Let’s be real: most commercial lenders want to see skin in the game. A down payment, usually 10% to 30%, has long been the standard. But here’s the twist: it’s not a hard rule.
There are legitimate, lender backed ways to fund your business or buy commercial property with zero out of pocket cash. You just have to know where to look and how to qualify.
From SBA programs to creative funding strategies, this guide breaks down every proven route to a no money down commercial loan, and how to actually pull it off.
Let’s get into it.
SBA Loans with No Down Payment
You’ve probably heard of the U.S. Small Business Administration (SBA), they’re the go to name in government-backed business loans. What you may not know is that some of their loan programs don’t require any down payment at all.
Here are the top SBA options if you’re trying to hold on to your cash:
SBA Microloans
Perfect for startups and small businesses, SBA Microloans go up to $50,000 and are distributed through local nonprofit lenders. While you may need to show solid planning and possibly offer some form of collateral, a cash down payment isn’t typically required.
These loans are accessible, flexible, and tailored to help entrepreneurs who don’t have deep pockets, but do have big ideas.
SBA Express Loans
Need something bigger, and faster? SBA Express Loans provide up to $500,000 with faster approval times. And for loans under $50,000, many lenders don’t require a down payment.
They’re great for working capital, equipment, or expansion, especially if time is of the essence and cash is tight.
SBA Disaster Loans
If your business has taken a hit from a declared disaster, think hurricanes, wildfires, pandemics, you could qualify for an SBA disaster loan. These often require no cash down, even on amounts over $25,000. You may need to secure the loan with business or personal assets, but not necessarily with upfront cash.
Key Requirements
No down payment doesn’t mean “easy money.” To qualify for any of these SBA options, you’ll still need to:
- Present a strong business plan
- Show solid credit (or have a credible cosigner)
- Possibly offer collateral for higher loan amounts
- Prove your ability to repay
The good news? You don’t need cash on hand, you just need to come prepared.
100% Financing for Commercial Real Estate
Yes, 100% financing exists, but it’s not your average bank offer. Select lenders, especially those who work with SBA 7(a) loan programs, do offer full financing for commercial real estate, meaning you could fund the entire purchase with zero down.
But here's the catch: it’s not for everyone.
To qualify for 100% financing, you typically need to buy owner occupied commercial property, which means your business must operate from at least 51% of the space. This is a game changer if you're tired of renting and ready to build equity.
Eligibility Checklist
To be considered for no money down commercial real estate financing, most lenders want to see:
- A business that will occupy 51% or more of the property
- Strong personal and business credit (typically 680+ score)
- At least 1–2 years of profitable operations
- Solid cash flow and business financials
Startups? Usually a no go. Lenders want some operating history before betting on you without a down payment.
Creative Workaround: Use Borrowed Funds or Seller Financing
If you don’t qualify for 100% direct financing, you’re not out of options. Some lenders allow you to:
- Borrow the down payment from another source (not the same SBA lender)
- Use a seller held second mortgage or promissory note to cover your down payment
These creative structures let you effectively buy property without using your own money upfront, as long as everyone agrees and the lender is on board.
Unsecured Business Loans and Alternative Financing
No collateral? No problem, if you know where to look.
Traditional loans may lock you out if you don’t have hard assets or startup capital. But unsecured and alternative business financing has opened new doors, especially with fintech and online lenders entering the space.
These options require no down payment and often no collateral, though you’ll need decent credit and a plan for repayment.
Unsecured Business Loans
These are classic working capital loans, and they don’t require you to pledge assets. You’ll qualify based on credit score, income, and business performance.
They’re faster, more flexible, and perfect for covering:
- Marketing budgets
- Payroll
- Inventory or unexpected expenses
Downside: Higher interest rates and shorter terms, but worth it if speed and simplicity are your priority.
Business Lines of Credit
Think of this as a revolving loan, you get access to a set credit limit and draw funds as needed. There’s no down payment required to access a line of credit, and you only pay interest on the amount you use.
This is ideal for:
- Cash flow gaps
- Seasonal businesses
- Emergency expenses
Some lenders may require collateral for higher limits, but many offer unsecured lines up to $250,000 for creditworthy borrowers.
Invoice Financing / Factoring
If your business invoices clients, you’re sitting on potential funding. With invoice financing, you can get cash upfront based on the value of unpaid invoices, no down payment required.
This keeps your operations running without waiting 30, 60, or 90 days for payments to clear.
- You retain ownership of the invoice with financing
- Or sell it outright with factoring (the lender collects)
Either way, it's fast cash when you need it most.
Equipment Financing
Buying machines, tech, or trucks? With equipment financing, the equipment itself becomes the collateral, so most lenders don’t require a separate down payment.
Instead, they fund up to 100% of the purchase cost, and you repay in monthly installments.
Bonus: You may even be able to write off part of the equipment cost as a tax deduction.
Strengthening Your Application Without Cash
No cash? No problem, if you know how to sell your strengths.
Just because you’re not bringing a down payment to the table doesn’t mean you’re out of the game. The secret? Make lenders feel secure in other ways.
If you can’t offer money upfront, offer confidence, credibility, and collateral. Here’s how to strengthen your loan application without touching your savings:
Collateral Options
You don’t need a suitcase of cash when you have assets to leverage. Lenders want security, and collateral is how you give it to them.
Types of collateral you can use:
- Business equipment
- Vehicles
- Inventory
- Real estate
- Future receivables
- Intellectual property (in rare cases)
By pledging something of value, you show lenders that you’re serious, and that their risk is reduced.
Using a Cosigner
If your credit history is thin or your business is new, a creditworthy cosigner can be your golden ticket.
A cosigner is someone (often a business partner or family member) who:
- Has strong personal credit
- Agrees to take responsibility if you default
- Boosts your credibility in the lender’s eyes
It’s one of the fastest ways to get approved without needing capital or collateral yourself.
Building a Strong Credit Profile
When you don’t have cash, your credit score becomes your currency.
Whether it’s your personal credit or your business credit profile, here’s what lenders love to see:
- Scores over 680 (higher is better)
- Low credit utilization
- No recent delinquencies or defaults
- A healthy mix of credit accounts
- On-time payment history
Don’t have strong business credit yet? Start with a business credit card, pay vendors early, and get listed with business credit bureaus like Dun & Bradstreet.
Special Programs and Lender Flexibility
Not all lenders play by old school rules, and that’s a good thing.
Traditional banks might turn you down without a down payment, but online lenders, fintech platforms, and alternative funders are rewriting the script.
These lenders prioritize speed, flexibility, and innovative underwriting over cookie cutter qualifications.
Approval Based on Revenue, Assets, or Business Model
Many modern lenders approve loans based on:
- Projected earnings (especially for SaaS, eCom, or scalable startups)
- Recurring revenue models (subscriptions, memberships, retainer clients)
- Existing business assets (even if you’re not offering them as collateral)
Some lenders even offer revenue based financing, where repayment is a percentage of your monthly income, perfect if your cash flow fluctuates.
Others will evaluate your business plan, niche, and competitive advantage, especially if you're in a high growth market.
In short? If your business is promising, there’s likely a lender out there willing to bet on you, even without upfront cash.
Summary Table: No Money Down Commercial Loan Options
Loan Type | Down Payment? | Key Requirements |
SBA Microloan | No | Solid business plan, creditworthiness, possibly collateral |
SBA Express Loan (≤ $50,000) | No | Fast approval, good credit, strong documentation |
SBA Disaster Loan | No | Located in a declared disaster area, ability to repay, possible collateral |
SBA 7(a) – 100% Real Estate | No (if eligible) | 51% owner-occupancy, strong credit, stable cash flow |
Unsecured Business Loan | No | Excellent personal credit, reliable income, higher interest accepted |
Business Line of Credit | No | Creditworthiness, sometimes collateral for higher limits |
Invoice Financing / Factoring | No | Unpaid invoices, ongoing B2B transactions |
Equipment Financing | No (usually) | Equipment used as collateral, business in need of gear or machinery |
Final Thoughts
Yes, it’s possible: you can get a commercial loan with no money down, but it takes strategy, preparation, and the right lender.
If you don’t have the capital, lead with what you do have:
- A clear business vision
- Solid financials or projections
- Good credit or a smart cosigner
- Assets to pledge or a creative workaround
Commercial funding without a down payment isn’t about luck, it’s about knowing how to position yourself and which routes to pursue.
Don’t let the “no cash” barrier hold you back. You’ve got the roadmap now, go get that funding.
