Can you really get a business loan with no money down? This is one of the most common questions small business owners and new entrepreneurs ask—especially when cash flow is tight. The truth is: yes, zero-down business loans exist, but they’re not always easy to qualify for. The options vary widely depending on your credit, industry, business history, and your willingness to provide collateral or documentation.
In this definitive guide, we’ll break down exactly how zero-down financing works, who qualifies, what lenders truly offer $0 down loans, and the best alternatives if you’re starting with minimal capital.
A zero-down business loan refers to any financing that does not require a down payment or upfront capital contribution. Instead of paying 5–30% upfront, the lender covers the full loan amount and assumes more risk.
These loans may still require:
High credit
Strong revenue
Valuable collateral
A personal guarantee
A proven business model
Zero-down shouldn’t be confused with no-doc or no-credit-check loans; these are different (and often predatory). Zero-down simply means no upfront cash contribution.
Yes, they are possible—but they’re not common, and approval requirements are higher.
Zero-down loans exist through:
SBA loans (in specific scenarios)
Equipment financing
Vendor financing
Business credit cards
Microloans
Certain online lenders
Banks rarely offer $0-down startup loans without collateral, but alternative lenders are more flexible.
Most lenders reduce risk in one of three ways:
Your loan is secured by assets such as:
Equipment
Vehicles
Real estate
Accounts receivable
Inventory
If your business consistently generates revenue, the lender may approve zero-down because profits cover risk.
Borrowers with strong credit scores (680–720+) are more likely to receive no-money-down approval.
Check your credit.
Gather financial documents.
Choose collateral.
Compare lenders.
Apply with strong revenue.
Provide a personal guarantee.
Review loan terms.
The Small Business Administration (SBA) does not require an automatic down payment, but many lenders do.
However, SBA 7(a) and SBA 504 loans can be zero-down if:
The business has strong collateral
The borrower is highly qualified
The loan is for equipment or working capital
It’s a business expansion (not a startup)
The borrower has sufficient cash flow
Under SBA rules, down payments are generally required only for startup acquisitions or when risk is high.
Buying a business (typically 10% down)
Funding a new startup with no revenue
Purchasing property with insufficient collateral
Equipment loans are one of the easiest ways to secure zero-down funding.
Why?
Because the equipment itself acts as collateral.
Examples include:
Restaurant appliances
Medical devices
Construction machinery
Computer systems
Transportation vehicles
Many lenders advertise:
$0 down
Same-day approval
Soft credit checks
This is one of the most realistic no-down-payment options.
Some suppliers offer in-house financing where you pay:
No down payment
0% interest for an initial period
Low monthly installments
This option is common in:
Manufacturing
Wholesale
Ecommerce
Construction
Vendors offer this to stimulate large equipment purchases.
While not a loan in the traditional sense, business credit cards allow financing with no upfront money.
Benefits:
No down payment
0% APR introductory periods
Higher credit limits for established credit
Credit cards can fund:
Inventory
Supplies
Marketing
Travel
Software
A business line of credit also allows full borrowing with no upfront cash.
It works like a “revolving loan”—borrow, repay, borrow again.
Common uses:
Cash flow gaps
Payroll
Inventory
Emergency expenses
Many online lenders approve LOCs based primarily on revenue.
If your business invoices customers, factoring lets you get funded now with:
No down payment
No credit check
Collateral backed by invoices
You sell unpaid invoices to a factoring company in exchange for same-day cash.
MCAs offer zero-down, high-approval funding based on your daily card sales.
They’re risky and expensive, so use them only when necessary.
Benefits:
$0 down
Bad credit approvals
Fast funding
But expect:
High fees
Frequent payments
Short repayment windows
Microloans between $500 and $50,000 often require no down payment.
Providers include:
Kiva
Accion Opportunity Fund
Community Development Financial Institutions (CDFIs)
Local economic development centers
Great for:
Startups
Minority-owned businesses
Low-income entrepreneurs
If your business has:
Strong revenue
Solid cash flow
Business credit history
High-performing assets
You are more likely to qualify.
A 680+ personal credit score significantly increases approval odds.
Businesses that own equipment, vehicles, or property have a higher chance of no-money-down approval.
A personal guarantee reassures lenders and may eliminate the need for a down payment.
No upfront capital needed
Fast funding for growth
Great for cash flow management
Can preserve working capital
Accessible through multiple lender types
Higher interest rates
More strict qualifications
Larger total repayment cost
May require collateral or a PG
Not available for all business types
If you don’t qualify for a no-money-down loan, these alternatives may work:
No repayment required.
Look into:
Federal grants (Grants.gov)
State/local business grants
Corporate grant programs
Kickstarter, GoFundMe, and Indiegogo allow funding using early supporters.
Equity-based funding with no repayment.
You pay a percentage of your revenue until the loan is repaid.
Can boost creditworthiness.
So—are zero-down business loans possible? Absolutely.
But they require the right combination of:
Strong credit
Revenue
Collateral
Industry stability
If you’re a startup with limited cash, you may need to explore alternatives like equipment financing, microloans, vendor financing, or business credit cards.
Zero-down loans can help you:
Preserve cash
Expand faster
Invest in growth
Stay competitive
But always review the cost, interest rates, and long-term financial impact before committing.