Best Equipment Financing in May 2026
Equipment loans and leases can help you get essential equipment and machinery for your business. Financing options may be available for startups and businesses with bad credit.
Equipment financing allows your business to acquire equipment like machinery and vehicles without spending a large sum of cash upfront.
With a business equipment loan, the equipment acts as collateral until your business repays the loan in full. With a business equipment lease, the lender owns the equipment.
According to applications processed by LendingTree’s Small Business Concierge team in 2025, the average approved amount of a business loan used for equipment was nearly $38,000.
Should you use equipment financing?
Equipment financing can get you the right tools for the right job, especially if you’re looking to expand or are working with old or outdated machinery.
Equipment financing is a good fit for:
- Managing cash flow by avoiding use of liquid capital for large purchases
- Making a quick purchase
- Driving revenue growth by increasing production or operations
It’s not a good fit for:
- Short-term equipment needs, unless you choose an operating lease
- Businesses with unstable revenue and bad credit, which can mean riskier terms
- Equipment that will be obsolete before loan payoff date
How to qualify for equipment financing
Lenders typically consider the following eligibility criteria for equipment financing:
Credit score: Lenders may examine both your business credit score and personal credit score to determine eligibility. Many lenders require a minimum credit score in the 600s, though some may allow a lower credit score for equipment leases or loans with stricter terms.
Time in business: Some lenders have a minimum time in business requirement of two years, but certain online lenders only require six months or less in operation. For example, Taycor Financial has no minimum time in business requirements for equipment financing and leasing.
Annual revenue: Each lender has its own minimum annual revenue requirement. For example, Ameris Bank requires $100,000, whereas Bank of America requires $250,000.
When applying for equipment financing, the lender may require the following:
- Equipment quote
- Recent bank statements
- Personal and business tax returns
- Business plan
- Balance sheets and accounts payable
- Business licenses, permits and registration documents
- Proof of business insurance
- Driver’s license
Types of equipment financing
There are a few types of equipment financing with different qualification requirements. Depending on your business and the equipment you need, one may serve you better than the others.
- Equipment financing: The borrower purchases the equipment with a secured business loan and repays the lender over several years. Once the loan is fully repaid, the borrower owns the equipment outright.
- Equipment leasing: The lessee signs a contract that gives them the right to use the equipment for a specified period of time. With some lease types, the lessee purchases the equipment at the end of the lease term.
- Renting equipment: The renter signs a contract that grants them the right to use the equipment for a period of time, which is usually shorter than with a lease. Some rental companies include training and maintenance.
| Equipment financing | Equipment leasing | Renting equipment | |
|---|---|---|---|
| Best for… | Long-term use | Flexibility | Short-term use |
| What businesses can typically qualify? | Established businesses with strong revenue and a minimum credit score in the 600s. | Startups or established businesses with strong cash flow and fair or better credit. | Businesses with insurance, a license to operate equipment and proof of financial responsibility. |
| Ownership | The borrower owns the equipment. | The lender owns the equipment but may give the lessee the option to buy it at the end of the lease term. | The lender owns the equipment, and the borrower must return it at the end of the rental term. |
| Down payment | May be required. | Not typically required. | Not typically required (but may require a security deposit). |
| Maintenance | The borrower is responsible for any maintenance on the equipment. | The lessee may be responsible for maintenance, or it may be included with the cost of the lease. | The cost of maintenance is typically included in the rental contract. |
| Costs | Costs less in the long term. | Costs more in the long term. | Highest cost of all in the long term. |
- A capital lease allows you to rent equipment with the option to buy at the end of the lease term. On the downside, you can’t cancel a capital lease.
- An operating lease is similar to a conventional rental agreement: You make regular payments, but will never own the equipment. However, as the lessee, you can usually cancel the lease with adequate prior notice.
- Buying with cash or a loan: You can claim depreciation of the asset as annual deductions on your tax returns. With a loan, you can also deduct equipment loan interest.
- Capital lease: You can claim depreciation since the asset is added to your balance sheet and purchased at the end of the term. You can also deduct interest payments.
- Operating lease: Depreciation of equipment isn’t tax deductible, but the payments are still business expenses.
Consult a tax professional if you have questions about how these options affect your tax liability.
How to compare equipment financing options
Shop around for equipment financing to find the best rate and terms for your business needs. Consider these five factors while weighing your options.
Review lending terms
When reviewing loan options, weigh the total borrowing cost against the benefit of the equipment in terms of increased revenue or cost savings.
Monthly payment vs. total cost: A long-term loan with affordable monthly payments can have a steep total borrowing cost, so use a business loan calculator to decide whether the total cost is worth the cash flow flexibility.
Interest rate: Business loan interest rates vary and impact the cost of equipment financing, so comparing rates from a handful of lenders can save you money or help your budget stretch further.
Repayment term: Longer repayment terms come with lower monthly payments while shorter repayment terms cost less in interest charges over time, so aim to strike a balance between managing cash flow and minimizing your total cost.
Additional fees: Some lenders charge extra fees, like origination fees or prepayment penalties, so make sure to read the fine print.
Financing amount: Some equipment lenders offer 100% financing, typically with strict credit requirements, while others only lend up to 80% of the equipment’s value and require the borrower to provide the rest as a down payment.
Consider resale values
While leasing offers the most flexibility should your business no longer need the equipment, you also have the option to resell equipment you own. You can sell business equipment on online marketplaces, at auction, through a broker or on consignment through an equipment dealer. When deciding whether to lease or buy, estimate the resale value by checking used equipment prices for similar models online. Buying may be more appealing than leasing if the equipment will still be valuable after the loan is paid.
Don’t forget about upgrade cycles
If your business needs equipment that requires frequent upgrades, an equipment loan could leave you with monthly payments after the equipment becomes obsolete, making it difficult to finance upgrades. You typically can’t cancel a business loan after the funds are disbursed, but if you choose a loan with no prepayment penalties, you can pay the balance early and resell or trade in the equipment.
Operating leases are preferable for equipment that needs frequent replacement, but early cancellation may result in a penalty, so be sure to choose the right lease term or consider rental equipment for technology that will quickly become obsolete.
Top equipment financing options
| Lender | User rating | Best for | Starting rate | Amount | Term | |
|---|---|---|---|---|---|---|
|
Leasing equipment | 1.11 |
$5k – $150k |
24 to 60 months | ||
|
Commercial vehicles | Not specified |
$10k – $1M |
24 to 108 months | ||
|
Startups | 8.00% (interest rate) |
$5k – $5M |
12 to 84 months | ||
|
USDA loans | Not specified |
$15k – $25M |
6 to 360 months | ||
|
In-person support | 6.50% | Starting at $25k | Up to 60 months | ||
|
Bad credit borrowers | 4.00% | Up to $500k | 12 to 96 months | ||
|
SBA loans | Not specified | Up to $15M | Up to 300 months | ||
|
Fast funding | 35.26% (APR) |
$5k – $400k |
Up to 24 months | ||
|
Flexible payments | Not specified | Up to $2.5M | 24 to 60 months |
Learn more about how we chose our picks.
The best equipment financing lenders based on how you’ll use the funds
Best for: Leasing equipment – National Funding
- Starting rate
- 1.11
- Offers equipment leasing with no down payment or collateral requirements
- Provides relatively quick funding
- Lowest borrowing limits on this list
- Charges a 1.00% – 2.00% origination fee
Not all equipment financing lenders offer equipment leasing, which could make National Funding a good fit for businesses that don’t want to buy their equipment or machinery outright. And if you aren’t sure whether leasing is right for your business, a funding specialist can help you choose the best option.
If you choose to go this route, you could secure a competitive lease contract with the company’s Guaranteed Lowest Payment program, which applies to leases over $10,000. However, equipment financing and leasing is only available up to $150,000, so businesses seeking more costly equipment may need to look elsewhere.
Read our full National Funding review.
In order to qualify, you’ll need to meet National Funding’s criteria of:
- Minimum credit score: 670
- Minimum time in business: 6 months
- Minimum annual revenue: $250,000 ($120,000 and one year in business for loans up to $50K)
Best for: Commercial vehicles – Commercial Fleet Financing
- Starting rate
- Not specified
640 or higher is preferred, though you may be able to get a loan with a lower score if you provide additional information
- Specialized lender with industry expertise in commercial trucks and equipment
- Quick one-page application process
- May require a down payment for borrowers with poor credit
- Doesn’t disclose interest rates or minimum annual revenue
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. As a specialized lender, CFF offers industry expertise in areas like tow trucks, EMS vehicles and commercial trucks.
However, Commercial Fleet Financing (CFF) doesn’t disclose interest rates in advance, and specialized equipment companies may charge higher rates than traditional lenders.
In order to qualify, you’ll need to meet Commercial Fleet Financing (CFF)’s criteria of:
- Minimum credit score: 640 or higher is preferred, though you may be able to get a loan with a lower score if you provide additional information
- Minimum time in business: 2 years
- Minimum annual revenue: Not disclosed
Best for: Startup businesses – Taycor Financial
- Starting rate
- 8.00%
- Offers financing for startups with no time-in-business requirements
- No down payment required
- Interest rates may be in the double digits
- First and last payment due at lease signing
Taycor Financial offers a program with no minimum time in business requirements, making the lender a great option for a startup business loan, though most leasing programs require two years in business. The company has no specific minimum annual revenue requirements.
You can borrow up to $5,000,000 with commercial equipment financing or explore other options, such as a business line of credit or working capital loan. Taycor Financial also has an equipment leasing program that offers up to $2,000,000. Like equipment financing, leasing doesn’t require a down payment, though first and last payments are due in advance.
Read our full Taycor Financial review.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
- Minimum credit score: 550
- Minimum time in business: None
- Minimum annual revenue: None
Best for: USDA loans – iBusiness Funding
- Starting rate
- Not specified
- Works with a network of lenders to offer multiple options with one application
- Offers USDA loans with high borrowing limits
- Doesn’t disclose interest rates for term loans or USDA loans
- Doesn’t offer specific equipment loans
iBusiness Funding works with a network of lenders and offers multiple business loan products for financing equipment. Uniquely, the company offers USDA loans up to $25,000,000 for businesses in rural areas to finance machinery and equipment with repayment terms up to 360 months.
You can also apply for an SBA 7(a) loan from iBusiness Funding to purchase equipment. For faster funding, iBusiness Funding also offers term loans up to $500,000 for almost any business-related expense with no upfront costs and low minimum credit score requirements.
Read our full iBusiness Funding review.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
- Minimum credit score: 500
- Minimum time in business: Not disclosed
- Minimum annual revenue: Not disclosed
Best for: In-person support – Bank of America
- Starting rate
- 6.50%
- Offers a business rewards program with interest rate discounts and more
- Ideal for in-person support and guidance
- Requires $250,000 in annual revenue
- Doesn’t disclose minimum credit score requirements
If you’re looking for in-person support throughout the loan process and beyond, Bank of America might be a good option, with about 3,500 branches across the U.S. In addition to equipment loans, Bank of America also offers business bank accounts, credit cards and merchant services, making it an ideal choice for business owners who want to handle all their finances in one place.
Existing account holders can take advantage of rate discounts with Bank of America’s Preferred Rewards for Business program. However, it’s worth noting that the bank’s minimum annual revenue requirements are quite high, and equipment financing is only available to businesses established for at least 2 years under existing ownership, so the bank isn’t a good fit for startups.
Read our full Bank of America review.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
- Minimum credit score: Not disclosed
- Minimum time in business: 2 years
- Minimum annual revenue: $250,000
Best for: Borrowers with bad credit – Fundible
- Starting rate
- 4.00%
Monthly
- Low minimum credit score
- Flexible option to defer loan payments for 60 or 90 days
- Website and representatives provide conflicting loan information
- Only borrowers with strong credit profiles can qualify for repayment terms over five years
If your personal credit score is making it difficult to qualify for equipment financing, you may want to consider Fundible, a marketplace lender that offers multiple loan types for borrowers with scores as low as 500. With Fundible, you can borrow up to $500,000 to cover equipment costs. Some equipment financing options feature no down payment and you can even defer your monthly loan payments for up to 90 days, helping you keep your upfront costs low.
However, repayment terms are typically capped at five years for borrowers with bad credit. Plus, Fundible’s website and representatives provide conflicting information on loan amounts, interest rates and loan terms, so you may need to contact the lender directly to learn more about your loan options.
Read our full Fundible review.
In order to qualify, you’ll need to meet Fundible’s criteria of:
- Minimum credit score: 500
- Minimum time in business: 6 months
- Minimum annual revenue: $96,000
Best for: SBA loans – Live Oak Bank
- Starting rate
- Not specified
- Interest rates are capped by the SBA, maxing out at 14.75% for 7(a) loans
- Lengthy loan terms give you up to 300 months to repay your debt
- Doesn’t disclose eligibility requirements
- Even with a preferred lender, SBA loans take longer to fund than other loan types
If you need to purchase expensive equipment, an SBA loan provides the most significant amount — up to $15,000,000 with Live Oak Bank. Live Oak Bank offers multiple types of SBA loans, including SBA 7(a) loans, which provide up to $5,000,000 in working capital, and SBA 504 loans offering up to $15,000,000 to put toward real estate and heavy machinery. It is also one of the nation’s top SBA lenders in terms of approval amount for the 7(a) loan program.
The U.S. Small Business Administration guarantees a portion of every SBA loan, allowing lenders to offer more affordable rates to small business owners. However, even with a preferred lender, SBA loans typically take longer to process, so this may not be the best option for borrowers in need of fast funds.
To qualify for a Live Oak Bank Express SBA Loan, you’ll need 2 years in business and an excellent credit history. Live Oak Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify for other loan types. Contact the lender directly to find out if your business qualifies for financing.
Best for: Fast Funding – OnDeck
- Starting rate
- 35.26%
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
- Potential for same-day funding
- Shorter time in business requirement
- Doesn’t offer equipment leasing
- Not available to businesses in all industries or in North Dakota
If you need fast funds, OnDeck may be a good option. The company offers short-term business loans up to $400,000, with funding available as soon as the day of approval. Loans that do not qualify for same-day funding are typically still funded within two to three business days.
That said, OnDeck doesn’t offer specific secured equipment financing or leasing, and the lender’s interest rates are high compared to some of its competitors. Plus, the maximum borrowing limit is lower than other lenders on this list, so OnDeck may only be suitable for businesses in need of less expensive business equipment.
Read our full OnDeck review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $100,000
Best for: Flexible payment options – U.S. Bank
- Starting rate
- Not specified
- Flexible payment options
- Finance up to 125% of equipment cost
- Lack of transparency around rates and requirements
- Doesn’t offer equipment leasing
U.S. Bank may not be the most transparent lender when it comes to disclosing its rates and requirements, but for those who can qualify, it offers some unique perks that make it worth considering. For example, borrowers have the option to choose between monthly, quarterly, semiannual or annual payments. Plus, the lender finances up to 125% of your equipment costs, providing extra cash to cover added fees like taxes or installation.
U.S. Bank also offers fast-track financing for existing customers applying for equipment loans up to $2,500,000, provided you’re willing to pay a $375 origination fee. And with branches in 26 states and a suite of business banking, lending and payment solutions, U.S. Bank could serve as a one-stop shop for your business financial needs. But U.S. Bank doesn’t offer equipment leasing, and banks typically have more stringent lending requirements than online lenders.
U.S. Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Apply online or contact the lender directly to learn if your business qualifies for an equipment loan.
How we chose the best equipment financing
We reviewed more than 25 lenders to determine the overall best 10 equipment financing loans. To make our list, lenders must meet the following criteria:
- Minimum time in business requirement of two years or less.
- Rates and terms: We prioritized lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
- Repayment experience: We considered each lender’s reputation and business practices, favoring lenders that report to all major credit bureaus, offer reliable customer service and provide unique perks to customers, like interest rate discounts and flexible repayment schedules.
Best equipment financing summary
- National Funding: Best for leasing equipment
- Commercial Fleet Financing (CFF): Best for commercial vehicles
- Taycor Financial: Best for startups
- iBusiness Funding: Best for low-revenue businesses
- Bank of America: Best for in-person support
- Fundible: Best for bad credit borrowers
- Live Oak Bank: Best for SBA loans
- OnDeck: Best for fast funding
- U.S. Bank: Best for flexible payment options
Frequently asked questions
Leasing is a type of equipment financing. Your business pays to use the equipment while the lender retains ownership. Some equipment leases come with the option to purchase the equipment at the end of the lease term.
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. But your business may need to meet other requirements and may face lower borrowing limits than established businesses.
They can, but it depends on what the tariffs are and the cost of foreign equipment and machinery.