Business loan down payments range from 0% for most working capital loans and lines of credit, to 10-20% for equipment financing, to 10-20% for SBA loans. There is no single answer because down payment requirements are tied to the asset behind the loan, not the loan category as a whole - unsecured products typically need none, secured and government-backed products almost always need some.
Here's the real breakdown by product, what moves the number up or down, and how to structure a deal with less cash upfront.
Down payment by product type
| Product | Typical down payment | What moves it |
|---|---|---|
| Working capital loan | 0% | Unsecured - priced into the rate instead |
| Business line of credit | 0% | No collateral requirement on most facilities |
| Equipment financing (new) | 0-10% | Strong credit + established business can reach 0% down |
| Equipment financing (used) | 10-25% | Age, resale value, and credit profile all factor in |
| Vehicle / fleet financing | 0-15% | Newer units and fleet history reduce it |
| SBA 7(a) loan | 10-20% | Acquisitions and startups sit at the higher end |
| SBA 504 (real estate) | 10% | Standard across most 504 deals |
| Invoice factoring | 0% | You're selling an asset (invoices), not borrowing against one |
Why some products need 0% down and others don't
The pattern is simpler than it looks: down payments exist to protect the lender against an asset losing value faster than the loan balance shrinks. Unsecured working capital has no asset to protect, so the price of risk shows up in the interest rate instead of a down payment. Equipment and vehicles depreciate the moment they're financed, so a down payment keeps the loan balance below the collateral's resale value from day one. SBA loans require it partly for the same reason and partly because the SBA guarantee itself requires borrower skin in the game.
What actually gets you to 0% down on equipment
- Strong personal or business credit - typically 680+ opens 0-down programs that a 600 score won't qualify for
- New equipment from an established manufacturer or dealer, rather than private-party used
- 2+ years in business with clean bank statements and no recent derogatory marks
- A vendor or dealer relationship with a financing partner who already has approved programs for that equipment line
- Sometimes: trading in existing equipment as equity instead of cash
Sale-leaseback can recover cash you already put down
If you already own equipment or vehicles outright, a sale-leaseback lets you convert that owned asset into cash today while continuing to use it, then finance new purchases without touching your reserves. It's a common move for dealers and fleets who need capital but don't want to sell inventory-producing equipment.
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When paying a bigger down payment is the smarter move anyway
A larger down payment isn't just a requirement to clear - it's a lever you can pull voluntarily to lower your rate, shorten your term, or reduce monthly payments enough to change your cash flow math. On a $150,000 equipment purchase, moving from 10% down to 20% down often drops the rate a point or more and meaningfully cuts the monthly payment. If your reserves can absorb it, run both scenarios before deciding zero-down is automatically the better deal - it usually isn't, once total cost of capital is the metric.
We match the down payment to what you actually have available
Dealerun matches you with funding partners who compete to fund your file. Up to $5M per deal, offers in hours, no credit impact to check, 4.8/5-rated specialists. Tell us how much cash you want to put down and we'll route you to partners whose programs fit that number - including 0-down options where your file qualifies.
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FAQ
Can I get a business loan with no money down?+
Yes - most working capital loans, lines of credit, and invoice factoring require 0% down since they're unsecured or self-securing. Equipment, vehicle, and SBA financing usually require some down payment because they're tied to a depreciating or guaranteed asset.
How much down payment do I need for equipment financing?+
New equipment typically ranges from 0-10% down for strong credit profiles; used equipment usually runs 10-25%, since resale value and depreciation carry more uncertainty. Your specific number depends on credit, time in business, and the equipment's age.
Why do SBA loans require a down payment if the government backs them?+
The guarantee protects the lender against default, not the borrower against required equity. SBA rules require 10-20% owner equity specifically so the borrower shares meaningful risk in the deal, which is part of why SBA rates run lower than unsecured alternatives.
Is a bigger down payment always better?+
Not always - it lowers your rate and monthly payment, but it also ties up cash you might need elsewhere. Compare the total cost of capital at different down payment levels before assuming the largest one you can afford is the right call.
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