Starting a business without a trading history can make securing funding difficult, especially when many traditional lenders require established turnover before approving finance.
The good news is that startups still have options.
At Johnson Reed, we regularly help new businesses explore practical funding routes for equipment, vehicles, fit-outs, and specialist assets – even before the business has started generating revenue. The key is understanding which type of finance is most realistic for a startup and how to structure an application properly.
Can You Get Equipment Finance with No Revenue?
Yes – in many cases, startups can still access equipment finance without existing turnover.
For new businesses, equipment finance is often more achievable than a large unsecured business loan because the finance is linked directly to the asset being purchased. This helps reduce risk for the lender and can make approvals more accessible for startups.
Rather than focusing purely on trading history, finance providers will usually look at:
- Your business plan
- What the equipment is being used for
- Your industry experience
- Personal credit profile
- Projected affordability
- Any available security or guarantees
At Johnson Reed, we work with startups to understand the full picture before approaching suitable lenders and finance providers.
Why Equipment Finance Often Makes More Sense for Startups
Many founders initially look for a cash loan to get started. In reality, structured equipment finance or leasing is often the more practical route.
Instead of taking on a large unsecured loan, businesses can spread the cost of revenue-generating equipment into fixed monthly payments while preserving working capital for staffing, marketing, and day-to-day operations.
This can be particularly useful for startups investing in:
- Construction equipment
- Gym and fitness equipment
- Catering and coffee equipment
- Salon and beauty equipment
- Vehicles and vans
- IT and technology
- Medical and dental equipment
- Manufacturing machinery
For many new businesses, lease-to-buy or hire purchase agreements can provide a more manageable way to grow without tying up cash upfront.
What Johnson Reed Looks at When Supporting Startups?
As a broker, our role is to help startups find realistic funding solutions that suit both the business and the lender’s appetite available in the market.
Before recommending finance options, we’ll usually discuss:
What the Business Needs?
Understanding exactly what the finance is being used for helps determine the most suitable funding structure.
Industry Experience
If you’ve worked within the industry before, this can strengthen a startup application significantly.
Affordability
We’ll look at whether the proposed repayments are realistic based on projected income and the wider business plan.
Equipment Type
Some assets are easier to finance than others, depending on demand, resale value, and the sector involved.
Startup Structure
We’ll also discuss whether equipment finance, leasing, asset finance, or unsecured borrowing is likely to be the best route for your situation.
Do Startup Business Loans Require a Personal Guarantee?
In many cases, yes.
For startups without trading history, unsecured business loans will often require a director’s personal guarantee. This provides additional comfort for the lender where there are limited business accounts available.
Equipment finance can sometimes offer more flexibility because the asset itself provides part of the security for the agreement.
At Johnson Reed, we’ll always explain how the finance is structured and what responsibilities are involved before you proceed.
Tips for Improving Your Chances of Approval
There are several ways startups can strengthen a finance application.
Prepare a Clear Business Plan
Lenders and finance providers want to understand how the business will generate revenue and how the equipment supports growth.
Keep Financial Information Organised
Having documents ready can help speed up the process and improve confidence in the application.
Start with Essential Equipment
Focusing on core equipment first can often make approvals more manageable.
Work with a Specialist Broker
Different lenders have different appetites for startup businesses. Working with a broker can help direct applications towards lenders that are more comfortable supporting new ventures.
Flexible Finance for Startups
At Johnson Reed, we help startups across a wide range of industries access flexible finance solutions tailored to their plans and budget.
Whether you’re launching a gym, salon, construction business, café, medical clinic, or transport company, we can help you explore suitable funding options for equipment, fit-outs, and business growth.
Final Thoughts
Starting a business without revenue doesn’t necessarily mean funding is out of reach. In many cases, the right structure and the right finance partner can make all the difference.
For startups, equipment finance and leasing are often more practical and achievable than large unsecured loans, particularly when the equipment will directly support revenue generation from day one.
The most important thing is understanding your options and building a finance solution that supports sustainable growth.
FAQs
Can a startup get equipment finance without a trading history?
Yes, many startups can still access equipment finance, particularly where the asset supports the business directly, and there is a strong proposal behind the application.
Is equipment finance easier than getting a startup loan?
Often, yes. Equipment finance can be more accessible because the lender has security against the asset being purchased.
Do startup loans require a personal guarantee?
In many cases, unsecured startup loans require a director’s personal guarantee, especially where there is no trading history.
What industries commonly use startup equipment finance?
Construction, fitness, hospitality, beauty, healthcare, transport, and manufacturing businesses commonly use equipment finance when launching or expanding.
Can startups finance used equipment?
Yes. Many lenders will consider financing for both new and used equipment, depending on the asset type and condition.
