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First-Time Business Loans With No Credit History: Best Options for 2023

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  • Provide the necessary funding to start or expand a business
  • Successfully repaying a business loan can help establish credit for the business
  • Allows for growth opportunities, such as expanding operations or hiring more employees
  • Can be a high risk for both the lender and the borrower
  • Taking on debt can be a significant burden for a new business
  • Stricter terms and repayment schedules

First-Time Business Loans With No Credit History: Best Options for 2023

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About First-Time Small Business Loans

Applying for a first-time business loan can be intimidating. Regardless of your experience, you’ll want to get the most competitive loan to maximize the benefit for your business. Small business loans are the core of communities. They are owned and operated by our friends and neighbors, and employ them too. In an effort to give small business owners a competitive advantage in the lending space, mySMBscore has created a free platform that can simplify the process of preparing and applying for a business loan. Keep reading for valuable information and insight on how to get a first-time business loan. 

What do you need to know about first-time small business loans?

If you're a first-time business owner looking for financing, there are several vital things to keep in mind when it comes to securing a loan. But remember that business owners' situations can vary, so personalized advice can help you prepare to get a business loan. We highly encourage small business owners to take advantage of mySMBscore to understand the risk they pose to potential lenders and how they can work to position themselves better. 

Here are a few things to consider for a first-time business loan:

  • Determine your loan needs: Consider what you need the loan for and how much you need to borrow. This will help you determine the right type of loan for your business. You may have more options available than you think!
  • Check your SMB score: Technology has revolutionized how lenders approve loans and how business owners can prepare to get one. By utilizing the advanced AI technology at mySMBscore you can receive personalized advice on things to improve before applying for a business loan. Understanding your position before applying can save you time and money moving forward. 
  • Shop around for the best loan options: Different lenders offer different loan products, so it's important to compare offers from multiple sources to find the one that best fits your needs. At mySMBscore you can also compare business loan offers generated just for you. 

By keeping these key points in mind, you'll be well on your way to securing the financing you need to grow your business. Good luck!

How do you ensure your first-time business loan process goes smoothly?

Getting a loan for your first business can be a daunting task. While scouring the internet, you probably know all the basic tips and tricks, but here’s a new one. Check your SMB score! 

At mySMBscore you can gain insight into how a lender views your application. As a successful business owner, you understand the importance of planning and laying a solid foundation. Regardless of the business activity you endure - the foundation must be solid. mySMBscore allows business owners to understand what they need to do to improve their chances of qualifying for a business loan. Furthermore, it can provide insight into what they should qualify for to help them negotiate and identify the best deal. 

What are the types of first-time business loans to consider?

With so many different types of loans available and requirements varying widely, it can be challenging to know where to start as a first-time business loan applicant. While mySMBscore can help you understand what you should qualify for, you’ll need to understand the various types of loans and your needs to pick the best type. Here are some options for first-time business loans. 

  • SBA Loans: The Small Business Administration (SBA) offers a variety of loan programs designed to help small businesses get the financing they need. SBA loans typically have more favorable terms than traditional bank loans, including lower interest rates and longer repayment periods. Interest rates are capped, and the SBA partially backs loans, so lenders carry a reduced risk. SBA loans are popular, so be prepared to enlist some patience. 
  • Term Loans: A term loan is a lump sum of money that you repay over a set period of time, typically with fixed monthly payments. This type of loan is often used for specific expenses, such as purchasing equipment or real estate. 
  • Line of Credit: A line of credit is a flexible loan option allowing you to borrow up to a certain amount as needed. This type of loan is often used for short-term financing needs, such as covering gaps in cash flow. Companies that require a lot of inventory often use a line of credit. 
  • Invoice Financing: If you have a large amount of outstanding invoices, you may be able to use invoice financing to get a loan based on the value of those invoices. This type of loan can provide quick access to cash without waiting for payment from your customers.
  • Crowdfunding: Crowdfunding is a newer type of financing that allows you to raise money from a large number of people, typically via an online platform. This financing is often used by startups and other young businesses looking for a more innovative way to get funding.

These are just a few of the many types of loans available to first-time business owners. It's important to carefully consider your needs and research each option to find the one that best fits your situation.

What are the dos and don’ts of your first-time business loan?

To ensure success, here are some first-time do’s and don’ts to adhere by when applying for a business loan.


  • Understand your financial position. While you may consider yourself a low risk applicant, lenders may think otherwise. To better understand a lender’s view, visit mySMBscore. A few actions could make all the difference on qualifying for a business loan and securing a competitive rate. 
  • Ask questions. Reach out to resources as you prepare to apply for a business loan. Whether this be other business owners who have gone through the process or financial advocates, take advantage of resources to help you make better financial decisions. 
  • Be confident. When you invest the time into reviewing your credit score and checking your SMB score you can apply with confidence. Having the right knowledge can help you choose the best offer possible. If you apply blindly, you may jump at the first offer you get as a simple lack of confidence. 
  • Be patient. You may be in a hurry to watch your dreams flourish, but take a deep breath. Life goes by quickly. Invest the time into securing a business loan that maximizes the benefits for your business. 
  • Evaluate your needs. Determining the amount of money you need is critical before pursuing a business loan. 


  • Borrow more funds than needed. Just like eating at a buffet, it’s easy to get big eyes when it comes to business loans. Before applying, drill down on exactly how much you need and what you can afford to repay. Borrowing more can leave you in a bad financial position. 
  • Go wild applying. You may hear the advice to shop for offers, but this does not mean applying to every local lender. Applying for too many loans can negatively impact your credit score and make qualifying harder. It’s better to use a platform like mySMBscore that allows you to compare loan offers with no credit impact. 
  • Neglect to read the fine print: It's important to carefully read all the fine print before you sign any loan agreement. You don't want to be caught off guard by hidden fees or other surprises. Plus, you want to understand your responsibility as a borrower. 

Following these dos and don'ts can help ensure that your first-time business loan process goes smoothly and successfully.

How do you determine the debt you can afford?

There are two ways to determine this. The first is the monthly payment. The second is the total loan cost. 

Business owners should evaluate their budget to determine what they can afford to repay. But don’t place your whole focus on just monthly payments - business loans can be costly. 

Consider the total loan cost. Is the cost of the loan worth the benefits? Can you shorten the term to reduce the cost? 

What documentation is required for a first-time business loan?

During the underwriting process, lenders can request documentation as they scrutinize your business's eligibility. This is one reason why submitting accurate information when applying is essential. If you are unable to prove information or information does not align, you may get an offer revoked. If you are pre-qualified for a loan, the lender must go through the underwriting process to issue approval and funding. Here are some things lenders may request:

  • Business plan
  • Business license
  • Balance sheet
  • Bank statements/financial statements
  • Identification
  • Tax returns
  • Collateral 
  • Legal documents

How do you get a first-time business loan?

Getting a first-time business loan is exciting, but it’s normal to be a little nervous. If you are worried, it’s actually a good thing because it shows you care. To get a first-time business loan, invest the time into adequately preparing before jumping the gun. So, where do you start? Go to mySMBscore to get on the path to better financial decisions. A first-time business loan can set up the future success of your company, so choose wisely. 

What happens if you get denied for your first-time business loan?

Getting denied happens! First of all, keep going. Take some time to deal with the rejection and devise a plan to move forward. Part of the plan should include checking your SMBscore to understand ways to improve your business financial standing and risk position to a lender to increase your chances of approval next time. When you feel confident again, reapply. mySMBscore can also help connect business owners with lenders that are a good match based on current financial standing. 

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