$10K - $5M
Equipment Financing
Equipment financing is a loan of $10K to $5M for machinery, vehicles or technology in which the equipment itself is the collateral, so lenders can finance up to 100% of its cost with fixed payments over its useful life. New and used equipment both qualify, and most applications get a decision within 24 to 48 hours.
Written by Jordan Levy, Founder & CEO · Last updated
Equipment Financing
$10K - $5M
What is equipment financing?
Equipment financing lets you acquire the machinery, vehicles, technology, or specialized tools your business needs without depleting cash reserves. The equipment itself serves as collateral, which means qualification is often based more on the asset's value than your credit history alone. We work with lending partners who finance up to 100% of the equipment cost, with terms matched to the asset's useful life — so you're not paying for equipment long after it's stopped generating value.
Key Features
- Equipment serves as collateral
- Up to 100% of equipment value financed
- Fixed payments over the asset's useful life
- Potential tax benefits through depreciation
Funding Range
$10K - $5M
Category
Asset-Based Funding
Convert your business assets into the capital you need today.
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Start ApplicationStep by Step
How does equipment financing work?
Identify the equipment you need
Whether it is new or used, tell us what you are purchasing, the vendor, and the cost. We can work with any equipment type — vehicles, machinery, technology, medical devices, and more.
Submit your application
Provide basic business information and the equipment details. Because the asset itself serves as collateral, the underwriting process focuses on the equipment's value alongside your business profile.
Receive financing offers
We present matched offers with fixed monthly payments, terms aligned to the equipment's useful life, and total cost breakdowns so you can compare clearly.
Get the equipment and start using it
Once you accept an offer, the lender pays the vendor directly or reimburses your purchase. You start using the equipment immediately while making predictable monthly payments.
Why Choose This Product
Why use equipment financing?
Preserve Cash Reserves
Keep your working capital intact for operations while financing the equipment you need to grow.
Asset-Backed Approval
The equipment itself is the collateral. This means easier qualification and competitive rates.
Tax Advantages
Section 179 deductions and depreciation may allow you to write off the full cost in the year of purchase.
Eligibility
Who qualifies for equipment financing?
- Minimum 600 credit score
- At least 1 year in business
- At least $400,000 in annual revenue
- Equipment must have a clear fair market value
- Both new and used equipment eligible
- Most industries and equipment types qualify
Real-World Scenarios
How do businesses use equipment financing?
A restaurant owner finances $80K in commercial kitchen equipment — ovens, refrigeration, and prep stations — paying it off over 48 months from increased seating capacity and catering revenue.
A trucking company acquires three new Class 8 trucks at $150K each, using the vehicles as collateral and matching payments to the contracts they enable.
A medical practice finances $200K in diagnostic imaging equipment, taking advantage of Section 179 to deduct the full cost in the purchase year.
Compare
How does equipment financing compare to other options?
Equipment financing differs from a term loan because the equipment itself secures the loan, which typically means easier approval and potentially lower rates. Unlike SBA loans, equipment financing closes much faster — days rather than weeks — though SBA 504 loans can offer better long-term rates for larger purchases. For businesses that prefer to lease rather than own, equipment leasing is an alternative, but financing lets you build equity in the asset.
Frequently Asked Questions
Common questions about Equipment Financing
The minimum is a 600 credit score. Because the equipment serves as collateral, lenders weigh its value alongside your credit. Higher scores unlock better rates and terms.
Most equipment financing applications receive a decision within 24-48 hours. Funding typically follows within 1-3 business days after you accept an offer, depending on vendor payment coordination.
Standard requirements include business bank statements, a government-issued ID, and a quote or invoice for the equipment. Larger purchases may require business tax returns or financial statements.
Yes. Both new and used equipment qualify for financing. The key factor is the equipment's fair market value, which determines the maximum financing amount. Some lenders specialize in used equipment and can offer competitive terms.
No. Equipment financing requires at least 1 year in business, $400,000 or more in annual revenue and a 600 credit score. If your business is younger, our credit repair program has no time-in-business minimum and can help get your credit ready for when you reach the 1-year mark.
No. The initial inquiry is a soft credit pull. A hard pull only occurs if you decide to proceed with a specific offer from a lender.
By Industry
Which industries use equipment financing?
More in Asset-Based Funding
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