Yes, you can lease equipment with no down payment. A true $0-down lease funds 100% of the equipment cost and rolls it into a fixed monthly payment, with your first payment usually due at signing instead of a large deposit. Approval, though, does not come from the down payment you skip — it comes from what an underwriter sees in your business bank statements. Strong, steady deposits and consistent revenue carry a no-money-down application; a thin or erratic account is what forces a lender to ask for money down (or a "first-and-last" payment) to offset the risk. If a traditional equipment lease keeps stalling on down-payment or credit requirements, a revenue-based advance underwritten on your cash flow is often the faster route to the same machine — funded in about 24 to 48 hours and usable for equipment, installation, or the deposit itself.
Key takeaways
- True $0-down leases finance 100% of the equipment cost; you usually pay only your first month's payment at signing, not a down payment.
- Approval hinges on bank deposits and revenue far more than on the down payment you skip — clean statements are the biggest single factor.
- Traditional $0-down leases typically want ~640+ FICO; revenue-based funders approve down to roughly 500+ by weighting deposits over score.
- Revenue-based advances start around $10,000 and fund in about 24-48 hours, versus days-to-weeks for a traditional lease.
- Skipping the down payment means more is financed, so monthly payment and total financing cost run somewhat higher.
- Newer or lower-credit businesses with strong revenue often get funded on deposits and buy the equipment outright instead of leasing.
- Approval is never guaranteed — every file is underwritten on its own cash flow and existing obligations.
What "no down payment" actually means on an equipment lease
"No down payment" and "no money down" get used loosely. In practice you will see a few distinct structures, and knowing which one you are being offered matters more than the headline:
- True $0 down (100% financing): the lender funds the full equipment cost. You typically still pay your first monthly payment at signing — that is not a down payment, it is month one.
- $1 buyout / capital lease, $0 down: common on equipment you intend to keep. No upfront capital, and you own the gear for a nominal dollar at the end of the term.
- First-and-last payment: not technically a down payment, but it is money at signing. Weaker files get pushed here instead of true $0 down.
- Deferred / 90-day-first-payment: $0 at signing and no payment for the first few months, so newly financed equipment can start earning before the first draft hits.
The economics are simple: skipping the down payment means the lender finances more, so the monthly payment and total financing cost run a little higher than a comparable deal with money down. You are trading upfront cash for preserved working capital — often a smart trade for a business that would rather keep its cushion intact.
Who actually qualifies for $0 down — the underwriting view
From the underwriting seat, a no-money-down request raises the bar on everything else, because there is no upfront capital signaling commitment or reducing exposure. Approvals cluster around a few signals:
- Bank-statement health: consistent monthly deposits, few negative days, and no pattern of overdrafts. This is the single biggest factor for cash-flow-based approvals.
- Time in business: two-plus years makes $0 down routine. Under a year, expect first-and-last or a down payment on a traditional lease.
- Credit profile: traditional lessors lean on FICO (often 640+ for clean $0-down terms). Revenue-based funders go as low as roughly 500+ because they weight deposits over score.
- The equipment itself: titled, resaleable assets (trucks, CNC, medical, restaurant lines) finance more easily than soft costs or highly specialized rigs, because the asset backs the deal.
- Existing obligations: stacked advances or heavy existing debt service against your deposits will shrink what you can carry.
If your file is strong on deposits but thinner on credit or time in business, a revenue-based advance is frequently the structure that clears — it is judged on money in the bank, not the down payment you don't want to make.
Two paths to the equipment: traditional lease vs. revenue-based funding
There are two honest routes to no-money-down equipment, and they suit different businesses. A traditional $0-down lease keeps the payment low and the term long, but underwriting is slower and credit-driven. A revenue-based advance is not a lease at all — it is working capital you deploy toward the equipment (or its deposit) — approved on cash flow and funded fast.
| Factor | Traditional $0-down lease | Revenue-based / MCA advance |
|---|---|---|
| Primary approval basis | Credit score + time in business | Bank deposits + revenue |
| Typical min FICO | ~640+ for clean terms | 500+ |
| Speed to funding | 3 days to 2+ weeks | 24-48 hours |
| Minimum size | Varies by equipment | ~$10,000 |
| What it covers | The specific asset only | Equipment, deposit, install, soft costs |
| Repayment feel | Fixed monthly, long term | Fixed daily/weekly against revenue |
| Ownership | Lessor owns until buyout | You buy the equipment outright |
The advance costs more per dollar over its shorter life — that is the price of speed and looser credit. The lease is cheaper but slower and stricter. Pick the one whose trade-off you can live with.
A realistic example: how a $0-down decision plays out
The figures below are illustrative only, to show how underwriters read a file — not a quote, and not a payback calculation.
| Business (for example) | Situation | Likely path |
|---|---|---|
| Landscaping LLC, 4 yrs, 660 FICO | Wants a $45k mini-excavator, steady deposits | True $0-down capital lease; first payment at signing |
| Restaurant, 18 mo, 590 FICO | Needs a $22k walk-in cooler this week | Revenue-based advance on deposits; buys unit outright, funds in ~48h |
| Trucking, 3 yrs, 620 FICO, one existing advance | $60k tractor, solid revenue but stacked | Lease with first-and-last, or right-sized advance if deposits support it |
| Auto shop, 8 mo, 540 FICO | $15k alignment rack, strong daily card volume | Revenue-based advance; too new for clean $0-down lease |
The pattern: mature, higher-credit files with clean deposits get true $0-down leases. Newer or lower-credit files with real revenue get funded on the strength of the deposits and simply buy the equipment.
Decision framework: when $0-down works best, and when to avoid it
No down payment works best when:
- The equipment will start generating revenue quickly and you want to protect your cash cushion.
- Your deposits are strong and consistent, so the lender's added risk is easy to underwrite.
- You have a near-term use for the cash you would have put down (payroll, inventory, another job).
- You expect to keep the equipment — a $1-buyout structure makes $0 down and ownership line up.
Avoid or rethink $0-down when:
- Your deposits are erratic and a modest down payment would unlock materially better terms — sometimes putting a little down is the cheaper decision.
- The equipment depreciates fast and you would end up owing more than it is worth (being upside-down).
- You are already carrying stacked advances; adding a payment your cash flow can't absorb is how good businesses get squeezed.
- You are financing soft costs with no resale value — expect a down payment or a decline, and weigh whether the purchase is timed right.
How to strengthen a no-money-down application before you apply
Whether you go the lease or advance route, the same handful of moves raises your odds and improves your terms:
- Clean up your bank statements first. Three to six months of consistent deposits and zero negative days does more than any other single thing. If you can wait a month to smooth things out, wait.
- Have the last 3-6 months of statements ready. Fast approvals depend on fast documentation.
- Get an exact equipment quote. Model, price, and vendor let a funder size the deal precisely instead of padding for uncertainty.
- Don't stack. Taking a new advance on top of existing ones right before applying will read as distress and shrink your offer.
- Match the structure to the asset life. Short-life equipment, shorter term; long-life equipment, longer term. Mismatches cost you.
Getting funded when a lease stalls
Most "no down payment" searches start after a traditional lease has already hit a wall — a credit pull came back short, a landlord-style deposit request appeared, or the timeline blew past when the equipment was actually needed. That is the moment a revenue-based marketplace earns its place: it underwrites on your deposits and revenue rather than your score, clears files down to 500+ FICO, starts around $10,000, and funds in roughly 24 to 48 hours so you can buy the equipment outright and put it to work. Nothing here is ever guaranteed — every file is judged on its own cash flow — but if your bank statements are healthy, the deposit-based path frequently succeeds where a credit-first lease stalled. If you want to understand the repayment mechanics before you apply, start with our merchant cash advance overview, then submit a few months of statements and let the deposits speak for themselves.
Frequently asked questions
Can I really lease equipment with zero money down?
Yes. True $0-down leases finance 100% of the equipment cost. You typically pay only your first month's payment at signing, not a down payment. Approval depends on your bank deposits, revenue, credit, and time in business rather than on upfront cash.
Does no down payment mean it costs more overall?
Generally yes. Skipping the down payment means more is financed, so the monthly payment and total financing cost run somewhat higher than a comparable deal with money down. You are trading upfront cash for preserved working capital — often worthwhile when the equipment starts earning quickly.
What credit score do I need for $0-down equipment financing?
Traditional lessors usually want around 640+ for clean no-money-down terms. Revenue-based funders go lower — roughly 500+ — because they weight your bank deposits and revenue more heavily than your FICO score.
How fast can I get funded?
A traditional lease can take three days to a couple of weeks depending on credit and documentation. A revenue-based advance, underwritten on your deposits, typically funds in about 24 to 48 hours once your bank statements are in.
What's the difference between a $0-down lease and a revenue-based advance?
A lease is credit-driven, cheaper per dollar, slower, and the lessor owns the asset until buyout. A revenue-based advance is deposit-driven, faster, funds in 24-48 hours, and gives you working capital to buy the equipment outright — at a higher cost of capital over a shorter term.
What documents do I need to apply?
For the fastest path, have the last three to six months of business bank statements ready, plus an exact equipment quote (model, price, vendor). Clean, consistent deposits with no negative days are the single strongest factor in a no-money-down approval.
I already have a business loan or advance — can I still qualify?
Possibly, but existing obligations reduce how much your cash flow can carry. Stacking multiple advances right before applying reads as distress and shrinks offers. A funder will size any new financing against what your deposits can realistically support.
Is no-down-payment equipment financing ever guaranteed?
No. No legitimate funder guarantees approval. Every file is judged on its own bank deposits, revenue, and obligations. Strong, steady deposits significantly improve your odds, but approval and terms always depend on your specific numbers.
