Can a startup with no revenue finance equipment?

Often, yes. The equipment is collateral, and the lender relies on your personal credit, a down payment, and a personal guarantee.

How much down payment does a startup need?

It varies by lender and equipment. A larger down payment improves both approval odds and the rate.

What does a $40,000 equipment loan cost a new business?

At a representative 8%–30% APR, about $1,253–$1,698 a month over 36 months. Startups usually price toward the higher end.

WithFunded › Best-of guides › By product

Best equipment financing for startups in 2026

The best equipment financing for a startup is an equipment loan or lease backed by a down payment and the owner's personal credit, since the business has no history yet. A lease usually needs less cash up front. An SBA microloan can fund smaller equipment purchases, and an SBA 7(a) loan works when equipment is part of a larger launch.

By the WithFunded team · Published November 11, 2026 · Rates as of November 2026

The short list

Best for the least cash up front: Equipment lease
Best if you can make a down payment: Equipment loan
Best for equipment under $50,000: SBA microloan
Best when equipment is part of the launch: SBA 7(a) loan

The 4 best options, ranked

1. Equipment lease Best for the least cash up front

A new business has more uses for cash than it has cash. Leasing keeps the first payment small and preserves money for opening costs.

Watch for: On a fair-market-value lease you do not own the equipment unless you pay the buyout. Equipment financing guide →
2. Equipment loan Best if you can make a down payment

Putting money down and owning the equipment costs less in total and builds an asset on the new company's books.

Watch for: Older or highly specialized equipment gets shorter terms and higher rates. Equipment financing guide →
3. SBA microloan Best for equipment under $50,000

Microlenders fund startups by design and allow the loan to be used for equipment.

Watch for: Small amounts, and availability depends on an intermediary lender serving your area.
4. SBA 7(a) loan Best when equipment is part of the launch

A startup 7(a) loan can cover equipment, buildout, and opening working capital together.

Watch for: Heavy documentation, and the timeline rules it out for anything urgent. SBA loan guide →

Side-by-side comparison

Option	Verdict	Cost basis	Funding speed	Qualifies on
Equipment lease	Best for the least cash up front	A monthly lease payment; total cost depends on the end-of-term buyout	Days to weeks	The equipment is the collateral; often less cash up front than a loan
Equipment loan	Best if you can make a down payment	Representative 8%–30% APR, with the term matched to the equipment's useful life	Days to weeks	The equipment is the collateral, which can offset a thinner credit profile
SBA microloan	Best for equipment under $50,000	Rate set by the nonprofit intermediary; loans up to $50,000	Weeks	Open to startups and thinner credit, often paired with business training
SBA 7(a) loan	Best when equipment is part of the launch	Capped at 10.00%–13.50% by loan size (prime plus the SBA maximum spread)	Weeks to months	Generally stronger credit and two or more years in business

What it costs

Monthly payments on a standard fixed-payment loan at the representative 8%–30% APR band. The low end of each range is 8% APR and the high end is 30% APR.

Amount	24 mo	36 mo	60 mo
$15,000	$678–$839	$470–$637	$304–$485
$40,000	$1,809–$2,237	$1,253–$1,698	$811–$1,294
$100,000	$4,523–$5,591	$3,134–$4,245	$2,028–$3,235

Financing $40,000 over 36 months costs about $1,253–$1,698 a month, or $5,124 to $21,130 in total interest, depending on the rate you qualify for. WithFunded calculation, representative 8%–30% APR band. Not a quote.

What lenders look at

The owner's personal credit and liquidity.
The equipment's resale value, which matters more with no business history.
Industry experience and a basic plan.

Mistakes to avoid

Buying everything new. Used equipment in good condition lowers how much a new business must borrow.
Signing a lease without understanding the buyout and what you owe if the business closes.

Frequently asked questions

Can a startup with no revenue finance equipment?: Often, yes. The equipment is collateral, and the lender relies on your personal credit, a down payment, and a personal guarantee.
How much down payment does a startup need?: It varies by lender and equipment. A larger down payment improves both approval odds and the rate.
What does a $40,000 equipment loan cost a new business?: At a representative 8%–30% APR, about $1,253–$1,698 a month over 36 months. Startups usually price toward the higher end.

See what your business qualifies for

Answer a few questions and get matched to your best-fit option. Zero upfront fees. Checking won't impact your credit.

Get matched → or open the payment calculator

What our clients say

Real reviews from business owners funded through Big Think Capital.

Excellent

Based on 3,304 reviews on Trustpilot

Terry Gossman, Oct 29, 2026Landon and Austin were greatLandon and Austin were great. Knowledgable and explained everything in a way that made it all really easy to understand. I avoid these call like the plague but these two were a joy to work with.

Stephen Buckley, Oct 1, 2026Highly recommendedHighly recommended! I worked with Corey, and he was awesome. He found an option after I received multiple rejections that no other company had presented to me. It was within my budget and my timeline. I'm so thankful!

Brian K. Robinson, Oct 14, 2026BTC has become my go to for working…BTC has become my go to for working capital. Recently, my company was in a bind and needed funds. The BTC team, headed by Drew, took a problem solving approach and helped to overcome an initial denial, resulting in a better facility than the one I was turned down for. Thanks BTC! Thanks Drew!

Showing 5-star reviews of Big Think Capital, our funding partner. TrustScore 4.9 out of 5 on Trustpilot as of November 10, 2026. Read all reviews

How we ranked these options

This guide ranks types of financing, not individual lenders. Each option is ordered by how well it fits the need described on this page, judged on four things in this order: whether the structure matches how the money will be used and repaid, total cost, funding speed, and how hard it is to qualify. Cost figures are WithFunded calculations from published rate inputs as of November 2026: the bank prime loan rate from the Federal Reserve, the SBA maximum-rate schedule, and Federal Reserve survey data. The method follows our 2026 SMB Financing Cost Report, whose own figures use June 2026 rates.

WithFunded is a financing marketplace, not a lender. Our 2-minute form suggests a product type from the families we cover, and a funding partner reviews the request. Not every structure named in this guide is available through WithFunded: options such as SBA microloans, USDA farm loans, bank loans, and seller financing are ones you would pursue directly with the provider. They are listed because leaving out a good fit would make the ranking less useful.

Related guides

The top-ranked option on this page is equipment lease because it fits the most common version of this need. Your own best fit depends on your revenue, time in business, credit, and how fast you need the money.

Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.