The short answer
Yes. A sole proprietorship can get business funding, sized on the deposits into its business bank account like any other business. The owner and the business are the same legal person, so the owner's credit carries more weight. One exception on our panel: New York sole proprietorships are not funded; a New York LLC or corporation is fine.
Funding options on this topic: Merchant cash advance, Term loans and Lines of credit.
What Changes for a Sole Proprietor
A sole proprietorship is not a separate legal entity, so the business's obligations are the owner's obligations. Funders read the same bank statements they read for an LLC, but the owner's personal credit carries more of the decision, because there is no entity standing between the funding and the person.
Taxes tell the same story. A sole proprietor reports business income on the owner's own return, so lenders that ask for tax returns read the personal return to see the business.
The Business Account Is the File
The single biggest step is a separate business bank account with every sale running through it. Funders count deposits into the business account; revenue mixed into a personal account cannot be separated cleanly and usually is not counted.
Our panel's general floors as of September 28, 2026 are 3 months in business, $10,000 a month in deposits and a 500 credit score, checked with a soft pull. A sole proprietor who meets them is read the same as any other business.
The New York Exception, and Forming an LLC
On our panel, New York sole proprietorships are not funded; an LLC or corporation registered in New York is. Outside New York, sole proprietors are funded.
Forming an LLC does not by itself improve an offer, because the record a funder reads is the bank history, not the paperwork. If you form one, move the business account to it and keep the deposit history continuous. Talk to your accountant about the tax side before you change structure.
Commonly Asked Questions
Do I need an LLC to get business funding?
No. Outside New York, sole proprietors are funded on our panel. In New York, the business needs to be an LLC or corporation.
Can I use my personal bank account as a sole proprietor?
It makes funding harder. Funders count deposits into a business account, so open one and run every sale through it.
Is my personal credit checked if I am a sole proprietor?
Yes, with a soft pull to check options. It carries more weight than for an LLC, because the owner and the business are the same person.
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