The founder's paradox: you need the machine to generate revenue, and lenders want revenue before funding the machine. Except - equipment financing is the one corner of commercial credit specifically built to break this loop, because the machine itself is the collateral. Startups get equipment funded every day. Here's what the approvals have in common.
What replaces revenue in a startup application
- Your personal credit (650+ makes this easy; 600+ keeps it possible with more down)
- Industry experience - a mechanic opening a shop or an operator going independent is a KNOWN risk profile, and lenders price it
- Down payment: 10-25% depending on the profile - your commitment is underwriting data
- The asset's quality: standard, resellable equipment (lifts, trucks, excavators) approves far easier than exotic or custom gear
- Contracts or LOIs - even soft demand evidence moves the needle
Realistic startup terms
| Profile | Approval odds | Typical structure |
|---|---|---|
| 680+, industry vet, 15% down | Strong | $10K-$150K, 10-16% APR |
| 620-680, some experience | Good | $10K-$75K, 14-22% APR, 15-25% down |
| Sub-620 or zero experience | Case-by-case | Smaller amounts, heavier down, or a cosigner |
Start smaller than your dream
The $40K used machine that approves today beats the $120K new one that doesn't. Six months of clean payments on deal #1 transforms deal #2 - lenders escalate fast with borrowers who've proven one payment.
60-Second Funding Check
No credit pull. No obligation. Just a straight answer.
What do you need funding for?
Startups aren't a rejection at Dealerun
Our equipment partners include startup-friendly programs that price experience and assets, not just tax returns you don't have yet. One application, honest answers about what's fundable now.
Get your first machine funded
Two minutes to see what your profile approves for - before you sign anything.
FAQ
Can I get equipment financing with a brand-new LLC?+
Yes - the entity's age matters less than your personal credit and experience. Expect a personal guarantee (universal for new businesses) and slightly more down. The LLC starts building its own credit profile with this first deal.
Is leasing easier to get than a loan for a startup?+
Often slightly, yes - lease approvals can be more flexible on young businesses, and $1-buyout leases end in ownership just like loans. Compare the total cost of both; approval ease shouldn't cost you five points of implied rate.
Get a callback from a funding specialist
Real questions, straight answers - no scripts, no pressure.
No credit impact. We never sell your information.
Ready to put this to work?
See what funding your business qualifies for - it takes two minutes and won't affect your credit.