Time in business
Business financing at six months in business
Six months of trading history is the point at which revenue-based financing becomes available. It is also well short of what a bank or the SBA will look at. Here is exactly where the line falls and what the six-month file needs to show.
Can a business get a loan after only six months?
Yes, from revenue-based lenders. Six months of operating history is RAN Funding’s minimum, alongside roughly $10,000 in monthly revenue (about $100,000 a year) and a 500 FICO. At six months the products available are a merchant cash advance, a working capital loan or a short-term loan, funded in as little as the same day. A business line of credit also starts at 6 months but wants $200,000+ in annual revenue and a 575 score. SBA loans require two years. True start-ups with no trading history are not funded.
Why six months is the line
Underwriting a revenue-based advance means answering one question: how reliably does money arrive in this account? Three or four monthly bank statements give a funder the seasonal shape of the business, the average daily balance, and how many days the account went negative. Six months of history means those statements describe a pattern rather than a launch.
Below six months there is nothing to read. That is why the honest answer for a pre-revenue start-up is not a cheaper loan but a different instrument entirely — personal credit, an equipment lease where the asset carries the risk, or investment.
The thresholds, product by product
| Product | Time in business | Revenue | Credit score |
|---|---|---|---|
| Merchant cash advance | 6 months | ~$10,000 / month | 500 |
| Working capital loan | 6 months | ~$10,000 / month | 500 |
| Short term loan | 6 months | ~$10,000 / month | 500 |
| Business line of credit | 6 months | $200,000+ / year | 575 |
| Equipment financing | Varies — asset secured | Varies | Varies |
| SBA loan | 2 years | $200,000+ / year | 680 |
What a strong six-month file shows
- Deposits that repeat. Consistency beats size. Six months of $14,000 reads better than two months of $40,000 followed by four of $6,000.
- Few or no negative days. Overdrafts in a short history are weighted heavily, because there is no long record to offset them.
- All revenue through one business account. Split deposits make a young business look smaller than it is, and there is no history to argue with.
- No existing advance. A second advance repaid out of the same deposits is the most common reason a young file is cut down or declined.
What early-stage money costs
Revenue-based products are priced with a factor rate, not an interest rate: a fixed multiplier applied once to the advance. Industry analysis puts the typical market range at 1.15 to 1.55, with effective annualised costs from roughly 40% to over 350% depending on repayment speed.1 RAN’s network starts at 1.08. Short history and thin credit sit at the more expensive end of any range, which is the trade for getting funded at all at month six.
Worth sizing honestly: the Federal Reserve’s 2025 Small Business Credit Survey found 42% of applicants received the full amount they sought, and 56% of firms seeking financing were doing it to meet operating expenses rather than to expand.2 If the six-month plan depends on getting the full ask, build a version that works on less.
What changes by month twelve
Time in business is the cheapest variable to improve, because it improves on its own. At twelve months with clean statements the same business typically sees larger offers and lower factor rates, and the line of credit becomes realistic if annual revenue has passed $200,000. At two years, with a 680 score and no collections, SBA pricing — set as Prime plus a spread — comes into range.3 If the need is not urgent, six months of clean banking is often worth more than any negotiation.
Applying at six months
About five minutes, soft pull only, no fee and no obligation. Have ready a government-issued photo ID, a voided business check, and your business bank statements Typically 3 months; some states require 4.
Common questions
What is the minimum time in business for a loan?
Six months for revenue-based products (merchant cash advance, working capital loan, short-term loan) and for a business line of credit. SBA loans require two years. RAN Funding does not fund start-ups with no operating history.
How much revenue do I need at six months?
Around $10,000 a month, or about $100,000 a year, for an advance or working capital loan. A business line of credit wants $200,000 or more in annual revenue.
Do lenders count six months from incorporation or from first revenue?
From when the business began operating and generating deposits. An entity registered a year ago that only started trading two months ago is read as two months old, because the bank statements are what get underwritten.
Can a start-up with no revenue get business financing?
Not through revenue-based products, which are underwritten on deposits. Equipment financing can sometimes work because the asset secures the deal. Otherwise the realistic routes are personal credit or investment.
Will waiting longer get me a better rate?
Usually yes. Time in business and clean deposit history are the two variables that move pricing most, and both improve simply by continuing to trade without overdrafts.
Sources
- Merchant Cash Advance Industry Report 2026 — Credible Law
- 2026 Report on Employer Firms: Findings from the 2025 Small Business Credit Survey — Federal Reserve Banks, 3 March 2026
- SBA Loan Rates, updated 1 September 2026 — NerdWallet
See what you qualify for
One application, about five minutes, soft pull only. A funding specialist comes back with the offers you qualify for — and explains every term before you sign.