3 Ways Immigrants can Access Personal Funds While Wait on Business Revenue

Starting a business is exciting. It's also expensive — and not just for the business itself. While you're building your company, you still need to pay rent. You still need groceries. Your phone bill doesn't pause because you're chasing a dream.

Many entrepreneurs, especially immigrants and newcomers to the U.S., face a specific challenge: their business isn't generating income yet, but their personal expenses keep coming. Business loans typically require revenue. And tapping into savings only works until the savings run out.

So what do you do in the meantime?

Here are three ways to access personal funds while you wait for your business to take off.

1. A Personal Loan

A personal loan is exactly what it sounds like: a loan for you, as a person, not for your business. That distinction matters.

Business loans usually require revenue history, a business credit score, and sometimes collateral or a detailed business plan. Personal loans don't. They're based on your individual credit score, income history, and ability to repay.

This makes personal loans a practical option if you've built good personal credit but your business hasn't started making money yet.

How personal loans work

You borrow a fixed amount (typically $1,000 to $50,000), receive the funds in a lump sum, and repay over a set term with fixed monthly payments. Most personal loans are unsecured, meaning you don't need to put up collateral like your car or home.

What lenders look for

• Credit score: Most lenders want a score of 670 or higher for competitive rates. Some, like LendKoi, look beyond credit scores and don’t require you to have one at all
• Income: You'll need to show you can repay the loan. This can include W-2 income, 1099 contractor income, or other documented earnings.
• Debt-to-income ratio: Lenders look to how much your debt compares to your income, with a range of targets depending on lender

Current rates

According to Federal Reserve and industry data, Credit unions tend to offer slightly lower rates for an average personal loan rate when compared to commercial banks. Online lenders range widely from about 6% to 36%, depending on your credit profile and whether their focus is specifically on you, your community, and the reason you may not have an extended credit background (or none at all).

Important considerations

Use it for personal expenses, not business costs. Some lenders explicitly prohibit using personal loans for business purposes. Even if yours doesn't, mixing personal and business finances can create accounting headaches and legal complications down the road. Keep them separate.

Borrow only what you need. It's tempting to take out more "just in case," but you'll pay interest on every dollar. Calculate your actual expenses for the next 6-12 months and borrow accordingly.

Factor the payment into your budget. A $10,000 loan at 12% APR over three years means monthly payments of about $332. Make sure you can handle that payment even if your business takes longer to generate income than expected.

2. A 0% Intro APR Credit Card

If you have good credit and need flexibility rather than a lump sum, a 0% introductory APR credit card can be a smart tool.

These cards offer a promotional period — typically 12 to 21 months — during which you pay no interest on purchases. That means you can charge necessary expenses and pay them off over time without accruing interest, as long as you pay off the balance before the promotional period ends.

How it works

You apply for a credit card with a 0% intro APR offer. Once approved, you can use the card for purchases. During the promotional period, you make at least the minimum payment each month, but you don't pay any interest. When the promotional period ends, the regular APR kicks in — typically 17-28% — on any remaining balance.

Current offers

Many major issuers offer 0% intro APR periods:

15 months: Chase Freedom Unlimited, Capital One VentureOne
18 months: Citi Double Cash
21 months: Wells Fargo Reflect
Up to 24 months: U.S. Bank Shield Visa

Why this works for entrepreneurs

Unlike a loan, you don't receive (or owe interest on) money you don't use. You can charge expenses as they come up — rent, groceries, utilities, insurance — and spread the payments over the intro period.

For example: If you need to cover $6,000 in personal expenses over the next year while your business gets established, a card with an 18-month 0% APR period lets you pay about $333/month to clear the balance before interest kicks in.

Important considerations

You need good credit to qualify. Most 0% intro APR cards require a credit score of 670 or higher.

Make a repayment plan before you start. The promotional period feels long — until it ends. Calculate how much you need to pay each month to reach zero before the regular APR applies. Set up automatic payments if possible.

Don't just pay the minimum. Minimum payments are designed to extend your debt, not eliminate it. If you only pay minimums, you'll still have a large balance when the promotional period ends, and interest will start accruing at 20%+.

Watch for balance transfer fees. If you're moving existing debt to a 0% card (rather than making new purchases), most cards charge a fee of 3-5% of the transferred amount.

3. Borrowing from Friends or Family

This is the oldest form of financing — and for many immigrant entrepreneurs, the most accessible. Your community often believes in you before any bank will.

But borrowing from people you care about carries risks that go beyond money. Handled poorly, it can damage relationships that matter far more than any business.

If you go this route, do it right.

Why people do it

• No credit check. Your cousin doesn't pull your FICO score.
• Flexible terms. You can often negotiate lower (or no) interest and a repayment schedule that fits your situation.
• Faster access. No applications, no underwriting, no waiting.
• They know you. Friends and family lend based on trust in you as a person, not just numbers on a page.

The real risks

Relationships can suffer — or end. Money changes dynamics. Even with the best intentions, resentment can build if repayment takes longer than expected, if your business struggles, or if the lender's own financial situation changes. According to a Bankrate survey, 46% of Americans who lent money to friends or family reported negative consequences, including damaged relationships and lost money.

Expectations may differ. You might see the loan as a flexible arrangement between people who trust each other. They might expect to be repaid on a specific timeline. If you don't discuss this upfront, you're setting yourself up for conflict.

It can create awkwardness. Every family dinner, every casual phone call — there's now an unspoken question hanging in the air: When am I getting paid back? That weight affects both sides.

You might not be able to repay. Businesses fail. If yours does, you still owe the money — but now you owe it to someone you love. That's a harder conversation than defaulting on a bank loan.

How to do it responsibly

Put it in writing. This isn't about distrust — it's about clarity. A simple loan agreement should include: the amount borrowed, the interest rate (even if it's 0%), the repayment schedule, and what happens if you can't pay on time. Both parties sign it.

Agree on terms before money changes hands. Don't figure it out as you go. Discuss: How much? When will you start repaying? How often? What if you need to pause payments? Get aligned before anyone writes a check.

Pay interest — even a small amount. Offering 3-5% interest shows you take the loan seriously and compensates the lender for the risk they're taking. It also keeps the relationship more balanced: this is a financial arrangement, not a gift. If the donor won’t take interest, then put that interest aside and treat it personally as an obligation to invest or save.

Communicate proactively. If your situation changes and you can't make a payment, tell them before you miss it. Silence creates anxiety and damages trust faster than bad news delivered honestly.

Don't borrow more than they can afford to lose. This is the most important rule. If losing this money would hurt them financially, don't take it — no matter how much they want to help. Their generosity shouldn't put their own security at risk.

A word of caution

Borrowing from friends and family can work beautifully when both sides go in with clear expectations and open communication. But it can also go very wrong.

Before you ask someone for money, ask yourself: If I couldn't pay this back, what would happen to our relationship? If the honest answer is "it would be damaged," think carefully about whether this is the right path.

Which Option Is Right for You?

The best choice depends on your situation:

If you need a specific amount or you’re just starting your credit journey: Personal Loan

Have good credit and want flexibility: 0% intro APR credit card

Have trusted relationships and clear communication: Friends or family (with a written agreement)

You can also combine approaches. For example, you might use a personal loan for larger one-time expenses (like several months of rent upfront) and a 0% APR card for ongoing monthly costs.

A Few Final Thoughts

Separate personal and business finances from day one. This makes taxes easier, protects you legally, and keeps your accounting clean. Even if you're using personal funds to survive while your business grows, don't run business expenses through personal accounts (or vice versa).

Build your personal credit now. The better your credit, the better your options. If your score needs work, focus on paying bills on time, keeping credit utilization low, and avoiding new hard inquiries before you apply for financing.

Have a realistic timeline. Most businesses don't generate meaningful revenue immediately. The SBA reports that many small businesses don't turn a profit for 2-3 years. Plan your personal finances accordingly.

Don't over-leverage yourself. Taking on debt to cover living expenses while building a business is a calculated risk. Make sure you're borrowing an amount you can realistically repay, even if your business takes longer than expected to succeed.

Building a business while managing personal finances is a balancing act. The good news: with planning and the right tools, it's absolutely possible to bridge the gap.

At LendKoi, we help immigrants and newcomers access fair credit — so you can focus on building your future, not fighting the financial system.

References

• Average personal loan rates (11-12% for banks, 10.7% for credit unions): Federal Reserve, National Credit Union Administration, NerdWallet
• Personal loan rate ranges by credit score: NerdWallet, Bankrate
• 0% intro APR credit card offers (12-24 months): Bankrate, U.S. Bank
• Personal loan requirements and eligibility: OneMain Financial, Point
• Friends and family lending statistics (46% report negative consequences): Bankrate
• Using personal loans vs. business loans for entrepreneurs: NerdWallet, SBA