Starting a small business takes vision, effort, and, most importantly, capital. But what if you have little or no credit history? The good news is that in 2025, more funding options are available than ever before, even for entrepreneurs who are just getting started.
In this guide, we’ll break down exactly how to get funding for your small business, even with no established credit. You’ll learn which options work best for new business owners, how to prepare your business for funding, and how to build credibility over time so you can unlock bigger opportunities in the future.
Step 1: Understand What Lenders and Investors Look For
Before applying for funding, it helps to know what lenders and investors care about. Even if you don’t have a credit history, they still look for proof that you’re reliable and your business has potential.
They typically want to see:
- A clear business plan: This includes your revenue model, target market, and growth strategy.
- Proof of cash flow or potential sales: Even small amounts of revenue show traction.
- Professional structure: Having an LLC or corporation shows legitimacy.
- Documentation: Bank statements, invoices, and proof of assets can help.
Even if your credit isn’t established, showing that your business is organized and moving in the right direction can make a big difference.
Step 2: Register Your Business and Get an EIN
If you haven’t already, form your business officially. This could be an LLC, S Corp, or C Corp, whichever fits your goals. Having a registered business instantly improves your credibility.
Next, apply for an EIN (Employer Identification Number) through the IRS. It’s free and acts as your business’s Social Security number for tax and credit purposes.
Once you have your EIN, open a business bank account. Keep your business and personal expenses separate. Lenders want to see a professional setup before giving out funding.
Step 3: Build a Basic Business Credit Profile
Even if you’re starting from scratch, you can begin building business credit fast.
Here’s how:
- Register with Dun & Bradstreet to get a D-U-N-S number.
- Set up vendor accounts that report to credit bureaus (for example, Uline, Quill, or Grainger).
- Pay invoices early to build a solid payment history.
- Get a business credit card or secured card to start small and build trust.
Building business credit helps you qualify for bigger loans and better terms later on.
Step 4: Explore Funding Options That Don’t Require Credit
Let’s look at several types of funding you can get, even with no credit history.
1. Business Grants
Grants are one of the best options because you don’t have to repay them. Many are designed specifically for small business owners, minorities, and women entrepreneurs.
- Where to find them: Grants.gov, Hello Alice, and Small Business Innovation Research (SBIR) programs.
- What helps: A solid business plan and clear mission statement.
2. Microloans
Microloans are small loans (typically under $50,000) designed for startups and small businesses.
- Top options: Kiva, Accion Opportunity Fund, and the SBA Microloan Program.
- Why they work: They focus more on your business idea and less on your credit score.
3. Crowdfunding
You can raise money from your audience or supporters through platforms like Kickstarter or GoFundMe.
- Best for: Product-based or creative businesses.
- Pro tip: Offer rewards or early access to attract backers.
4. Business Line of Credit from Fintech Lenders
Some online lenders use alternative data instead of traditional credit scores.
- Examples: Bluevine, Fundbox, and PayPal Working Capital.
- Why they help: They look at cash flow, sales, and business activity instead of credit history.
5. Invoice or Revenue-Based Financing
If you already have customers, you can get funding based on your revenue or unpaid invoices.
- How it works: You get an advance on future income, then repay it as you earn.
- Popular platforms: Shopify Capital, Clearco, and Lendio.
Step 5: Leverage Community and Local Resources
Many local organizations help new business owners get started with funding and training.
Check out:
- SBA (Small Business Administration): Offers microloans and startup assistance.
- SCORE: Free mentoring and business planning help.
- Community Development Financial Institutions (CDFIs): Focus on helping small and minority-owned businesses get loans.
- Local Chambers of Commerce: Often connect entrepreneurs with investors and grant opportunities.
These resources are especially useful for founders without traditional credit backgrounds.
Step 6: Partner with a Co-Signer or Investor
If you’re struggling to get approval alone, you can:
- Bring on a co-signer: Someone with good credit can help secure a small business loan.
- Find an angel investor: They’ll fund your business in exchange for equity or convertible debt.
- Pitch to friends and family: This can be informal, but always use a written agreement.
The key is to show potential investors care more about your business model and growth potential than your credit history.
Step 7: Prepare for the Future
Once you get funding, your next goal is to build long-term credibility. Pay all vendors and loans on time, keep your business financials organized, and monitor your credit reports regularly.
Over time, you’ll establish strong business credit, making it easier to qualify for larger loans, credit cards, or lines of credit when you need them.
Final Thoughts
Getting funding for your small business in 2025, even without a credit history, is completely possible. The key is to start small, stay organized, and take advantage of modern funding options that look beyond your credit score.
Focus on building your business the right way: set up your legal structure, open a business bank account, and show lenders you’re serious. With consistency and good recordkeeping, you’ll not only secure funding now but also build a foundation for bigger opportunities in the future.
Remember, lack of credit doesn’t mean lack of opportunity; it just means you need a plan and persistence.
