Best Equipment Financing and Loans of 2026
Compare our top equipment lenders by rates, terms and eligibility. Plus, learn more about how this type of financing works.
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Updated · 4 min read
Written by
Senior Writer & Content Strategist 
Edited by
Managing Editor When considering your options for the best small-business loan to purchase equipment, weigh factors such as:
- How experienced the lender is in financing the type of equipment you’re looking to buy,
- How quickly you can get access to the funds,
- And whether the lender will allow you to pay your loan off early and without penalty.
Read on and compare our top picks — or jump ahead to learn more about how equipment financing works.
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.
9 best equipment financing loans
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| 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 |
 Bank of America - Equipment loan Nerdwallet Rating with Fundera by NerdWallet | $750,000 | 700 | 24 months | with Fundera by NerdWallet |
 OnDeck - Online term loan Nerdwallet Rating with Fundera by NerdWallet | $400,000 | 625 | 12 months | with Fundera by NerdWallet |
 Triton Capital - Equipment financing Nerdwallet Rating with Fundera by NerdWallet | $250,000 | 575 | 24 months | with Fundera by NerdWallet |
 U.S. Bank - Equipment financing with Fundera by NerdWallet | $1,000,000 | Undisclosed | 2 years and 2 months | with Fundera by NerdWallet |
 First Citizens Bank - Equipment financing with Fundera by NerdWallet | $3,000,000 | 640 | 24 months | with Fundera by NerdWallet |
 JR Capital - Equipment financing Nerdwallet Rating | $10,000,000 | 620 | 24 months |
Specialized equipment financing companies extend loans based on the type of equipment you need for your business and can offer experts who are knowledgeable about the specific type of equipment you want to purchase, something that may not be available at a bank or online lender.
We’ve compiled lists of your top options for a number of these specialized companies:
Keep in mind, though, that interest rates and terms offered by these equipment finance companies are unlikely to be as favorable as those offered by a bank.
A closer look at the best equipment lenders
National Funding
Best for startups
National Funding National Funding - Equipment financing
Max Loan Amount
$150,000 Overview: National Funding is an online business lender that offers equipment loans up to $150,000 with no down payment requirement. You may be able to qualify with just 6 months in business — making this a good option for startups. National Funding can approve your application in as little as 24 hours and offer funding as soon as the next business day.
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.
Can't be used to build business credit.
Charges an origination fee.
» MORE: Best startup business loans
SBA 7(a) loan
Best for SBA equipment loans
U.S. Small Business Administration SBA 7(a) loan
Max Loan Amount
$5,000,000 Overview: SBA 7(a) loans are available up to $5 million and offer repayment terms up to 10 years for equipment purchases. These loans offer long repayment terms and low interest rates, making them a good option for large-ticket purchases, like equipment or machinery. 7(a) loans are a good option for established businesses, as you’ll likely need multiple years in operation and solid credit to qualify.
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
Best for bad credit
Overview: ELease is an experienced equipment lender, offering both equipment loans and leases. The lender has flexible qualification requirements, making it a good option for low-revenue businesses, startups and borrowers with bad credit. ELease accepts a minimum credit score of 550 — the lowest of the options on our list. ELease also offers competitive interest rates, ranging from 7.5% to 22%. Unlike other specialized equipment lenders, however, eLease requires you to apply over the phone instead of online.
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.
Bank of America
Best for competitive interest rates
Bank of America Bank of America - Equipment loan
APY
Overview: Bank of America’s equipment loans can be used for a wide range of business needs, from purchasing heavy industrial equipment to smaller office equipment. Loans start at $25,000 and repayment terms are available up to 60 months. If you’re a Preferred Rewards member, you may be able to access interest rate discounts.
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.
OnDeck
Best for fast financing
OnDeck OnDeck - Online term loan
Max Loan Amount
$400,000 Overview: OnDeck offers a short-term loan that can be used to purchase equipment, up to $250,000. Repayment terms are available for up to 24 months. OnDeck is a particularly good option if you need financing quickly, as you may get access to your funds the same day you sign your contract. Even if you don’t get same-day funding, OnDeck can provide capital within a few days.
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.
Triton Capital
Best for flexible repayment options
Triton Capital Triton Capital - Equipment financing
Max Loan Amount
$250,000 Overview: Triton Capital offers equipment loans of up to $250,000 that can be used to purchase new or used equipment. The lender allows you to choose a customized repayment plan based on your specific needs. You may be able to get monthly, quarterly, annually, semi-annually or seasonal repayments.
Qualifications
- Minimum credit score: 575.
- Minimum time in business: 24 months.
- Minimum annual revenue: $250,000.
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.
Requires higher annual revenue than other online lenders.
U.S. Bank
Best for soft costs
U.S. Bank U.S. Bank - Equipment financing
Max Loan Amount
$1,000,000 with Fundera by NerdWallet
Overview: U.S. Bank can offer up to 125% equipment financing that includes soft costs such as installation, tax and freight. The lender offers flexible repayment options (quarterly, semi-annually or annually). Existing U.S. Bank customers (and everyone else for a $375 fee) can take advantage of an expedited application for deals up to $200,000.
Qualifications
- Minimum time in business: 26 months.
Pros and cons
Pros
No down payment required.
Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
Cons
$375 origination fee required for expedited application (if you’re not an existing customer).
Expedited application only available on deals up to $200,000.
Interest rates and qualification requirements not disclosed online.
First Citizen Bank
Best for customizable financing
First Citizens Bank First Citizens Bank - Equipment financing
Max Loan Amount
$3,000,000 with Fundera by NerdWallet
Overview: First Citizens Bank offers customizable equipment financing that can be structured to meet your individual tax or accounting needs. These custom repayment plans typically have terms up to 60 months. First Citizens provides up to 100% financing for both new and used equipment — and can fund equipment loans or leases faster than other bank lenders.
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.
JR Capital
Best for large loan amounts
Overview: JR Capital offers equipment loans and leases up to $10 million — a larger maximum than many other lenders offer. JR Capital allows you to finance any type of business equipment, including trucks, trailers, construction equipment and farming equipment. Repayment terms range from 24 to 84 months and loans don’t require a down payment.
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.
What is equipment financing?
Equipment financing refers to a loan that's used to purchase business machinery and equipment. Equipment loans are typically structured as term loans that you repay, with interest, over a specific period of time.
You can use equipment loans to buy assets such as office and computer equipment, industrial machinery and business vehicles.
🤓 Nerdy Fact
More than 80% of U.S. companies use some form of financing (loans, leases, lines of credit) when acquiring equipment.
How equipment financing works
Equipment financing is a type of asset-based financing, which means the equipment itself is collateral for the loan.
You may be able to borrow up to 100% of the equipment’s value, depending on the lender and your business’s qualifications.
What can an equipment loan cover?
Some small-business lenders may also cover “soft costs,” such as:
- Delivery.
- Installation.
- Warranties.
- Assembly.
- Other one-time set up expenses.
Lenders may finance these costs on top of the equipment value.
For example, some offer 125% financing:
- 100% for the equipment.
- 25% for soft costs.
Other equipment financing companies, however, may finance only a percentage of the cost of the equipment, say 75%, and allot the remainder of the loan (25%) to your soft costs.
Why this matters:
Soft costs often require a large upfront investment and don’t add long-term value to the equipment. Financing them lets you spread out those costs without using cash on hand or taking out a separate loan.
Equipment financing rates and terms
Repayment terms and interest rates on equipment loans vary based on the lender, your qualifications and the expected lifespan of the equipment.
- Interest rates typically range from 4% to 45% APR.
- Loan terms are usually based on the anticipated life of the equipment.
Additional fees may include:
- Origination fees (typically 0.5% to 4% of the loan amount).
- Prepayment penalties.
- Late or returned payment fees.
Equipment financing vs. equipment leasing
Equipment leasing may be an option when you’re unable to get an equipment loan or it isn’t the right fit for your needs. With equipment leasing, you rent the equipment from a vendor, lender or specialized equipment leasing company.
| 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. |
Equipment loan calculator
Use our calculator to estimate your monthly equipment loan payments as well as the total cost of your loan.
How to apply for an equipment loan
The loan application process will vary by lender, but here are some steps to help you start the process:
1. Determine the size of your loan
Knowing the loan amount you need to purchase equipment will help you narrow your search for lenders who can offer that amount. It can also be used to estimate the amount of debt you can afford and monthly payments.
2. Review your qualifications
Number of years in business, personal and business credit scores and annual revenue are some common factors used by lenders to qualify a business for financing. Knowing how you compare to lender requirements can save you time in finding the right loan.
3. Compare equipment lenders
Research and compare multiple different lenders to find the best fit for your needs. Consider the lender’s eligibility criteria, as well as interest rates, fees, repayment terms and down payment requirements.
4. Gather documentation and apply
Whether you apply online or in person, you’ll typically need the following to start the application process:
- 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
Follow these tips to help you determine which equipment loan is best for your business:
Understand the total cost of the loan.
Your interest rate is the main factor but fees add to the total cost.
- Common fees include origination and processing fees.
- Large fees can offset the benefits of a lower interest rate.
Nerdy Tip: Look at the APR, which combines interest rate and fees, to compare the true cost of different loan offers.
Consider your down payment.
Many lenders offer 100% financing, but putting money down can help. A down payment may:
- Increase your chances of approval.
- Reduce how much you have to borrow.
- Lower your cost over time.
Choose repayment terms that fit your budget.
Your loan term affects your monthly payment and total interest.
- Shorter terms mean less interest overall, but higher monthly payments.
- Longer terms mean lower monthly payments, but more interest over time.
Some lenders charge prepayment penalties, while others offer prepayment discounts. Having flexibility here can help you manage your costs.
Think about time to funding.
If you need equipment quickly, speed may matter more than cost. Online and specialized lenders tend to offer faster funding than banks, but they’ll charge higher interest rates.
Evaluate the lender’s experience.
Not all lenders have the same experience issuing equipment loans. Working with a lender that understands your industry or financed similar equipment may offer more tailored guidance and a smoother application process.
How we chose the best equipment loans
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.
- 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.
Article sources
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- 1. Equuipment Leasing & Finance Association. Industry Overview. Accessed Apr 30, 2026.
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