Jodi Perez and Jeannie Holliday were named to the 2024 edition of the Forbes list of Best-in-State Top Women Wealth Advisors


Monday – Thursday: 9:00AM – 5:00PM | Friday 9:00AM – 4:00PM

CALL US: (813) 908-2701


Book An Appointment

Call: (813) 908-201

Having enough capital is one of the most common obstacles for a new small business or even an established business. One way of obtaining the capital needed is through a business loan. On the other hand, people are hesitant to apply for a loan due to lack of funds for a down payment.

However, what many do not realize is some types of business loans do not require a down payment at all. Other types of business loans do require a down payment, but the amount will vary depending on specific factors.

What factors determine the required down payment?

The amount you will be required to provide as a down payment will depend on various factors. First, the type of loan should be considered with government-sponsored loans requiring no down payment at all. The purpose of the loan and the amount of money you are borrowing will also play a role in calculating your required down payment. Also, your financial profile (income, assets, debts, etc.) will factor into the creditor determining how much up front will be needed.

Small Business Association loans

One type of loan business owners prefer are those offered by the Small Business Association (SBA), a government agency created to help in the development of the small business sector. Two types of SBA loans have down payment requirements. However, there are several SBA loans that do not.

The SBA loans not requiring a down payment are the SBA microloans, SBA CAPLines program, SBA export loans and SBA disaster loans.

Commercial real estate loans

One of the most significant investments for most businesses is purchasing commercial real estate. To obtain a loan for commercial real estate you will need to make a down payment.

Commercial equipment financing loans

Financing a loan for commercial equipment enables your business to obtain the equipment needed immediately so you can start making money operating your business. One good thing about financing commercial equipment is that many times the lender will consider the equipment as collateral which means you may not need to start with a down payment. 

Although it is possible to use any type of loan to buy equipment for your business, with a loan specifically for this purpose you can avoid a down payment and use your cash for other business costs and expenses.

Business line of credit

Obtaining a business line of credit is when the lender sets aside a certain amount of money for you to borrow as needed when you want to pay for business expenses. The advantage of this type of loan is the flexibility. You are not required to borrow any amount of funds until you need it. Also, there is no down payment required.

Develop a financing plan

Just simply obtaining a loan for the money you need for your business is not enough. You will also need to make sure you efficiently use the capital in a smart manner. Let us help you create a comprehensive financial plan to help maximize your resources and set your business up for success.


Any opinions are those of the author and not necessarily those of Raymond James. This material is being provided for informational purposes only and is not a complete description, nor is it a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or a loss regardless of strategy selected. Prior to making an investment decision, please consult with your financial advisor about your individual situation.