What Startup Funding is

Startup Funding is a loan type specifically geared towards helping you finance your business with very little history. Startup Funding comes in many shapes and sizes, ranging from business credit cards, personal loans and lines of credit. However, even less traditional lenders like friends or family could constitute as a startup loan if the money were to be put towards a business.


Loan Amounts

$5,000 – $350,000

Loan Terms

0 – 7 Years

Interest Rates

0% (for up to 21 months) to 15%


7 – 10 days on average

Types Of Startup Loans And Which Ones Are Best For You

For entrepreneurs like you, there are a few types of Startup Loans. The main three are Business Credit Cards, Personal Loans and Lines of Credit and BDRA using your retirement funds. To help you out, we’ll briefly explain what each of them does.

Business Credit Cards

The application process for business credit cards is similar to that of a standard credit card. Business credit card applications are typically much easier than other business loans. The business credit cards themselves can be used for a wide variety of purchases and are a good way to keep business and personal credit separate. However, with all of the benefits, this means business credit cards often have higher interest rates than other loans. Business credit cards can give upwards of $25,000 – $150,000.

Personal Loans and Lines of Credit

Personal Loans/Lines are finances borrowed from banks, alternative lenders, or credit unions with fixed terms and rates. Much like any other loan, you pay the money back in monthly intervals at a set interest rate. The majority of personal loans are unsecured– meaning there is no collateral involved. We also have options where the funds are structured as a revolving line of credit as well.

Business-Directed Retirement Accounts (BDRA)

A Business-Directed Retirement Account (BDRA) is a deposit account (Not A Loan) in which a fixed sum of money is given and where your retirement annuities can be withdrawn. Specifically, a BDRA allows you to invest your retirement assets directly into your new business without any penalties of taxable distributions.

Who Qualifies For Startup Funding:
The Three Cs

When you’re looking into loans, Finance Factory looks at the Three Cs: Credit, Cash flow, and Collateral. You’ll want to have a credit score between 680 and 800– with an ideal score of 700+. But we’ll also look for a minimum account balance of $1,000 – $5,000 for monthly cash flow (but also look at tax returns, profit, and annual revenue). As for collateral, we prioritize unsecured funding; however, collateral is just one option. As long as you have one of the Three Cs, you can qualify for funding.

It’s important to understand that businesses younger than 2 years or guarantors with poor credit scores will have a harder time qualifying. SBA lenders need to know you’re reliable and not a risk.

Ideal Annual Revenue

None is required

Ideal Credit Score

700 – 800

Time In Business

None is required

How To Apply / Documents Needed:

When it comes to Startup Funding, the application process and required documents can vary.


Finance Factory Helps You Find The Best SBA Loans For Your Business

Interested in finding funding for your business? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days and have a credit score of 680 – 800, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!


Required Documents:

Credit Report

Personal Tax Returns

Personal Credit history

Personal Financial Statement