Why funders care how long you have operated
Age is evidence that the business can survive slow periods and has a track record of revenue. Younger companies carry more uncertainty.
A company that has made it through a full year has seen a slow season, a lost customer or a cost increase and continued. A company with four months of history has not been tested. Funders cannot see how it behaves when conditions turn.
That is why almost every product has a minimum, and why the minimum rises as the money gets cheaper or the amount larger. It is one piece of the full picture described in business loan requirements, alongside revenue, credit and bank activity.
Typical minimums by product
Faster, higher-cost products accept younger businesses. Lower-cost bank and SBA products usually want at least a year or two of history.
Funder guidelines differ, so use these as general ranges and confirm with the specific program.
| Product | General expectation |
|---|---|
| Working capital and revenue-based financing | Shortest minimums, often months rather than years |
| Business line of credit | Often six months to a year or more |
| Equipment financing | Varies; the asset secures it, so age matters less |
| Term loans | Commonly one year or more |
| SBA loans | Typically two years or more; check SBA.gov and the lender for current rules |
ROI Funder's own minimum is 6+ months in business, with $20,000+ in monthly revenue and 500+ FICO considered.
How the clock is measured
Funders usually count from the date you began operating and earning revenue, not necessarily the date you formed the entity.
Several dates can be confused.
- Formation date: when the LLC or corporation was registered.
- First sale date: when you began earning.
- Account open date: when the business bank account opened.
- Ownership date: when you took over, for a purchased business.
Funders tend to focus on operating history that bank statements can prove. A company formed two years ago but dormant for 18 months may be treated as six months old. A sole proprietor who has traded under their own name for years may use that history even if the LLC is new, with documents to back it. Be prepared to show the earliest statement or tax filing that proves it.
Buying or restructuring a business
If you bought an existing company, its operating history may count. A brand-new entity formed around an old business may need documents to link them.
Ownership changes complicate the story. When you buy a going concern and keep the same operations, customers and bank history, funders often look at the business's full age, though they may also ask how long you personally have run it. When you move assets into a new LLC, bring evidence of continuity: a purchase agreement, prior statements or a tax filing.
A change in ownership percentage, or a new name on the account, can also reset questions. Tell the funder up front. Surprises found during review slow things down.
If you are under the minimum
Build documented history, use alternatives that fit the stage, and keep clean bank records so you qualify as soon as you cross the line.
Options to consider:
- Keep all business income flowing through one business account from day one.
- Pay attention to the timing: waiting a few months can open far better products.
- Look at equipment financing, where the asset secures the deal and age matters less.
- Consider using your own savings or a small supplier credit line for the earliest stage.
Be skeptical of any offer that ignores age entirely. The price usually reflects it. ROI Funder does not place startup financing for businesses under six months, and it will say so rather than force a poor fit. Related reading: business startup costs.
Documents that prove your history
Funders trust paper over memory, so collect proof early.
Useful proof includes your earliest business bank statement, state registration papers, a business license, early invoices, a lease, a tax return from the first year, and a sales tax permit. If your earliest statement is missing, ask the bank for an archive copy.
Put dates on a one-page timeline: when you started selling, when you opened the account, when you formed the entity. Handing that page over with the application answers the question before a reviewer needs to ask it.
What to do as you approach the threshold
Check your date against each product, assemble statements that prove your history and apply when you clear the minimum with a margin.
If you are close, wait for the minimum to pass with a small cushion rather than apply on the exact day. Prepare three months of business bank statements and your formation documents. Review monthly revenue requirements too, since the two usually get checked together.
Once you qualify, applying at ROI Funder takes a few minutes with a soft credit pull and no obligation. Approved, complete files can fund the same business day. Start at the application.
Frequently asked questions
How long must I be in business to get funding through ROI Funder?
ROI Funder considers businesses with 6+ months in business, along with $20,000+ in monthly revenue and 500+ FICO.
Does time in business start when I form my LLC?
Not necessarily. Funders usually care about how long you have operated and earned revenue, which they confirm using bank statements and tax filings.
Do SBA loans require more time in business?
Typically yes. Many SBA lenders look for two or more years, but programs and lenders vary, so check SBA.gov and the lender.
Can a new owner use the previous owner's history?
Sometimes. When you buy an ongoing business, funders may consider its full history, and may also ask how long you have been in charge.