Funding for New Businesses
The funding landscape for businesses under 2 years old is narrow. Banks require 2 years minimum. SBA 7(a) loans require 2+ years. But MCA — which evaluates deposit volume, not business history — opens the door at 6 months. Here's what's available and when each option becomes accessible.
Businesses with at least 6 months of bank history and $8,000+/month in deposits can qualify for MCA — one of the few institutional funding options available before the 2-year mark. Pre-revenue businesses (under $8K/month) are not eligible for MCA and should look at business credit cards, microloans, or grants. Banks and SBA require 2 years minimum.
What's available at each stage of your business's life — and what's still out of reach.
The 5 things underwriters check when a business applies with under 2 years of history.
Note: For businesses in their 6th–12th month, underwriters look for consistent deposit growth month-over-month — a business generating $12K, $14K, and $16K in months 4–6 is a stronger applicant than one showing $18K, $10K, and $9K in the same period. Stability and trend matter.
Six common situations for businesses under 2 years old.
Traditional bank loans and SBA loans typically require 2+ years in business. Startups under 2 years are generally ineligible. MCA requires only 6 months in business and $8,000+/month in deposits — making it one of the few institutional funding options available to newer businesses with revenue.
For MCA: 6 months minimum. For traditional bank loans: typically 2 years. For SBA 7(a): typically 2 years. For business lines of credit: typically 1–2 years. For equipment financing: typically 1 year. The 6-month threshold for MCA is the earliest institutional funding most revenue-generating businesses can access.
Yes. Six months of business bank history with at least $8,000/month in deposits and a 500+ FICO qualifies for MCA. The advance amount will be based on the 3-month average — for a 6-month-old business, this means months 4, 5, and 6.
Pre-revenue businesses are not eligible for MCA or most institutional business funding. Options include personal savings, friends and family loans, business credit cards, CDFI microloans ($500–$50,000), small business grants, and crowdfunding. MCA requires demonstrated revenue — minimum $8,000/month in deposits.
For businesses with 6+ months of operating history and $8,000+/month in deposits, MCA is the fastest option — typically funded in 24–48 hours. For businesses under 6 months, business credit cards are the fastest accessible option, followed by personal loans or CDFI microloans.
6+ months in business and $8,000+/month in deposits? You may qualify. One-page application, 3 months of bank statements, decision in 24–48 hours.
Or call/text: 330-238-3003
T.A.G. Business Funding
500 FICO minimum. Bank declines OK. Revenue matters more than credit score. Most decisions in 24 hours.
500 FICO minimum · $8K+/month revenue · Funded in 1–3 days
More Funding Resources
