With only three months in business, traditional equipment financing and most bank equipment loans are usually out of reach — they want 1-2 years of history — but revenue-based funders can still get you money for equipment by underwriting your recent bank-deposit history and monthly revenue instead of your time in business. If your business banking account already shows steady deposits over those three months, you have a realistic path to funding, often in 24-48 hours, even with a FICO around 500. The trade-off is that this is short-term working capital used to buy the equipment, not a traditional equipment loan secured by the machine itself, so it costs more and pays back faster.
Key takeaways
- Traditional equipment loans and leases usually require 1-2 years in business; at 3 months they're generally out of reach.
- Revenue-based funders underwrite your last 3 months of bank deposits and monthly revenue instead of time in business.
- Personal credit around FICO 500+ is often workable — deposits carry most of the decision, not your score.
- Minimum funding is typically about $10,000, with amounts scaling to your monthly revenue rather than the equipment's price.
- Cost is set by a factor rate (e.g., 1.30 on $20,000 = $26,000 repaid), higher than a traditional equipment loan.
- Funding often arrives within 24-48 hours of approval when documents are complete; nothing is guaranteed.
- A marketplace matches one application to multiple funders — valuable at 3 months, when funder appetites vary widely.
Why 3 months trips up traditional equipment lenders
Equipment financing in the classic sense — a loan or lease secured by the machine you're buying — is built around risk models that lean heavily on time in business. Banks, credit unions, and dedicated equipment finance companies typically want to see at least one to two years of operating history, filed tax returns, and often a personal credit score in the high 600s or better. At three months, you simply don't have the paper trail those models were designed to read.
It isn't personal. A lender pricing a five-year equipment loan wants to see that your business survives a full seasonal cycle before they commit capital for years. Three months of history can't prove that yet. So the same application that would sail through at month 24 gets an automatic decline at month three — not because your business is weak, but because the underwriting box for "time in business" comes back empty.
This is the gap revenue-based funding fills. Instead of asking "how long have you existed?" it asks "what does your money movement look like right now?" For a three-month-old business with real deposits, that's a far friendlier question.
What revenue-based funders look at instead
A revenue-based or MCA marketplace underwrites the health of your bank account, not the age of your business. The single most important document is usually your last three months of business bank statements — which, conveniently, is exactly what a three-month-old business can produce. Underwriters read those statements for a few specific signals:
- Consistent deposits. Regular money coming in matters more than one big lump. Steady weekly or daily deposits read as a real, operating business.
- Average monthly revenue. This drives how much you can be approved for. Most funders want to see meaningful monthly volume, and approval amounts typically scale from it.
- Ending balances and negative days. Frequent overdrafts or a string of negative-balance days work against you; they suggest the account can't absorb a repayment schedule.
- Existing advances. If you already have another advance running, that affects what's available.
Personal credit still gets checked, but it's a secondary factor. Many funders in this space work with a FICO of 500 and up. A low score won't automatically stop you the way it would at a bank — the deposits carry most of the decision.
A realistic look at what you might qualify for
Approval amounts are generally tied to your monthly revenue rather than the price of the equipment. That's a key mental shift: the funder isn't lending against the machine, they're advancing against your future sales. The table below is illustrative only — real offers vary by funder, industry, and the details in your statements.
| Average monthly deposits (for example) | Typical funding range (for example) | Common term length |
|---|---|---|
| $15,000 | $10,000 - $15,000 | 3 - 6 months |
| $30,000 | $15,000 - $30,000 | 4 - 9 months |
| $60,000 | $30,000 - $60,000 | 6 - 12 months |
| $100,000 | $50,000 - $100,000+ | 6 - 12 months |
Most funders set a floor around $10,000. If the equipment you need costs less than that, a revenue-based advance may be more than you want to take on, and a business credit card or a smaller equipment lease might fit better. The figures above are rounded examples to show the shape of the math — not a quote or a guarantee.
What the money actually costs
Revenue-based funding is priced with a factor rate, not an APR, and it's genuinely more expensive than a traditional multi-year equipment loan. You're paying for speed and for a funder's willingness to look past your thin time in business. It's important to see the real cost before you sign.
A factor rate is a multiplier. If you take $20,000 at a 1.30 factor, you repay $26,000 total — the $6,000 difference is your fixed cost of capital, regardless of how fast you pay it back. Repayment is usually a fixed daily or weekly debit from the same bank account the funder reviewed.
| Amount funded (for example) | Factor rate | Total repayment | Cost of capital |
|---|---|---|---|
| $20,000 | 1.25 | $25,000 | $5,000 |
| $20,000 | 1.35 | $27,000 | $7,000 |
| $40,000 | 1.30 | $52,000 | $12,000 |
These are example numbers to illustrate how factor rates work, not offers. The honest way to think about it: if the equipment lets you take on jobs or output that more than covers this cost over the next several months, the math can work. If it's a nice-to-have that won't move revenue soon, the higher cost is harder to justify at three months in.
How to line up a strong application at 3 months
Because the decision runs on your bank statements, the best thing you can do is make those statements as clean as possible before you apply. A few concrete moves:
- Run everything through one business account. Deposits scattered across personal accounts or cash-in-hand can't be underwritten. Funnel revenue through a single business checking account so the history is visible.
- Avoid negative days. In the weeks before applying, keep a buffer. A statement with no overdrafts reads far stronger than one with three or four negative days.
- Have your documents ready. Typically that's three months of bank statements, a government ID, a voided business check, and basic business details (EIN or the entity information you have). Fast, complete paperwork is often what turns a 48-hour approval into a same-day one.
- Know your number. Be ready to say how much you need and what the equipment will do for revenue. Funders and marketplaces move faster when the ask is specific.
You don't need to be perfect. You need to show a real, operating business with money moving through it — which is exactly what your first three months should demonstrate.
When to wait, and when this is the right call
Revenue-based funding for equipment is the right tool when the timing is genuinely urgent — a piece of equipment breaks, a contract requires capacity you don't have, or a same-day opportunity would otherwise pass you by — and you can see the revenue that will cover the cost. Speed and access are what you're buying.
It's worth pausing if the purchase can wait. Every additional month in business widens your options. By month 6-12, some equipment finance companies and online lenders open up, giving you access to longer terms and lower total cost. If the equipment isn't urgent and won't drive near-term revenue, waiting a few months to unlock cheaper financing is often the smarter play. There's no shame in that math — the goal is the right capital, not just any capital.
If you do need it now, a marketplace is usually the most efficient route: one application gets matched against multiple revenue-based funders, so you're not filing five separate forms and collecting five separate credit pulls.
Applying through a marketplace
Rather than approaching funders one at a time, a revenue-based marketplace takes a single application and your three months of bank statements and shops them to funders whose criteria fit your profile. For a three-month-old business, this matters more than it does for an established one: at your stage, funders' appetites vary a lot, and one match can be the difference between a decline and an offer.
A typical flow looks like this: submit a short application and connect or upload three months of statements, get matched with funders, review the offers that come back — including the total repayment and the daily or weekly debit — and choose the one that fits, often with funds arriving within 24-48 hours of approval. There's no obligation to accept an offer, and nothing here is guaranteed; approval always depends on what your statements actually show. But for the specific situation of needing equipment with only three months of history, it's the path most likely to produce a real, workable option.
Frequently asked questions
Can I really get equipment financing with only 3 months in business?
Not usually the traditional kind — bank equipment loans and equipment leases typically want 1-2 years of history. But revenue-based funders can advance working capital to buy equipment based on your last three months of bank deposits and monthly revenue. If your statements show steady deposits, you have a realistic path even at three months.
What credit score do I need?
Many revenue-based funders work with a FICO around 500 and up. Credit is checked, but it's a secondary factor — your bank-deposit history and monthly revenue carry most of the decision. A low score won't stop you the way it would at a bank, though it can affect your terms.
How much can I get?
Approval amounts are generally tied to your monthly revenue, not the equipment's price. Most funders start around $10,000 and scale up with your deposits. As a rough example, a business with $30,000 in average monthly deposits might see offers in the $15,000-$30,000 range. Actual amounts vary by funder and your statements.
How is this different from a real equipment loan?
A traditional equipment loan is secured by the machine and paid back over several years at a lower cost. Revenue-based funding is short-term working capital advanced against your sales, priced with a factor rate rather than an APR. It costs more and pays back faster, but it's accessible at three months in business, which a traditional equipment loan usually isn't.
How fast can I get funded?
With complete documents, funding often arrives within 24-48 hours of approval, and sometimes same-day. Having your three months of bank statements, ID, and a voided check ready is usually what determines whether it's fast or slow. Timing is never guaranteed and depends on the funder.
What does it cost?
Revenue-based funding uses a factor rate. At a 1.30 factor, $20,000 funded means $26,000 repaid — a $6,000 fixed cost regardless of how fast you pay. It's more expensive than a traditional equipment loan; the trade-off is speed and access at a stage when banks say no. Always confirm total repayment before signing.
What documents do I need to apply?
Typically your last three months of business bank statements, a government-issued ID, a voided business check, and basic business details such as your EIN. Running all revenue through one business account and avoiding negative-balance days in the weeks before you apply makes those statements read much stronger.
Should I wait until I have more time in business?
If the equipment can wait and won't drive near-term revenue, waiting a few months can unlock cheaper, longer-term financing as more lenders open up around month 6-12. If the need is urgent and the equipment will clearly generate revenue, revenue-based funding now can make sense. The goal is the right capital for your situation, not just fast capital.
