Currency Equipment Financing for Small Businesses: 2023 Review
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The bottom line:
CurrencyFinance offers a fast way to get financing for a new piece of equipment at rates that are competitive for an online lender.
Pros & Cons
- Competitive rates among online lenders.
- Repayment terms up to 72 months.
- Little to no down payment required.
- Prepayment penalty in some cases.
- Requires business lien and personal guarantee.
How Much Do You Need?
If your business is looking to finance a new piece of equipment, CurrencyFinance offers a fast way to get funding.
Currency is a good option for borrowers who:
Need to make a relatively large equipment purchase: Currency’s platform offers loans of up to $500,000.
Want their loan needs evaluated by many lenders: The platform is a marketplace of lenders that each have specific lending specialties and credit requirements. The idea is to match a borrower with a lender that best fits their needs.
Have solid personal credit and an established business: The marketplace requires borrowers to have a personal credit score of at least 625, although a higher score would be better. Having at least two years in business is generally required, but there may be opportunities for startups that have been in business for three months or more.
Need to fund their equipment purchase quickly: After approval, Currency can fund loans on the same day in some cases. The whole process, from application to funding, can typically be done in days.
Currency loan features
Up to $500,000.
6% to 24%.
Varies by lending partner.
Up to 72 months.
Varies by lending partner.
As fast as the same day — after loan approval.
How Currency works
When you apply, you submit basic information such as the amount of funding sought, the equipment type, your contact information, the business type, gross annual sales and time in business, along with three months of bank statements.
As part of the underwriting process, Currency does a soft pull on your personal credit to help evaluate your creditworthiness. Currency then compares your profile with its requirements and those of its external lenders to find potential matches. Currency may share your credit information with lenders, and lenders that receive your application may do a hard credit pull, which will appear on your credit report and may affect your credit score.
Of that group, Currency will match you with lenders with the best rates and terms, and you’ll be contacted by phone or email to review the offer.
Reasons to use Currency
Fast approval and funding
Many would-be borrowers receive a decision — an approval or a denial — from Currency within minutes. The remaining applicants are asked to submit additional information before a decision can be reached. It’s a quick process that provides an answer to your funding request within days.
Currency's annual percentage rates, or APRs, range from 6% to 24%, comparable to those of other online lenders that provide equipment financing. The interest rate you receive can be influenced by your credit score, years in business, business revenue and other factors.
Due diligence on equipment
Just before the loan closes, Currency will make sure the asset you’re buying is as advertised. This process takes about 24 hours. If everything checks out, Currency works with the vendor on payment terms and disburses the money.
Where Currency falls short
Not for new businesses or borrowers with bad credit
Though Currency works with multiple lending partners, whose requirements may vary, more lending options will typically be available to businesses that have at least two years in business and whose owners have personal credit scores of at least 625 and no personal or business bankruptcy within the past three years.
Prepayment penalty and additional fees
Some of Currency’s lending partners have prepayment penalties, which are additional fees that apply if you pay off your loan early. Also, some lenders may require document fees ranging from $50 to $395 depending on the equipment purchased. Origination fees also apply and vary by lender.
Personal guarantee may apply
Currency files a lien that specifically covers the piece of equipment you have financed through the platform, which is typical for equipment financing. This gives your lender the right to seize the equipment if you default on the loan. However, some of Currency’s lender partners also require a personal guarantee, in which the owner also pledges personal assets for repayment of the loan in the event of default.
Compare business loans
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Andrew Wang, a former content strategist and small-business writer for NerdWallet, contributed to this article.