Equipment Financing for Startups and New Businesses
New businesses face a real hurdle with equipment loans: without a track record, the lender is underwriting you and the equipment, not your history. Financing is still possible for many newer companies, but it usually comes with more money down and closer scrutiny. Here's what to expect.
Why Time in Business Matters
Most lenders prefer at least 6 months to 2 years in business. Under that, approvals lean heavily on personal credit, industry experience, and the equipment itself. Many of our own programs start at 6 months in business and about $10,000 a month in revenue.
What Newer Businesses Can Expect
- Down payment required — often 10–30% depending on credit and equipment type
- Strong personal credit — generally 650+ helps significantly
- Shorter terms or higher rates than an established business would get — terms run up to 84 months on approved deals, and newer companies usually land well under that
- Total equipment value up to $1M, as a loan or a lease
- Personal guarantee from the owner
How to Strengthen Your Application
- Show direct industry experience (years as an employee count)
- Bring signed contracts or a customer pipeline
- Choose equipment with strong resale value
- Keep clean business bank statements from day one
- Have the down payment saved and documented
Alternatives
A lease can keep the monthly payment lower than a loan and free up cash for other startup costs — lease options run up to 84 months on total equipment value up to $1M. Vendor financing programs and an SBA loan (see SBA 7(a) vs 504) can also work for some startups. Once you pass 6 months with steady revenue, more options open up.
Learn more about our equipment financing programs.
Equipment and truck programs fund up to $1M in total value with terms up to 84 months, as a loan or a lease. Rates, down payments, and final terms vary by lender, equipment, and credit profile, and every deal is subject to underwriting and approval. A down payment is required on most programs.
Related equipment guides: Trailer Financing · Startup Equipment Financing · Construction & Heavy Equipment · Box & Dump Truck Financing · Used Semi Truck Financing
Start your application → or call (559) 549-4717.
California Business Capital | Fresno, California | info@cabizfunding.com | 559-549-4717