Yes, a new LLC can get a business loan, but it’s generally more challenging than for established businesses. Lenders look at things like creditworthiness, business history, and collateral—things a brand-new LLC may not have. Here’s a breakdown:
Options for a new LLC:
- SBA Loans: The Small Business Administration partially guarantees loans. Some SBA programs (like microloans or SBA 7(a)) may consider new businesses, but you may need strong personal credit.
- Business Lines of Credit or Term Loans from Banks: Most traditional banks prefer at least 1–2 years of business history, but some community banks or credit unions may work with startups.
- Online Lenders: Platforms like Kabbage, BlueVine, or OnDeck often lend to new businesses. Interest rates can be higher, and personal guarantees are usually required.
- Business Credit Cards: A simpler way to start building credit for your LLC.
- Alternative Financing: Friends, family, angel investors, or crowdfunding.
Key factors lenders look at for a new LLC:
- Personal credit score: Often the primary factor if your LLC has no history.
- Business plan: Shows how you plan to use and repay the funds.
- Collateral or personal guarantee: Reduces risk for the lender.
- Revenue/projections: Any contracts or revenue history help.
💡 Tip: Even if your LLC is brand new, strong personal credit and a clear plan can help you qualify for small loans or lines of credit, which also starts building business credit.