Buying new equipment is a great way to accelerate your growth. But you also need enough funds to keep your business running. If you put too much of your cash toward a single asset, you may leave yourself exposed if sales dip or operating costs increase.
Financing your new equipment through a loan or lease helps you spread the purchase price out over time. And equipment financing companies familiar with small business growth can further reduce the initial cost by requiring low down payments. If your goal is to expand your business assets while maintaining your current operations, consider financing your equipment with one of the following lenders.
1. SmartBiz Loans
Small Business Administration (SBA) loans are some of the most cost-effective financing options available. SmartBiz streamlines the application process so small businesses can secure these government-guaranteed loans more quickly and easily.1
To qualify for SmartBiz’s SBA-backed equipment loan, you’ll need more than three years in operation, good credit, strong cash flow, and a cash injection. Your down payment amount will vary depending on your loan amount and business profile.1 For qualifying companies, purchasing equipment with SmartBiz can balance growth and stability.
2. Funding Circle
Funding Circle also uses government-backed financing to offer small- and medium-sized enterprises (SMEs) the best growth deals.2 After completing a simple application, an account manager will guide you through your best options to finance your equipment. They offer hire purchase, finance lease, and asset refinance through their asset financing program.2
Funding Circle stands out for its affordable equipment finance loans for businesses with solid financials. If you have less-than-perfect credit or struggling revenue, you may have to make a larger down payment.2 But with their personalized guidance, Funding Circle can help many SMEs secure the right equipment financing.
3. Biz2Credit
While Biz2Credit doesn’t offer a specific equipment financing program, its business term loan works well for small businesses purchasing new assets. You can secure up to $2 million for up to five years after creating a Biz2Credit account and completing an application.3
You’ll need to submit fairly substantial documentation so the lending experts can match you with the best product at the lowest upfront cost.3 But with strong credit and revenue, you can secure a Biz2Credit term loan with a minimal down payment.
4. Fora Financial
Known for its big-picture approach to small-business funding, Fora Financial offers equipment loans to all kinds of business owners.4 Businesses with six months in operations, $240K in annual revenue, and a credit score higher than 570 can qualify.5 And because they can approve financing in as little as four hours and funding in 24 hours, Fora Financial works well for emergency repairs and time-sensitive upgrades.
Fora Financial focuses on flexible funding that preserves cash flow for small businesses, so it doesn’t set a required down payment amount.5 If you have weaker financials or expensive equipment needs, plan on putting some of your capital toward the asset to improve your chances of approval.
5. National Funding
National Funding offers accessible funding paths for small businesses. With only six months in business, fair to good credit, and a vendor quote, you can secure up to $150K for new or used equipment in almost any industry.6
Funding your equipment through National Funding keeps your cash free for other expenses, as they offer the lowest payment guarantee on leases and no down payment requirements for all financing.6 As long as their limited funding amount fits your needs, consider National Funding for your equipment.
6. Kapitus
When you want to preserve working capital and need significant funding for equipment, consider Kapitus. This lender doesn’t require documentation or credit checks for financing under $500K and doesn’t set a maximum loan amount.7 The flip side is that Kapitus requires more than two years in business and a 660 credit score from owners and only finances revenue-generating equipment from licensed dealers.
But Kapitus can save qualifying businesses money through its customized financing solutions. They offer strong applicants no-down-payment options and can finance 100% of the equipment costs.7 Kapitus is a strong alternative to traditional banks for established small businesses.
7. Cardiff
Cardiff is known for its flexible approach to financing small-business equipment. They rely on information about your business performance rather than a single number and consider both new and used equipment for financing.8 This makes Cardiff ideal for companies with limited credit history or even startups.
Along with flexible underwriting, Cardiff can adjust your equipment financing agreement (EFA) or operating lease to your revenue cycle. They offer seasonal payment schedules, ramping up structures, and payment deferrals.8 These repayment options explain why Cardiff often ranks among the top business loan providers for lawn care, auto repair, construction, and other equipment-heavy industries.
Cardiff’s ability to finance up to 100% of your equipment costs (without a down payment) and roll soft costs, such as installation and training, into your loan or lease also lowers the initial burden on your business.8 Cardiff supports fast, cost-effective growth for small businesses overall.9
Look Beyond the Down Payment
A low down payment that reduces your upfront burden might be the key to successful equipment financing, but it should not be the only thing you compare. Choosing a lender that meets all your needs prevents issues later.
When you compare equipment financing companies, start with the asset and work backward. Know what you are buying, how much it costs, how long you expect it to be useful, and how the purchase will benefit your business.
Eliminate any lenders that don’t fund the type of equipment you need. When possible, focus on equipment financing companies with experience in your industry. The best auto body repair shop business loan provider is much more likely to approve an advanced frame straightening system and offer good terms than a general lender.
Once you’ve identified equipment financiers that work with your type of asset, consider how their terms fit your business. Ask yourself:
- Will the underwriting and funding timeline work with your schedule?
- Do the repayment terms line up with the value this equipment will create?
- Does the payment schedule fit your cash flow?
- Can you understand the total cost without reading through layers of fine print?
- Does the lender charge early payoff penalties or other fees?
- Can you include soft costs in your equipment financing?
These details shape how useful the financing will feel six months from now and help you choose the lender that best supports your business among equipment financing companies with low down payments.
Balance Sparks Growth
The best equipment financing helps you buy the asset you need and protects your ability to run your business. That’s why these lenders, which preserve your working capital with small down payments, can be so useful.
But you can’t chase the lowest upfront commitment at all costs. You want a loan company that can finance the equipment you actually need, not the one that fits their checklist. And you need a lender who provides the terms and repayment schedules to support a healthy future.
Partner with an equipment financing company that balances manageable upfront terms with the right terms. Then your asset can support your expansion rather than creating new pressures. A balanced funding approach sparks growth.
Infographic
Small businesses looking to expand assets without depleting working capital have more low-down-payment equipment financing options than most owners realize, and the right lender depends on your credit, revenue, and timeline. Explore equipment financing companies with low down payments in this infographic.
1 https://smartbizbank.com/sba-loans
2 https://www.fundingcircle.com/uk/businesses/asset-finance/equipment-finance/
3 https://www.biz2credit.com/term-loan
4 https://www.forafinancial.com/why-us/
5 https://www.forafinancial.com/use-cases/equipment/
6 https://www.nationalfunding.com/equipment-leasing/
7 https://kapitus.com/products-services/equipment-financing
8 https://cardiff.co/business-loans/products/equipment-leasing/
9 https://cardiff.co/