Guide · Startups
How to Fund a Startup Business
Funding a startup is a different game than funding an established business. Banks want to see 6+ months of revenue and $10K/month in deposits — most startups don't have either yet. This guide covers the seven paths that actually work for pre-revenue and early-revenue businesses in 2026, ranked roughly by how accessible they are, plus how to get to "fundable" for cheaper capital later.
Startup funding options compared
| Option | Typical amount | Speed | Credit needed |
|---|---|---|---|
| SBA microloans | Up to $50,000 | 6–12 weeks | 620+ |
| Business credit cards | $5K – $50K limits | Same day – 2 weeks | 680+ |
| Equipment financing | Up to the equipment's cost | 3–10 business days | 600+ |
| Personal-credit-backed lines / HELOCs | $10K – $250K+ | 1–4 weeks | 700+ |
| Crowdfunding | $5K – $500K+ | 1–3 months | Not credit-scored |
| Grants | $1K – $250K+ | 2–6 months | Not credit-scored |
| Friends and family | $1K – $100K+ | As fast as trust travels | Not credit-scored |
The 7 options in detail
SBA microloans
Best for: First-time owners, mission-aligned businessesDelivered through nonprofit intermediaries like Accion Opportunity Fund and Kiva. Slower than online lenders but cheap — rates typically 8–13% — and intermediaries often bundle free coaching. Best when you can wait and want a program that treats a new business as fundable.
Business credit cards
Best for: Recurring monthly spend, short-term floatOften the most accessible early credit for a startup. Look for 0% intro APR (12–15 months) and category-matched rewards. Approvals lean on personal credit; separating spend on a business card also starts building the business credit file — see our guide on how to build business credit.
Equipment financing
Best for: Trucks, machinery, kitchens, medical equipmentThe equipment itself is the collateral, so revenue history matters much less than for a working-capital loan. Terms usually match the useful life of the asset (3–7 years). A common bridge for startups whose whole business depends on one big purchase.
Personal-credit-backed lines / HELOCs
Best for: Owners with equity or strong personal creditUnsecured personal lines, 0% intro credit-card stacks, or a home equity line of credit can bridge the gap before you qualify for revenue-based products. Cheapest capital many startups can actually get — but you're personally liable, so size it against a real payback plan.
Crowdfunding
Best for: Consumer products, community businessesRewards-based platforms (Kickstarter, Indiegogo) work for physical products with a story. Equity crowdfunding (Republic, Wefunder, StartEngine) sells small stakes to non-accredited investors. Both take marketing effort — treat the campaign like a product launch, not a fundraise.
Grants
Best for: Research-driven, minority-, veteran-, or women-ownedFederal (grants.gov, SBIR/STTR), state, and private grants exist and are non-dilutive. They're competitive and slow, so treat them as a bonus, not a plan. State portals like grants.ca.gov are the authoritative starting point in each state.
Friends and family
Best for: Very early stage, pre-productCommon and viable, but document everything with a written agreement — promissory note, SAFE, or convertible note — to protect the relationship. Ambiguous terms are how families stop talking.
How much funding does a startup actually need?
Most first-time owners overestimate. Size the raise to reach a minimum viable version of the business — one location, one crew, one product line — with 6–12 months of runway at realistic (not optimistic) revenue. Raising more than that increases dilution or debt service without buying you speed. If you're unsure what "realistic" looks like, take your best-case monthly revenue forecast and cut it in half. Plan against that number.
How to fund a startup with bad credit
Personal credit under 620 shuts most doors on cards and traditional loans. The realistic paths: secured business credit cards to start rebuilding, equipment financing where the asset offsets underwriting risk, revenue-based financing once you have 3–6 months of deposits, or bringing on a co-signer with a stronger file. In parallel, focus on getting your personal FICO above 680 — that single change unlocks most of the options in the table above. Our business loans with bad credit guide walks through the specific products that will still approve.
How long does startup funding take?
Speed varies wildly by product: business credit cards approve same-day to two weeks; equipment financing runs 3–10 business days; SBA microloans take 6–12 weeks; grants take 2–6 months; crowdfunding campaigns need 1–3 months of prep plus a 30–60 day live window. The takeaway: plan the money before you need it. Applying the week payroll is due locks you into the most expensive option available that week.
Get to "fundable" fast
Most working-capital programs unlock at 6 months in business with $10K/month in bank deposits. Push every dollar through a dedicated business bank account, file your EIN, keep clean books from day one, and start building business credit in parallel. Six months of clean statements is the single highest-ROI thing a pre-revenue founder can do for future funding options. State-specific programs — for example California small business funding — often layer on top of what you'll qualify for federally.
Already at 6 months and $10K/mo?
If you've hit that bar, you qualify for far more than startup-only products. Compare working capital, lines of credit, equipment financing, and SBA-adjacent programs from BizKred's partner network with one application.
Frequently asked questions
How do I fund a startup business with no money?
With no cash and no revenue, focus on options that don't require either: business credit cards approved on personal credit, personal-credit-backed lines, equipment financing (the equipment is collateral), grants for eligible categories, and crowdfunding if you have an audience. Skip working-capital loans until you have 6 months of business bank deposits.
How to fund a startup business with bad credit?
Bad personal credit (below 620) shuts most of the door on cards and traditional loans. Realistic paths: secured credit cards to rebuild, equipment financing where the asset offsets risk, revenue-based financing once you have a few months of deposits, or bringing on a co-signer with stronger credit. Rebuilding to a 680 personal score is usually the highest-ROI move.
How much funding do startups actually need?
Most first-time owners overestimate. Get to a minimum viable version of the business — one location, one crew, one product line — and size the funding to reach 6–12 months of runway at realistic revenue. Raising more than you need increases dilution or debt service without buying you speed.
How long does startup funding take?
Business credit cards approve same-day to two weeks. Equipment financing runs 3–10 business days. SBA microloans take 6–12 weeks. Grants are 2–6 months. Crowdfunding campaigns take 1–3 months of preparation plus a 30–60 day campaign. Plan the money before you need it.
Where to get funding for a startup business?
For debt: SBA-approved microloan intermediaries (list at sba.gov), major issuers for business credit cards (Chase, Capital One, Amex), and equipment financers like Balboa or Currency. For grants: grants.gov, SBIR.gov, and your state's small-business portal. For equity: Republic, Wefunder, or StartEngine for crowdfunded equity; local angel groups for direct rounds.
Can I get a business loan with no revenue?
Most revenue-based products require $10K+/month in deposits and 6+ months in business. Without revenue, the working list is SBA microloans, business credit cards, equipment financing, grants, and personal-credit-backed lines — not conventional term loans or lines of credit.
When can I qualify for traditional financing?
Most working-capital programs unlock at 6+ months in business with $10K+/month in deposits, a 600+ personal FICO, and a clean bank statement history (no NSFs, no overdrafts). Build toward that milestone deliberately; every month of clean deposits raises what you'll qualify for.
Are there grants for startups?
Yes — federal (grants.gov, SBIR/STTR for research-driven companies), state (via your state's small-business portal), and private (Amber Grant, FedEx Small Business Grant, Hello Alice). All are competitive and slow. Treat them as a bonus, not a plan.