| Max. amount | $150,000 |
| Term length | 24 to 60 months |
| Starting interest rate | Not disclosed |
| Min. credit score | 600 |
| Min. time in business | 6 months |
| Min. annual revenue | $250,000 |
| Pros | Cons |
|---|---|
Low minimum credit score requirement Offers equipment leasing with no down payment or collateral requirement | Low borrowing limits 1.00% - 2.00% origination fee |
With a required annual revenue of $250,000 to be eligible, National Funding could be a good fit for high-revenue businesses looking for equipment loans. You can finance new or used equipment or secure a competitive lease contract with its Guaranteed Lowest Payment program. Additionally, their minimum credit score is only 600.National Funding also offers business loans for minorities, business loans for women, and veteran-owned businesses looking to secure financing. Check out our full National Funding review.
| Max. amount | $1,000,000 |
| Term length | 36 to 60 months |
| Starting interest rate | Not disclosed |
| Min. credit score | 640 or higher is preferred |
| Min. time in business | Not disclosed |
| Min. annual revenue | Not disclosed |
| Pros | Cons |
|---|---|
Ideal for business owners with commercial transportation needs Quick one-page application process | May require a down payment for borrowers with poor credit Lack of transparency around average interest rates |
Commercial Fleet Financing (CFF) specializes in commercial transportation equipment, like trucks and trailers. Since its opening in 1995, CFF has funded over $1 billion to business owners nationwide.The approval process takes around two hours, with time to funding typically within 24 hours. However, CFF doesn’t disclose interest rates in advance, making it hard to compare against other small business lenders. Check out our full Commercial Fleet Financing review.
| Max. amount | $2,000,000 |
| Term length | 12 |
| Starting interest rate | 4.99% to 28.00% |
| Min. credit score | 550 |
| Min. time in business | None |
| Min. annual revenue | Varies by product, as low as $48,000 |
| Pros | Cons |
|---|---|
Time in business requirement allows for startups Low minimum credit score requirement | Interest rates may be in the double digits A longer loan term could mean paying more interest over time |
Taycor Financial is a great option for a startup business loan. You can borrow up to $2,000,000 with commercial equipment financing or explore other finance options, such as a business line of credit or working capital loan.Taycor Financial also has an equipment leasing program, which provides 100% financing with first and last payments due in advance. However, interest rates can be steep. Check out our full Taycor Financial review.
| Max. amount | $500,000 |
| Term length | 6 to 72 months |
| Starting interest rate | 5.49% |
| Min. credit score | Not disclosed |
| Min. time in business | Not disclosed |
| Min. annual revenue | Not disclosed |
| Pros | Cons |
|---|---|
Can receive funds as fast as one day 100% financing available | No minimum time in business specified Lack of transparency about minimum credit score requirements |
Formally CIT Business Capital, First Citizens Bank Equipment Finance takes the lead when it comes to fast funding. The initial online application takes only three minutes, with funds hitting your bank account as quickly as one business day after approval.In addition to equipment financing, First Citizens offers short-term business loans, long-term business loans, business credit cards, lines of credit and vendor financing. Check out our full CIT Business Capital review.
| Max. amount | $500,000 |
| Term length | 6 to 84 months |
| Starting interest rate | 11.29% |
| Min. credit score | 660 |
| Min. time in business | 2 years |
| Min. annual revenue | $400,000 for SBA 7(a) loans, not disclosed for other loan types |
| Pros | Cons |
|---|---|
Typically no effect on your personal credit score to apply Minimum annual revenue requirement not disclosed | Collateral is generally required Doesn’t offer specific equipment loans |
Although Funding Circle doesn’t offer specific equipment loans, you can borrow up to $500,000 with their business term loan and use the funds for almost any business-related expense — including equipment repairs and purchases. However, you may need to provide collateral to secure a Funding Circle loan.In addition, a dedicated account manager will help guide you through the loan process from start to finish, ensuring you’re on the right track. Check out our full Funding Circle review.
| Max. amount | Starting at $25,000 (no published maximum) |
| Term length | Up to 60 months |
| Starting interest rate | 7.00% |
| Min. credit score | Not disclosed |
| Min. time in business | 2 years |
| Min. annual revenue | Varies by product, as low as $50,000 |
| Pros | Cons |
|---|---|
Offers a business rewards program with rate deductions Ideal for in-person support and guidance | Requires $250,000 in annual revenue Lack of transparency about minimum credit score requirements |
Bank of America offers various financial services, including business lending, business bank accounts, credit cards and merchant services. With 3,800 branches nationwide, Bank of America can be an ideal choice if you prefer in-person support at any stage of your business’s financial journey.To qualify, you need a minimum of $250,000 in annual revenue. You can also take advantage of extra perks with Bank of America’s Preferred Rewards for Business program. Check out our full Bank of America review.
| Max. amount | $1,500,000 |
| Term length | 4 to 15 months |
| Starting interest rate | Factor rates from 1.10 to 1.40 |
| Min. credit score | 500 |
| Min. time in business | 6 months |
| Min. annual revenue | $180,000 |
| Pros | Cons |
|---|---|
Low minimum credit score requirement Offers prepayment discounts | Can’t have any open bankruptcies Limited funding options |
Fora Financial offers small business loans between $5,000 and $1,500,000 for any business expense — including equipment repairs, upgrades or leases. Fora Financial is one of our top picks for a bad credit business loan since its credit score requirement goes as low as 500, plus you don’t need to provide collateral. However, you need a minimum of $15,000 monthly revenue to qualify.If you want a speedy application process, Fora Financial claims you can get funded within 24 to 48 hours. While other lenders may charge prepayment penalties for business loans, Fora Financial offers a prepayment discount. Check out our full Fora Financial review.
| Max. amount | $5,000,000 |
| Term length | 120 months |
| Starting interest rate | Prime + 3.00% |
| Min. credit score | Typically 680 |
| Min. time in business | Typically 2 years |
| Min. annual revenue | Varies by industry |
| Pros | Cons |
|---|---|
Capped interest rates Long repayment terms | Collateral and/or a personal guarantee may be required Long processing time (five to 10 business days) compared to online lenders |
If you need to purchase or upgrade equipment to keep your business running, an SBA 7(a) loan provides the most significant amount — up to $5,000,000. An SBA 504/CDC loan is another option when looking for a heavy equipment loan. You can use the funds for general equipment and inventory, like computers, restaurant appliances, office furniture, technology systems, medical equipment and more.The Small Business Administration guarantees a portion of every SBA loan, allowing lenders to offer affordable rates to small business owners. The SBA recommends a FICO Score of 680 or higher to improve your chances of approval.
| Loan amounts | $5,000 to $250,000 |
| Starting interest rate | 35.40%* |
| Term length (months) | Up to 24 months |
| Minimum credit score | 625 |
| Minimum time in business | One year |
| Pros | Cons |
|---|---|
Same-day funding available Shorter time in business requirement | Doesn’t disclose minimum interest rate Low borrowing cap |
*This rate reflects the estimated starting APR offered to at least 5% of OnDeck customers. It doesn’t reflect the minimum APR offered by the company.
If you need to finance only a small amount to buy your equipment, OnDeck may be a good option. The company offers short-term business loans of up to $250,000 with the possibility of receiving same-day funding. Plus, OnDeck is transparent about its eligibility requirements, so it’s easy to know if you’ll qualify.That said, this lender does impose a $100,000 annual revenue requirement and, while that’s lower than some candidates on this list, it may not be a fit for every business. In addition, since the company doesn’t publish its minimum interest rate, it can be hard to tell how much you’ll pay for the privilege of borrowing. Check out our full OnDeck review.
| Loan amounts | $1,000,000 |
| Starting interest rate | Not disclosed |
| Term length (months) | Starting at 24 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | Not disclosed |
| Pros | Cons |
|---|---|
Flexible payment options (monthly, quarterly or annually) Finance up to 125% of equipment cost | Lack of transparency around loan terms Equipment is used as collateral for the loan |
US Bank may not be the most transparent lender when it comes to disclosing its loan terms, but for those who can qualify it offers some unique perks that make it worth considering. For example, borrowers have the option to choose their payment schedule. Also, it allows you to finance up to 125% of your equipment costs in order to cover added fees, like taxes or installation.Still, you should be aware that your equipment will be used as collateral for the loan. This means that if you’re unable to keep up with your payments, the lender has the right to repossess any equipment that you purchased with the loan funds. Check out our full U.S. Bank review.
Equipment financing is a business term loan that enables companies to purchase equipment needed to operate their businesses — such as computers, vehicles or large machinery.
An equipment loan is a type of asset-based financing, meaning the equipment acts as collateral in a secured business loan.
An equipment loan is designed to help you purchase or repair machinery and equipment for your business. Additionally, you can use other types of small business loans to finance equipment.
Equipment loans generally require regular payments with accruing interest. Payment plans vary by lender and loan type but can include daily, weekly, monthly, seasonal or deferred options.
No, leasing means you’re renting the equipment. With equipment financing, you are borrowing money to buy the equipment outright instead.
Yes, some equipment lenders only require six months in business to qualify for equipment financing — and some don’t have any time-in-business requirements. This allows startups to finance any necessary equipment within their first year of business.
