The short answer
Most startup equipment leases approve at 650+ FICO, but Aberdeen regularly closes new-business deals in the 580–649 range when the file has a strong down payment (10–20%), essential-use equipment with hard collateral value, and a personal guaranty from an owner with industry experience.
Startups face a very different underwriting reality than established businesses. This guide is specifically about how equipment lessors evaluate credit for businesses under 24 months old — a scenario distinct from what we cover in our guide to equipment financing with bad credit, which targets established businesses whose credit has been damaged.
Startup Credit Thresholds by Program
| Program | Min FICO | Down |
|---|---|---|
| A-tier app-only ($25K) | 680+ | $0–first pmt |
| Standard startup lease | 650+ | 10% |
| Story-credit startup | 600–649 | 15–20% |
| Subprime / co-signer | 580–599 | 20%+ |
What Compensates for a Lower Score
- Industry experience: 5+ years operating in the same field carries significant weight for first-time business owners.
- Down payment: Every 5% of skin in the game meaningfully lowers the lender's loss-given-default.
- Hard collateral: Titled, serialized equipment with a strong secondary market recovers 40–70% at auction.
- Personal liquidity: 3–6 months of business operating expenses in reserves.
- Co-signer or corporate guarantor: A stronger credit profile guaranteeing the lease.
Equipment That Startups Actually Get Approved For
The equipment itself dramatically affects approval. Startup-friendly categories include commercial trucks and trailers, construction machines, medical imaging and dental equipment, restaurant kitchen lines, printing and manufacturing tooling, and CNC and machine-shop equipment. Anything titled or serialized with a documented resale market underwrites better than soft-cost bundles or custom fabrications.
Frequently Asked Questions
What credit score do I need for equipment leasing as a startup?
Most startup equipment lease programs Aberdeen places approve with personal FICO of 650+, but revenue-backed and asset-backed structures can close as low as 580 when the deal has a strong down payment, essential-use equipment, or a co-signer.
Can a business with no time in business get equipment financing?
Yes. Startup or 'first-ticket' equipment programs exist specifically for businesses under 12 months old. They typically require 10–20% down, personal guaranty, and equipment that has strong resale value.
Does the equipment type affect approval?
Significantly. Titled, serialized, essential-use equipment (trucks, construction machines, medical devices, restaurant lines) is easier to finance than soft costs or custom fabrication, because the collateral protects the lender.
Will the lender pull personal credit?
Yes — startup deals always include a personal credit pull and personal guaranty. The score alone is not the approval; deposits, industry experience, and equipment quality carry weight.
How much down payment should I expect?
For a true startup with limited credit, plan for 10–20% down. Established borrowers with strong credit can often close $0 down or first-and-last-payment-only structures.
Are there $10K–$25K startup approvals?
Yes. Micro-ticket startup programs approve equipment leases from $5,000 to $25,000 with light documentation, often application-only up to $25K.
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