No-money-down equipment financing: what cash may still be needed
No money down does not always mean no cash needed. Separate equipment financing, fees, setup costs, deposits and operating cash with a practical worksheet.
No-money-down equipment financing does not automatically mean a purchase needs no cash. An offer may cover the equipment price while leaving other costs outside the financing. Before you commit, ask for a written list of what is financed, what you must pay, and when each payment is due.
The key question is not just “Is there a down payment?” It is “How much money must leave my account before this equipment can start working?”
First, ask what “100%” covers
A percentage needs a base. If a provider says it can finance 100%, ask whether it means the machine’s purchase price, the seller’s complete invoice, or an approved package that includes some additional costs.
Some providers offer financing for more than the bare equipment. Crest Capital, for example, says most qualified applicants receive financing without a down payment and that certain soft costs can be included within its stated limit. Its vendor-program page also says credit history can lead to a required down payment. Those are provider-specific terms, not a universal entitlement or a Dengaro offer. Crest Capital, Crest Capital vendor program
The practical next step is simple: send the itemized quote and ask the provider to mark each line as financed, paid by you, or not yet decided.
Do not treat an advertised option as an approval. Your written offer must identify the amount and conditions that apply to your transaction.
Separate the four kinds of cash involved
It helps to put costs into four groups. They answer different questions and should not disappear into one “down payment” number.
| Cash category | Question to ask |
|---|---|
| Down payment | Must I contribute part of the equipment’s purchase price? |
| Other purchase or setup costs | Which taxes, delivery, installation, fees or other charges are outside the financing? |
| Timing gap | Must I pay a deposit or supplier before financing funds are available? |
| Operating cushion | What cash do I choose to keep available while the equipment begins work? |
The operating cushion is your business’s planning decision, not necessarily a lender requirement. Keep it separate from amounts the contract requires you to pay.
A timing gap is different again. A seller might request money before the provider is ready to release funds. Ask both parties how that payment would be handled. Do not assume the provider will later reimburse it or count it toward a required contribution.
A cash-needed worksheet
Use one row for every part of the purchase, including charges from suppliers other than the equipment seller.
| Item | Total cost | Confirmed financed | Paid by you | Due date |
|---|---|---|---|---|
| Equipment | Fill in quote | Confirm in offer | Any remaining amount | Confirm |
| Delivery and installation | Fill in quote | Confirm separately | Any remaining amount | Confirm |
| Taxes and transaction charges | Use actual figures | Confirm separately | Any remaining amount | Confirm |
| Other required costs | Identify each item | Confirm separately | Any remaining amount | Confirm |
| Seller deposit | Record amount | Confirm treatment | Record cash timing | Confirm |
Do not count a deposit twice. If it reduces the remaining equipment balance, show that relationship. If a fee is financed, include it in the amount borrowed rather than adding the same fee again as cash due.
Leave unresolved items marked “awaiting confirmation.” A blank is not the same as zero.
Example: zero down, but not zero cash
Imagine a business buying a machine for $60,000. Its written offer finances that entire machine price with no down payment. The business also has these hypothetical costs, which the example assumes are not financed:
| Item outside the hypothetical financing | Amount |
|---|---|
| Delivery and installation | $4,000 |
| Applicable taxes and charges from the actual transaction | $3,000 |
| Required insurance payment due before delivery | $1,000 |
| Total assumed cash needed for these items | $8,000 |
These numbers are invented to show the calculation. They are not tax rates, typical fees, insurance quotes or an offer.
In this example, “no down payment” is accurate for the equipment price. Yet the buyer still needs $8,000 for the listed items. If the provider agrees to include some costs, the cash requirement changes—and the amount financed may increase.
Suppose the business also chooses to keep $5,000 available for early operating needs. Its planning target becomes $13,000: $8,000 for the illustrated transaction costs plus its own $5,000 cushion. The cushion is not presented as a lender-mandated reserve or a standard amount for other businesses.
That distinction makes the budget useful. It shows the cash required by this imagined deal and the extra cash the owner chooses to retain.
Delayed payments are a separate feature
“No payments for a period” is not the same promise as “no money down.” Ask what is due upfront, when regular payments begin, and whether financing charges accrue during any delay.
For example, Haas’s October 2026 financing terms describe a down-payment requirement for its deferred-payment option and say interest accrues during the skip period. Its stated monthly payment also excludes certain charges. This is one dated offer illustrating why the fine print matters; it is not a current offer from Dengaro or a rule for every lender. Haas financing terms
Keep these questions separate when reading your own offer:
- Is there an equipment down payment?
- Are any payments collected in advance?
- Are there fees or other costs due at signing?
- Does a payment delay add financing cost?
- What happens if equipment delivery is delayed?
Check the cash calendar before paying a deposit
List when each party expects payment: the seller, delivery company, installer, insurer and financing provider. Then compare those dates with the conditions that must be met before funds are released.
If there is a gap, ask how it will be resolved before you make a commitment. Get the seller’s refund conditions and the provider’s treatment of deposits in writing. A financing application by itself should not be treated as confirmation that you can safely make a nonrefundable payment.
Also ask what happens if the final approved amount is lower than requested. You need to know whether you would change the purchase, supply more cash, or decline the offer under the applicable terms.
A useful next step
Get the full purchase quote first. Then request a written cash-due summary alongside the payment schedule. Compare the deal you can actually receive, not just the financing percentage in an advertisement.
If you are considering a request through Dengaro, review the equipment financing requirements. Ask the provider to confirm the equipment, additional costs and cash contribution for your transaction. Zero-down approval is not promised.
Common questions
Does 100% equipment financing include taxes and delivery?
Not automatically. Ask which invoice lines and additional costs are included in your written offer. Provider terms differ.
Does no money down mean there are no upfront fees?
Not necessarily. A down payment and a separate fee are different items. Request the total cash due, with each charge identified.
Is an operating cash cushion part of the loan?
Do not assume so. Cash you choose to retain for payroll, materials or other operating needs is a separate planning item. Confirm what the financing actually covers.
Can I assume a seller deposit will be reimbursed?
No. Ask the provider about the deposit before paying it, and confirm the seller’s refund terms. Do not treat reimbursement as agreed unless it is documented.