Getting financing with just six months under your belt can feel like an uphill battle. Most traditional lenders want at least two years of operating history before they’ll consider your application. But that doesn’t mean you’re out of options.
Here are the most common lenders and loans you can qualify for with only six months in business, what you’ll need to apply, how much you can realistically borrow and alternatives if you don’t yet qualify.
Lenders offering loans with as little as six months in business
| Pinnacle Funding | 6+ months | $180K annually | Business expansion, term loan, LOC | 24 hours |
|
| BestMoney | 6+ months | Varies by lender | Term loans, LOCs, MCAs and more | Varies by lender |
|
| Lendio | 6+ months | Varies by lender | Term loans, LOCs, MCAs, equipment financing and more | Varies by lender |
|
| Advance Funds Network | 3+ months | $15K monthly | Term loans, LOCs, MCAs, equipment financing and more | As soon as same day |
|
| Kiva | None | None | Microloans (up to $15K) | Several weeks |
|
| National Funding | 6+ months | $250K annually | Short-term loans | 24 hours |
|
Why lenders care about time in business
Lenders see younger businesses as riskier because there’s less financial history to prove stability. This doesn’t mean you’re automatically declined, but it shapes which loans you can access. Most of the time, the tradeoff is:
- Higher interest rates to offset risk
- Lower borrowing limits compared to established businesses
- Stricter revenue requirements
- Possible collateral requirements
Hot tip: Even if you don’t qualify for a traditional loan yet, building strong business credit early can unlock better offers down the road.
Types of business loans available at six months
Not every financing option is on the table, but several loan types are designed to meet you where you’re at.
Short-term online business loans
Online loans give you fast access to working capital when you need it most. They’re easier to qualify for than traditional loans from brick-and-mortar banks, but usually come with higher costs and shorter repayment schedules.
- Quick approval, sometimes within 24–48 hours
- Borrowing limits often capped at $250,000
- Repayment terms: 3–18 months
- Higher rates but easier approval than banks
Business lines of credit (LOC)
A line of credit works like a safety net, letting you borrow only what you need. You can reuse funds once you’ve paid them back. It’s a flexible way to cover gaps in cash flow or unexpected expenses.
- Flexible draw-as-needed model
- Revolving credit, pay it down and borrow again
- Useful for covering uneven cash flow or surprise expenses
Microloans
Microloans are designed for very small or newer businesses that may not qualify elsewhere. They come in smaller amounts, but often with more flexible credit requirements.
- Loan amounts typically under $50,000
- Offered by nonprofits and community lenders
- Lower credit score requirements compared to banks
Equipment financing
With equipment financing, the item you’re buying, like a truck or new machinery, secures the loan. It’s a smart option if you need tools to grow your business but don’t want to drain cash reserves.
- Equipment acts as collateral
- Ideal if you need tools, vehicles or machinery to grow
- Terms can stretch 2–6 years, even if your business is new
Merchant cash advances (MCAs)
An MCA gives you a lump sum up front in exchange for a percentage of your future sales. They’re fast and easy to get, but often the most expensive form of financing.
- Advance against future sales
- Fast approval but expensive (factor rates instead of APR)
- Best as a last-resort option
Invoice factoring
Invoice factoring lets you turn your unpaid invoices into immediate cash. You sell your invoices to a factoring company, which advances you a percentage of their value up front. When your customers pay, you receive the remaining balance minus the company’s fees.
- Quick funding for immediate cash needs
- Approval often based on invoice value rather than personal credit
- Doesn’t affect your credit score
Invoice financing
Invoice financing is a way to borrow money against your outstanding invoices without selling them. You maintain responsibility for collecting payments, but you get cash up front based on the invoices’ value. This method can help maintain customer relationships while giving you faster access to funds.
- Fast access to working capital
- Retain control over invoice collection
- Easier approval compared with some other loans
Quick comparison of loan types
| Short-term loan | Covering immediate needs | High rates, daily/weekly pay |
| Line of credit | Flexible, recurring expenses | Annual fees, variable APR |
| Microloan | Small, newer businesses | Slower approval, smaller funds |
| Equipment financing | Buying essential tools or vehicles | Only usable for equipment |
| Merchant cash advance | Fast cash when sales are steady | Very high cost of capital |
| Invoice factoring | Businesses with strong cash flow and unpaid invoices | High fees, factoring company may vet customers |
| Invoice financing | B2B companies or businesses with reliable repeat clients | High fees, lenders may check customer payment histories |
Minimum requirements you’ll likely need
Even at six months, most lenders want to see some basics:
- Business revenue. Usually $5,000–$10,000 per month
- Credit score. Often 600+ for alternative lenders
- Bank statements. At least three to six months of business activity
- Business entity. LLC, corporation or sole proprietorship
Hot tip: Some online lenders care more about your revenue than your credit score. If sales are strong, you might qualify even with weaker personal credit.
Alternatives if you don’t qualify yet
If your business hasn’t hit lender requirements, you still have ways to access funding:
Business credit cards
A business credit card is another quick way to access funding while also building your business credit history. They work best for everyday purchases and smaller, recurring expenses.
- Fast approval and great for building credit
- Many offer intro 0% APR periods
- Best for smaller, recurring expenses
Personal loans for business use
If your business is too new to qualify on its own, you may be able to borrow through a personal loan and use it for your business. Approval is based on your income and credit, but you’ll be personally responsible for repayment.
- Based on your personal credit and income
- Higher limits than business credit cards in some cases
- Risk: you’re personally liable
Friends and family loans
Borrowing from friends or family can give you flexible, low-cost funding without strict requirements. Just make sure expectations are clear and agreements are documented.
- Flexible repayment terms
- No credit requirements
- Important: put agreements in writing to avoid issues
Crowdfunding and grants
Crowdfunding platforms and business grants can provide funding without repayment obligations. They’re competitive but worth exploring, especially if you have a unique story or niche product.
- Non-repayable funding through platforms or government programs
- Competitive but worth exploring for niche businesses
Bottom line
Getting a business loan with only six months of history isn’t easy, but it’s not impossible. The key is to focus on lenders and products that cater to newer businesses, such as short-term loans, lines of credit, working capital loans or microloans. If you’re not quite ready, consider alternatives like credit cards or grants to bridge the gap.
The good news is that there are lenders and loan types designed for newer businesses, and some even offer business loans specifically for startups. Plus, the longer you’re in business, the more funding options become available, and the more leverage you’ll have to negotiate better terms.
