Top 4 banks offer $20,000 in business funding for new LLCs in credit without requiring proof of income. This means that as soon as you form your business, you can access the funding you need to get your venture off the ground without having to provide 12 months of bank statements, two years of tax returns, or detailed financial paperwork.
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The 4 Banks Offer $20,000 in Business Funding for New LLCs
The four banks that can provide this type of funding for new LLCs are:
- Chase Ink Business Unlimited
- GM Rewards Card
- U.S. Bank
- American Express (Amex) Business Prime Card
What makes these options even more appealing is that they all come with 0% interest for up to 18 months. This means you can access the funds you need to invest in your business and have an entire year and a half to repay the balance without incurring any additional charges. It’s free money to help you get your venture off the ground.
My Personal Experience with the Chase Ink Business Unlimited Card
As the owner of Barton Media LLC, a publishing business I recently re-established in North Carolina, I can attest to the power of the Chase Ink Business Unlimited card. When I applied for this card just three weeks after forming my new LLC, I was approved for a staggering $21,000 credit limit.
My personal FICO score at the time was around 770, with an average individual credit limit of $155,000 per card. I have also been slowing down my credit card applications, with only three new accounts opened in the past 24 months. This, combined with my existing relationship with Chase (I held a Chase Freedom Unlimited card with a $6,400 limit), likely played a significant role in my approval.
Chase only required a copy of my business’s articles of organization for verification, and they performed a hard credit pull from my Experian credit report. No additional documentation was needed, making the process seamless and efficient.
The Benefits of the Chase Ink Business Unlimited Card
The Chase Ink Business Unlimited card is one of the most valuable business credit cards on the market, thanks to its impressive sign-up bonus and 0% interest period. Right now, you can earn a $750 sign-up bonus when you spend $6,000 in the first three months. Additionally, you’ll enjoy 0% interest for the first 12 months, giving you an entire year to repay the balance without any additional charges.
For business owners like myself who are looking to establish or expand their operations, this card is a game-changer. By leveraging your credit to secure funding for your business, you can get the capital you need to invest in growth without the burden of proving your business income.
Ink Business Unlimited® Credit Card
Best for: Simple rewards for busy entrepreneurs
The Ink Business Unlimited® Credit Card from Chase offers a straightforward rewards program, making it ideal for entrepreneurs who want to focus on their business rather than managing complex credit card rewards.
Key Features:
- Annual Fee: $0
- Sign-Up Bonus: Earn $750 bonus cash back after spending $6,000 in the first 3 months.
- Rewards: Unlimited 1.5% cash back on all purchases.
- Intro APR: 0% for the first 12 months on purchases; then a variable APR of 18.49%-24.49%.
- Foreign Transaction Fee: 3%
Why Choose the Ink Business Unlimited® Credit Card?
- No Cap on Cash-Back Rewards: Earn 1.5% cash back with no limits or restrictions. Rewards are issued as Chase Ultimate Rewards® points, worth 1 cent each when redeemed for cash back, travel, gift cards, or Amazon purchases.
- Simple Rewards System: No need to track spending categories—earn a flat rate on all purchases.
- Big Welcome Offer and Intro APR: The $750 sign-up bonus and 12-month 0% APR period are great for businesses planning large purchases.
Consider These Alternatives:
- For Higher Category Rewards: The Ink Business Cash® Credit Card offers 5% cash back on office supplies and internet, cable, and phone services (up to $25,000 per year), and 2% at gas stations and restaurants (up to $25,000 per year).
- For Frequent Travelers: The Ink Business Preferred® Credit Card offers 3 points per dollar on travel and no foreign transaction fees. It has a $95 annual fee but comes with a larger sign-up bonus.
- For Higher Flat Rewards: The American Express® Blue Business Cash Card offers 2% cash back on up to $50,000 in spending per year. The Ink Business Premier® Credit Card and Capital One Spark Cash Plus offer unlimited 2% cash back but come with annual fees.
GM Rewards Card
The GM Rewards Card is a business credit card that has been approving small business owners for impressive credit limits, often without a hard credit pull. Several data points have shown approval amounts ranging from $9,000 to $40,000, with the card issuer relying on a soft pull from the Equifax credit bureau.
Welcome Bonus: When you get the My GM Rewards® Mastercard® and spend $1,000 in purchases within the first three months, you’ll receive 15,000 bonus points. These points can be redeemed for various rewards, including discounts on GM vehicles, services, and accessories.
Introductory Purchase APR: You can purchase with a 0% introductory APR for the first nine months. This means you won’t pay any interest on your purchases during this period, which can be particularly beneficial if you plan on making significant purchases soon after getting the card. After the introductory period ends, the APR will shift to a variable rate ranging from 20.24% to 29.99%. The exact rate you receive will depend on your creditworthiness at the time of application.
Annual Fee: There is no yearly fee for the My GM Rewards® Mastercard®, making it an excellent choice for those who want to earn rewards without an annual charge.
Application Process: To apply for the My GM Rewards® Mastercard®, click the “Apply Now” button. This will redirect you to the Goldman Sachs Bank website. You’ll need to complete an online application, and the process will be governed by Goldman Sachs’ Terms of Use and Privacy Policy. Review these terms and the privacy policy before applying to understand how your information will be used and what you agree to when submitting your application.
By offering a combination of a generous welcome bonus, a 0% introductory APR period, and no annual fee, the My GM Rewards® Mastercard® is a compelling option for those looking to maximize their rewards, especially if you have upcoming GM-related purchases.
U.S. Bank
U.S. Bank is another bank that offers business credit cards with 0% interest for up to 18 months. One of their cards, the U.S. Bank Triple Cash, has been approved with starting limits as high as $23,000, even for applicants with a sole proprietorship and a solid personal credit profile.
U.S. Bank Business Loans
Best for: Startups
U.S. Bank may not have as many locations as some other major banks like Chase and Wells Fargo, but it’s a strong option for startups. If there’s a branch near you, you might find their offerings especially appealing, as they provide products you can qualify for with less than a year in business.
Why Choose U.S. Bank?
1. Term Loans
- Fixed-Rate Secured Term Loans: Ideal for established businesses.
- Quick Loans: With a limit of $250,000 and a fast online application process, this can be secured or unsecured. It’s great for newer companies, requiring only six months in business to apply. Repayment terms can extend up to seven years.
2. Business Lines of Credit
- Cash Flow Manager: A revolving line of credit up to $250,000, available to businesses with at least six months of operation. This product has a $150 annual fee if the line of credit is less than $50,000.
- U.S. Bank offers four different business lines of credit, perfect for managing cash flow, making major purchases, and protecting against overdraft charges.
3. SBA Loans
- U.S. Bank is a strong choice for SBA loans, having approved over 1,200 SBA 7(a) loan applications for the fiscal year 2024.
- As a preferred lender, U.S. Bank allows businesses with less than two years in operation to qualify for SBA loans.
4. Other Business Loans
- Equipment Loans: Borrow up to $1 million, with soft costs up to 25% included.
- Commercial Real Estate Loans: Fixed- and variable-rate options with five-, 10-, or 15-year terms, and amortizations up to 25 years.
American Express (Amex) Business Prime Card
The Amex Business Prime Card has been dishing out some of the highest starting limits in the business credit card space, with many applicants reporting approvals in the $20,000 to $25,000 range. Even those with relatively low business revenue have been able to secure these impressive limits, thanks to Amex’s focus on personal creditworthiness.
Bank of America Business Loans
Best for: Customer relationships and loyalty programs
Bank of America stands out as the largest commercial and industrial loan lender in the U.S., surpassing its nearest competitor by nearly $130 billion as of June 2023, according to S&P Global Market Intelligence.
Why Choose Bank of America?
Their business loans could be a great fit if you value rewards and already use Bank of America or Merrill products. By meeting specific account requirements, you can enjoy perks like interest rate discounts, no fees on wire transfers, and other benefits. Additionally, veterans and service members can receive a 25% discount on loan administration or origination fees.
Loan Options:
1. Term Loans
- Secured Term Loans: Require $250,000 in annual revenue and offer higher borrowing limits (up to $250,000) and potentially lower interest rates.
- Unsecured Term Loans: Require $100,000 in annual revenue with a maximum borrowing limit of $100,000.
- Both options require at least two years in business and have repayment terms of up to five years, shorter than some other banks offer.
2. Business Lines of Credit
- Secured Lines of Credit: Require $250,000 in annual revenue and start at $25,000.
- Unsecured Lines of Credit: Require $100,000 yearly revenue and start at $10,000.
- Both have revolving terms, renewing annually.
Bank of America offers a cash-secured business line of credit for newer businesses (at least six months in operation and $50,000 in annualized revenue). This requires a security deposit matching your credit line limit, with minimum deposits starting at $1,000. This option helps cover daily expenses, make regular payments, and establish a positive account history to transition to an unsecured business line of credit.
3. SBA Loans Bank of America is a preferred Small Business Administration (SBA) lender. However, other banks like Wells Fargo and U.S. Bank have approved more than 7(a) loans (the most common type of SBA funding) in the 2024 fiscal year.
Conclusion: Unlock Your Business Funding Potential
As a new business owner, accessing the funding you need to get your venture off the ground can be a significant challenge. However, the four banks mentioned in this blog post offer a unique opportunity to secure up to $20,000 in credit without the need for proof of income. By leveraging your credit profile and, in some cases, an existing banking relationship, you can unlock the capital you need to invest in your business’s growth and success.
To learn more about these business funding options and how to apply, be sure to check out the links and resources provided throughout this blog post. With the right strategy and the right financial tools, you can set your new LLC up for long-term success.
