Equipment Financing – loan-offers.net

Best Equipment Financing

Equipment loans and leases can help you get essential equipment and machinery for your business. Financing options may be available for startups and businesses with bad credit.

Best Equipment Financing

Equipment loans and leases can help you get essential equipment and machinery for your business. Financing options may be available for startups and businesses with bad credit.

Best for:

Same-day funding

Best for:

Big loans and no fees

Best for:

Excellent customer service and no fees

Best for:

Bad or no credit

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Best for:

Fast approval

Best for:

Boosting approval odds with collateral

Best for:

Excellent customer service and no fees

Best for:

Small loans and no fees

Best for:

Fair credit

Best for:

Overall personal loans

Best for:

Bad credit

Best for:

Rate discounts

Best for:

Fast approval

Best for:

Boosting approval odds with collateral

Best for:

Excellent customer service and no fees

Best for:

Small loans and no fees

Best for:

Fair credit

Best for:

Overall personal loans

Best for:

Bad credit

Best for:

Rate discounts

What is equipment financing?

An equipment loan is a type of asset-based financing, meaning the equipment generally acts as collateral in a secured business loan.

⚙️ What Is Equipment Financing?

Equipment financing is a type of business loan designed specifically to help companies purchase essential equipment — from laptops and office tech to trucks, manufacturing tools, or heavy machinery.
Instead of paying the full cost upfront, you get the equipment now and repay over time — while it powers your business forward.

Whether you’re replacing outdated gear or expanding operations, equipment financing keeps your business moving without draining your cash flow.

Types of equipment financing

🧰 Equipment Financing vs. Leasing

Here’s a close look at the similarities and differences between the three:

💡 Feature

🔍 Definition

💸 Payment Terms

📦 Ownership

💰 Down Payment

🛠️ Maintenance Responsibility

📉 Long-Term Cost

💳 Equipment Financing

You borrow funds to buy the equipment outright.

Fixed monthly payments over a term

✅ You own the equipment once fully paid.

Typically required (10–20%).

You handle all maintenance and repairs.

💲 Lowest overall cost (you own the asset).

🤝 Equipment Leasing

You lease equipment for a fixed term.

Monthly lease payments over a set term.

❌ Lender retains ownership

Usually not required.

Lessee is responsible unless otherwise stated.

💲💲 Higher than financing due to interest and fees.

🛠️ How to Qualify for Equipment Financing

Getting approved for equipment financing is often easier than you think — especially when the equipment itself serves as collateral. Still, lenders will review a few key factors:

🔹 Personal Credit Score
Your credit history helps lenders assess your reliability. Many online lenders accept scores in the low 600s — and some offer flexible terms for lower scores.

🔹 Time in Business
The longer you’ve been operating, the stronger your application. But don’t worry — some lenders approve businesses with no minimum time requirement, while others may ask for 6 to 24 months in operation.

🔹 Annual Revenue
Your business revenue helps determine how much you can afford to borrow. Requirements vary:

Some lenders can do: as low as $50,000/year
Some of them: up to $250,000/year

💡 Tip: Online lenders often offer more flexible requirements than traditional banks — and a faster approval process.

📄 Common Documents Needed for Equipment Financing

Before you hit submit on your equipment financing application, make sure you have these essentials ready — most lenders will ask for them:

🧾 Equipment Quote
A formal quote or invoice from the vendor showing what you plan to purchase.

🏦 Recent Bank Statements
Typically at least the last 3 month to show cash flow and financial stability.

📈 Sketch of business plan
Especially important for startups — outlines how the equipment supports business growth.

📄 Some lenders may request additionally tax returns (if applicable) Tax Returns
✅ Personal
✅ Business
Usually required for the last 1–2 years to verify income and performance.

💳 Credit Score
Lenders will check your personal credit score to assess creditworthiness.

🪪 Driver’s License or Government ID
To verify your identity and ownership.

💡 Tip: Having all these documents ready upfront can speed up approval and increase your chances of getting funded fast.

🛠️ How We Chose the Best Equipment Financing

We analyzed over 25 lenders and selected the top 10 based on the following criteria:

🔍 📈 Competitive Rates & Terms

We prioritized lenders with low fixed rates, minimal fees, flexible repayment terms, and APR discounts.

🕒 📅 Time in Business Requirement

We included lenders that accept businesses with as little as two years or less in operation.

🤝 📞 Customer Experience

We favored lenders known for: Transparent practices, Reporting to major credit bureaus, Strong customer support,Perks like early payoff discounts or flexible schedules.

💳 💼 Loan Variety

Lenders offering diverse financing options, tailored to different industries and equipment types, ranked higher.

🌟 Best Equipment Financing Options at a Glance

🏢 National Funding

Best for: Equipment leasing options

🚛 Commercial Fleet Financing

Best for: Commercial vehicle equipment financing

🚀 Taycor Financial

Best for: Startup-friendly equipment financing

💯 First Citizens Bank Equipment Finance

Best for: 100% equipment financing availability

🤖 iBusiness Funding

Best for: Top-rated customer service

📉 Fora Financial

Best for: Borrowers with bad credit

🏗️ SBA 7(a) Loan

Best for: Large loan amounts for heavy equipment

⚡ OnDeck

Best for: Fast funding — approvals in as little as 24 hours

Pros and cons of equipment financing

✅ Pros

Fast funding: Online lenders offer fast equipment loans (typically within two business days).

Interest rate: Since equipment loans are secured, you’ll benefit from comparatively lower business loan interest rates.

Fixed payments: You can spread your cost over time with fixed payments.

⚠️ Cons

Down payments: Equipment loans may require large down payments (typically 20%).

Extends equipment lifetime: Depending on the loan term, your equipment could become outdated or obsolete while you’re still making loan payments.

Lien or personal guarantee: With equipment loans.

❓ Frequently Asked Questions About Equipment Financing

💼 What is an equipment loan?

An equipment loan is a type of business financing used to purchase physical assets — like machinery, vehicles, or technology — where the equipment itself acts as collateral.

🔄 Is equipment financing the same as leasing?

Not quite. With financing, you own the equipment after the loan is paid off. With leasing, you're renting the equipment and may have the option to buy it at the end.

🚀 Are there equipment loans for startups?

Yes. Some lenders work with startups — especially if you have strong personal credit or a co-signer. Others may require collateral or a solid business plan.

📊 Do I need good credit to qualify?

Not always. While higher credit scores get better rates, some lenders approve applicants with credit scores in the 600s or even lower — especially if you provide a down payment or additional documentation.

📅 How long are typical repayment terms?