Down payments
Some financing wants your cash in the deal and some does not. Here is which products ask for a down payment, how it changes your cost, and when keeping the cash matters more.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
A down payment is cash you put into a purchase so the lender finances less than the full price. It shows up most in asset-backed financing: equipment, vehicles, real estate and business acquisitions, where the lender wants you to share the risk on the asset. Revenue-based funding and merchant cash advances generally do not ask for a down payment, because they are not tied to an asset purchase; they are based on your future sales. A working capital line of credit does not either.
| Product | Typical ask | What moves it |
|---|---|---|
| Equipment financing | Often 0% to 20% | Depends on the equipment, its resale value and your file |
| Commercial vehicle | Often 10% to 20% | Older or specialized vehicles ask more |
| Commercial real estate | Commonly 20% to 30%, lower on some SBA programs | Property type and occupancy matter |
| Business acquisition | Commonly 10% or more of the price | Seller financing can fill part of the gap |
| Term loan for working capital | Usually none | Priced on revenue and credit |
| Revenue-based funding or MCA | None | Based on future sales, not an asset |
Ranges are general market descriptions, not quotes. Each funder and lender sets its own requirement.
A bakery is buying a $60,000 deck oven. One offer finances the full price. Another asks for 15% down and charges less on the balance.
| Zero down | 15% down | |
|---|---|---|
| Price of the oven | $60,000 | $60,000 |
| Down payment | $0 | $9,000 |
| Amount financed | $60,000 | $51,000 |
| Monthly payment over 36 months (illustrative) | About $2,010 | About $1,640 |
| Total of payments | About $72,360 | About $59,040 |
| Total cash out (payments plus down) | About $72,360 | About $68,040 |
The down payment saves about $4,300 over three years. It also takes $9,000 out of the bank on day one. If that $9,000 is your payroll cushion for a slow month, the cheaper deal can be the riskier one.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
A large down payment drains your average daily balance, and balance is one of the lines a reviewer checks. Our published Tier 1 asks for an average balance of $5,000 or 10% of monthly revenue, and Tier 2 asks for a minimum daily balance of $800 (see funding requirements). If you plan to pay a down payment and apply for working capital in the same month, apply first or keep enough in the account to stay above those lines.
If you need the asset and want to keep cash, equipment financing can cover a large share of the price, and some files can be structured with little or no money down. If the purchase is not an asset at all, such as inventory, payroll or a marketing push, revenue-based financing does not ask for a down payment.
If you have more cash than you need for three months of operations, a down payment that lowers your total cost is often worth it. If cash is tight or seasonal, protect the cushion and accept a slightly higher total. Not sure which side you are on? The qualification check does not touch your credit, and you can apply in about five minutes.
No. An advance is based on your future sales, not on buying an asset, so there is nothing to put money down on.
Sometimes. It depends on the equipment, its resale value and your file. Some offers finance the full price at a higher total cost.
Usually yes. The agreed value of the equipment you trade in reduces the amount financed.
It can lower your bank balance, which reviewers check. Time the down payment so your balance stays above the published minimums when you apply.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
