Yes, you can finance equipment with only six months in business, but you will usually do it through revenue-based funders rather than banks or traditional equipment leasing companies. At six months you fall short of the two-year track record most equipment lenders require, so approval shifts to what you can prove: consistent monthly revenue and healthy bank deposits. A revenue-based marketplace looks at your last three to six months of business bank statements, checks that deposits are steady, and can often approve amounts starting around $10,000 with a FICO of roughly 500 or higher — frequently funding within 24 to 48 hours. Nothing here is guaranteed, and the trade-off is cost: this money is faster and easier to qualify for, but it is more expensive than a bank equipment loan.
Key takeaways
- Six months in business is roughly the minimum revenue-based funders want — enough statement history to judge your deposit pattern.
- Approval leans on bank deposits and monthly revenue far more than on your credit score.
- Funding amounts typically start around $10,000 and scale with your monthly deposits.
- Many funders work with FICO scores of 500 or higher; clean deposits can outweigh a lower score.
- Offers often come back within a day, with funding frequently in 24 to 48 hours.
- Cost is quoted as a factor rate (e.g., 1.30), not an APR — always calculate the total dollars repaid.
- Nothing is guaranteed, and this money is faster but more expensive than a bank equipment loan.
Why six months is a hard cutoff for traditional equipment lenders
Traditional equipment financing — bank loans and equipment leases — is built around time in business. Most banks and captive lenders (the financing arms of equipment manufacturers) want to see at least two years of operating history, two years of business tax returns, and often a personal FICO in the high 600s or better. The logic is simple: they price for low risk and long terms, so they want proof the business survives a full cycle.
At six months you simply don't have that paper trail yet. You may have no full-year tax return, a thin business credit file, and a personal credit score that hasn't recovered from startup costs. That's not a character flaw — it's the normal shape of a young business — but it does mean the traditional lane is mostly closed. The good news is that a different set of funders looks at a different signal entirely: your cash flow.
What revenue-based funders look at instead
Revenue-based funders and merchant cash advance (MCA) marketplaces evaluate the money moving through your business bank account rather than the length of your history. Because of that, six months in business is often enough — six months is roughly the minimum many of these funders want, precisely so they have enough statements to judge your deposit pattern.
Here's the practical checklist most revenue-based funders weigh, in rough order of importance:
| What they check | Typical expectation | Why it matters |
|---|---|---|
| Monthly revenue / bank deposits | Steady deposits, often $10,000+/month | This is the primary approval driver — it shows you can service payments |
| Time in business | ~6 months minimum | Enough statement history to see a pattern |
| Personal credit (FICO) | 500+ | Checked, but weighted far less than deposits |
| Negative days / overdrafts | Few or none | Frequent negative balances signal repayment risk |
| Existing advances | Disclosed | Stacked positions lower what you'll be offered |
The headline takeaway: a 520 FICO with clean, growing deposits will usually beat a 640 FICO with an account that goes negative twice a month. Cash flow is the story.
How much you can get and what it typically costs
Amounts through a revenue-based marketplace generally start around $10,000 and scale with your monthly revenue — a common rule of thumb is that offers land somewhere between roughly half and one-and-a-half times your average monthly deposits. So a business depositing about $20,000 a month might see offers in the low tens of thousands rather than six figures.
Cost is where you need to be clear-eyed. Revenue-based funding is usually quoted as a factor rate, not an APR. A factor rate of 1.30 on $20,000 means you repay $26,000 total ($20,000 × 1.30), regardless of how fast you pay it off. Payments are typically pulled daily or weekly from your bank account.
| Example scenario (for example) | Amount funded | Factor rate | Total repaid | Rough term |
|---|---|---|---|---|
| Landscaper buying a used mower + trailer | $15,000 | 1.28 | $19,200 | ~8 months |
| Food truck adding a second prep unit | $25,000 | 1.35 | $33,750 | ~10 months |
| Auto shop financing a lift + diagnostics | $40,000 | 1.32 | $52,800 | ~12 months |
These figures are illustrative examples, rounded for clarity — your actual offer depends on your deposits, your industry, and the funder. The point is to compare the total dollar cost against what the equipment will earn you, not just the monthly payment.
A realistic look at the trade-off vs. waiting
Six-month businesses face a genuine decision: pay more now for equipment that generates revenue immediately, or wait until you cross two years and qualify for cheaper bank financing. There's no universal right answer — it depends on whether the equipment pays for itself.
If a $25,000 machine lets you take on jobs worth $8,000 a month you'd otherwise turn away, paying an extra few thousand in financing cost to start now can be worth it. If the equipment is a nice-to-have that won't move revenue, the expensive money is harder to justify. Run the simple math: what does the equipment add to monthly revenue, and does that comfortably cover the payment with room to spare?
How to strengthen a six-month application
You can meaningfully improve your offer before you apply. Funders reward accounts that look stable and legible:
- Route revenue through one business account. Scattered deposits across personal and business accounts hide your real cash flow and weaken the file.
- Avoid negative days. Even a small buffer that keeps you out of overdraft in the weeks before applying helps.
- Have your last 4–6 months of business bank statements ready as PDFs — this is the document that matters most.
- Don't stack unnecessarily. If you already have one advance, adding another before you need it lowers what new funders will offer.
- Be ready to describe the equipment. Funders like knowing the money buys revenue-generating assets, not covering a shortfall.
If you're a woman, veteran, minority, immigrant, or ITIN-only owner
Revenue-based approval is often more reachable for owners who've historically been underserved by banks, precisely because it leans on deposits rather than a long credit relationship or a spotless personal file. If your business banks consistently, that history speaks for itself.
On ITIN and no-SSN questions specifically: many revenue-based funders can approve on the strength of business bank deposits, and some accept an ITIN in place of an SSN — but requirements vary by funder and are not universal. Some still require an SSN or a US-based guarantor. There are no guarantees, and this isn't legal or immigration advice. The practical move is to apply and let the marketplace match you to funders whose actual criteria fit your situation, rather than assuming you're excluded. Clean, steady deposits are the strongest thing you can bring to the table regardless of your background.
How the application actually works
Applying through a revenue-based marketplace is short. You submit a brief application and connect or upload your last few months of business bank statements. Instead of one lender, a marketplace routes your file to multiple funders, which is useful at six months because different funders draw their time-in-business and credit lines in different places — one soft no doesn't end the process.
From there, offers commonly come back within a day, and funding often lands within 24 to 48 hours of accepting one. Review the total repayment (amount × factor rate), the payment frequency, and the term before you sign, and make sure the payment fits your real cash flow, not your best week. Compare offers on total dollar cost, not just the size of the number funded.
Frequently asked questions
Can I really get equipment financing with only 6 months in business?
Yes, usually through a revenue-based funder rather than a bank. Six months is around the minimum many revenue-based funders want, because it gives them enough bank statements to judge your deposit history. Approval depends on your cash flow, not just your time in business, and nothing is guaranteed.
What credit score do I need?
Many revenue-based funders work with a FICO of about 500 or higher. Credit is checked, but it's weighted much less than your bank deposits. A lower score with steady, positive deposits often approves where a higher score with frequent overdrafts does not.
How much can I borrow at six months in?
Amounts generally start around $10,000 and scale with your monthly revenue — often somewhere between roughly half and one-and-a-half times your average monthly deposits. A business depositing about $20,000 a month would typically see offers in the low tens of thousands, though your actual offer depends on your file.
How is the cost calculated?
Revenue-based funding is usually priced with a factor rate, not an APR. Multiply the amount by the factor rate to get total repayment — for example, $20,000 at 1.30 means you repay $26,000. Payments are typically pulled daily or weekly. Always compare offers on total dollars repaid.
How fast can I get funded?
Offers often come back within a day of applying, and funding frequently lands within 24 to 48 hours of accepting an offer. Having your last four to six months of business bank statements ready as PDFs is the fastest way to move things along.
Can I qualify with an ITIN or no SSN?
Sometimes. Many revenue-based funders can approve on business bank deposits, and some accept an ITIN instead of an SSN — but requirements vary by funder and some still require an SSN or a US-based guarantor. There are no guarantees. Applying through a marketplace lets you be matched to funders whose real criteria fit. This isn't legal or immigration advice.
Should I wait until two years to get cheaper bank financing?
It depends on whether the equipment pays for itself. If it lets you take on work you'd otherwise turn away, paying more to start now can be worth it. If it won't move revenue, waiting for cheaper bank financing may make more sense. Compare the added financing cost to the revenue the equipment generates.
What documents do I need to apply?
Primarily your last four to six months of business bank statements, plus a short application with basic business details. The bank statements are the document that matters most, since your deposit history is what drives the approval and the size of the offer.
