Startup Financing For Opening A Small Business

How do you know if you are going to be considered a Startup Financing candidate?

Well, most finance companies consider a business that has been in existence for less than 2 years, a business that will only qualify for Startup Financing.

And no you can't just say you have been around for at least 2 years when you really haven't.

Believe it or not, some people do try to get away with that and are quite shocked when the finance company gets the approval and then asks for verification of the TIB (time in business).

Your TIB can easily be tracked by the finance company if you are incorporated or an LLC. The Secretary of State website for your state will list information on your initial filing and it will show the date that your company was created.


If you are a sole proprietor, you will need to either provide a business license showing when you began the business, an older Schedule C from your tax returns, or another form of proof that will validate your time in business.

You will not be able to provide something that you could have easily drafted yourself, for obvious reasons. The finance companies have to verify everything so it is best to just provide them with as much accurate information as you can.

Depending on what industry you are in is one of the determining factors on how easily you will get approved.

For example, if you are starting an excavating business and need to purchase a mini-excavator for around $25,000, you will have an easier time getting approved than if you are a startup restaurant who has no previous experience in the restaurant industry.

Mini-excavators are good solid collateral that can usually be re-sold pretty easily should you default on your financing contract.

New restaurants have a high risk of failure, sorry but it's true, and the collateral isn't the best when it comes to holding it's value. The finance companies know this, which is why they may be more lenient for stronger collateral.

The last thing that we will discuss for now on Startup Financing is how much you might be able to get approved for when it comes to actual equipment purchasing.

A good, round figure is probably around $30,000 that a finance company may lend to a new business. If you need more than that, don't be discouraged because you may still qualify for a higher amount, but on average, that's a pretty good number to keep in the back of your mind.

Just remember, everyone had to start somewhere. Building business credit now with startup financing is helping put you on the road to success and opening more doors to help you qualify for bigger and better Small Business Financing later!

Have you been in business for at least 3 months and have been accepting credit cards from your customers for at least 3 months? If you have, you may qualify for a Merchant Cash Advance.

If you are interested in applying for Startup Financing or a Merchant Cash Advance, Contact Us by email or 1-888-527-0506.