Do Small Business Loans Require A Down Payment?

When A Down Payment Comes Into Play

Down payments show up most on large, secured loans. SBA loans, which finance big amounts at low rates, typically require an equity injection of 10-20%, the lender wants you to have skin in the game on a long-term, low-rate deal. Equipment financing may ask newer or thinner-credit businesses to put 10-20% down to offset risk.

Unsecured working capital, term loans, and lines of credit generally require nothing upfront, you get the full sum and repayment begins on schedule. For owners who need every dollar to work immediately, that's often the deciding factor.

Which Options Skip The Down Payment?

Working Capital Loan: Typically no money down, $5K to $500K. Best for businesses needing the full amount immediately for operations.

Business Line of Credit: Draw with no upfront payment, interest only on what you use. Best for flexible, ongoing needs without tying up cash.

Term Loan: Often no down payment for established borrowers. Best for a defined investment without an upfront outlay.

How Quordx Capital Works

Apply online in about 10 minutes. Upload 3-6 months of bank statements, your most recent business tax return, and your ID. Quordx Capital matches your profile to the best-fit lenders in our 50+ network and submits for you. Most decisions return within 24-48 hours.

What to Expect

Established businesses with strong revenue most often avoid down payments entirely. SBA and some equipment deals are the main exceptions, and even there the down payment buys you a far lower rate. Quordx Capital flags any upfront requirement before you commit. Decisions in 24-48 hours, funding in 3-7 business days.

Borrowers pay nothing. No application or broker fees. The lender pays commission at close.