# Startup Business Loans

> Funding a young business is mostly about proving traction, not history. Once you have a few months of revenue and a business bank account, several products open up — and Hoss Capital matches you to the ones you actually qualify for based on deposits, not just time in business.

## Key takeaways
- Funding a young business is mostly about proving traction, not history — most partners want to see at least 3–6 months of deposits.
- Products that work for newer businesses include working capital, equipment financing, lines of credit, merchant cash advances, and revenue-based financing.
- Equipment financing is often the most realistic path pre-revenue because the equipment itself secures the loan.
- With limited history, underwriters lean on your personal credit and usually require a personal guarantee, and early funding tends to be more expensive and shorter-term.

## Funding a business that's still finding its footing

Startups face a chicken-and-egg problem: banks want years of history before
they lend, but you need capital to build that history. The good news is that a
large part of the funding market underwrites on recent performance — your bank
deposits, monthly revenue, and how you intend to use the money — rather than a
long track record.

### Products that work for newer businesses

- **Working capital** — short-term funding underwritten mainly on recent bank
  statements. A common first product once you have a few months of deposits.
- **Equipment financing** — the equipment you're buying secures the loan, so
  approval is easier even with thin history. Often viable pre-revenue.
- **Line of credit** — flexible, draw-as-you-need funding that's ideal for the
  uneven cash flow of an early-stage business.
- **Merchant cash advance / revenue-based financing** — funding repaid as a
  share of sales, useful when revenue is real but inconsistent.

### What underwriters actually look at

For most startup-friendly products, the deciding factors are your average
monthly deposits, how consistent they are, and your personal credit. A clear,
specific use of funds also helps — "buy a $20K oven to add catering capacity"
reads better than "general growth."

### An honest note on cost and structure

Early-stage funding tends to be more expensive and shorter-term than what an
established business can get, and you'll almost always sign a personal
guarantee. Hoss Capital checks for the lowest-cost option you qualify for
first, and as your deposit history and time in business grow, you'll unlock
larger amounts and better rates.

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Canonical: https://hoss-capital.pages.dev/business-loans/startup/