Yes, but your options are narrower. An empty credit file isn't the same as a low score, so look for funding that weighs something else: SBA Microloans and nonprofit or CDFI lenders that review your business plan, a secured card or credit-builder loan, equipment financing backed by the equipment, and grants. Skip anyone who promises approval before seeing your file.
By MCAFax. Last updated: October 9, 2026
General information, not legal or financial advice.
| Option | What it leans on instead of credit | Watch out for |
|---|---|---|
| SBA Microloan (up to $50,000, through nonprofit intermediaries) | Your business plan, your own stake, and the lender's coaching | A first loan may be smaller than the cap |
| CDFI or community lender | Its mission to serve people who lack access to financing | Programs and credit rules vary by lender, so ask |
| Secured business card or credit-builder loan | Your own cash deposit or locked savings | It builds a record; it doesn't fund the business |
| Equipment financing | The equipment itself | You can lose the equipment if you fall behind |
| Grants | Your project and eligibility, not repayment | Slow and competitive; a real grant never charges a fee |
| Personal savings or friends and family | Your own money and relationships | Put it in writing, and don't drain retirement savings |
| Merchant cash advance (last resort) | Your daily card sales or deposits | Usually the most expensive money on this list |
This page is for owners with a thin or empty file: new founders, a brand-new EIN, people new to the U.S. credit system, or anyone who has simply never borrowed. If you have a credit history and the score is low, that's a different problem with different fixes. Read how to get a business loan with bad credit instead.
For the full map of funding by situation in 2026, see where to get funding for your small business.
No credit vs. bad credit: what lenders actually see
Bad credit means a lender can read your file and doesn't like what it finds: late payments, collections, too much debt. No credit means there's little or nothing to read. Neither is good news for a loan officer, but they call for different moves.
Here's what matters for a new business: SBA says loan eligibility for a new business is typically based on the owner's personal credit score, because the business has no financial history yet. (SBA: Plan your business) So a brand-new company with no business credit isn't automatically stuck if the owner has a personal track record. The hard case is when both files are empty.
A score is also only one input. SBA tells its 7(a) lenders they may use a business credit scoring model, a credit score or the credit history of the applicant, and that cash flow, equity or collateral may also be considered. Applicants still have to be creditworthy and show a reasonable ability to repay. (SBA: 7(a) terms, conditions and eligibility)
With no file to lean on, a lender asks:
- Is money already coming in? Deposits in a business bank account show what a score can't.
- What's the plan? A clear business plan with projections shows how the loan gets repaid.
- What's at stake? Your own money in the business, or an asset that secures the loan.
- Who stands behind it? A co-signer or guarantor with an established record can change the answer.
Your options, best first
1. SBA Microloans. Loans of up to $50,000 for starting or growing a small business, made through nonprofit community-based lenders that SBA calls intermediaries. SBA says the average microloan is about $13,000, and these lenders also provide management and technical assistance. The microlender, not SBA, makes the credit decision and sets the terms, and SBA says rates generally run between 8% and 13%. Microloans can pay for working capital, inventory, supplies, furniture, fixtures, machinery and equipment, but not existing debts or real estate. (SBA: Microloans)
Expect a first microloan to start small. SBA's rules for microlenders say they generally shouldn't lend more than $10,000 to one borrower, and more than $20,000 only when the borrower can't get credit elsewhere at comparable rates and has good prospects for success. (SBA: Microloan program terms)
2. A CDFI or community lender. Community development financial institutions are certified by the U.S. Treasury's CDFI Fund to provide financial services in low-income communities and to people who lack access to financing. They include community development banks, credit unions and loan funds, and certified CDFIs operate in all 50 states, the District of Columbia, Guam and Puerto Rico. Ask one near you whether it makes small-business loans, what it needs to see in place of a credit history, and whether it offers coaching.
3. A small loan from your own bank or credit union, or an SBA 7(a) loan. Your bank can see your deposits, and that history counts. SBA doesn't require collateral on 7(a) loans of $50,000 or less, though you still must be creditworthy. (SBA: 7(a) terms, conditions and eligibility) SBA's Lender Match sends your request to participating lenders and prepares a summary of interested lenders two business days after you submit. It isn't a loan application, and it doesn't promise a match or an offer.
4. A secured card or credit-builder loan (to build the file). These don't fund your business, but they start the record that later loans depend on. With a secured card, you put down cash, for example $500, and can spend up to that amount. With a credit-builder loan from a bank or credit union, the money is held as savings while you make small payments, usually over six to 24 months, and you get the full amount you paid at the end. The CFPB notes these payments are reported to the three nationwide credit reporting companies. Debit cards, prepaid cards and payday loans don't build credit history. (CFPB: Ways to start or rebuild credit)
5. Equipment financing. If the money is for a truck, oven or machine, the equipment secures the loan, which takes weight off a thin file. The trade-off: fall behind and the lender can take the equipment back.
6. Grants. Money you don't repay, but slow and competitive. SBA says it does not provide grants for starting and expanding a business. Its grants go to nonprofits, resource partners and educational organizations, plus programs like SBIR and STTR for scientific research and development. (SBA: Grants) Most funding opportunities on Grants.gov are for organizations, not individuals. See small business grants open now for current openings.
7. Personal savings or friends and family. SBA lists self-funding, including savings and money from family and friends, as a way to start, and warns to be especially careful about tapping retirement accounts early because of fees and penalties. (SBA: Plan your business) Put any family loan in writing, with a payment schedule. Lenders also like to see some of your own money in the business.
8. A merchant cash advance, last. An advance approves on card sales or deposits, so a thin file matters less. That ease is priced in: it's usually the most expensive money on this list, collected by daily or weekly debit. Run any offer through our cost of capital calculator, and see merchant cash advance alternatives for cheaper options in order. If speed is the whole point, read the fastest business funding and what speed costs.
Brand new with no revenue yet? See startup business funding for how new businesses actually get funded.
What to bring instead of a credit score
SBA's Lender Match checklist lists what lenders expect: a business plan, the amount you need and how you'll use it, credit history, financial projections, collateral, and industry experience, which helps but isn't required. (SBA: Lender Match) With no credit history, the rest of that list has to work harder:
- Bank statements. Even a few months of steady deposits in a business account tell a story.
- A business plan. SBA says lenders and investors commonly request a traditional, detailed plan, including a funding request and financial projections. (SBA: Write your business plan)
- Collateral. Many lenders ask for an asset to secure the loan, such as a home, car, inventory or other property. (SBA: Lender Match)
- Revenue or signed contracts. Proof that customers are paying, or have agreed to.
- A co-signer or guarantor. Someone with established credit who agrees to repay if you can't. Make sure they understand that risk before they sign.
How to start a business credit file this month
- Get a free EIN from the IRS. Apply at IRS.gov. If approved online, the EIN is issued right away. The IRS says you never have to pay a fee for an EIN, so skip any site that charges one.
- Open a business bank account. SBA says you can open one once you have your EIN, and keeping business money separate gives you limited personal liability protection. (SBA: Launch your business) Run every business dollar through it so a lender can see your deposits.
- Open a vendor or supplier account that reports. Ask suppliers whether they report your payments to a business credit bureau. Business credit bureaus exist separately from the personal ones, and an account that doesn't report won't build your file. SBA also notes that business credit card accounts can help establish a credit history for your business.
- Pay every bill on time, every time. On-time payments are what build the record.
- Check your personal credit reports. You can check your report from each of the three nationwide credit bureaus once a week for free at AnnualCreditReport.com, the only site authorized to fill orders for the free reports you're entitled to by law. (FTC: Free credit reports) A thin file can still contain mistakes, and it's worth knowing what a lender will see.
Red flags aimed at new owners
New owners with no file are a favorite target, because they're often told no elsewhere.
- Approval promised before anyone sees your file. The FTC says banks and legitimate lenders won't promise you a loan before you apply. They check your credit, confirm your application and then decide. (FTC: Advance-fee loans)
- A fee before you get the money. The FTC says any up-front fee a lender wants before granting the loan is a cue to walk away, especially one called "insurance," "processing" or "paperwork." Real lenders may charge an application or appraisal fee, but nobody legitimate will tell you that paying a fee locks in a loan.
- Pressure to sign today. A real offer will still be there after you've read it and slept on it.
- A fee-based "SBA loan finder." If someone you pay helps with an SBA loan application, SBA requires a compensation agreement on SBA Form 159, and SBA can make the agent cut or refund a fee it deems unreasonable (13 CFR 103.5).
- A grant that charges you. A real grant never charges an application fee.
- Nonstop broker calls and texts. See how to stop MCA broker calls. Report suspected fraud at ReportFraud.FTC.gov.
Not sure which option fits?
Start with where to get funding for your small business. It maps every kind of business funding by situation, so you can see what fits a business with no credit history.
Sources
- U.S. Small Business Administration, Microloans: https://www.sba.gov/funding-programs/loans/microloans
- U.S. Small Business Administration, Lenders: 7(a) terms, conditions and eligibility, and Microloan program terms: https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility
- U.S. Small Business Administration, Lender Match: https://www.sba.gov/loans/lender-match
- U.S. Small Business Administration, Plan your business (Establish business credit; Fund your business): https://www.sba.gov/business-guide/plan-your-business/fund-your-business
- U.S. Small Business Administration, Write your business plan: https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
- U.S. Small Business Administration, Launch your business (Open a business bank account): https://www.sba.gov/business-guide/launch-your-business/open-business-bank-account
- U.S. Small Business Administration, Grants: https://www.sba.gov/funding-programs/grants
- U.S. Small Business Administration, Fee Disclosure and Compensation Agreement (SBA Form 159): https://www.sba.gov/document/sba-form-159-fee-disclosure-compensation-agreement
- 13 CFR 103.5, How does SBA regulate an Agent's fees and provision of service? (eCFR): https://www.ecfr.gov/current/title-13/chapter-I/part-103/section-103.5
- CDFI Fund, U.S. Department of the Treasury, CDFI Certification: https://www.cdfifund.gov/programs-training/certification/cdfi
- Grants.gov, Grant eligibility: https://www.grants.gov/learn-grants/grant-eligibility
- Internal Revenue Service, Get an employer identification number: https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
- Consumer Financial Protection Bureau, What are some ways to start or rebuild a good credit history?: https://www.consumerfinance.gov/ask-cfpb/what-are-some-ways-to-start-or-rebuild-a-good-credit-history-en-2155/
- Federal Trade Commission, Free credit reports: https://consumer.ftc.gov/articles/free-credit-reports
- Federal Trade Commission, What to know about advance-fee loans: https://consumer.ftc.gov/articles/what-know-about-advance-fee-loans
- Federal Trade Commission, ReportFraud.FTC.gov: https://reportfraud.ftc.gov/
All agency pages checked October 9, 2026. Verify rates and terms with the lender in writing.
Last updated: October 9, 2026
Rules and agency pages in this area change. If something here is out of date, tell us at info@mcafax.com and we will fix it. MCAFax is not a law firm or a lender, and this is not legal or financial advice.