie Murphy contributed to this article.

Methodology

NerdWallet’s review process evaluates and rates small-business loans from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

To come up with our list of the best low-revenue business loans, we selected lenders with a minimum annual revenue requirement of $100,000 or lower, and strong NerdWallet star ratings.

Our star ratings award points to lenders that offer small-business friendly features, including:

– Transparency of rates and terms
– Flexible payment options
– Fast funding times
– Accessible customer service
– Reporting of payments to business credit bureaus
– Responsible lending practices.

We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.

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