Down payments
Plenty of business funding needs no down payment. That is not the same as no cost. Here is which products ask for cash up front, which do not, and how to see the real number before you sign.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
Working capital products such as revenue-based funding, a merchant cash advance and a business line of credit generally need no down payment: they are underwritten on your deposits, not on equity you put in. Equipment financing may or may not need a deposit depending on the equipment and the file. Real estate and acquisitions almost always need cash in.
No money down does not mean no cost. The cost shows up as the factor, interest or fees, and sometimes as fees deducted from what you receive. That is why the number to watch is net proceeds, the cash that actually lands in your account.
| Product | Down payment | Watch for |
|---|---|---|
| Revenue-based funding / MCA | No down payment | Fees may be deducted at funding |
| Business line of credit | No down payment | Cost applies only to what you draw |
| Term loan | No down payment for working capital use | Origination can be 0% on our Tier 1 term loan |
| Equipment financing | Sometimes none, sometimes a deposit | Depends on equipment type, age and the file |
| Business acquisition | Equity or seller financing usually expected | Funders want the buyer to have money in the deal |
| Commercial real estate | Down payment expected | Outside what we place |
A cleaning company takes $60,000 in revenue-based funding with no down payment. Assume a 1.30 factor and a 3% fee deducted at funding, repaid weekly over 30 weeks, first debit the Monday after funding.
| Item | Amount |
|---|---|
| Funded amount | $60,000 |
| Fee deducted at funding (3%) | $1,800 |
| Net proceeds | $58,200 |
| Total payback ($60,000 × 1.30) | $78,000 |
| Weekly debit ($78,000 / 30) | $2,600 |
| Cost per dollar received ($78,000 / $58,200) | about $1.34 |
Nothing came out of pocket at signing, yet the true price of each usable dollar is about $1.34. Compare that number, not the phrase "no money down", when you look at offers. The factor rate calculator runs this for you.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
All of our working capital products, revenue-based funding, merchant cash advances, lines of credit and term loans, are underwritten on bank activity and need no down payment. On equipment financing, whether a deposit applies depends on the equipment and the file, and the offer will say so before you accept.
Your offer shows the amount, any fees deducted, the payment schedule and the full repayment before you sign, so a "no money down" deal never hides the cash you actually receive.
If you are buying a long-lived asset and have the cash, a deposit can lower the amount financed and the total cost. If you are buying a business, sellers and funders expect you to have money in the deal; see funding for a business acquisition. And if the only way a deal works is with zero cash from you and the maximum amount, that is a sign the request may be larger than the business can carry.
Check your fit with the qualification check before you decide.
No. They are based on future sales and bank activity. Fees may be deducted from the funded amount, so look at net proceeds.
Not by itself. Cost comes from the factor, interest and fees. Compare the cost per dollar actually received across offers.
Sometimes. It depends on the equipment, its age and resale value, and your file. The offer will state any deposit.
No. Down payment and guarantee are separate terms. Many business financing agreements include a personal guarantee. Read it before you apply and before you sign.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
