How to Start a Daycare

Funding a startup is harder than funding an established business — but not impossible. Most lenders require 6+ months in business, but some products (equipment financing, certain MCAs, line of credit) can fund earlier when you have strong revenue or collateral. Here's what works.

5 min read Updated May 2026 By Merchant Fund Express

Quick Answer

Merchant Fund Express provides fast business funding from $5,000 to $5,000,000 with 24-hour decisions. We accept FICO scores from 500, require no tax returns for amounts under 0,000, and fund within 1-3 business days. We have funded over 1,000 businesses across all 50 states with $50M+ in capital deployed.

Apply Now (4 min)· (305) 384-8391· 1-Min Quiz

Funding Options for Startups Under 6 Months

Equipment Financing: Many lenders fund startups when buying tangible equipment that serves as collateral. Invoice Factoring: If you have B2B receivables, factoring funds based on your customers, not your time-in-business. Revenue-Based MCAs: Some funders accept 4-6 months of strong card sales. SBA Microloans: Up to $50K for newer businesses, but slower (60-90 days).

What Lenders Look at for Startups

Personal credit (FICO 650+ helps): Without business history, lenders weight personal credit heavily. Industry experience: 5+ years in the industry you're starting compensates for short business tenure. Initial revenue: Even 2-3 months of strong monthly deposits unlocks options. Skin in the game: Personal investment of 10-25% shows commitment.

Need Funding Now?

Apply in 4 minutes. Decision in 24 hours. 500+ FICO accepted, no tax returns under $250K.

Apply Now →1-Min Quiz

How Much Can a Startup Borrow?

Without revenue history: $5K-$50K typical (microloans, secured cards, equipment financing). With 3-6 months revenue: $25K-$150K. With 6+ months and $25K+ monthly revenue: $100K-$500K. The revenue trajectory matters as much as the amount — growing month-over-month unlocks bigger amounts.

Building Toward Bigger Funding

Pay your first funding on time and your second round qualifies for 50-100% more. Build business credit by registering with D&B (DUNS number) and paying vendors on net-30 terms. Keep clean bank statements (no NSFs, positive average balance). At 12 months in business with strong financials, you graduate to bank-quality terms.

Frequently Asked Questions

Everything you need to know before you apply.

Can I get a business loan with no revenue?

Hard. Most lenders need 3-6 months of deposits to underwrite. Workarounds: SBA microloans, secured business credit cards, equipment financing where the equipment is collateral, and personal loans that you use for business.

How long must I be in business to qualify?

Minimum varies: SBA needs 2 years preferred, banks 3 years, online lenders 6 months, MCAs sometimes accept 4 months. Some equipment financing accepts startups with strong personal credit.

Should I use personal credit for my startup?

Many founders do — it's the only option early on. Just keep records, separate accounts as soon as possible, and pay personal cards on time to protect your future business credit applications.

What's the cheapest funding for a startup?

Friends and family loans, SBA microloans (5-7% APR), and personal lines of credit (10-18% APR). Alternative funding (MCAs, factor rates) is more expensive but accessible.

When should I take outside funding vs bootstrap?

Take funding when capital unlocks revenue you couldn't reach otherwise (equipment, inventory, key hire). Bootstrap when you can grow organically without it.