Best Equipment Leasing Companies
Best Equipment Leasing Companies
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Max loan amount
$150,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
National Funding - Equipment financing
Best for Startup businesses
Max loan amount
$150,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
Max loan amount
$250,000
Min. credit score
580
Est. APR
6.50-34.99%
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Triton Capital - Equipment financing
Best for Restaurant, technology and medical leasing
Max loan amount
$250,000
Min. credit score
580
Est. APR
6.50-34.99%
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Max loan amount
$10,000,000
Min. credit score
620
Est. APR
5.99-18.00%
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
JR Capital - Equipment financing
Best for Equipment leasing with no down payment
Max loan amount
$10,000,000
Min. credit score
620
Est. APR
5.99-18.00%
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
Taycor Financial - Equipment leasing
Best for Borrowers with bad credit
Max loan amount
$5,000,000
Min. credit score
550
Pros
- Equipment leases with customizable terms, structures and even payment deferral options.
- No prepayment penalties; savings available for paying early.
- Smaller funding requests and well-qualified customers are eligible for a streamlined, one-page application process.
Cons
- Interest rate information not available on website.
Taycor Financial - Equipment leasing
Best for Borrowers with bad credit
Max loan amount
$5,000,000
Min. credit score
550
Pros
- Equipment leases with customizable terms, structures and even payment deferral options.
- No prepayment penalties; savings available for paying early.
- Smaller funding requests and well-qualified customers are eligible for a streamlined, one-page application process.
Cons
- Interest rate information not available on website.
First Citizens Bank - Equipment financing
Best for Heavy equipment leasing
Max loan amount
Undisclosed
Min. credit score
640
Pros
- Competitive rates and terms.
- Loan or lease terms can be structured to meet specific tax or accounting needs.
- Funding available as fast as one day.
Cons
- Loan payments and other services may not be available at branch locations.
First Citizens Bank - Equipment financing
Best for Heavy equipment leasing
Max loan amount
Undisclosed
Min. credit score
640
Pros
- Competitive rates and terms.
- Loan or lease terms can be structured to meet specific tax or accounting needs.
- Funding available as fast as one day.
Cons
- Loan payments and other services may not be available at branch locations.
Crest Capital - Equipment leasing
Best for Fast equipment leasing
Max loan amount
$1,000,000
Min. credit score
650
Pros
- Several different options for equipment leases.
- Customized payment structures available.
- Can fund applications in as little as 24 hours.
Cons
- Interest rate information not available on website.
- Startups and borrowers with bad credit can’t qualify.
Crest Capital - Equipment leasing
Best for Fast equipment leasing
Max loan amount
$1,000,000
Min. credit score
650
Pros
- Several different options for equipment leases.
- Customized payment structures available.
- Can fund applications in as little as 24 hours.
Cons
- Interest rate information not available on website.
- Startups and borrowers with bad credit can’t qualify.
Wells Fargo - Commercial equipment financing
Best for Established businesses
Max loan amount
Undisclosed
Min. credit score
700
Pros
- Offers lease options in a diverse array of industries.
- Can provide specialized customer experience.
Cons
- Qualification requirements and interest rate information not available on website.
- Will likely have to visit a branch location to apply.
Wells Fargo - Commercial equipment financing
Best for Established businesses
Max loan amount
Undisclosed
Min. credit score
700
Pros
- Offers lease options in a diverse array of industries.
- Can provide specialized customer experience.
Cons
- Qualification requirements and interest rate information not available on website.
- Will likely have to visit a branch location to apply.
How to choose an equipment leasing company
You’ll want to research several equipment leasing companies before deciding which option is right for your business. As you compare companies, consider these factors:
Funding availability
Leasing companies will have different maximum financing amounts and may restrict the type of equipment you can lease. You should confirm that the equipment you need falls within a lender’s requirements.
Cost of borrowing
Banks will typically offer the lowest interest rates, however, equipment leases from a bank can be difficult to qualify for. Online lenders will have more flexible qualifications, but higher rates. Ultimately, the interest rates you’re eligible to receive can vary based on your business’s qualifications, the type of equipment you’re leasing, the industry you're in, and the nature of your lease agreement.
You should always ask a lender about any additional fees they might charge and factor those fees into your borrowing costs as well.
» MORE: An equipment loan calculator can help you figure out the cost of borrowing.
Repayment terms
Repayment terms on equipment funding can range anywhere from one to five years or more. Leases can generally offer lower monthly payments (compared with loans used to finance your equipment purchase), but you should make sure that you’re not still paying for the lease past the working life of the equipment.
» RELATED: Best restaurant loans
Lease options
Equipment leasing companies may offer different types of leases, such as a $1 purchase agreement or fair market value option. These options dictate how you make payments over the course of your lease, as well as what happens to the equipment once the lease ends. You should determine what type of lease works best for your needs and find a lender that can offer that agreement.
Qualification requirements
Like other types of business lenders, equipment leasing companies will typically look at your personal credit score, length of time in business and annual revenue when evaluating your financing application. They'll also consider the value of the equipment you’re looking to lease, as well as any additional collateral or down payment you can offer.
To qualify for equipment leasing from a bank, you’ll need to be an established business with a strong credit and financial history. Online lenders will be more flexible, and some may work with startups or borrowers with bad credit.
Speed of funding and application process
If you need funding fast, online and alternative leasing companies may be able to offer you an equipment lease in just 24 hours. These lenders generally have simple application processes with minimal documentation. More traditional lenders, on the other hand, will be slower to fund.
» MORE: Best same-day business loans
Industry and customer experience
The best equipment leasing companies will have experience in your industry and be able to offer guidance through all stages of the funding process. Ideally, your leasing company will provide a range of ways for you to access customer support and will be able to address any questions or concerns you have about your leasing agreement.
Reading reviews and talking to other business owners can help you verify the reputation and trustworthiness of an equipment leasing company. Watch out for companies that make red-flag promises such as “no credit check equipment financing” or “guaranteed approval.”
Frequently asked questions
An equipment leasing company is a financial company that allows you to rent the equipment that you need for your business in exchange for periodic payments. Some equipment leasing companies allow you to rent the equipment from them directly, whereas others facilitate the financing process for you to rent equipment from another vendor.
Some equipment leasing companies can accept borrowers with a minimum credit score of 550. A stronger credit score, however, will help you qualify for a wider variety of options, as well as access lower interest rates.
Equipment leasing can be a good choice if you want to keep your monthly payments as low as possible and you plan to use the equipment for 36 months or less. If you plan to use the equipment for longer, on the other hand, financing a purchase might be a better option.
Last updated on April 10, 2024
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
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