Is it Possible to Get a Business Loan with Low Revenue?

Small businesses in Delhi can borrow money to cover costs such as working capital, inventory, and other operational expenses from different lenders. However, most reputable lenders favour companies with strong income streams since they are more confident their money will be repaid in full with interest.

It might seem challenging to get a loan if your business is generating low revenue, but it is possible. Read ahead to learn how to get a Business Loan with little income. 

How To Get a Loan for A Low-Revenue Business?

Here are some steps you can take to increase your chances of loan approval despite weak financial situations.

  • Construct A Solid Business Plan

Having a well-structured business plan is the first crucial step before you apply for a Business Loan, especially when dealing with low-income situations. A strong business plan can win over a lender and increase the chances of loan application approval. 

A business plan should demonstrate a business’s ability to generate revenue with the help of a strong revenue model and an accurate projection of future earnings. It must also clearly show how you intend to repay the amount within the given time. 

  • Have The Necessary Documents

Suppose you want a small Business Loan in Delhi. In that case, you must provide evidence of income, profit and loss statements, bank statements, balance sheets, proof of incorporation, proof of GST payments, own personal income, tax documents, and address proof. These documents show your reliability while providing information about your business’s cash flow and profitability.

  • Maintain A Good Credit Rating 

A good credit score and a strong credit history are essential for lenders when deciding whether to grant a loan application, especially when the revenue is modest. 

Paying bills on time and reducing or consolidating debt into a single loan are vital steps in improving your credit score, which can boost your chances of obtaining a Business Loan.

A company with minimal income but a high credit score has a decent chance of receiving a Business Loan. A credit score between 750 and 900 is sufficient to get the finest loan deals.

  • Look For Alternate Financing Options

Even if you have a solid business plan, a good credit score, and all the required documents, lenders may still reject your loan application. In this instance, apply for a Business Loan with lenders who give loans to low-income businesses with structured EMI plans to make it easier for you to repay the loan, even if your revenue is small.


Revenue is evidence that your business is operating well. Lenders gauge the risk of approving a loan by examining a business’s revenue. However, that is not always the case. Low revenue isn’t a deal-breaker for obtaining a loan. If you have a strong business strategy, good personal and business credit, and a consistently profitable operation, you can still apply for a Business Loan and get approval even if your company generates low revenue.