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With an employer identification number (EIN)—your business’s equivalent of a Social Security number, issued by the US Internal Revenue Service (IRS)—you take the first step toward establishing your business’s independent identity and separating your personal and business finances. But your business needs more than this nine-digit number to stand on its own financially.
Lenders often require additional business-level documentation—like financial statements, business plans, or collateral—to evaluate whether a company qualifies for funding independently of its owner. And in some cases, the owner(s) may have to put their personal credit on the line.
In this guide, you can learn more about the qualification processes and approval requirements for some of the business loans you can access with an EIN.
Can you get a business loan with just an EIN?
It’s almost impossible to secure most forms of traditional business funding with just an employer identification number (EIN), particularly for startups and early-stage companies. Traditional lenders, such as banks and credit unions evaluate risk by looking at cash flow, business revenue, business credit scores, and the owner’s personal credit history, as well as an EIN. They also commonly require personal guarantees and broader financial disclosures, particularly where the business hasn’t yet achieved a standalone credit profile.
Similarly, loans supported by the US Small Business Administration (SBA) involve extensive documentation and underwriting through participating banks. While SBA loans reduce lender risk with government guarantees, lenders still require borrowers to demonstrate strong personal credit, provide detailed financial statements, and sign a personal guarantee.
In limited cases, specialized lenders may underwrite primarily against business performance, evaluating things like cash flow, receivables, or equipment or stock value. This allows for financing to be structured with reduced reliance on an owner’s personal credit. Even in these situations, lenders generally expect to see verifiable business history and some documentation sufficient to evaluate repayment risk. They may also require the business to pledge collateral.
How to get a loan with an EIN
- Obtain an EIN
- Open business and vendor accounts
- Start building business credit
- Demonstrate cash flow and revenue
Below is an overview of how small businesses can leverage an EIN to obtain business loans and what additional documentation might be required.
1. Obtain an EIN
Despite its name, you don’t need employees to obtain an EIN. Any business owner can get an EIN for free through the IRS’s website. If you’re structuring your business as a formal entity, such as a limited liability company (LLC), limited partnership, or corporation, you’ll need to have successfully registered it before applying for an EIN.
Obtaining an EIN creates separation between the business owner’s personal and company finances. It’s typically needed to open a business bank account and apply for a business credit card.
From a lender’s perspective, an EIN helps legitimize a business and clarifies what assets belong to the business, and whether additional credit support, like a personal guarantee, might be required. In other words, it provides legal and financial transparency for underwriting purposes.
2. Open business accounts and vendor accounts
Opening a business account at a bank or credit union shows lenders that you’re taking concrete steps to separate your company’s finances from your personal finances.
Opening vendor accounts with your suppliers is another step in establishing your business’s independence; you will use these accounts to buy inventory, supplies, and materials on credit. They are a great way to build business credit without relying too much on high-interest credit cards. When vendors report your business’s on-time payments, you begin accumulating a favorable credit profile with the major business credit bureaus.
3. Start building business credit
In addition to opening business and vendor accounts, using business credit cards is one of the fastest ways to build business credit. Keep your balances low relative to your credit limit (also known as a low credit usage rate or credit utilization ratio), pay on time, and avoid using the card for personal purchases.
Unlike in consumer credit, there is no single business credit score. Most companies have multiple business credit scores, generated by different business credit bureaus, each using its own scoring model. These scores are based on factors such as payment history, reported vendor accounts, outstanding balances, and overall business credit behavior—not the owner’s personal borrowing history.
4. Demonstrate cash flow and revenue
Some lenders prioritize how you manage cash flow. Showing predictable deposits, contracts, or receivables can improve your chances of qualifying for a loan without having to take on any personal guarantees or personal credit checks. Up-to-date financial statements, like profit and loss (P&L) reports, balance sheets, and cash-flow statements, can further support credit approval on the basis of your company’s finances.
Types of loans you can apply for with an EIN
- Merchant cash advance
- Equipment loans
- Invoice financing
- Microloans
- Term loans
- Revolving business lines of credit
Effectively, there are no traditional loans available using only an EIN with no additional information. But some financing products place greater weight on business activity (revenue, receivables, asset value, etc.) than on the borrower’s personal credit alone. Even in these cases, lenders typically require documentation like bank statements, financial history, collateral, or personal guarantees. Some of these products can also involve higher costs, faster repayment requirements, or tighter loan terms than traditional bank financing.
Merchant cash advance
A merchant cash advance provides funding based on a business’s expected future sales. Approval focuses primarily on cash flow and daily revenue, making this one of the most accessible financing options. However, because the lender takes a cut of your business’s daily or weekly credit and debit card sales for repayment, providers will usually require recent bank or card-processing statements.
Equipment loans
With equipment financing, your company’s equipment serves as loan collateral. The logic of an equipment loan works like this: If you don’t repay the loan, the lender can seize the equipment. You can think of it sort of like a small-scale version of a mortgage on a house.
This setup reduces lender risk and can make approval more likely. This is especially true for equipment tied directly to revenue generation, such as manufacturing machinery. Even so, lenders typically review business financials and may still request a limited personal guarantee if the business has not yet built up sufficient credit.
Invoice financing
Invoice financing is an umbrella term for a form of financing in which businesses receive advances based on outstanding invoices.
For these loans, lenders evaluate the creditworthiness of the business’s vendors or customers, rather than the owner’s personal credit, making this option particularly viable for business-to-business (B2B) companies with consistent billing. In such a scenario, a business may only have to provide an EIN and other limited documentation, like invoicing history or customer payment patterns. Being able to provide this documentation may also help the borrower secure a more favorable interest rate.
Microloans
Microloans are exactly what they sound like—small business loans often offered by nonprofits or community lenders. Under the SBA microloan program, loan amounts can reach as much as $50,000. Although documentation requirements are typically less stringent than for traditional bank loans, many of these loan programs still require some form of personal guarantee and basic financial documentation, especially for early-stage businesses.
Term loans
Term loans provide a one-time, fixed lump sum to be repaid based on defined loan terms with set interest rates. Most require some review of personal credit. However, businesses with good business credit scores and strong revenue histories may qualify with limited reliance on the owner’s personal credit history, rather than none at all.
Revolving business lines of credit
A revolving business line of credit allows a company to draw on funds as needed up to an approved limit instead of receiving a full lump-sum amount upfront. A revolving line of credit provides flexible working capital that resets as balances are paid down. Most creditors still evaluate both the business’s financial performance and the owner’s creditworthiness when underwriting a revolving line of credit, particularly for newer businesses without an established business credit history.
Business loan with EIN only FAQ
What is the easiest loan to get approved for with only an EIN?
Typically, merchant cash advances or invoice factoring—in which a business sells its invoices for cash—are the easiest loans to obtain with an EIN. Approval here relies primarily on cash flow or receivables, rather than personal or business credit.
Can I get a loan with no proof of income?
Almost never. Most lenders still verify business revenue, bank activity, or invoices to assess a business’s financial health.
What’s the best credit card for a small business?
Entry-level business credit cards that report to business credit bureaus (as opposed to consumer bureaus) can help new companies establish credit without affecting owners’ personal credit scores—as long as you make on-time payments and don’t carry a high balance month to month.
*All loans through Shopify Capital Loans are issued by WebBank. Offers are subject to change based on several factors including your store's performance and the review of your financial information. Shopify Capital Loans must be paid in full within 18 months, and two minimum payments apply within the first two six-month periods. Offers to apply do not guarantee funding. Repayments are made based on a percentage of daily sales.
