Yes, you can get equipment financing with only 1 year in business, but your approval will lean far more on your monthly revenue and bank-deposit history than on years of operating history. The 12-month mark is a real threshold: many funders treat "1 year in business" as the point where they will look at your actual deposits instead of declining you outright. For owners with thin credit or a young company, a revenue-based marketplace is usually the fastest path, because approval is driven by what your business banks each month rather than a long credit file. This page walks through what genuinely qualifies at the one-year stage, what to have ready, and realistic cost examples so there are no surprises.
Key takeaways
- Twelve months in business is a common hard threshold; the same application declined at month nine can pass at month thirteen
- Revenue-based funders approve mainly on bank deposits and monthly revenue, not years of history
- Typical minimums start around $10,000, with FICO 500+ often workable
- Funding often lands within 24 to 48 hours once bank statements are in
- Core documents are three to six months of business bank statements, ID, and an equipment quote, not years of tax returns
- Revenue-based funding is priced with a factor rate, so total cost is fixed up front
- Approval and terms depend on your specific numbers and are never guaranteed
Why 1 year in business is a real turning point
Under 6 months, most equipment lenders and traditional banks decline automatically. Between 6 and 12 months, options open up but stay narrow and expensive. At 12 months, you cross a threshold that a lot of funders use as a hard cutoff, so the same application that was rejected at month nine can get approved at month thirteen with the same numbers.
What changes is not just the calendar. By one year, you typically have a full cycle of bank statements showing seasonal swings, consistent deposits, and how you handle cash flow. That track record is what a revenue-based funder actually reads. A traditional equipment loan still wants two or three years of tax returns, but revenue-based and marketplace options can work with what a one-year-old business realistically has.
What actually gets approved at the one-year mark
At 1 year, approval decisions cluster around a few things you can control. Time in business clears the minimum threshold. Monthly revenue and consistent deposits carry the most weight. Credit still matters, but a revenue-based funder will often work with a FICO around 500 and up if the bank statements are strong. The equipment itself can also serve as collateral in a true equipment loan, which sometimes offsets a weaker profile.
The table below shows illustrative profiles. These are examples to show how the pieces interact, not a promise of any specific outcome.
| Example profile | Time in business | Monthly deposits (for example) | Credit | Realistic outcome |
|---|---|---|---|---|
| Landscaper needing a used truck | 13 months | $18,000 | 560 | Strong candidate for revenue-based funding |
| Food truck adding a second kitchen | 12 months | $9,000 | 620 | Possible, but low deposits limit amount |
| Auto shop buying a lift | 14 months | $30,000 | 510 | Good candidate despite lower credit |
| New consultancy wanting laptops | 11 months | $4,000 | 640 | Likely too early and too thin |
The pattern is consistent: deposits and time in business move the needle more than credit score alone.
Documents to have ready before you apply
A one-year-old business rarely has multiple years of tax returns, and that is fine for revenue-based options. What you do need is straightforward, and having it ready is the single biggest thing that speeds up funding.
- Three to six months of business bank statements (this is the core of the decision)
- A voided business check or basic banking details
- Government-issued ID for the owner
- A quote or invoice for the equipment you want to buy
- Basic business details: legal name, EIN, and time in business
You generally do not need a full business plan, audited financials, or years of returns for revenue-based funding. If a source demands all of that at one year in business, it is a traditional product that may not fit your stage yet.
Equipment loan vs. revenue-based funding for the equipment
There are two common ways to fund equipment at this stage, and they behave differently. A true equipment loan uses the machine as collateral and often carries a lower rate, but it usually wants stronger credit and more history. Revenue-based funding through a marketplace is faster and more forgiving on credit, with approval driven by deposits, and you use the funds to buy the equipment yourself.
| Factor | Traditional equipment loan | Revenue-based marketplace funding |
|---|---|---|
| Main approval driver | Credit and financials | Bank deposits and revenue |
| Typical minimum credit | Often 650+ | Around 500+ |
| Time in business fit | Prefers 2+ years | Works at ~1 year |
| Speed to funds | 1 to 3 weeks | Often 24 to 48 hours |
| Collateral | The equipment | Future revenue |
If your credit and history are strong, an equipment loan can be cheaper. If you are one year in with modest credit but healthy deposits, revenue-based funding is usually the realistic route.
How a revenue-based marketplace decides
A revenue-based or MCA marketplace looks at the health of your bank account first. It reads the last several months of statements for average daily balance, how many days you run negative, deposit consistency, and total monthly revenue. Those signals tell the funder whether your business can comfortably carry a payment, which is the real question.
Because the decision leans on deposits rather than a long credit file, a one-year-old business with steady banking can qualify even with a FICO in the 500s. Minimums commonly start around $10,000, and funding often lands within 24 to 48 hours once documents are in. A marketplace matters here because a single application gets reviewed against multiple funders, so you see the offers you actually qualify for instead of getting one flat decline. Approval is never guaranteed, and terms depend on your specific numbers.
Realistic cost examples
Revenue-based funding is priced with a factor rate rather than an APR, so the total cost is set up front. The examples below are rounded and illustrative to show how the math works, not quotes.
| Amount (for example) | Factor rate | Total payback | Term | Rough daily payment |
|---|---|---|---|---|
| $15,000 | 1.25 | $18,750 | ~6 months | ~$148 |
| $25,000 | 1.30 | $32,500 | ~9 months | ~$172 |
| $40,000 | 1.35 | $54,000 | ~12 months | ~$212 |
Match the payment to what your deposits comfortably support. If a daily or weekly payment would push your account negative on slow weeks, take a smaller amount or a longer term. The equipment should earn more than the payment costs, which is the whole point of financing it.
How to strengthen a one-year application
A few practical moves improve your odds before you apply. Run as much revenue through your business bank account as possible so deposits reflect real activity. Avoid overdrafts and negative days in the months before applying, since funders count them closely. Keep a clear equipment quote ready so the use of funds is obvious. And apply once through a marketplace rather than scattering applications, which can create multiple hard inquiries and signal distress.
If you are only ten or eleven months in, waiting a few weeks to cross the twelve-month line can genuinely change your options, because so many funders use that exact threshold.
Frequently asked questions
Can I really get equipment financing with only 1 year in business?
Yes. One year clears the time-in-business threshold many funders require. At this stage, revenue-based options are usually the most realistic because they approve on your bank deposits and monthly revenue rather than years of history. Approval still depends on your specific numbers and is never guaranteed.
What credit score do I need at one year in business?
For a traditional equipment loan, many lenders want 650 or higher. Revenue-based marketplace funders commonly work with a FICO around 500 and up, because they weigh your deposits and revenue more heavily than your score.
How much can I get?
Amounts vary with your revenue. Revenue-based funding often starts around $10,000, and the offer scales with your monthly deposits. A business banking $9,000 a month will see smaller offers than one banking $30,000, even at the same time in business.
How fast can I get funded?
Once your bank statements and basic documents are in, revenue-based funding often lands within 24 to 48 hours. A traditional equipment loan usually takes one to three weeks.
Do I need tax returns?
For revenue-based funding, usually not. The core requirement is three to six months of business bank statements. Traditional equipment loans typically want two or more years of tax returns, which a one-year-old business often cannot provide.
Should I use an equipment loan or revenue-based funding?
If your credit and history are strong, a traditional equipment loan can be cheaper because the equipment serves as collateral. If you are about a year in with modest credit but steady deposits, revenue-based funding is usually the realistic and faster route.
Does the equipment I'm buying affect approval?
In a true equipment loan, yes, because the machine is collateral and can offset a weaker profile. In revenue-based funding, the decision rests on your deposits, though a clear equipment quote helps show how you will use the funds.
What if I'm only 10 or 11 months in?
Many funders use twelve months as a hard cutoff, so waiting a few weeks to cross that line can genuinely open up options. Use the time to keep deposits strong and avoid negative account days.
