If you’ve set up your business as a Limited Liability Company (LLC), you’re already on the path to professionalizing your operations. One of the biggest challenges LLC owners face is funding growth or covering cash flow gaps. Fortunately, you don’t need to rely solely on personal credit. With an LLC and an Employer Identification Number (EIN), you can access a variety of business loans designed specifically for small businesses.
In this guide, we’ll cover everything you need to know about how to get a loan with an LLC and EIN—from building business credit to choosing the right loan type and lender.
What Is an EIN and Why Does It Matter for Business Loans?
An Employer Identification Number (EIN) is a nine-digit number issued by the IRS to identify your business for tax purposes. It functions like a Social Security number but for your LLC.
Here’s why your EIN is essential:
- Establishes Business Identity: Lenders use your EIN to verify your company.
- Separates Personal and Business Finances: Keeps your personal credit protected.
- Required by Most Lenders: Many financial institutions won’t even consider you without one.
Tip: You can get an EIN for free from the IRS website. It only takes a few minutes.
Can an LLC Get a Loan Without Using Personal Credit?
Yes—but it depends on the lender and your business’s financial history.
Most new LLCs or those without strong business credit will still require a personal guarantee. This means you’ll be personally liable if the business defaults. However, as your LLC builds credit, you can qualify for non-recourse loans that don’t require personal liability.
To increase your chances:
- Build business credit (more on this below)
- Separate your personal and business banking
- Show steady income and positive cash flow
How to Build Business Credit as an LLC
Before you can qualify for most loans, you’ll need to build your LLC’s credit profile. Here’s how to get started:
1. Open a Business Bank Account
Keep business income and expenses completely separate from your personal funds.
2. Get a D-U-N-S Number
This is used by credit bureaus like Dun & Bradstreet to track your business credit.
3. Apply for a Business Credit Card
Use it for everyday expenses and pay it off on time. It helps build payment history.
4. Work with Vendors That Report to Credit Bureaus
Not all do, so ask in advance. Regular payments will boost your credit profile.
5. Pay Bills On Time—Every Time
Late payments can destroy your business credit just like personal credit.
What Types of Loans Can an LLC Get With an EIN?
If you’re wondering how to fund an LLC, the good news is there are several loan options available depending on your credit, revenue, and time in business.
1. Term Loans
- Fixed repayment schedule over 1–10 years.
- Great for expansion, renovations, or hiring staff.
- Best for established LLCs with revenue history.
2. Business Line of Credit
- Revolving credit—borrow and repay as needed.
- Helps manage cash flow fluctuations.
- Ideal for seasonal businesses or emergencies.
3. SBA Loans
- Backed by the Small Business Administration.
- Low interest rates, long repayment terms.
- Requires strong credit and documentation
4. Equipment Financing
- Loan used to purchase business equipment.
- The equipment often serves as collateral.
5. Invoice Financing
- Get cash upfront for unpaid invoices.
- Ideal for B2B businesses with long payment cycles.
6. Microloans or Startup Loans
- Smaller loan amounts.
- Designed for young or micro-businesses.
- Easier to qualify for with limited credit history.
How to Get a Loan With an LLC and EIN
Getting approved for a loan involves more than just having an EIN. Here’s a step-by-step breakdown of how to prepare and apply:
Step 1: Prepare Key Documents
Gather the following:
- LLC formation documents
- EIN confirmation letter
- Business license or permits
- Recent bank statements
- Profit and loss statements
- Personal and business tax returns
- A business plan (for startups)
Step 2: Check Your Business and Personal Credit
Even though your EIN is key, many lenders still look at personal credit—especially for newer businesses.
Pro tip: Aim for a personal credit score of 680+ and a business credit score of 80+ (Paydex scale) for better loan options.
Step 3: Choose the Right Type of Loan
Match your business needs to the right loan product. For example:
- Expanding your office? Consider a term loan.
- Need flexible funding? Go for a line of credit.
Step 4: Compare Lenders
Options include:
- Banks and Credit Unions: Traditional but harder to qualify.
- Online Lenders: Faster approvals, more lenient.
- Microlenders and CDFIs: Good for startups or underserved communities.
Step 5: Submit Your Application
Most lenders allow you to apply online. Double-check all documents and ensure consistency (e.g., business name and address match across all paperwork).
What If Your LLC Is New or Has Low Revenue?
Don’t worry. You still have options.
Here are alternatives for newer LLCs with an EIN but limited credit or income:
- Use a personal guarantee to secure the loan.
- Apply for a secured business credit card to build credit.
- Seek funding from friends/family or private investors.
- Use crowdfunding platforms to raise capital without loans.
- Look for grants and microloans aimed at startups or minority-owned businesses.
Common Mistakes to Avoid When Applying
Applying for a business loan isn’t just about meeting requirements—it’s also about avoiding pitfalls that can hurt your chances.
1. Don’t commingle personal and business finances
This confuses lenders and can complicate taxes.
2. Don’t apply without a clear repayment plan
Understand how much you can afford monthly and don’t overextend.
3. Don’t apply with inconsistent business records
Make sure your EIN, business name, and address are uniform across all documents.
4. Don’t apply to too many lenders at once
Multiple hard credit pulls can lower your score.
Frequently Asked Questions (FAQs)
Can I get a loan using just my EIN?
Yes, but most lenders will still check your personal credit unless your business credit is strong. It’s possible to get EIN-only loans, but they are less common.
How long does my LLC need to be in business to qualify?
Most lenders prefer 1–2 years of business history. However, some lenders offer startup loans to LLCs in business for as little as 3–6 months.
Does having an EIN improve my chances?
Absolutely. It proves your business is legally registered and helps build a credit history separate from your personal identity.
Can I get a loan for my LLC with bad personal credit?
Yes, but expect higher interest rates or the need for collateral. Building your business credit can help offset poor personal scores over time.
Final Thoughts
Getting a loan with an LLC and EIN is not only possible—it’s one of the best ways to scale your business while protecting your personal assets. The key is preparation: build your business credit, separate your finances, and choose the right type of financing for your needs.
By following the steps in this guide, you’ll be well on your way to securing funding and growing your business on a solid financial foundation.
