How to Get a Business Loan With an EIN

Is it possible to get a business loan with an employer identification number (EIN) only? Yes, but it can be difficult unless your business has been around for a long time.

Lenders like to use a variety of factors to determine whether a borrower is a good candidate for a small business loan. When those factors are restricted to only a business’s financial history, it makes it harder for the lenders to determine whether the applicant is a good investment. However, it is possible.

Below, we discuss how to apply for a startup business loan using an EIN and why you may want to consider doing so, as well as what you can do if your application is denied.

What Is an EIN?

EIN stands for “employer identification number.” It’s a nine-digit number assigned to businesses by the IRS. Contrary to popular belief, you don’t need to have employees to obtain an EIN.

There are a few reasons why you may want an EIN:

1. It makes filing taxes easier.

2. It enables business owners to open a business bank account.

3. It can help business owners get a business credit card.

It’s possible to apply for a business loan with an EIN, but if you do, one step that may be helpful is to ensure that your business has a financial history. You can begin compiling this long before your company is ready to make its first sale.

Recommended: Minimum Credit Score for a Business Loan

How to Get an EIN for Your Business

Unless you have specifically applied for an EIN, it’s unlikely your business has one. To get an EIN, you will need to submit an application through the IRS. If you have lost your EIN and can’t find the appropriate paperwork, you may be able to contact the IRS directly and obtain it. Most importantly, remember that your EIN is a nine-digit number that is different from your SSN.

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Can You Get a Small Business Loan With Only an EIN?

Obtaining a small business loan with only an EIN (rather than an SSN) is possible, but it often requires more than just the EIN to secure financing. The EIN, issued by the IRS, is primarily used for tax purposes and identifies a business entity. While it is an essential piece of information for loan applications, lenders typically require additional documentation and criteria in order to approve a loan.

In addition to an EIN, lenders will generally look at:

•   The business’s credit history: A strong personal credit score can provide assurance to lenders about the borrower’s ability to repay the loan. In the absence of an established business credit history, personal credit becomes even more critical.

•   Business financial statements: This includes profit and loss statements, balance sheets, and cash flow statements. These documents help lenders assess the financial health of the business and its ability to repay the loan.

•   A business plan: A comprehensive business plan may also be required to demonstrate the company’s strategy for growth and its potential for generating revenue.

•   Collateral to secure the loan: Collateral can be business assets like equipment, inventory, or real estate. Just as with some business loans available to those with bad credit and some no-credit check loans, EIN-only loans may require borrowers to collateralize assets to provide security for the lender, reducing its risk in case the business fails to repay the loan.

While it’s theoretically possible to get an EIN-only business loan, the reality is that these additional factors — credit history, financial documentation, and possibly collateral — typically play a much larger role in the approval process.

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How to Apply for a Startup Business Loan Using an EIN Number

Applying for small business loans with only an EIN can be done, but it does take time to establish a business credit history. The steps below may be helpful.

1. Apply for an EIN.

2. Open a business bank account.

3. Apply for a business credit card with your EIN.

4. Make all payments to vendors and credit accounts through your business bank account. Ask vendors to report your on-time payments to Dun & Bradstreet, Experian®, and Equifax®.

5. Check on your business’s credit score.

6. Once your business has an established credit score, apply for startup business loans using your EIN number.

What Lenders Look for Beyond Your EIN

Lenders are always concerned with a borrower’s ability to pay back a loan. An EIN alone provides no information about creditworthiness, so lenders generally look at other factors to see if a loan to your business might pose a credit risk.

Business Revenue and Cash Flow

Financial documentation that features monthly and annual revenue is key, especially in the absence of a business credit score. Revenue and cash flow figures show how much money your business can afford to borrow. Cash flow statements reveal a company’s level of liquidity, which in turn indicates how easily a business could make payments on a potential loan.

Time in Business

Owners of established businesses are likely to have more financial experience than people running startups or other new firms. If a company has a track record of surviving economic cycles and unexpected setbacks, lenders may be more prone to believe it’s resilient and likely to repay its debt.

Industry Risk Level

Some industries are less sensitive to economic disruption because they provide goods or services that people can’t do without. Examples include health care, car repair, education, and child care. If your business is in a luxury sector (such as travel, hotels, retail, or fashion), its revenues could suffer if the economy enters a downturn. Lenders are likely to consider the level of risk in your industry when deciding whether to approve your loan.

How to Use an EIN to Build Business Credit

Once you have an EIN, you can use it to establish and strengthen your business credit. Here are some steps to take.

•   Use your EIN to establish a business bank account and credit card.

•   Use only your business bank account and credit card to pay your business’s bills – do not use your personal accounts.

•   Ask your regular vendors to report your (on-time) payments to one of the major business credit reporting agencies.

•   Use your EIN on your business tax returns.

•   If your business needs to apply for licenses or permits, use the EIN.

Recommended: Do Business Loans Affect Personal Credit?

Why Should You Use EIN Over SSN?

Startup business loans using only an EIN number offer some benefits, but in other situations, using an SSN may be more useful.

Reasons to Use an EIN	Reasons to Use an SSN
Your personal credit history may not be a factor in the lender’s decision.	If your personal credit is good, it could improve the loan terms you’re offered.
Even if you don’t have an SSN, you can still apply for a business loan.	You may be able to access more financing options.
The application process may be easier.	Eligibility requirements may be easier to meet.

Types of Loans Available With an EIN

Because some borrowers that use only an EIN may seem to be riskier for lenders, it’s not uncommon for lenders to prefer to offer loans to borrowers that appear to pose less of a risk.

The top business types of funding for borrowers applying with an EIN in 2026 are:

•   Equipment loans: Equipment loans are secured with the equipment itself, which lowers the risk to the lender. However, lenders may still impose a cap on how much they’re willing to loan to borrowers applying only with an EIN. The good thing about equipment financing is that the loan term often mirrors the equipment’s useful life.

•   Invoice financing: The invoice financing method uses unpaid customer invoices as collateral to secure a business loan. Once customers pay up, full repayment of the loan is expected.

•   Invoice factoring: This approach involves selling unpaid invoices to a third party at a discount. That company collects payment on your behalf. Once they receive payment, they forward any remaining amount to you minus any fees.

•   Merchant cash advances: With a merchant cash advance, borrowers receive a lump sum of cash from a lender. Instead of making monthly payments, a small percentage of each credit card sale is automatically sent to the lender. Neither monthly payments nor collateral is required since payment is guaranteed through sales.

•   SBA loans: Loans partially guaranteed by the Small Business Administration (SBA) often provide small businesses with favorable terms. You can apply for these using an EIN to identify your business, but you (and anyone else who owns 20% or more of the business) must also provide an SSN and a personal guarantee. That means your business’s credit will improve with timely payments, but also that you will be personally responsible if the business defaults on the loan.

Will My Loan Be Limited?

If you’re trying to get an EIN-only loan, you may be offered only loans with less favorable terms. While it certainly can be possible to use an EIN to get a loan, keep in mind that lenders use other elements like personal information, personal guarantees, and collateral to help protect themselves when lending to subprime borrowers.

Therefore, as a small business borrower, using only an EIN during the application process may limit your financing options because the lender has less information to go on. If your business has a short financial history, it’s safer from their perspective to assume you pose a certain amount of risk.

Borrowers seeking EIN-only business loans may find that fewer loan options, higher interest rates, and shorter loan terms.

Recommended: Startup Business Loans with No Revenue

What to Do If You Aren’t Eligible

If your application is declined, you might consider remedying any issues with your personal credit report while also continuing to build your business’s credit score.

Bear in mind that your credit report and your credit score are two different things. Your score is a result of the information within your credit report. Therefore, first check your credit reports and see if there are any errors. If you see any information that should not be there, begin the dispute process.

If there aren’t any errors, you may want to consider building your credit history by paying down your debt and making all of your payments on time moving forward. If you have any older credit accounts, keep them open even after you’ve paid them down.

Other options include applying small business grants and crowdfunding. Both are highly competitive, so if you decide to go this route, you will want to consider moving forward with the above recommendations as well, just in case.

The Takeaway

An EIN is a nine-digit number that’s essentially a Social Security number for your business. It’s required for certain businesses, especially any that have employees.

Some business loans can be obtained with only an EIN, but many small business owners will find that their options are limited if they don’t also provide their personal information. Generally, businesses need strong and lengthy credit histories to obtain business loans with only an EIN.

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FAQ

Can you build business credit with just EIN?

Yes, it’s possible to build business credit with just an EIN. The first step would be to open a bank account using the EIN. From there, the business owner would make all payments to their accounts from that business bank account and check to be sure vendors report to the major credit bureaus.

Can you get a small business loan with a bad credit score and just an EIN?

While it’s possible to get a business loan with bad credit and just an EIN, loan options available are likely to be limited.

How long does it take to get approved for a small business loan with an EIN?

The average amount of time to get approval on an EIN loan depends on the loan and the loan amount. Some EIN loans are disbursed within a very short amount of time, while others require a lengthier underwriting process and can take up to several months.

Can you get an SBA loan with just an EIN?

You can apply for an SBA loan using an EIN to identify your business, but you will need to provide other information as well, such as a Social Security or tax ID number, a personal guarantee, and a written-out business plan.

Are there any added fees to a small business loan with just an EIN?

Each lender may or may not have unique fees associated with the application process. However, applying with just an EIN is not normally the cause or justification behind standard lender fees.

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Photo credit: iStock/JLco – Julia Amaral

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