Small Business Loans Down Payment
The down payment question comes up constantly: how much cash do you need to put in to get a small business loan? The honest answer is "it depends on the product." Many working-capital loans, lines of credit, and MCAs require no down payment at all. Others, SBA loans and some commercial real estate or equipment deals, expect 10-20% down. Quordx Capital helps you find the products and lenders whose down-payment requirements match the cash you actually have on hand, matching your single application to 3-7 best-fit lenders for free.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
When Does a Small Business Loan Require a Down Payment?
Down payments show up most on collateral-backed and government-backed financing. SBA 7(a) and 504 loans typically require around 10% equity injection. Equipment financing sometimes asks for 10-20% down, though many deals finance up to 100% of the asset's cost. Commercial real estate usually requires the most, often 10-30%.
Unsecured products like term loans, lines of credit, and merchant cash advances generally require no down payment, because the lender is pricing risk into the rate rather than requiring upfront equity. The tradeoff: those products often carry higher costs than secured financing.
Run the math before you decide. A 10% injection on a $300,000 SBA loan is $30,000 out of pocket, real money, but it can shave several points off your rate over a 10-year term and save far more than $30,000 in interest. A no-down-payment working capital loan keeps that cash in your account today, which matters if liquidity is tight. There's no universally "better" answer; it depends on whether your constraint is cash on hand or total cost.
Which Funding Options Fit Your Cash Position?
Working Capital Loan: Usually no down payment, $5K, $500K. Best for: owners who need funding without tying up cash.
Equipment Financing: Often $0 down, sometimes 10-20%, with the asset as collateral. Best for: financing machinery or vehicles.
SBA Loan: ~10% equity injection, up to $5M at ~9-11.5% APR. Best for: established businesses willing to put cash in for the lowest rate.
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 on your behalf. Most decisions return within 24-48 hours.
What to Expect
Decisions typically arrive in 24-48 hours and funding in 3-7 business days. If you'd rather not put money down, say so, Quordx Capital can prioritize no-down-payment products. If you can contribute equity, you'll likely unlock lower-cost options like SBA financing.
Quordx Capital is free to borrowers. No application, broker, or processing fees. The lender pays commission only when your deal funds.
Find out which loans need a down payment and which don't, one free application, multiple lenders, no obligation.
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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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