Banks and online lenders provide equipment financing, also called equipment loans, to help you acquire or upgrade essential equipment and machinery for your business. Equipment financing options may be available for startups and businesses with bad credit.
| Lender | Best for | Max. loan amount | Starting interest rates | Approx. time to funding | Min. credit score |
|---|---|---|---|---|---|
 | High revenue businesses | $150,000 | Not disclosed | 24 hours | 600 |
 | Commercial vehicles | $1,000,000 | Not disclosed | 24 hours | 640 or higher is preferred |
 | Startups | $2,000,000 | 3.49% | 24 hours | 550 |
 | Fast funding | $500,000 | 5.49% | 24 hours | Not disclosed |
 | Online term loan | $500,000 | 11.29% | 2 days | 660 |
 | Traditional bank | Starting at $25,000 (no max.) | 7.50% | 10 business days | Not disclosed |
 | Bad credit | $1,500,000 | Factor rates from 1.10 to 1.40 | 24 hours | 500 |
 | SBA loan | $5,000,000 | Prime + 2.75% | 5 to 10 business days | 680 |
Learn more about how we chose our picks.
| Max. amount | $150,000 |
| Term length | 24 to 60 months |
| Starting interest rate | Not disclosed |
| Min. credit score | 600 |
| Min. time in business | 6 months |
Low minimum credit score requirement
Offers a Lowest Payment Guarantee for equipment leasing
Low borrowing limits
Lack of transparency for interest rates for equipment loans
With a required annual revenue of $250,000 to be eligible, National Funding could be a good fit for high revenue businesses looking for equipment loans. You can finance new or used equipment or secure a competitive lease contract with its Lowest Payment Guarantee program. Their minimum credit score is 600, but a representative says the lender places more emphasis on time on business.National Funding also focuses on providing business loans for minorities, business loans for women, and veteran-owned businesses looking to secure financing.
| Max. amount | $1,000,000 |
| Term length | Flexible |
| Starting interest rate | Not disclosed |
| Min. credit score | 640 or higher is preferred |
| Min. time in business | Not disclosed |
Ideal for business owners with commercial transportation needs
Quick one-page application process
May require a down payment for borrowers with poor credit
Lack of transparency around average interest rates
Commercial Fleet Financing (CFF) specializes in commercial transportation equipment like trucks and trailers. Since its opening in 1995, CFF has funded over $1 billion to business owners nationwide.The approval process takes around two hours, with time to funding typically within 24 hours. However, CFF doesn’t disclose interest rates in advance, making it hard to compare against other small business lenders.
| Max. amount | $2,000,000 |
| Term length | 12 to 84 months |
| Starting interest rate | 3.49% to 28.00% |
| Min. credit score | 550 |
| Min. time in business | None |
No minimum time-in-business requirement
Low minimum credit score requirement
Interest rates may be in the double digits
A longer loan term could mean paying more interest over time
Taycor Financial is a great option for a startup business loan. You can borrow up to $2 million with commercial equipment financing or explore other finance options, such as a business line of credit or working capital loan.Taycor Financial also has an equipment leasing program, which provides 100% financing with no down payment. However, interest rates can be steep.
| Max. amount | $500,000 |
| Term length | 6 to 72 months |
| Starting interest rate | 5.49% |
| Min. credit score | Not disclosed |
| Min. time in business | Not disclosed |
Can receive funds as fast as one day
Offers a range of financial products
No minimum time in business specified
Lack of transparency about minimum credit score requirements
First Citizens Bank Equipment Finance takes the lead when it comes to fast funding. The initial online application only takes three minutes, with funds hitting your bank account as quickly as one business day after approval.In addition to heavy equipment financing, CIT offers franchise financing, working capital loans, SBA loans and commercial real estate loans.
| Max. amount | $500,000 |
| Term length | 6 to 84 months |
| Starting interest rate | 11.29% |
| Min. credit score | 660 |
| Min. time in business | 2 years |
Typically no effect on your personal credit score to apply
No minimum annual revenue needed to qualify for a term loan
Collateral is generally required
Doesn’t offer specific equipment loans
Although Funding Circle doesn’t offer specific equipment loans, you can borrow up to $500,000 with their business term loan and use the funds for almost any business-related expense — including equipment repairs and purchases.In addition, a dedicated Account Manager will help guide you through the loan process from start to finish, ensuring you’re on the right track. However, you may need to provide collateral to secure a Funding Circle loan.
| Max. amount | Starting at $25,000 (no published maximum) |
| Term length | Up to 60 months |
| Starting interest rate | 7.50% |
| Min. credit score | Not disclosed |
| Min. time in business | 2 years |
Offers a business rewards program with rate deductions
Ideal for in-person support and guidance
Requires $250,000 in annual revenue
Lack of transparency about minimum credit score requirements
Bank of America offers various financial services, including business lending, business bank accounts, credit cards and merchant services. With 6,269 branches nationwide, Bank of America can be an ideal choice if you prefer in-person support at any stage of your business’s financial journey.To qualify, you need a minimum of $250,000 in annual revenue. You can also take advantage of extra perks with Bank of America’s Preferred Rewards for Business program.
| Max. amount | $1,500,000 |
| Term length | 4 to 15 months |
| Starting interest rate | Factor rates from 1.10 to 1.40 |
| Min. credit score | 500 |
| Min. time in business | 6 months |
Low minimum credit score requirement
Offers prepayment discounts
Can’t have any open bankruptcies
Limited funding options
Fora Financial offers small business loans between $5,000 and $1.5 million for any business expense — including equipment repairs, upgrades or leases. Fora Financial is one of our top picks for a bad credit business loan since its credit score requirement goes as low as 500, plus you don’t need to provide collateral. However, you need a minimum of $15,000 monthly revenue to qualify.If you want a speedy application process, Fora Financial claims you can get funded within 24 to 72 hours. While other lenders may charge prepayment penalties for business loans, Fora Financial offers a prepayment discount.
| Max. amount | $5,000,000 |
| Term length | 120 months |
| Starting interest rate | Prime + 2.75% |
| Min. credit score | Typically 680 |
| Min. time in business | Typically 2 years |
Capped interest rates
Long repayment terms
Collateral and/or a personal guarantee may be required
Long processing time (five to 10 business days) compared to online lenders
If you need to purchase or upgrade equipment to keep your business running, an SBA 7(a) loan provides the most significant amount — up to $5 million. An SBA 504/CDC loan is another option when looking for a heavy equipment loan. You can use the funds for general equipment and inventory, like computers, restaurant appliances, office furniture, technology systems, medical equipment and more.The Small Business Administration guarantees a portion of every SBA loan, allowing lenders to offer affordable rates to small business owners. The SBA recommends a FICO Score of 680 or higher to improve your chances of approval.
An equipment loan is designed to help you purchase or repair machinery and equipment for your business. Additionally, you can use other types of small business loans to finance equipment.
Equipment loans generally require regular payments with accruing interest. Payment plans vary by lender and loan type but can include daily, weekly, monthly, seasonal or deferred options.
Yes, some equipment lenders only require six months in business to qualify for equipment financing — and some don’t have any time-in-business requirements. This allows startups to finance any necessary equipment within their first year of business.
While some lenders accept minimum credit scores as low as 500, having a credit score of 670 or higher could help you secure lower interest rates and better terms.
Unfortunately, no-credit-check business loans aren’t an option. However, because the equipment acts as collateral to secure the loan, it’s generally easier to qualify for an equipment loan versus a traditional business loan, as the latter may have stricter business lending requirements. Because of this, borrowers with poor or bad credit may have better luck applying for small business equipment loans.
Equipment financing rates typically range from 3.49% to 28% or higher. Your specific interest rate for an equipment loan will depend on several factors, such as credit score, annual revenue, time in business and your type of industry.
However, every lender differs and will weigh your criteria differently.
Some loans for equipment have generous term lengths of up to ten years. Others may be as short as six months. Just keep in mind that a longer loan term will mean paying more interest over the life of the loan.
