Start-Up Business Loan

At HBDi, we understand start-up businesses’ technical and administrative needs and offer tailored loan services to support your entrepreneurial journey. Our start-up business loan services are designed to provide the necessary capital to businesses in the early stages of operation and have yet to generate substantial cash flow. With loan amounts ranging from $25,000 to $150,000, we strive to empower your vision for success.

Capital Injection of 33% of the Cost of the Project

To ensure the success of your start-up venture, HBDi requires a capital injection of 33% of the total project cost. This demonstrates your commitment and dedication to the business and provides a solid foundation for sustainable growth. The capital injection can come from various sources, such as personal savings, family and friends’ contributions, or associates’ investments.

Relevant Industry Experience

One of the critical factors we consider when evaluating a start-up loan application is the relevant industry experience of the individuals involved in the business. It is essential to showcase a minimum of 4 to 7 years of experience in the industry, specifically in managing all aspects of a similar business. This experience helps establish a strong understanding of the industry’s dynamics and increases the likelihood of success.

Detailed Business Plan

To determine the viability of your loan request, we require a detailed business plan that outlines your strategies for achieving profitability and loan repayment. The business plan should cover essential aspects such as marketing, sales, operations, management, competition analysis, industry statistics, and financial projections. The economic forecast should include a comprehensive pro forma balance sheet, income statement, and cash flow statement, along with underlying assumptions explaining the basis of these projections. It is recommended to provide month-to-month forecasts for two years to demonstrate the long-term sustainability of your business.

Sound Credit History

Your credit history is vital in assessing your ability to manage financial obligations. While a low credit score is not necessarily viewed negatively, it is essential to maintain a sound credit history and provide reasonable explanations for any derogatory items. We review credit reports of individuals with 20% or more ownership in the business and consider factors such as ongoing late payments, unpaid collections, and public records of liens. Demonstrating responsible financial behavior is crucial in securing a start-up loan.

Secondary Source of Income

As a start-up business, your projected cash flow may initially be limited. Therefore, we consider the availability of a secondary source of income outside the company, such as employment, a spouse’s wages, retirement or disability income, or income from rental property. This secondary source of income provides additional support for loan repayment during the early stages of your business.


To secure the start-up business loan service, collateral is required. We accept a range of assets as collateral, including equipment, real estate, furniture and fixtures, vehicles, and accounts receivable. Existing business assets and assets purchased with the loan proceeds will secure the proposed loan. Ideally, the value of the collateral should provide a 1:1 coverage ratio to the loan amount. Personal assets may also be considered if the business assets alone are insufficient.