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Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Lead Editor, Mortgages & Loans
Updated: May 1, 2024, 12:08pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Business lenders typically impose minimum revenue requirements on borrowers to ensure they have enough funds to cover payments. The revenue needed varies by lender but usually ranges between $100,000 and $250,000. Some lenders work with companies with annual revenue less than $100,000.
Depending on the lender’s requirements, it can be difficult for some businesses to qualify for revenue loans. That said, most lenders evaluate other factors like credit score, time in business and other qualifications, so choose an option that meets the unique needs of your business.
Why you can trust Forbes Advisor: Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the loans methodology for the ratings below.
27 lenders researched
16 data points evaluated
5 cateogires scored
FEATURED PARTNER OFFER
OnDeck
4.8
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
We picked OnDeck for its variety of business lending products and same-day funding. OnDeck offers a term loan from $5,000 to $250,000 with repayments terms of up to 24 months. You can also access a credit limit of $6,000 to $100,000 through its line of credit with a 12-month repayment term that resets after each withdrawal.
Pros & Cons
Term loans from $5,000 to $250,000
Lines of credit from $6,000 to $100,000
Same-day funding
Low minimum credit score requirement
$100,000 minimum annual revenue requirement
Must have been operating for at least one year
Does not lend to businesses in North Dakota
Details
Eligibility
Minimum credit score: 625
Time in business: One year
Minimum revenue: $100,000 per year
Turnaround time
You can apply and receive a decision from OnDeck on the same day.
Expert’s Take
OnDeck has carved a niche in the realm of alternative lending, offering expedited access to capital for businesses that may not qualify for traditional bank loans. Its big advantage is the availability of funds on the same day or next while not being affected by a hard credit pull. However, this aggressive lending practice also comes at a steep price.
— Abid Salahi, co-founder and CTO, FinlyWealth
Best Business Loans for Low-revenue Companies 2024
Best for Short-term Loans
OnDeck
4.8
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
We picked OnDeck for its variety of business lending products and same-day funding. OnDeck offers a term loan from $5,000 to $250,000 with repayments terms of up to 24 months. You can also access a credit limit of $6,000 to $100,000 through its line of credit with a 12-month repayment term that resets after each withdrawal.
Pros & Cons
Term loans from $5,000 to $250,000
Lines of credit from $6,000 to $100,000
Same-day funding
Low minimum credit score requirement
$100,000 minimum annual revenue requirement
Must have been operating for at least one year
Does not lend to businesses in North Dakota
Details
Eligibility
Minimum credit score: 625
Time in business: One year
Minimum revenue: $100,000 per year
Turnaround time
You can apply and receive a decision from OnDeck on the same day.
Expert’s Take
OnDeck has carved a niche in the realm of alternative lending, offering expedited access to capital for businesses that may not qualify for traditional bank loans. Its big advantage is the availability of funds on the same day or next while not being affected by a hard credit pull. However, this aggressive lending practice also comes at a steep price.
— Abid Salahi, co-founder and CTO, FinlyWealth
Best for average monthly revenue of at least $3,000
American Express® Business Line of Credit
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
$2,000 to $250,000
APR range
N/A
Minimum Credit Score
All businesses are unique and are subject to approval and review. The required FICO score may be higher based on your relationship with American Express, credit history and other factors.
All businesses are unique and are subject to approval and review. The required FICO score may be higher based on your relationship with American Express, credit history and other factors.
660 FICO at the time of application
Editor’s Take
American Express Business Blueprint™ is best for its American Express® Business Line of Credit (formerly Kabbage from American Express and Kabbage Funding™), which gives business owners the chance to secure funding between $2,000 to $250,000. Repayment terms include six, 12, 18 and 24 months.
Line of credit customers incur a loan fee for each month they have an outstanding balance. Total monthly fees incurred over the loan term range from 3% to 9% for six-month loans, 6% to 18% for 12-month loans, 9% to 27% for 18-month loans and 12% to 18% for 24-month loans.
In addition to its line of credit, American Express Business Blueprint provides other tools beneficial to small business owners, including its own mobile app that provides comprehensive cash flow insights. All businesses are unique and are subject to approval and review.
Pros & Cons
No prepayment penalty
Four different repayment options
Offers small to large lines of credit
Monthly fees on unpaid balances
Requires personal guarantee
Lines of credit over $150,000 are only available to borrowers who meet additional criteria
Details
Eligibility
Minimum credit score: 660 FICO at the time of application
Time in business: One year
Minimum revenue: At least $3,000 per month
All businesses are unique and are subject to approval and review.
Turnaround time
Funds can take up to three business days to appear in your account, depending on your bank.
Expert’s Take
The American Express® Business Line of Credit allows you to qualify at a credit score of 660 FICO at the time of application, so it’s not a great option for any business with a bad credit rating. Rather than a typical revolving line of credit, you must choose [from available terms] with varying fees. Every time you withdraw from your business line of credit, it’s treated as a separate installment loan rather than being added to existing loans.
One downside to the American Express® Business Line of Credit is the time it takes to receive your cash. You’ll need to wait [one to three] business days for your funds, while other lenders offer same-day options. If you need your cash fast, that delay becomes a problem.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
Best for Quick Approvals
Fundbox
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Fundbox is an AI-powered business lending platform that speeds up the application, decision-making and funding process. It offers decisions within three minutes and funds as soon as the next business day.
Prospective borrowers have two business financing options through Fundbox. Business owners can apply for revolving business lines of credit up to $150,000 with repayment terms of 12 or 24 weeks. Your available credit goes back up as you repay your line of credit.
Pros & Cons
No prepayment penalty
Low minimum annual revenue requirement
Next-business-day funding
Only short-term repayment terms are available
Does not disclose APRs
Details
Eligibility
Minimum credit score: 600
Time in business: Six months
Minimum revenue: $100,000 per year
Turnaround time
With a business line of credit from Fundbox, you can receive your funds as soon as the next business day.
Expert’s Take
The approval process is quick and Fundbox is available for the credit-challenged business. Credit approvals are usually small, so this [typically] isn’t an option for larger purchases. I had a small business client that had Fundbox integrated with her Stripe dashboard, which made it convenient.
— Herman Thompson, Jr., advisory board member
Best for Funding Options
Biz2Credit
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
Up to $1M+
Revenue-based financing. Varies depending on product and qualifications
Revenue-based financing. Varies depending on product and qualifications
Does not disclose
575 or 650*
*See website for details
Editor’s Take
Biz2Credit is a digital funding platform that provides three funding options—term, revenue-based financing and commercial real estate (CRE) loans—ranging from Up to $1M+. It only takes a few minutes to apply.
Biz2Credit can connect business owners with revenue-based financing Up to $2M+ and term loans Up to $1M+. Revenue-based financing payments are flexible based on business performance, with a right to reconcile against actual business receipts while term loans are repaid through weekly, bimonthly or monthly payments over the course of 12 to 36 months. Biz2Credit also offers interest-only CRE loans from Up to $2M+ with terms between 12 and 36 months; payments are due monthly.
In the event that Biz2Credit cannot provide a financial product, it may present third-party options to qualified prospective borrowers. However, Biz2Credit confirms that “in the vast majority of cases, [it] will make a financing decision without referral to any external party.”
Pros & Cons
Revenue-based financing has flexible qualification requirements
Can pre-qualify for submitting an application
Offers term loans with weekly or biweekly payments
Does not disclose financing costs
Does not disclose turnaround time
High annual revenue requirement
Details
Eligibility
Eligibility varies based on the financing option you choose.
Term loan
Minimum credit score: 650
Time in business: 18 months
Minimum revenue: $250,000 per year
Revenue-based financing
Minimum credit score: 575
Time in business: 6 months
Minimum revenue: $10,000 per year
Turnaround time
Biz2Credit does not disclose the turnaround time for its financing options.
Expert’s Take
Similar to Funding Circle, Biz2Credit emerges as a more balanced alternative and functions as a platform to offer a wide range of loans. Due to the more thorough underwriting process, the qualification requirements are more restrictive than other business lenders and funding may not be as quick.
— Abid Salahi, co-founder and CTO, FinlyWealth
Summary: Best Business Loans for Low-revenue Companies
To get the best loan for your business, compare offers from a variety of lenders. Here are some tips to help you compare the best business revenue loans:
Check eligibility requirements. In addition to enforcing a minimum revenue needed, most lenders consider credit history and look at how long a business has been operating. Make sure you understand these requirements and choose a lender that best aligns with your business’ qualifications.
Understand the total cost of borrowing. Revenue loans typically come with annual percentage rates (APRs) starting around 8%. Lenders may also charge origination fees, prepayment penalties and other fees.
Evaluate approval and funding speeds. Approval, underwriting and funding speeds vary by lender and loan type. If you need to access funds quickly, pay attention to the average funding speeds each lender offers.
Ask for recommendations and read online reviews. Research each borrower’s reputation before submitting a formal loan application. If you’re happy with your current bank, inquire about its lending options or ask other industry professionals for recommendations. Also read online reviews to see what current and former customers think about lenders.
What Is Business Revenue?
Business revenue is the income generated by a company. Revenue is also referred to as a business’ gross sales or top line and typically includes sales of products or services. Because revenue only accounts for sales, it does not speak to the costs of doing business or a business’ operating efficiency.
Why Does Business Revenue Matter to Lenders?
Lenders use business revenue to assess a company’s ability to repay a loan. A healthy revenue stream often indicates a well-run company and gives lenders more confidence in a borrower’s financial stability. The higher the revenue, the more likely the company is to make loan payments on time.
Lenders typically look at a business’ checking account statements and other financial documents to calculate qualifying revenue. Minimum revenue requirements vary by lender, but many require a company to have at least $100,000 in annual revenue to qualify for a loan.
Can You Get a Business Loan With No Revenue?
Getting a business loan with no revenue is possible, but it may be more challenging to qualify. Most lenders want proof of income before approving a loan, so businesses without any revenue may have to look for alternative financing options.
There are some lenders that don’t impose a revenue requirement. However, applicants must still meet minimum credit score and time in business requirements. Others specialize in businesses with low annual revenue—often less than $100,000.
The U.S. Small Business Administration (SBA) also offers loans that may be available to businesses with low revenue. In contrast to most business loans, the SBA imposes maximum revenue requirements as a way of serving small businesses. SBA microloans often come with the most accessible qualification requirements.
Revenue Loan Alternatives
If you can’t qualify for a business revenue loan, consider these alternatives:
Business credit cards. Business credit cards can be a good option for short-term financing needs. Many business credit cards offer 0% APR introductory periods, making it easier to finance business expenses without established revenue.
Business lines of credit. Business lines of credit provide business owners with a source of funding that can be accessed as needed. In contrast to business loans, which are ideal for large purchases, lines of credit are a good solution for ongoing cash flow needs.
Invoice factoring.Invoice factoring lets business owners sell their outstanding invoices to a third-party lender in exchange for a portion of the outstanding balances. Because factoring companies look at the borrower’s client payment history, this is often a good option for businesses without established credit.
Merchant cash advances. A merchant cash advance provides you with a lump sum of cash in exchange for a percentage of your future credit card sales. This can be a good option if you need funding quickly and your business has a high volume of credit card sales.
Methodology
We reviewed 27 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
Loan cost: 35%
Loan details: 25%
Customer experience: 20%
Eligibility and accessibility: 10%
Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
A revenue loan is a type of business loan that is based on the company’s revenue rather than—or in addition to—factors like credit history and time in business. Lenders use the company’s revenue to assess risk and determine how much money they are willing to lend to a particular borrower.
How do I enter revenue on a business loan application?
The process for entering revenue on a business loan application depends on the lender’s application process and underwriting requirements. In general, though, you can enter your business’ revenue as part of the application and then submit financial documents as part of verification and underwriting.
Is revenue-based financing a good idea?
Whether revenue-based financing is a good idea depends on the business and borrower’s qualifications. Established businesses with strong credit scores may not need to rely as heavily on revenue numbers as newer companies with less history. However, revenue calculations do not consider overall business expenses or operating efficiency and may not accurately reflect a borrower’s ability to make loan payments.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
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