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Writer | Small business, business banking, business loans
Randa Kriss is a small-business writer who joined NerdWallet in 2020. She previously worked as a writer at Fundera, covering a wide variety of small-business topics including banking and loan products. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona College.
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Equipment leasing is available from banks, alternative and direct lenders, as well as commercial vendors. The top leasing companies can offer competitive rates and terms, industry expertise and transparent lease agreements.
The right option for your business will vary based on the type of equipment lease you’re looking for and your qualifications, among other factors.
Here are our picks for equipment leasing companies, as well as tips to help you choose the best provider for your needs.
250+ small-business products reviewed and rated by our team of experts.
95+ years of combined experience covering small business and personal finance.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
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.
Taycor Financial can provide equipment leasing to borrowers with a minimum credit score of 550 or higher.
Taycor Financial Equipment Leasing
Max Loan Amount
$5,000,000
Min. credit score
550
Taycor Financial can provide fast and flexible leasing options for small businesses with a variety of equipment needs.
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.
Qualifications:
Minimum credit score: 550.
Minimum time in business: Typically two years, but Taycor has a new business program for companies with less than two years in operation.
Minimum annual revenue: $100,000.
Max loan
$5,000,000
Min. Credit score
550
Taycor Financial can provide fast and flexible leasing options for small businesses with a variety of equipment needs.
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.
Qualifications
Minimum credit score: 550.
Minimum time in business: Typically two years, but Taycor has a new business program for companies with less than two years in operation.
Minimum annual revenue: $100,000.
Our pick for
Heavy equipment leasing
First Citizens Bank offers customizable equipment leasing options, including a specialized program for heavy trucks, trailers or tractors.
First Citizens Bank Equipment Financing
Max Loan Amount
Undisclosed
Min. credit score
640
First Citizens Bank Equipment Finance (formerly CIT) provides competitive rates and terms on equipment loans and leases — with faster funding than most banks offer.
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.
Qualifications:
Minimum credit score: 640.
Minimum time in business: Two years.
Minimum annual revenue: Undisclosed.
Must have a tax identification number.
Max loan
Undisclosed
Min. Credit score
640
First Citizens Bank Equipment Finance (formerly CIT) provides competitive rates and terms on equipment loans and leases — with faster funding than most banks offer.
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.
Qualifications
Minimum credit score: 640.
Minimum time in business: Two years.
Minimum annual revenue: Undisclosed.
Must have a tax identification number.
Our pick for
Fast equipment leasing
With Crest Capital, you can lease new or used equipment and receive funding in as little as 24 hours.
Crest Capital Equipment Leasing
Max Loan Amount
$1,000,000
Min. credit score
650
Crest Capital offers a flexible and streamlined equipment leasing process that allows you to finance almost any type of new or used equipment.
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.
Qualifications:
Minimum credit score: 650.
Minimum time in business: Two years.
Minimum annual revenue: Undisclosed.
Must be a profitable company with no previous bankruptcies.
Max loan
$1,000,000
Min. Credit score
650
Crest Capital offers a flexible and streamlined equipment leasing process that allows you to finance almost any type of new or used equipment.
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.
Qualifications
Minimum credit score: 650.
Minimum time in business: Two years.
Minimum annual revenue: Undisclosed.
Must be a profitable company with no previous bankruptcies.
Our pick for
Established businesses
Wells Fargo can provide a specialized lending experience for established businesses with strong credit.
Wells Fargo does not specify qualification requirements on its website, but like all bank financing products, you’ll likely need to meet strict eligibility criteria to qualify.
Max loan
Undisclosed
Min. Credit score
700
Wells Fargo can provide a range of lease options for more established businesses that want a personalized lending experience.
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.
Qualifications
Wells Fargo does not specify qualification requirements on its website, but like all bank financing products, you’ll likely need to meet strict eligibility criteria to qualify.
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.
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.
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.
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.
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.