Yes, new businesses can finance equipment. Here's how.
Lenders see startups as higher risk, so the rules are different: expect a down payment, a close look at your personal credit and your experience, and smaller first approvals. The upside: equipment financing is often the most approvable funding a new business can get, because the equipment secures the deal.
What decides a startup approval
With no business track record, lenders lean on you: your credit, your experience and how much you are putting in.
Typical startup ranges by credit profile
| Personal credit | Typical down payment | Typical first approval |
|---|---|---|
| 720+ with industry experience | 10–15% | Up to about $150,000 |
| 680–719 | 15–20% | Up to about $75,000–$100,000 |
| 650–679 | 20–30% | Up to about $50,000 |
| Below 650 | 30%+ or extra collateral | Case by case |
General ranges only, not an offer. Results vary by lender, industry, equipment and experience. When one lender's limit is too low, we can often split independent pieces of equipment across more than one lender to reach the full amount.
How long lenders treat you as a startup
| Situation | Usually considered a startup until | What changes after |
|---|---|---|
| Most businesses | 2 years in business | Lower down payments and larger application-only approvals |
| Trucking companies | 2 years with your own authority | Owner-operator programs open up, down payments drop |
| Restaurants | Up to 5 years at some banks | Bank loans become realistic; equipment financing is usually available sooner |
| Buying an existing business | Often judged on the business's history | A profitable acquisition can qualify like an established company |
Straight talk: don't spend your startup cash on equipment you could finance. Keep it for payroll, marketing and inventory, which are much harder to fund in year one.
Funding a new business, explained
Funding your equipment.
Turned down by your bank? Watch this.
Why startups finance equipment with us
What it takes to qualify
- New business entity and EIN (or in formation)
- Personal credit of 650 or higher
- Down payment funds shown in your bank statements
- Vendor quote for the equipment
- Resume or proof of experience in the industry
- No recent bankruptcies and no unresolved tax liens
See where you stand with the approval indicator.
Beware of anyone promising $0 down to a startup
Legitimate startup programs almost always need a down payment, because the lender is betting on you rather than a track record. Offers that promise “guaranteed approval” or no money down for a brand-new business are usually expensive short-term products in disguise. Put some money in, finance the rest over a fixed term, and keep your working capital for everything else.
From idea to equipment
- Get your quoteChoose the equipment and get a written vendor quote.
- Pre-qualifySoft credit pull and a quick look at your experience and down payment.
- Get approvedWe match you with startup-friendly lenders and show every payment.
- Fund and openWe pay the vendor after you sign and the down payment is received.
Startup equipment financing questions
Can a brand-new business get equipment financing?
Yes. Startups are approved every day, usually based on the owner's personal credit and industry experience, with a down payment.
Is there $0-down equipment financing for startups?
Rarely. Expect to put down 10–30%, more if your credit is lower. Be cautious of offers that promise no money down to a new business.
What credit score do I need?
Startup programs require at least a 650 credit score. Stronger credit lowers the down payment and raises the amount.
How much can a startup finance?
Typical first approvals range from about $5,000 to $150,000, depending on credit, experience, industry and equipment.
When am I no longer considered a startup?
Usually after 2 years in business. Some banks treat restaurants as startups for up to 5 years; trucking companies generally need 2 years with their own authority.
Should I buy used equipment to start?
Often, yes. Used equipment costs less, needs a smaller down payment, and can still be financed if it can be verified.
Starting a business?
See what you qualify for with a soft credit pull. No obligation.
Ranges shown are general guidance, not an offer or commitment to lend. All financing subject to credit approval. NMLS #2009539 · CA DFPI #60-DBO49692.
