START-UP FINANCING FAQ
Start-up equipment financing, questions answered
You do not need years of history to lease equipment. Here is what a new business actually needs, what it can finance, and how the process runs from application to delivery.
THE QUESTIONS
What new businesses ask us
These are the questions a start-up asks before the first application, answered the way an ACG account executive would answer them on the phone.
Can a start-up get equipment financing with no time in business?
Yes. American Capital Group does not require time in business. A day-one start-up can lease equipment. The decision is built on the owner's personal credit, the equipment itself and the business plan, not on years of bank statements the company does not have yet.
Do I need to be a registered business to lease equipment?
Yes. Equipment leasing is business financing, so the lessee is the company: an LLC, a corporation, a partnership or a sole proprietorship operating under a business name. Register the entity before you apply. It keeps the paperwork clean and the tax treatment of the payments belongs to the business.
Does my personal credit matter for a start-up equipment lease?
For a new business it is the main thing we can read, because there is no business history yet. We look at the whole picture rather than a single score. A thin file or a past hiccup is not an automatic decline, and we tell you what we need to see before anyone pulls credit.
Is there a minimum equipment cost?
$10,000. Below that the cost of documenting a lease outweighs the benefit for both sides. There is no fixed maximum for start-ups; larger requests are reviewed on their own merits, usually with a little more information about the owner and the plan.
What equipment can a new business lease?
Almost any business-use equipment, new or used, from any vendor you choose: restaurant and kitchen equipment, medical and dental, trucks and trailers, construction machinery, CNC and manufacturing, IT hardware and software, fitness, salon, printing and more. Personal or household purchases are not eligible.
How much do I need to put down?
Typically the first payment, or the first and last, collected at signing rather than a large deposit. Soft costs such as installation, shipping, software and training can roll into the lease, so the equipment arrives ready to earn without a second cheque.
How long does start-up equipment financing take?
Most applications receive a decision within one business day. Once the documents are signed and the vendor invoices us, we pay the vendor directly and the equipment ships. A week from application to delivery is common.
Why lease instead of paying cash when I am just starting out?
Cash is the scarcest thing a new business has. Leasing keeps it for inventory, payroll and marketing, spreads the equipment cost across the months the equipment is earning, and leaves your bank line untouched for the surprises every first year brings.
Will I own the equipment at the end of the lease?
That depends on the structure you choose. A $101 buyout lease or an equipment finance agreement ends with you owning the equipment. A fair market value lease gives you the choice to buy it, return it or upgrade to a newer model. Pick the structure that matches how long you expect to keep the equipment.
What do I need to apply for start-up equipment financing?
Our one-page application: the business name and entity type, owner information, the equipment you want and its cost, and the vendor quote if you have one. Financial statements are not required on most start-up requests.
No financial statements to hand yet? Read no financials required. Wondering how a decision is made when the business is young? Credit requirements sets it out.
Three steps to your equipment
01
Fill out an application
Complete our simple, one-page application. No mountain of paperwork.
02
Receive a custom plan
We contact you, typically within 24 hours, with a lease structure tailored to your needs.
03
Get your equipment
We purchase your new or used equipment from any vendor you wish.
FREE QUOTE
Get a custom quote in minutes
Tell us what equipment you need and roughly what it costs. An ACG specialist follows up, typically within 24 hours, with options built around your business.
Business equipment financing. $10,000 minimum. We do not finance personal or household purchases.
- — NO OBLIGATION, NO HARD CREDIT PULL
- — NEW OR USED, ANY VENDOR
- — OR CALL (949) 822-3017
Keep reading
Start-up financing
The program itself: what we look at, what we need, and what a day-one business can lease.
No financials required
Application-only financing for smaller tickets, with nothing to print.
Credit requirements
What a decision weighs when the business is new and the file is thin.
Estimate a payment
Enter an equipment cost and see roughly where the monthly payment lands.
Curious about the lease types themselves? Types of equipment leases explains the $101 buyout, fair market value and equipment finance agreement side by side.
Decided? It is one page.
31 years financing equipment for small business. Apply, or call and talk it through first.