How Can One Obtain a Business Loan Without Having Money

Business Loan balance transfer loan

While many business loans require down payment, there are some lenders who do not ask for money down when issuing loans.  Usually, if the loan is too large, the chances are money down will be required. It is possible for one to obtain a small business loan without having money. The reasons why large loans require money is that there are largely associated risks that the lender is subjected to. A down payment helps top to lock the debtor into the deal a little bit tighter, enough demonstration to the lender that even the borrower stands to lose in case he or she defaults a loan. This makes the borrower more concerned about loan repayment.

Nonetheless, not all business loans will go up to millions of dollars. Even small business is less likely to settler such huge loans. There are a lot of small business loans that do not require money down. This does not mean it is that easy to be approved for a loan without a down payment, bearing in mind that lenders need to safeguard their interests at whatever cost. The first thing lenders do is to be careful only to lend to individuals they have confidence in when it comes to repaying. Put differently, they lend to the people they are sure they will repay the loan amount plus the interest.

That said, lenders can only approve your business a loan if they are confident that you can pay with the interest rate that corresponds to the level of risk, they subject themselves to. The higher the risks, the higher the interest rates charged.

This because they are too in business and need to ensure that they can regain the amount loaned even in the event the business shuts down, or in case it defaults. Learn about the strategies you can use to qualify for different loans by visiting best money lender in Singapore you may use this to compare loan rates online.

Why Loan without Money?

When one opts for a loan without money, it does not mean they are out of cash or perhaps broke, so to speak. Well, you may have some disposable cash you just cannot turn to apply for a loan. Still, you may be out of the cash required by a lender in order to be approved for a loan. Irrespective of the motivating factor, in this section we will review you can successfully get a loan without cash in the account.

The Loan Options Available

We will examine the topfinancing options that will not require money. You will not have to struggle so much in order to qualify for either of them. These small business loans will help increase the cash flow for your business. So let us kick-start the review.

  • Term loans.

These are the most common types of on out there and the borrower does not need a down payment in order to be approved. Nevertheless, there are some possibilities the lender may ask for collateral. The type and details of collateral that might be required will depend on the lender. In addition, you may also be required to provide some upfront fees to be approved for a term loan. For example, an origination fee will be required, though it is just a one-time fee. It is just a small percentage of your loan that caters for servicing and processing costs of the loan.

  • Business credit cards, the best option at your disposal.

As a business person, you no doubt have some expenses such as rent and salaries and this may require a substantial amount of cash to be settled. A business credit card can help you meet these expenses successful, apart from helping you improve your credit score. There are several credit cards out there characterized by various rewards and features that can solve the issues you need funds for. For instance, think of Ink Business CashSM Credit Card. It offers a sign-up bonus of $500 if you use $300,000 within the first three months. Besides, depending on where you spend, you are guaranteed cash back 5%, 2% or 3%. This 500% is a large amount of cash that can help your business. Another credit cards you can turn to include Capital One® Spark® Classic for Business. This one has got no annual fee and offers cashback of 1% on all purchases.

  • Equipment Financing.

With this option, the lenders offer cash of up to 100% value of the equipment they use as collateral. In this regard, what is important to the lender is the value is the worth of the equipment show by financial records of your venture. However, there are cases where some financing company has opted to loan only up to 80% of the amount you demand from the equipment. In this case, the remaining 20% serves as a down payment for you.

  • Invoice financing.

Are you waiting to be paid for a piece of work already completed, or you have unpaid invoices? In such a case the money is more of a guarantee and invoice financing applies best there. Your business unpaid invoices will be used by the lender as collateral. Like in the case of equipment financing, which is important to invoice financing companies is the worth of your unpaid invoices. In other words, the reliability and profitability of your customers play a significant role in this regard, and not your personal financial profile.

  • SBA Microloan.

These types of loans are always guaranteed by the government and can provide the largest amount of loan compared to all the others in the market. They provide some small loans to a maximum of $50,000, though their average is often $13,000.


You can secure a business loan without money if you consider the above options. Even so, the best way to go about a financial problem is to be patient enough and wait. While this may not be an exciting option, it is worth it. When your business is once again stable, you will be able to negotiate for loans with better terms. For the time being, try and make some savings.

(Visited 4 times, 1 visits today)