How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 8 equipment financing options
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
Funding Circle - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Online equipment loans for businesses with strong credit | $500,000 | 660 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Equipment financing for startups | $250,000 | 625 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Equipment financing for bad credit | $1,500,000 | 500 | with Fundera by NerdWallet |
National Funding - Equipment Financing with Fundera by NerdWallet | 4.5/5 Best for Equipment financing with no down payment | $150,000 | 600 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Fast equipment financing | $250,000 | 600 | with Fundera by NerdWallet |
TAB Bank - Term loan | Best for Bank equipment financing | $300,000 | 660 | |
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA equipment loans | $5,000,000 | 650 | with Fundera by NerdWallet |
SBA CDC/504 loans | Best for Low-interest equipment loans | $5,000,000 | 680 | Read Review |
Here are 8 equipment financing options
Best for Online equipment loans for businesses with strong credit
Best for Equipment financing for startups
Best for Equipment financing for bad credit
Best for Equipment financing with no down payment
Best for Fast equipment financing
Best for Bank equipment financing
Max Amount
$300,000
Min. Credit Score
660
Best for SBA equipment loans
Best for Low-interest equipment loans
Our pick for
Online equipment loans for businesses with strong credit
Funding Circle - Online term loan
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
Our pick for
Equipment financing for startups
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
35.40-99.90%
Our pick for
Equipment financing for bad credit
Fora Financial - Online term loan
Max loan
$1,500,000
Min. Credit score
500
Our pick for
Equipment financing with no down payment
National Funding - Equipment Financing
Max loan
$150,000
Min. Credit score
600
Our pick for
Fast equipment financing
Triton Capital - Equipment financing
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
600
Apr range
5.99-35.00%
with Fundera by NerdWallet
Our pick for
Bank equipment financing
TAB Bank - Term loan
Max loan
$300,000
Min. Credit score
660
Apr range
8.99-35.99%
Our pick for
SBA equipment loans
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Low-interest equipment loans
SBA CDC/504 loans
Max loan
$5,000,000
Min. Credit score
680
Apr range
2.60-3.20%
What is equipment financing?
How equipment financing works
Equipment financing rates and terms
- Anecdotally, equipment financing interest rates range from 4% to 45% APR.
- Generally, terms on business equipment loans are based on the anticipated life of the equipment or machinery you’re purchasing. A shorter term may have you scrambling to make payments, and a longer term could mean you’ll be paying for the equipment after you stop using it.
Equipment financing vs. equipment leasing
Equipment financing | Equipment leasing | |
---|---|---|
How it works | You borrow money from a lender to purchase equipment. | You rent equipment from a lender. |
Ownership | You own the equipment at the end of the loan term. | The lender owns the equipment. At the end of the lease, you may have the option to renew or buy the equipment. |
Cost | Higher monthly payments, but costs less over time. | Lower monthly payments, but costs more over time. |
Best for | Equipment you plan to use for longer than 36 months. | Equipment you plan to use for 36 months or less. |
Pros and cons of equipment financing
Pros
- Affordable. Equipment loans can provide competitive interest rates and long terms. SBA 7(a) loans, for example, typically offer terms up to 10 years for equipment purchases.
- Equipment ownership. You’ll own the equipment outright once the loan is repaid. If you need cash for other business purposes, you might arrange a sale-and-leaseback agreement with the equipment finance company; that involves selling the equipment to a lender in return for quick cash and then leasing it back from that lender.
- Self-collateralizing. Because the equipment is often used as collateral for the loan, you may not need to rely as heavily on personal credit, time in business or other collateral to qualify. This could help startups and businesses with bad credit qualify for equipment financing.
- Tax savings. At tax time, the interest you’ve paid is deductible, and you may also qualify for a depreciation tax benefit.
Cons
- Outdated equipment. If the financed equipment becomes outdated, you’ll need to sell or dispose of it.
- Down payment. An equipment loan may require a high initial down payment.
Where to get equipment financing
Online lenders
Banks and credit unions
SBA lenders
Specialized equipment financing companies
- Learn more about gym equipment financing.
- Compare the best financing options for restaurant equipment.
- Find online lenders that offer dental equipment financing.
- Review options for farm equipment loans.
Find the right business loan
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.