$150,000
24 to 60 months
Not disclosed
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. If you choose to go this route, you could secure a competitive lease contract with its Guaranteed Lowest Payment program. Additionally, their minimum credit score is only 600, making it an option for fair credit borrowers.
In order to qualify, you’ll need to meet National Funding’s criteria of:
$5,000,000
12 to 84 months
7.90%
Taycor Financial is a great option for a startup business loan. You can borrow up to $5,000,000 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.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
Up to 100% financing
12 to 72+ months
Not disclosed
First Citizens Bank Equipment Finance takes the lead when it comes to fast funding. The initial online application takes just a few minutes, with funds hitting your bank account as quickly as one business day after approval.
In addition to equipment financing, First Citizens Bank offers short-term business loans, long-term business loans, business credit cards, lines of credit and vendor financing.
First Citizens Bank isn’t very transparent when it comes to disclosing its qualifying requirements. The company chooses not to publish its minimum credit score, annual revenue or time in business criteria.
$500,000
6 to 84 months
7.49%
Although iBusiness Funding doesn’t offer specific equipment loans, you can borrow up to $500,000 with its 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 iBusiness Funding 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.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
Starting at $25,000 (no published maximum)
Up to 60 months
6.25%
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 rate perks with Bank of America’s Preferred Rewards for Business program. And if you have an existing business account with Bank of America, you may be eligible for a rate discount.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
$1,000,000
36 to 60 months
Not disclosed
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.
In order to qualify, you’ll need to meet Commercial Fleet Financing’s criteria of:
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 570. However, you need a minimum of $20,000 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.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
$5,000,000
120 months
10.75% to 14.25%
14.25% for loans $50,000 or less
13.75% for loans $50,001 to $250,000
12.25% for loans $250,001 to $350,000
10.75% for loans above $350,000
Some lenders may charge lower rates. Based on the current prime rate of 8.00% + a rate maximum set by the SBA.
12.75% to 15.75%
15.75% for loans $25,000 or less
14.75% for loans $25,001 to $50,000
13.75% for loans $50,001 to $250,000
12.75% for loans above $250,000
Some lenders may charge lower rates. Based on the current prime rate of 7.75% + a rate maximum set by the SBA.
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.
In order to qualify, you’ll need to meet the SBA’s criteria of:
$5,000 to $250,000
Up to 24 months
27.30% 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 order to qualify, you’ll need to meet OnDeck’s criteria of:
$1,000,000
Not disclosed
Starting at 24 months
U.S. 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.
U.S. Bank chooses not to disclose its annual revenue, credit score or time in business requirements.
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 generally acts as collateral in a secured business loan.
To qualify for equipment financing, lenders will typically look at the following:
Commonly required equipment financing documents
When applying for equipment financing, the lender may require the following:
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.
