Business Loan

How To Acquire A Business Loan With No Profits

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If you’re starting up your own business and are yet to see a return on it, you may be wondering if you can apply for business financing. In your personal life, you may already be familiar with borrowing and how it works. For example, in emergencies, you might have previously used 24 hour loans to provide instant funding for you. But when looking for business finance, it can take a lot longer to apply and receive the decision. Just like a personal loan, a business loan will take your affordability into account, but also a lot of other factors. So, if you want to know more, keep reading and find out how to acquire a business loan without any profits.

Start-Up Business Loans

If you’re thinking of applying for a loan when you don’t have any profits, you most likely are a start-up business. There are specific loans for this, and they understand that you won’t have 2 years’ worth of your books showing all your expenses and profits. However, there are other things that they’ll look for that can affect their decision.

Previous Experience

When applying for a start-up loan, the lender may look at your previous experience with running a business. Not only that, but they’ll also check to see if the business was successful. So, if you’ve run a business previously or have any experience at all, it’s worth mentioning it to really show them what you’re capable of.

Personal Investment

Lenders of a start-up loan are keen to see personal investment from the requester as well. Demonstrating to them that you’ve put all of your own efforts into getting your business up and running shows that you’re serious about making it a success which means the lender is more likely to receive their money back.

Credit Score

Lenders will also check your personal credit score if your business doesn’t have one. Your credit score shows lenders your ability to pay back the finance. If you have a low credit score, this might mean you aren’t usually good at keeping up with repayments or you pay them later than you should. When you borrow money, lenders look at all aspects of your affordability. Having the money in your account at the moment doesn’t guarantee you’ll be able to afford the repayments in the future, so lenders could deem you too high risk if your credit score is too low.


If you don’t have any profits at the moment, you might need to show your lender you have some assets that can be claimed if you can’t make the repayments. Some lenders will allow you to use your own personal assets like a house or a car. If you’re not wanting to borrow a very high amount, you might not need to go down this route. But the higher the finance you need when you have little to no profit, you may need to consider getting a secured loan.

Applying for a business loan without any profits might make you think you’re destined to be denied. However, this isn’t always the case as you can demonstrate your dedication and any security you have within your business to the lender. This can potentially make a difference as they will see you as a viable borrower who will be able to make the repayments. So don’t be put off if you’re trying to get your business off the ground. Start exploring the options out there and you’ll be sure to find finance that works for you.

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