What are the best lenders for a startup business?

Detail

True startups don't meet the SBA 7(a) 24-month operating test as a standalone borrower, but four paths still work. First, SBA 7(a) for acquisition — the 24-month test runs against the target business, so a new entity can buy an established business with SBA 7(a) financing. Second, SBA Microloan up to $50K. Third, equipment financing — because the equipment is the collateral, revenue history matters less. Fourth, revenue-based working capital, available after 6 months of bank statements and $15K+ monthly deposits. Inflection Financing underwrites all four of these paths in-house.

Key facts

• SBA 7(a) for acquisition — 24-month test runs against the target
• SBA Microloan: up to $50K
• Equipment financing: collateralized by the asset, lighter revenue test
• Revenue-based working capital: 6 months of bank statements