How to get business funding with no history
Traditional lenders reject new business owners who lack multi-year financial history or P&Ls unless they can provide heavy collateral like personal property. Without these records or a personal guarantee, founders struggle to secure startup capital from standard institutions.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1Doing side work on the side here and there for extra cash
- 2finding a partner with restaurant management or business ownership experience and equity
- 3using personal assets like cars, though banks typically do not accept them as qualifying collateral
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“I don’t have PnLs, or 5 years of business history.”source ↗
“I guess I never really thought some company was gonna give me a sack of cash and say “go out and build your dream”. But I didn’t think it was this rough.”source ↗
“Hi I’m 19 and looking to open a elevated bagel shop. I have 25% of my loan asking price with restaurant experience. What are the odds someone approves me?”source ↗
“Your biggest challenge may be lack of experience. Even with some restaurant experience, at 19, many lenders would turn you down.”source ↗
“Zero if you don't own property. They ask for a personal guarantee.”source ↗
Where this came up
People with this problem also raised
- 6How to get a small business loan to buy an existing business
- 9Funding my business out of my own pocket
- 8How to get a mortgage without a traditional salary or employment history
- 21How to start a business with no industry experience
- 2Do I need to buy a car on finance just to build credit?
- 2Will VCs reject my startup because it's not AI?