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Find the Best Equipment Financing Options February 2024

In order to purchase business equipment, such as machinery, vehicles, and furniture, equipment loans are used. Obtaining equipment loans can help businesses expand and improve their operations without tying up their cash reserves. If you are considering financing business equipment, an equipment loan may be the best option for you.

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Editor's Choice
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Key Facts

  • Credit Score: 550
  • Age of business: 12+ months
  • Monthly revenue: Varies
  • US citizenship: Required for all owners
  • Term length: Varies

Pros

pros iconMultiple financing options designed to help businesses grow and succeed

pros iconConvenient shop and comparison tool

pros iconFree service

pros iconMatched with experienced Funding Advisor who helps every step of the way

Cons

cons iconLoan terms and conditions not disclosed until after completing an application

cons iconOnce deciding upon a product, you’ll work with the lender instead of Fundera

cons iconMust have been in business for at least 1 to 4 years to qualify for funding

cons iconPotentially high interest rates and eligibility requirements

LIMITATION OF LIABILITY AND WARRANTY DISCLAIMER. 10.1 Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL FUNDERA (OR OUR SUPPLIERS) BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY LOST PROFITS, LOST DATA, COSTS OF PROCUREMENT OF SUBSTITUTE PRODUCTS, OR ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES ARISING FROM OR RELATING TO THESE TERMS OR YOUR USE OF, OR INABILITY TO USE, THE SITES OR SERVICE, EVEN IF FUNDERA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ACCESS TO, AND USE OF, THE SITES OR SERVICE IS AT YOUR OWN DISCRETION AND RISK, AND YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE TO YOUR DEVICE OR COMPUTER SYSTEM, OR LOSS OF DATA RESULTING THEREFROM. TO THE MAXIMUM EXTENT PERMITTED BY LAW, NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, OUR LIABILITY TO YOU FOR ANY DAMAGES ARISING FROM OR RELATED TO THE SERVICE OR THESE TERMS OF SERVICE (FOR ANY CAUSE WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, DAMAGES ARISING FROM YOUR FAILURE TO PROVIDE FUNDERA WITH ACCURATE INFORMATION OR TO CORRECT INACCURATE VERIFIED DATA, OR A THIRD PARTY’S FAILURE TO CORRECTLY VERIFY SUCH INFORMATION, AND REGARDLESS OF THE FORM OF THE ACTION), WILL AT ALL TIMES BE LIMITED TO A MAXIMUM OF ONE HUNDRED US DOLLARS (U.S. $100). THE EXISTENCE OF MORE THAN ONE CLAIM WILL NOT ENLARGE THIS LIMIT. YOU AGREE THAT OUR SUPPLIERS WILL HAVE NO LIABILITY OF ANY KIND ARISING FROM OR RELATING TO THESE TERMS OF SERVICE. SOME JURISDICTIONS DO NOT ALLOW THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU. 10.2 No Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THESE TERMS OF SERVICE, THE SITES AND THE SERVICE PROVIDED HEREUNDER BY FUNDERA IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, AND FUNDERA (AND OUR SUPPLIERS) EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES AND CONDITIONS OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, QUIET ENJOYMENT, ACCURACY OR NON-INFRINGEMENT. WE (AND OUR SUPPLIERS) MAKE NO WARRANTY THAT THE SITES AND THE SERVICE WILL MEET YOUR REQUIREMENTS, WILL BE AVAILABLE ON AN UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE BASIS, OR WILL BE ACCURATE, RELIABLE, AND/OR FREE OF VIRUSES OR OTHER HARMFUL CODE, COMPLETE, LEGAL, OR SAFE. IF APPLICABLE LAW REQUIRES ANY WARRANTIES WITH RESPECT TO THE SITE AND THE SERVICE, ALL SUCH WARRANTIES ARE LIMITED IN DURATION TO NINETY (90) DAYS FROM THE DATE OF FIRST USE. NO ADVICE OR INFORMATION PROVIDED BY FUNDERA SHALL CONSTITUTE ANY WARRANTY WITH RESPECT TO YOUR USE OF THE SERVICE. FUNDERA DOES NOT GUARANTEE OR ASSUME ANY RESPONSIBILITY FOR ANY SERVICE ADVERTISED OR OFFERED BY ANY THIRD-PARTY SERVICE RELATING TO EITHER FUNDERA OR ANY FUNDING PROVIDER. FUNDERA MAKES NO GUARANTEE AS TO THE NUMBER OF FUNDING PROVIDERS WITH WHOM YOU MAY BE MATCHED USING THE SERVICE, NOR DOES FUNDERA GUARANTEE THAT YOU WILL BE ABLE TO OBTAIN BUSINESS FUNDING IN ANY AMOUNT USING THE SERVICE, INCLUDING FROM ANY FUNDING PROVIDER FOR WHOM YOUR VERIFIED INFORMATION PROVISIONALLY PREQUALIFIES YOU FOR SUCH FUNDING. YOU UNDERSTAND AND AGREE THAT FUNDERA IS NEITHER A FUNDING PROVIDER NOR A FINANCIAL ADVISOR, AND NOTHING ON THE SITES IS INTENDED TO BE A SUBSTITUTE FOR PROFESSIONAL FINANCIAL ADVICE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. SOME JURISDICTIONS DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU. 10.3 Not a financial planner, investment adviser or tax advisor. NEITHER FUNDERA NOR THE SERVICES ARE INTENDED TO PROVIDE LEGAL, TAX, INVESTMENT OR FINANCIAL ADVICE. FUNDERA IS NOT A FINANCIAL OR TAX PLANNER, AND DOES NOT OFFER LEGAL ADVICE TO ANY USER OF THE SERVICE. ALTHOUGH THE SERVICE MAY PROVIDE DATA, INFORMATION, OR CONTENT RELATING TO INFORMATIONAL SERVICES FOR U.S. BASED SMALL BUSINESS OWNERS INCLUDING INFORMATION AND REFERRALS FOR CERTAIN FINANCIAL SERVICES, YOU SHOULD NOT CONSTRUE ANY SUCH CONTENT AS TAX, LEGAL, FINANCIAL, OR INVESTMENT ADVICE.

  • $5K-$5M Loan Amount
  • 550 Min Credit
  • 12+ Months Time in Business
Quick Funding
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Key Facts

  • Eligibility: Businesses with less than 500 employees
  • Max loan amount: $10 million
  • Interest rate: 0.5%
  • Loan forgiveness for: payroll, mortgage interest, rent, utilities

Pros

pros iconFlexible on credit score. Getting approved is based more on strong balances and revenue.

pros iconVariety of loan types available

pros iconSoft credit check for the initial application

pros iconSave time with offers from multiple lenders

Cons

cons iconApplication process is a bit long for a marketplace because it requires 3 bank statements

cons iconSince Lendio is not a direct lender, the terms only become clear after applying for a loan

  • $1K-$5M Loan Amount
  • 500 Min Credit
  • 6+ Months Time in Business
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Key Facts

  • Credit score: depends on lender
  • Age of business: min. 12 months
  • US citizenship: required
  • Repayment terms: depends on lender
  • Term length: varies

Pros

pros iconMultiple business financing options available, ranging from small business loans to commercial real estate loans to lines of credit

pros iconStreamlined, intuitive application process with lender comparison option

pros iconTime to funding could be within 24 hours

pros iconTop-notch customer service team of finance professionals

Cons

cons iconAs a marketplace, specific terms, rates, and fees are not indicated until you apply with a partner lender

By indicating your agreement to these terms (for instance, by clicking the button), you, in your individual capacity, represent:

  • That you are authorized on behalf of the business listed in the application (the “Applicant”) to make and submit this application, to submit any accompanying documents, and to provide the consent and authorizations set out below.
  • That, should this application be approved, you are authorized to sign business financing documentation on behalf of the Applicant. Please be advised that some business financing products may require a personal guaranty.
  • That all information provided to Lendzi and/or its trusted partners is accurate and complete and that you will immediately notify Lendzi of any change in such information.
  • That Lendzi and its trusted partners may rely on the accurateness of the information provided.
  • That Lendzi may share all information and documents, excluding consumer credit reports, with its trusted partners to fulfill Applicant’s requests.
  • That Lendzi and its trusted partners may share information they have about you and Applicant at any time for administrative, marketing and servicing purposes as permitted by law and that your personal information may be shared with the Applicant as part of the underwriting process.
  • That you and the Applicant waive and release any claims against any information provided relating to the release of information.
  • That you agree to and accept all terms of the Lendzi Credit Gathering Authorization found here.

BY USING DH & RK Investments LCC dba Lendzi’S WEBSITE AND/OR REQUESTING THAT Lendzi CONTACT YOU FOR MARKETING PURPOSES, YOU AGREE TO ARBITRATE ALL CLAIMS BETWEEN YOU AND Lendzi (AND ANY ENTITY CALLING ON BEHALF OF Lendzi) ON AN INDIVIDUAL BASIS ONLY AND NOT AS A PART OF ANY CLASS. A “CLAIM” IS ANY CASE, CONTROVERSY, DISPUTE, TORT, DISAGREEMENT, LAWSUIT, LEGAL ACTION, OR CLAIM NOW OR HEREAFTER PENDING BETWEEN YOU AND Lendzi, INCLUDING BUT NOT LIMITED TO ANY ALLEGED STATE OR FEDERAL STATUTORY VIOLATION, OR ANY DISPUTE OVER THE INTERPRETATION OF THE TERMS OF APPLICATION OR THE ARBITRABILITY OF ANY CLAIM PURSUANT TO THE TERMS OF APPLICATION. THIS AGREEMENT TO ARBITRATE GOVERNS ALL PAST, CURRENT AND PROSPECTIVE INTERACTIONS WITH Lendzi. YOU AGREE THAT YOU ARE WAIVING ALL RIGHTS TO: (A) A TRIAL BY JURY; (B) PARTICIPATE IN A CLASS ACTION LAWSUIT OR CLASS ACTION ARBITRATION; AND (C) BRING AN ACTION AGAINST Lendzi IN A COURT OF LAW. YOU MAY INDIVIDUALLY ARBITRATE ANY CLAIM AGAINST Lendzi IN ANY JURISDICTION IN THE UNITED STATES. THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION THEN IN FORCE SHALL GOVERN THE ARBITRATION (provided, however, that the terms of the Lendzi Terms of Application and Terms of Use shall control over any inconsistency between the Rules of the American Arbitration Association and the Terms of Application). The arbitrator shall have authority to interpret the Terms of Application, including but not limited to the authority to decide whether any claim is arbitrable under the Terms of Application and to decide issues related to the scope of arbitration, the rules of arbitration, the arbitrator’s jurisdiction, and the enforceability of the Terms of Application. You agree that the Terms Application involves commerce under 9 U.S.C. Sections 1 et seq. and that this Arbitration Clause is governed by federal law, including the Federal Arbitration Act. The remainder of the Terms of Application is governed by the laws of the state of Utah, as provided in the Terms of Use.

YOU UNDERSTAND THAT THIS IS AN APPLICATION FOR A COMMERCIAL LOAN AND THAT ANY LOAN FUNDS OFFERED TO APPLICANT MAY NOT BE USED FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES.

IMPORTANT INFORMATION ABOUT OPENING A NEW ACCOUNT

Federal law requires all financial institutions to obtain, verify and record information that identifies each person and entity that opens an account or establishes a relationship with such institution, including name, address, date of birth, social security or tax identification number and other information that will allow the financial institution to verify your and/or the entity’s identity. You may also be asked to provide identifying documents.

  • $1K-$1M Loan Amount
  • 500 Min Credit
  • 12+ Months Time in Business
Easy Application
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Pros

pros iconFunding available within 24 hours.

pros iconVariety of financing options available.

pros iconSupports businesses with potential and robust revenues.

Cons

cons iconMay be an expensive option due to fees.

cons iconEvery state may not have the same financing options.

cons iconNo live chat option on their website.

Biz2Credit Disclosure: By accessing or applying for Business Finance Services from Biz2Credit relating to your potential business funding or other business financing products, you expressly accept and agree to both our Terms of Service and the Business Finance Services Terms & Conditions. The rates and terms and conditions here in are not a commitment or guaranty by Biz2Credit Inc. or any of its affiliates to provide financing, and are subject to change at any time. Not valid in all states. All products and services are subject to eligibility and other conditions and restrictions. Biz2Credit Inc. is not a lender. All terms and conditions and credit decisions are at the sole discretion of the lender. Offered for commercial uses to businesses only. Other terms, conditions, fees and restrictions may apply.

  • $25K-$6M Loan Amount
  • 575 Min Credit
  • 24+ Months Time in Business
Editor's Choice
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Key Facts

  • Multiple types of funding, nationwide
  • Get help from a loan representative
  • Highly rated customer support

Pros

pros iconEasy way to compare business loans from over 35 lenders

pros iconPartners with large, established lenders such as Bluevine, OnDeck, and Funding Circle

pros iconLoan decisions are made quickly after an easy application process

Cons

cons iconNo transparency of loan terms readily available

cons iconLoan funding can take up to one week, which is longer than competitors

cons iconCollateral is required from some of BusinessLoans.com’s lending partners

BusinessLoans.com allows users to obtain information about certain loans, financial products, and services offered through third-party service providers and advertisers. BusinessLoans.com is not an agent or advisor to you or any other third party.

You acknowledge and agree that our website is solely an intermediary to connect users with service providers to obtain information about certain financial products and services. You acknowledge and agree that we are not a financial institution, credit card issuer, or other financial service provider and that any information or advice made available through the Services is for informational purposes only.

We do not, and will not, create any coverage or credit decision with any service provider that may be referred to you through our Services. We do not (i) validate the licensing, certification, or other qualifications of Service Providers that you may encounter through our Services, (ii) guarantee the terms or rates offered by any third party through or on our Services, or (iii) issue credit cards or any other financial products.

We are not responsible for the conduct or policies of the service providers. The terms and rates provided by any service provider will be subject to the applicable terms and conditions of the products and services offered by the service providers.

  • $5K-$3M Loan Amount
  • 640 Min Credit
  • 12+ Months Time in Business
Quick Funding
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Key Facts

  • Credit score: 625
  • Age of business: 12+ months
  • Monthly revenue: $8,000
  • Personal guarantee: Required
  • US citizenship: required, or permitted residency
  • Term length: 3-24 months

Pros

pros iconMore straightforward to obtain a loan than with conventional banks

pros iconVery quick funding available

pros iconFull fee transparency

Cons

cons iconLonger initial application process than competitors – 10 minutes

cons iconOrigination fees applied of up to 4%

cons iconLines of credit incur a $20 monthly charge

cons iconExpensive APRs

Same Day Funding is only available in certain states for term loans up to $100K. The eligibility window is Monday-Friday before 10:30am EST. If checkout completes before 10:30am EST, funds will be available by 5pm local time the same day. If checkout occurs after 10:30am EST or on a weekend or bank holiday, it will not qualify for Same Day Funding, and funds will be deposited within 2-3 business days. Eligibility rules around creditworthiness and length of term loan apply.
Eligibility for the lowest rates is limited, available only to businesses with the strongest creditworthiness and cash flows, and typically companies that have shown an excellent payment history on prior loan products with OnDeck. The average rate for term loans is 62.1% APR, and the average rate for lines of credit is 48.9% APR. Averages are based on loans originated in the half-year ending March 31, 2022.

  • $5K-$250K Loan Amount
  • 625 Min Credit
  • 12+ Months Time in Business
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Key Facts

  • Credit Score: 650
  • Age of business: 1 Year
  • Monthly revenue: $25,000
  • Origination fee: 0-2%

Pros

pros iconQuick approval time

pros iconFast time to funding

pros iconGood track record

pros iconFlexible repayment options

Cons

cons iconNo transparency on rates

cons iconAdditional fees sometimes necessary

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

  • $10K-$500K Loan Amount
  • 650 Min Credit
  • 12+ Months Time in Business
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Pros

pros iconUltra-fast funding available

pros iconA low minimum credit score of 625

pros iconAvailable to businesses who have been active for 6 months

pros iconOnly pay for the portion of the line of credit that you use

Cons

cons iconThe rate of borrowing is expensive

cons iconOnly two repayment terms (6 and 12 months)

cons iconThe monthly revenue requirement of $10,000 will price out many businesses

Bluevine is a financial technology company, not a bank. Banking Services provided by Coastal Community Bank, Member FDIC. Bluevine accounts are FDIC insured up to $3 million per depositor through Coastal Community Bank, Member FDIC. The Bluevine Business Debit Mastercard® is issued by Coastal Community Bank, Member FDIC pursuant to a license from Mastercard International Incorporated and may be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Application is subject to approval. No monthly or maintenance fees. Card Replacement Fees and Wire Transfer Fees may apply.

Certain Bill Pay funds, including Bill Pay with Credit Card, are held by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). Banking Services for payments made via ACH or wire from the Bluevine Business Checking Account are provided by Coastal Community Bank, Member FDIC.

Bluevine’s Flex Line of Credit is issued by Celtic Bank, a Utah-chartered Industrial Bank, Member FDIC. Applications are subject to credit approval. Rates, credit lines, and terms may vary based on your creditworthiness and are subject to change. Additional fees apply.

PPP loans are made by one or more approved U.S. Small Business Administration (SBA) lenders. Loan agreements will identify the issuing lender to small businesses at signing. Qualified applications will be submitted to the SBA as soon as possible. Bluevine does not guarantee that applications will be processed and submitted before PPP funds are no longer available. Approval and loan forgiveness are subject to your availability to meet government-set eligibility requirements.

Certain financing may be made or arranged pursuant to California Financing Law-License No. 6054789.

  • $6K-$250K Loan Amount
  • 625 Min Credit
  • 6+ Months Time in Business
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Key Facts

  • Credit score: 550
  • Age of business: 18+ months
  • US citizenship: Required for all owners
  • Repayment terms: Varies
  • Term length: 3-60 months

Pros

pros iconFast time to funding

pros iconLow barrier to entry

pros iconQuality customer support team

pros iconGood track record

Cons

cons iconNot the most competitive rates

*Small Business Financial Solutions, LLC offers term loans and lines of credit (pursuant to its California Lenders License No. 603-I855) and factoring in California. Small Business Financial Solutions, LLC and Rapid Financial Services, LLC offer term loans, lines of credit and factoring outside of California. Commercial Servicing Company, LLC arranges term loans and lines of credit in California (pursuant to its California Finance Lenders License No. 603-J299) and arranges term loans, SBA loans, lines of credit, factoring, asset-based loans, commercial real estate loans and business credit cards outside of California.

  • $5K-$1M Loan Amount
  • 550 Min Credit
  • New Time in Business
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Pros

pros iconReceive a business line of credit within 24 hours

pros iconFewer hurdles to go through than with traditional loan financing

pros iconAccepts businesses with only six months of trading history

pros iconNo fees or prepayment penalties

Cons

cons iconHigh APRs compared to traditional business loan funding

cons iconOnly short-term loans are available

cons iconNot practical for equipment purchasing, only working capital management

Fundbox makes capital available to businesses through business loans and lines of credit made by First Electronic Bank, a Utah chartered Industrial Bank, member FDIC, and invoice-clearing advances, business loans, and lines of credit made directly by Fundbox.

  • $1K-$150K Loan Amount
  • 600 Min Credit
  • 6+ Months Time in Business
View Details arrow

Pros

pros iconSuccessful applications receive funding in less than 72 hours

pros iconDiscounts available for early repayment of loans

pros iconLow credit threshold for loan eligibility

pros iconGood customer service and A+ BBB rating

Cons

cons iconUses factor rating instead of APR, which makes comparing with other loan offers difficult

cons iconOrigination fee charged

cons iconOnly short-term loans are available

cons iconThe minimum sales requirement of $15,000 per month will be difficult for some businesses

Fora Financial provides business capital, including business loans and Revenue Based Financing, directly and through a network of unaffiliated third-party funding providers. Business loans are offered by Fora Financial Business Loans LLC or, in California, by Fora Financial West LLC, a licensed California Finance Lender, License No. 603J080. Fora Financial Advance LLC offers Revenue Based Financing. Business capital is also made available through US Business Funding, a sister company of Fora Financial. The products and amounts offered vary by state.

  • $5K-$1.4M Loan Amount
  • 500 Min Credit
  • 6+ Months Time in Business

Top Small Business Loan Providers

ondeck_Logo
OnDeck

Quick Funding for Any Credit

625

Min Credit Score

Min 29.9%

APR. Fixed Rate

$5K-$250K

Loan Amount

3 months to 24 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Maintenance fee

Other Fees

0-4%

Origination Fee

Varies

Prepayment Fee

24 Hours

Funding Time

$100K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon More straightforward to obtain a loan than with conventional banks
  • con-icon Very quick funding available
  • con-icon Full fee transparency
  • con-icon Longer initial application process than competitors – 10 minutes
  • con-icon Origination fees applied of up to 4%
  • con-icon Lines of credit incur a $20 monthly charge
  • con-icon Expensive APRs

Business Loan Types

drop-down-btn
  • Business Line of Credit
  • Term loans
Lendzi

For Small Businesses and Entrepreneurs

500

Min Credit Score

Min 7%

APR. Fixed Rate

$1K-$1M

Loan Amount

Varies

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

Varies

Other Fees

1-6%

Origination Fee

Varies

Prepayment Fee

24 Hours

Funding Time

$240K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Multiple business financing options available, ranging from small business loans to commercial real estate loans to lines of credit
  • con-icon Streamlined, intuitive application process with lender comparison option
  • con-icon Time to funding could be within 24 hours
  • con-icon Top-notch customer service team of finance professionals
  • con-icon As a marketplace, specific terms, rates, and fees are not indicated until you apply with a partner lender

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Business Term Loan
  • Equipment Financing
  • Term loans
  • Merchant Cash Advances
  • Startup Loans
  • Commercial Real Estate Loans
National Funding
National Funding

Lending Solutions for Multiple Industries

650

Min Credit Score

Min 4.99%

APR. Fixed Rate

$10K-$500K

Loan Amount

4-60 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Varies

Other Fees

1-2%

Origination Fee

None

Prepayment Fee

24 Hours

Funding Time

$250K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Quick approval time
  • con-icon Fast time to funding
  • con-icon Good track record
  • con-icon Flexible repayment options
  • con-icon No transparency on rates
  • con-icon Additional fees sometimes necessary

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Term Loan
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan

What is an Equipment Loan?

Equipment loans help businesses purchase or upgrade equipment that they need to operate. It's like borrowing money to purchase or lease machinery or technology. These loans are available from banks or specialized financing companies. An equipment loan allows you to repay the loan over time instead of paying for the equipment upfront. There are two ways to get this loan: secured, where you need collateral, or unsecured, where you don't need collateral but may have stricter requirements. With this type of loan, businesses can access equipment without paying a lot upfront.

Equipment Loans: Key Terms to Know

  • Collateral: The article discusses collateral as a requirement for some equipment loans. Collateral refers to assets or property that borrowers provide as security for the loan.
  • Interest Rate: The article provides information on the interest rates associated with equipment loans, including the range of rates and factors that can influence them.
  • Down Payment: The article mentions down payments as a common requirement for equipment loans. A down payment is the initial payment made by the borrower when obtaining the loan.
  • Equipment Leasing: The article briefly mentions equipment leasing as an alternative to equipment loans. Equipment leasing involves renting equipment for a fixed term, and it's discussed as an option for businesses with short-term equipment needs.

Fundera Logo
Fundera

Get funded faster than at your bank

550

Min Credit Score

Min 7%

APR. Fixed Rate

7-30%

APR. Variable Rate

$5K-$5M

Loan Amount

1-10 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

24 Hours

Funding Time

$130K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Multiple financing options designed to help businesses grow and succeed
  • con-icon Convenient shop and comparison tool
  • con-icon Free service
  • con-icon Matched with experienced Funding Advisor who helps every step of the way
  • con-icon Loan terms and conditions not disclosed until after completing an application
  • con-icon Once deciding upon a product, you’ll work with the lender instead of Fundera
  • con-icon Must have been in business for at least 1 to 4 years to qualify for funding
  • con-icon Potentially high interest rates and eligibility requirements

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Invoice Financing
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Merchant Cash Advances
  • Startup Loans
lendio_logo
Lendio

Buying, Building, or Renovating Your Business

500

Min Credit Score

Min 6%

APR. Fixed Rate

$1K-$5M

Loan Amount

1-30

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

$96K

Annual Revenue

6+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Flexible on credit score. Getting approved is based more on strong balances and revenue.
  • con-icon Variety of loan types available
  • con-icon Soft credit check for the initial application
  • con-icon Save time with offers from multiple lenders
  • con-icon Application process is a bit long for a marketplace because it requires 3 bank statements
  • con-icon Since Lendio is not a direct lender, the terms only become clear after applying for a loan

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Business Term Loan
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Startup Loans

How Does an Equipment Loan Work?

Equipment loans are generally issued over the lifetime of the equipment that is being purchased. If your business wants an equipment loan to buy machinery that will last five years, the equipment loan will be for five years.

Most lenders require a downpayment of between 5% and 20%, with interest rates offered between 5% and 24%. Collateral for the loan is provided by the equipment being purchased, and payments are made in regular installments, including interest.

Equipment Loans: Pros and Cons

Pros Cons
Improve cash flow: With equipment loans, you don't have to put up a large amount of cash upfront. This allows you to use your cash flow for other important business expenses. Higher interest rates: It is common for equipment loans to have higher interest rates than other types of business loans.
Spread-out payments: The monthly payments on equipment loans are typically lower than for other types of business loans, such as term loans or lines of credit. Down payment requirements: Equipment loans may require a down payment of 10% to 20% of the purchase price.
Build credit: You can build your business credit history by repaying equipment loans on time and in full. Collateral requirements: If you default on an equipment loan, the lender can repossess the equipment that is being financed.

Can Anyone Get an Equipment Loan?

Whether you are a small business or a startup, you can qualify for an equipment loan. However, the eligibility requirements and terms may vary among lenders. Generally, companies with a good credit history and positive cash flows are more likely to be successful in applying for an equipment loan.

Obtain an Equipment Loan in Just a Few Steps

If you think your business would benefit from an equipment loan, it’s time to start planning your application. You can apply for an equipment loan by simply following these simple steps:

  1. Decide what equipment your business needs: Establish what equipment you need, how much it costs, how much down payment you have available, and what size equipment loan is required.
  2. Compare the different equipment loans available: Be sure to compare interest rates and fees charged. You can do so by reviewing the equipment loans shown in this guide.
  3. Collect the information required for the loan application: These documents include financial statements, bank statements, tax returns, and a business plan.
  4. Apply for your equipment loan:  After submitting your application, you will know if it was successful within a few hours.

If your application is successful, you will receive your funds within days and be in a position to purchase the equipment that will help take your business to the next level.

Choosing the Best Equipment Loan Solution

There are several things to consider when it comes to choosing the best equipment loan for your business. Essential items to consider include:

Interest rate 7% - 20%
Repayment terms 3 - 10 years
Loan amounts $97,097

Fees charged

0% - 3.75%
Down payment 0% - 20%

Interest rates offered by equipment loan lenders vary based on several different factors. Rates charged for equipment loans range from 5.99% to 24% and are most heavily influenced by these additional items:

  • Your credit rating
  • The loan term wanted
  • How expensive the equipment is
  • Your business’ financial history
  • How much down payment will be contributed

Equipment Loan Alternatives

While an equipment loan can be a great solution for a business looking to upgrade, there are several different options available that you can consider, including the following:

  • Equipment leasing: Equipment leasing is best suited if you want to use the equipment for a short period. Equipment leasing is similar to renting the equipment, with a monthly fee paid for a fixed term. At the end of the term, the equipment is returned.
  • Business line of credit: A business line of credit allows businesses to borrow up to a limit, with interest only paid on the amount borrowed.
  • Equipment financing: This is similar to an equipment loan, but equipment ownership does not pass to the business until it fully pays the loan off.
  • Small Business Administration (SBA) Loan: An SBA loan is available to small businesses. These loans can be used for equipment purchases if your business meets SBA criteria. SBA loans are attractive as they typically have lower interest rates and longer repayment terms.

Conclusion

An equipment loan is an excellent idea if you want to scale up your business but lack the funds to do so. Equipment loans use the equipment being purchased as collateral; the loan term is typically the life of the equipment. Interest rates offered are competitive, and we’ve outlined the key facts you need to be aware of in this guide.