Can you get business credit with no income? (2024)

Can you get business credit with no income?

Don't worry if you don't have business income yet; card issuers will check your personal credit report when approving you for a card, so you may be approved if your personal income is sufficient – even if your business income so far is zero.

Can you get a business credit card without any income? You can still get a business credit card before you've started a business or generated any income. In that case, you'll just need to choose a card that asks for your Social Security number and doesn't have any business income requirements.

You can get a business credit card with no revenue, though you will need to list personal income to have a chance of being approved. You can simply enter $0 in the revenue field on the application form if you have no business revenue yet.

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.

Business credit cards are popular among established and new LLC owners alike, but the application process is far from straightforward. Here are a few challenges you might come across when applying for your first business credit card.

It's possible to apply for a business credit card using just an EIN and no Social Security Number. Some credit card issuers allow businesses to apply solely using their EIN, usually if the business is structured as a corporation or LLC.

Approval for small-business cards is based largely on your personal credit score. Most cards require good or excellent credit — typically a personal FICO score of 670 or higher.

Freelancers and gig workers can qualify for a business credit card the same as any company, even if your business is your side hustle and not your main gig.

How to fund a startup with no revenue?

Minimum Revenue Requirements for Small Business Loans

Typically, you'll need at least $100,000 to $250,000 in annual revenue. Banks are risk-averse and look for businesses with a strong track record, making their revenue requirements higher than alternative lenders.

Most $2 million business loans aren't easy to come by. You'll need to have good credit and enough revenue to convince lenders you'll be able to manage payments. It's also not uncommon to have to put up collateral. It helps to work with a team of dedicated professionals to guide you through the process.

An issuer may request proof of revenue, so it's important to have the paystubs, contracts, receipts, invoices or other paper trails to back up your figures. Additionally, don't include any income that isn't related to the business.

Building business credit typically takes around six months to a year of consistent financial activity, including making on-time payments to creditors and vendors, maintaining a positive bank account balance, and demonstrating responsible credit usage.

Forming an LLC or corporation creates a separate legal entity with its own credit score different from the business owner(s) 's personal credit score. This differs from sole proprietorships and partnerships, where the business's credit is tied to personal credit profiles.

If your on-time payments are reported to business credit bureaus, you'll start building good business credit. Find easy net-30 vendors that report here. It's a good idea to have two or three net-30 accounts that you pay on time. Credit limits may be small to start, but that's fine.

You need a personal credit score of 700 or higher to qualify for the best business credit cards. The exception to this rule is corporate cards, which usually don't check your credit score. Instead, these cards require that you have a certain amount of capital in a business bank account.

It's not hard to get a credit card for a new LLC. Issuers will mostly rely only on your personal credit history and personal income when evaluating your small business credit card application, so the length of time the LLC has been in business will have little effect on the LLC's approval odds.

Can I get a loan with my EIN number?

You can apply for a business loan with your EIN if you're a new business owner without established credit. However, you may also need to include your SSN and details about your personal finances because you'll likely have to provide a personal guarantee.

While your personal credit score is tied to your Social Security number, your business credit score is tied to an Employer Identification Number — or EIN. This helps you keep your personal financial information private while you build and maintain your business credit score.

You can get a small business loan even with bad credit. This is because your credit score doesn't matter as much as the overall financial health of your business. Many lenders require a minimum credit score of 500, at least six months in business, and more than $30,000 in annual revenue.

Available loan amounts depend on the lender but typically range from $2,000 to $250,000. Because you don't pay interest on the full amount and only on what you use, it's acceptable to ask for a higher limit than you'll likely need—as long as you don't get greedy and spend more than you can afford.

Getting a business line of credit with bad credit is possible, though it might be more difficult. Alternative lenders often consider factors beyond credit score, such as revenue and cash flow. Secured lines of credit, where you offer collateral, can also help.