Do Small Business Loans Require A Down Payment?
It depends on the product. Many small business loans, term loans, lines of credit, and merchant cash advances, require no down payment at all; you receive the full amount and repay over time. Others do: SBA loans often expect 10-20% down, and equipment financing for newer businesses sometimes asks for a portion upfront. The requirement comes down to the loan type, the lender, and your business's strength. Quordx Capital matches your profile to lenders across a 50+ network and shows which require money down so there are no surprises.
This guide is part of our full library on Business Loans. Start there for the complete lineup, then come back for the deep dive on your situation.
Last updated · Reviewed by Cody Dreis
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When A Down Payment Comes Into Play
Down payments show up most on large, secured loans. SBA loans, which finance big amounts at low rates, typically require an equity injection of 10-20%, the lender wants you to have skin in the game on a long-term, low-rate deal. Equipment financing may ask newer or thinner-credit businesses to put 10-20% down to offset risk.
Unsecured working capital, term loans, and lines of credit generally require nothing upfront, you get the full sum and repayment begins on schedule. For owners who need every dollar to work immediately, that's often the deciding factor.
Which Options Skip The Down Payment?
Working Capital Loan: Typically no money down, $5K to $500K. Best for businesses needing the full amount immediately for operations.
Business Line of Credit: Draw with no upfront payment, interest only on what you use. Best for flexible, ongoing needs without tying up cash.
Term Loan: Often no down payment for established borrowers. Best for a defined investment without an upfront outlay.
How Quordx Capital Works
Apply online in about 10 minutes. Upload 3-6 months of bank statements, your most recent business tax return, and your ID. Quordx Capital matches your profile to the best-fit lenders in our 50+ network and submits for you. Most decisions return within 24-48 hours.
What to Expect
Established businesses with strong revenue most often avoid down payments entirely. SBA and some equipment deals are the main exceptions, and even there the down payment buys you a far lower rate. Quordx Capital flags any upfront requirement before you commit. Decisions in 24-48 hours, funding in 3-7 business days.
Borrowers pay nothing. No application or broker fees. The lender pays commission at close.
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No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. We facilitate introductions between U.S. small and medium-sized businesses and lenders or capital providers in our network. All credit decisions, funding amounts, rates, fees, repayment terms, and timelines are determined solely by individual lenders based on their own underwriting criteria.
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