Equipment Financing for Small Business

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Equipment financing lets you buy vehicles, machinery, or technology while paying over the asset's useful life — the equipment itself is the collateral. Terms typically run 2–7 years, rates from roughly 7% to 25% depending on credit, and lenders routinely finance 80–100% of the purchase price, including used equipment.

At a glance

Typical amounts	$10,000 – $2,000,000+
Funding speed	2–10 business days
Best for	Trucks, construction machinery, restaurant/medical equipment, manufacturing lines, IT hardware.

Requirements

Equipment quote or invoice from a vendor
6+ months in business for most lenders (startups possible with strong credit)
Credit score 600+ for best structures; subprime programs exist
Down payment 0–20% depending on profile

How it works

Get a quote for the equipment from any vendor.
Lender underwrites you and the asset; the equipment serves as collateral.
Lender pays the vendor directly; you take delivery.
Fixed monthly payments; you own the asset at term end (loan) or per lease terms.

Pros and cons

Pros	Cons
Collateral is built-in, so rates beat unsecured options Preserves cash — up to 100% financing Potential Section 179 first-year tax deduction (confirm with your CPA)	Restricted to the equipment purchase The asset can be repossessed on default Total cost on long terms adds up

See if you qualify for equipment financing

Answer 6 quick questions — no impact on your credit score, no obligation.

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Frequently Asked Questions

Can I finance used equipment?

Yes — most lenders finance used equipment from dealers and many from private sellers, often up to 10–15 years of asset age depending on category.

Loan or lease — which is better?

Loans build ownership and suit long-life assets; leases lower payments and suit fast-depreciating tech. Tax treatment differs — ask your CPA about Section 179 either way.

Can startups get equipment financing?

Yes, though expect higher rates or a 10–20% down payment; the collateral makes lenders more flexible than with unsecured loans.

Related options

Working Capital Loans — Covering payroll, inventory purchases, seasonal cash-flow gaps, and short-term opportunities.
Merchant Cash Advance — Businesses with strong card sales that need money fast and have been declined for cheaper products.
SBA Loans — Established, profitable businesses that can wait for funding and want the lowest payment.