Best Equipment Financing and Loans of 2025
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9 best equipment financing loans
| Product | Max Loan Amount | Min Credit | Min Time In Business | |
|---|---|---|---|---|
 National Funding - Equipment financing Nerdwallet Rating with Fundera by NerdWallet | $150,000 | 600 | 6 months | with Fundera by NerdWallet |
 SBA 7(a) loan with Fundera by NerdWallet | $5,000,000 | 650 | 24 months | with Fundera by NerdWallet |
 eLease - Equipment financing Nerdwallet Rating with Fundera by NerdWallet | Undisclosed | 550 | 6 months | with Fundera by NerdWallet |
 Triton Capital - Equipment financing Nerdwallet Rating with Fundera by NerdWallet | $250,000 | 575 | 24 months | with Fundera by NerdWallet |
 OnDeck - Online term loan Nerdwallet Rating with Fundera by NerdWallet | $250,000 | 625 | 12 months | with Fundera by NerdWallet |
 JR Capital - Equipment financing Nerdwallet Rating | $10,000,000 | 620 | 24 months | |
 Bank of America - Equipment loan Nerdwallet Rating with Fundera by NerdWallet | $750,000 | 700 | 24 months | with Fundera by NerdWallet |
 First Citizens Bank - Equipment financing with Fundera by NerdWallet | $3,000,000 | 640 | 24 months | with Fundera by NerdWallet |
 U.S. Bank - Equipment financing with Fundera by NerdWallet | $1,000,000 | Undisclosed | 24 months | with Fundera by NerdWallet |
What is equipment financing?
How equipment financing works
Equipment financing vs. equipment leasing
| Equipment loans | 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.
Equipment ownership: You’ll own the equipment outright once the loan is repaid.
Self-collateralizing: Since the equipment is often used as collateral for the loan, there may be less reliance on personal credit, time in business or other collateral.
Tax savings: The interest you’ve paid is tax 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: May require a high initial down payment.
Maintenance costs: When you buy equipment, you are typically responsible for maintenance costs.
No trial run period: You often give up the opportunity to try out the equipment — something that would be available through a short-term lease.
Equipment financing rates and terms
- Anecdotally, equipment financing interest rates range from 4% to 45% APR.
- Additional fees can include origination fees, prepayment penalties or late or returned payment fees. Origination fees can be a flat fee or a percentage of the loan amount, usually between 0.5% and 4%.
- Generally, terms on business equipment loans are based on the anticipated life of the equipment or machinery you’re purchasing.
Equipment loan calculator
A closer look at the best equipment lenders
National Funding
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 6 months.
- Minimum annual revenue: $250,000.
Pros and cons
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 making it more difficult to compare costs with other lenders.
Requires higher annual revenue than other online lenders.
Charges an origination fee.
SBA 7(a) loan
Qualifications
- Must be a for-profit U.S. business.
- Unable to access credit on reasonable terms from non-government sources.
- Financial qualifications determined by individual lender.
Pros and cons
Pros
Large borrowing maximums.
Interest rates are capped.
Long repayment terms available.
Cons
Collateral is typically required.
Longer processing times than online lenders.
eLease
Qualifications
- Minimum credit score: 550.
- Minimum time in business: 6 months.
- Minimum annual revenue: No minimum requirement.
Pros and cons
Pros
No loan or leasing maximums.
No minimum revenue requirement.
Startups and low credit scores accepted.
Cons
Must apply over the phone.
Triton Capital
Qualifications
- Minimum credit score: 580.
- Minimum time in business: 24 months.
- Minimum annual revenue: $150,000.
Pros and cons
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.
OnDeck
Qualifications
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $100,000.
Pros and cons
Pros
Cash can be available within the same business day (does not apply in California or Vermont).
Streamlined application process with minimal documentation required.
Can be used to build business credit.
Cons
Cannot fund North Dakota-based businesses.
Requires frequent (daily or weekly) repayments.
Interest rates can be high compared with traditional lenders.
Charges origination fee.
JR Capital
Qualifications
- Minimum credit score: 620.
- Minimum time in business: Typically 24 months, but can prioritize industry experience in some cases.
- No minimum annual revenue requirement.
Pros and cons
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.
Cons
Must have good credit to qualify for no prepayment penalties.
Charges an origination fee.
Bank of America
Qualifications
- Minimum credit score: 700.
- Minimum time in business: 24 months.
- Minimum annual revenue: $250,000.
Pros and cons
Pros
Competitive interest rates.
Longer repayment periods.
Preferred Rewards program can offer interest rate discounts and other perks.
Fee discounts available for veteran-owned businesses.
Cons
Charges an origination fee.
Prepayment fees may apply to early repayments.
Can be slow to fund.
Application cannot be completed online.
First Citizen Bank
with Fundera by NerdWallet
Qualifications
- Minimum credit score: 640.
- Minimum time in business: 24 months.
Pros and cons
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.
U.S. Bank
with Fundera by NerdWallet
Qualifications
- Minimum time in business: 24 months.
Pros and cons
Pros
No down payment or blanket lien required.
Option to finance multiple pieces of equipment on one contract.
Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
Cons
Can only apply online for transactions under $250,000.
Interest rates and qualification requirements not disclosed online.
Concerned about tariffs?
- Need emergency funding? Consider a business line of credit.
- Looking for fast access to working capital? Discover the best working capital loans.
- Want tips on how to mitigate the impact of tariffs? Read our guide.
How to apply for an equipment loan
1. Determine the size of your loan
2. Review your qualifications
3. Compare equipment lenders
4. Gather documentation and apply
- Basic information about you and your business.
- Personal bank statements and tax returns.
- Business bank statements and tax returns.
- Business financial statements.
- Description of equipment and estimated cost.
How to compare equipment financing offers
- Make sure you understand the total cost of the loan. Your interest rate is one of the main factors that determines the cost of a loan; however, any additional fees (for example, origination or processing fees) will add to the total loan cost. Large loan fees can, in some cases, offset the benefits of a lower interest rate. An annual percentage rate (APR) uses the interest rate plus loan fees to provide the total cost of the loan and can be helpful in comparing loan offers with different rates and fees to determine the overall cost of each loan.
- Consider the down payment you can offer. When you pause to think about total cost, it’s also a good time to think about the upfront cost of a down payment. Many equipment lenders are willing to finance 100%, but any money you can put down may help your chances of approval and save you money in the long run by reducing the amount you need to borrow.
- Determine what your ideal repayment terms might be. The repayment term affects both your monthly payment amount and the total interest you pay. A shorter repayment term may save you money, but the monthly payment shouldn’t be more than your budget allows. Some equipment lenders charge a fee when a borrower pays off their loan early, while others reward early repayment with prepayment discounts. The ability or incentive to pay off your equipment early allows you to make the best decision for your business without worrying about extra fees.
- Think about time to funding. There are times you may need to prioritize funding speed for a loan, especially when it comes to equipment that may have limited availability. Online and specialized equipment lenders may offer faster funding than banks; however, that often means higher cost.
- Vet your lender’s experience financing equipment. Just like your lender vets you, you can also vet it. Every lender is different, but there can be benefits — such as industry knowledge, personalized experience and timing — to a specialized lender, or at least one that has financed large equipment purchases before.
How we chose the best equipment loans
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
Article sources
- 9 best equipment financing loans
- What is equipment financing?
- How equipment financing works
- Pros and cons of equipment financing
- Equipment financing rates and terms
- Equipment loan calculator
- A closer look at the best equipment lenders
- How to apply for an equipment loan
- How to compare equipment financing offers
- How we chose the best equipment loans
