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 $4,000–$6,000+/month in deposits can qualify for MCA — one of the few institutional funding options available before the 2-year mark. Pre-revenue businesses (under $4K/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: Underwriters review the full 6 consecutive months of statements and look for consistent deposit growth month-over-month — a business trending $10K, $12K, $14K, $15K, $16K, $18K across those 6 months is a stronger applicant than one bouncing between $18K and $9K in the same window. Stability and trend matter as much as the average itself.
A startup without real estate, equipment, or other assets to pledge still has real options — here's what fits which situation.
Have 6+ months revenue, no assets to pledge
Merchant Cash Advance (MCA) — approved on deposit history, not collateral — no real estate, equipment, or blanket lien required.
Pre-revenue or under 4 months in business
CDFI microloan or small business grant — CDFIs serve underserved/newer businesses with minimal or no collateral requirement; grants require no repayment at all.
Need ongoing access, not a lump sum
Business credit card — unsecured by definition — approval is based on personal credit, not business assets.
B2B business with outstanding invoices
Invoice factoring — the invoices themselves are the security — no separate collateral pledge needed from the business.
Considering a bank loan or SBA 7(a)
Expect a collateral or blanket-lien requirement — banks and SBA loans commonly require real estate, equipment, or a UCC blanket lien in addition to the 2-year time-in-business minimum.
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 $4,000–$6,000+/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 $4,000–$6,000/month in deposits and a 500+ FICO qualifies for MCA. Underwriting reviews the 6 most recent consecutive months of bank statements — for a business that just hit the 6-month mark, that's its entire operating history.
Yes. MCA requires no collateral at all — approval is based on deposit history, not pledged assets. CDFI microloans and small business grants also require minimal or no collateral for newer businesses. Business credit cards are unsecured by definition. The tradeoff: options that skip collateral (MCA, credit cards) typically cost more than a collateral-backed bank or SBA loan, which most startups can't access yet anyway due to the 2-year time-in-business requirement.
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 $4,000–$6,000/month in deposits.
For businesses with 6+ months of operating history and $4,000–$6,000+/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 $4,000–$6,000+/month in deposits? You may qualify. One-page application, 6 consecutive 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 · $4K–$6K+/month revenue · Funded in 1–3 days
More Funding Resources
