Why lenders ask for a down payment in the first place
A down payment gives the lender a cushion if the asset loses value and proves the owner has money at risk.
When a loan buys a specific asset, the lender's worst case is repossessing and selling it. If the asset drops in value faster than the loan is paid down, the lender loses money. A down payment closes that gap. It also shows commitment: owners with their own cash in a deal tend to fight harder to keep it.
So the question to ask is not "who lends with no money down?" but "what am I buying, and does the financing depend on that asset's value?"
Financing that typically needs no down payment
Cash-flow-based products that are not tied to a single purchase usually have no down payment because there is no asset to put money toward.
| Product | Down payment? | Why |
|---|---|---|
| Working capital | No | Underwritten on revenue, not an asset |
| Revenue-based financing | No | Repaid from a share of future sales |
| Business line of credit | No | You draw what you need and repay |
| Short-term loan | No | Underwritten on cash flow and credit |
| Equipment financing | Sometimes | Depends on equipment type, age and your credit |
| Commercial real estate | Usually yes | Large, long-term asset |
| SBA start-up or acquisition loan | Yes, 10% minimum | SBA equity injection rule |
The SBA figure comes from SBA's SOP 50 10 8.1 (checked October 2026), which requires at least 10% equity injection for 7(a) start-ups and business acquisitions.
Equipment with little or nothing down
Equipment funders often finance the full purchase for established businesses with solid credit, because the equipment itself secures the deal.
Your odds of a zero-down equipment deal improve when:
- The equipment holds its value well and is easy to resell, such as standard trucks, excavators or commercial kitchen gear.
- It is new or recent, from a known dealer.
- The business has steady revenue and several years of history.
- Your personal credit is in good shape.
Custom-built, highly specialized or very old equipment is harder to finance in full. A lease is another route; many leases start with only the first payment or a small deposit. Compare the two in equipment loan vs lease.
Five practical ways to fund a purchase without cash up front
Use an asset-light product, let the seller or vendor finance part of it, use existing equity, or phase the purchase.
- Use working capital for the deposit. If a supplier wants 30% up front on a large order, short-term working capital can cover the deposit while the order itself produces the revenue to repay it.
- Ask for vendor or dealer financing. Manufacturers sometimes run zero-down promotions to move inventory.
- Negotiate seller financing. When buying a business or property, the seller may carry part of the price. Note that SBA rules limit how seller notes count toward a down payment.
- Pledge assets you already own. Equity in other equipment or real estate can replace a cash down payment with some lenders.
- Phase the project. Buy the first piece now with revenue-based funding, prove the return, then finance phase two.
Run the numbers before going zero-down
No money down means a larger balance and higher payments, so confirm the purchase produces enough cash to cover them.
Illustrative example: a contractor wants an $80,000 skid steer and attachments. With 20% down, the financed amount is $64,000. With nothing down, it is $80,000, so payments are 25% higher. If the machine lets the crew take on jobs that add $6,000 a month in gross profit, and the zero-down payment is about $2,000 a month, it still pays for itself many times over and keeps $16,000 in the bank for payroll. If the gain is uncertain, putting cash down lowers the monthly risk.
The equipment payback period guide walks through this calculation.
Red flags in "no money down" offers
Watch for fees deducted at funding, balloon payments, and offers that hide the down payment in a higher price or larger total payback.
- Upfront fees that act as a down payment. A 10% origination fee taken from the proceeds is effectively money down.
- Balloon payments that leave a large balance due at the end.
- Inflated equipment prices on dealer-financed deals.
- Requests for an upfront payment to "secure" approval. Legitimate funders do not ask you to wire money to get a loan.
How ROI Funder handles no-down-payment funding
Working capital, revenue-based financing, term loans and lines of credit placed by ROI Funder are underwritten on business revenue, not a cash deposit.
Established businesses with 6+ months in business, $20,000+ in monthly revenue and 500+ FICO can apply online in a few minutes with a soft credit pull. Equipment financing terms, including any down payment, depend on the equipment and the file. Approved, complete files can fund the same business day, and every offer shows true cost, payback period and monthly-equivalent payment. See equipment financing for more.
Frequently asked questions
Can I get an SBA loan with no down payment?
Sometimes, for an existing business using the loan for purposes other than a start-up or acquisition, where SBA sets no fixed percentage. Start-ups and business purchases need at least 10% under current SBA rules.
Can a startup get a business loan with no money down?
It is difficult. Most lenders want revenue history, and SBA start-up loans require at least 10% equity injection. Equipment leases and vendor financing are the most common zero-down routes for new businesses.
Does no money down mean the loan costs more?
Usually, in total dollars, because you finance a larger balance. Some lenders also price higher when there is no down payment.
Is working capital financing really zero down?
Yes, there is no deposit. Read the offer for any fees deducted from the amount you receive, since those reduce the cash you actually get.