Starting a business and buying equipment at the same time is a real challenge — and one of the most common questions we get at Truecore Capital is some version of this: “I just formed my LLC. I don’t have business credit yet. Can I still get financed?”
The short answer is yes. But there are a few things you need to understand going in.
When your LLC has no business credit history, lenders can’t lean on your company’s track record — because there isn’t one yet. So instead, they shift their focus to what they can evaluate:
• Your personal credit score — this becomes the primary credit signal when business credit is absent
• Your industry experience — have you done this kind of work before, even under a different entity?
• The equipment itself — strong collateral with good resale value reduces the lender’s exposure
• Your ability to make a down payment — and this one matters more than most applicants expect
According to Smarter Finance USA’s breakdown of equipment leasing for new businesses, startup approvals depend heavily on personal credit, industry experience, and the type of equipment being financed. Lenders aren’t just looking at your LLC on paper — they’re looking at the full picture of who’s behind it.
Here’s the reality: if your LLC is brand new or has no established credit profile, most lenders are going to ask for a down payment. This isn’t a penalty — it’s how lenders manage risk when they don’t have a business history to underwrite against.
As CNBC Select notes in their guide to business equipment financing options, equipment financing loans typically require a down payment between 10% and 25% of the loan amount. For newer businesses or LLCs with no credit history, expect to land in that range or potentially at the higher end depending on the equipment type and your personal credit profile.
The down payment does two things: it reduces the lender’s loan-to-value exposure on the equipment, and it signals that you’re serious about the deal. Lenders want to see skin in the game — a borrower who has put their own money in is far less likely to walk away from a payment obligation.
Yes, and it matters.
A brand-new LLC — one that was just formed — is treated as a startup by most lenders. Newer businesses with 0 to 18 months of operating history and around $100,000 in annual revenue will most likely need to make a down payment. If you’re under that threshold, you’re in startup territory, which means the underwrite leans almost entirely on personal credit and the strength of the equipment as collateral.
An LLC that’s been operating for a year or two but simply hasn’t built business credit yet is in a slightly better position — there may be bank statements, revenue history, and operational proof that can support the application even without a formal business credit score.
Either way, it’s workable. The deal just needs to be structured correctly.
A few things can meaningfully improve your approval odds and terms:
Strong personal credit. This is the biggest lever. A personal score of 650 or above gives lenders enough confidence to move forward on most equipment types. The higher your score, the better your rate and terms.
Industry experience. If you’ve spent years in construction, transportation, agriculture, or whatever field you’re in — and you can demonstrate that — lenders take that seriously. You may not have business credit, but you’re not walking in blind.
A solid down payment. Coming in with 10–25% down shows lenders you’re invested. It can also offset a thinner credit profile and open doors that might otherwise stay closed.
The right equipment. Assets with strong resale value — commercial trucks, skid steers, tractors, trailers — are easier to finance than niche or specialty equipment with limited secondary market demand. The equipment itself backs the loan, so lenders are more flexible when the collateral holds value.
If you want to understand more about what goes into an approval decision beyond credit, our breakdown of what lenders evaluate in equipment financing applications covers the full picture.
Even as a new LLC, you can move quickly if you come prepared. Most lenders will ask for:
• A completed credit application
• A Government-issued ID
• Personal + Business (if applicable) bank statements (3-6 months)
• Business formation documents (articles of organization, LLC, operating agreement)
• An invoice or quote from the equipment vendor
The good news is that timelines don’t have to be slow — specialty lenders can often approve startup equipment financing within a few hours when the application is clean and documentation is in order. Don’t let the process intimidate you — preparation is the difference between a fast approval and a drawn-out back-and-forth.
Equipment financing for new LLC owners isn’t a dead end — it’s a starting point. Lenders understand that every established business was once a new one. What they’re looking for is confidence that you’ll make good on the obligation, and a down payment combined with solid personal credit and relevant experience goes a long way toward providing that.
At TrueCore Capital, we work with LLCs at all stages — brand new startups and growing companies that just haven’t built business credit yet. We’ll review your profile, match you with the right lender for your situation, and help you structure a deal that actually works.
Whether you’re buying your first piece of equipment or adding to a fleet you’re still building, we can help you get there. Give us a call at (805) 422-7342 or submit a contact form below to get started — no hard pull, no pressure.
July 5, 2024
July 5, 2024
July 5, 2024
by Augustine Sung