PROFITTHEORY

New LLC financing

Can a new LLC get a business loan?

Sometimes, but forming an LLC doesn't create borrowing history. Lenders financing a new business lean on the owner's experience, credit, cash in the deal, collateral and a credible plan. Expect to personally guarantee most loans.

Build my startup financing plan Plan your runway

Estimates only. Results vary. No guarantee of approval, rates or savings.

Profit Theory is not a lender. Providers make all funding decisions; approval is never guaranteed.

Why new businesses are harder to finance

Without operating history, a lender has no cash flow to underwrite. They look instead at you: industry experience, personal credit, liquidity and how much of your own money is at risk.

Options to explore

Depending on the situation:

  • SBA-guaranteed loans for startups with strong owner experience and equity
  • Equipment financing secured by the equipment itself
  • Secured loans or lines backed by other collateral
  • Owner equity, family or investor capital
  • Vendor or franchisor financing programs

Be careful with 'no collateral, no history' offers

Fast, unsecured offers for brand-new businesses can carry high costs and short terms. Compare the total cost of capital and the payment schedule before signing.

Run the numbers

Blue = you enterGreen = calculatedGray = assumptionAmber/red = check this
$

Build-out, equipment, deposits, licenses, opening inventory.

$

Be conservative for the first 6 months.

$

Rent, payroll, software, insurance, owner draw.

$

Runway

7.5 months

Cash after launch

$45,000

Monthly net

-$6,000.00

6–12 months

Planning estimate only. Most lenders look for operating history; new businesses often rely on owner equity first.

Read: realistic startup funding options

Estimates only. Results vary. No guarantee of approval, rates or savings.

Talk with a financing specialist

Common questions

Can I get a business loan with no revenue?

It's possible for some startup programs, typically with equity, collateral and strong owner experience. Lenders decide.

Will an EIN help me borrow?

An EIN and business bank account are basics, but they don't replace cash flow or collateral.

How much should I put in myself?

Many startup lenders expect a meaningful owner contribution. The amount varies by program and lender.