Equipment financing can help you get the necessary equipment needed to help your business operate. Whether it be via a loan or lease, the right equipment financing provider will offer competitive rates and terms, flexible repayment terms, simple qualification requirements, and great customer service. I’ve researched the best business equipment loans and compiled top options for you to consider.
- Best overall for comparing multiple loan options at onces: Lendio
- Best for tailored equipment financing: Smarter Finance USA
- Best for long-term financing needs: SMB Compass
- Best for startups or borrowers with low credit scores: National Funding
- Best for high funding amounts: Creditfy
- Best for a quick application process: 1West
- Best for small to midsize businesses: Triton Capital
- Best for startups or businesses with limited resources: eLease
Top commercial real estate lenders at a glance
Lendio: Best overall for comparing multiple loan options at onces
Lendio is my top choice overall due to its vast capabilities as a loan broker. It has over 75 lenders in its network, which means with a single application, you can be considered for financing by multiple lenders all at once. This is a great benefit in terms of qualification flexibility and simplifies comparing your equipment financing options.
This broker is a great option to help you save time and money on potential fees when applying with other lenders. While qualifications can vary based on the partnering lender, it’s a worthwhile option to help you compare financing opportunities on a one-stop shop basis.
It is free to submit an application, which also has no impact on your credit score. You can complete the process via Lendio’s website, where you can also get in touch with one of the broker’s representatives to help you navigate your loan options and choose the best one for your business needs.
How to qualify
- Credit score: 520
- Time in business: 0 to 12 months
- Annual revenue: $50,000 per month
- Down payment: Varies
Rates & terms
- Starting interest rate: 7.5%
- Loan amount: Up to $5 million
- Loan term: 1 to 10 years
- Repayment schedule: Monthly
- Time to fund: As little as 24 hours
Smarter Finance USA: Best for tailored equipment financing
If you need financing specifically for vehicles or heavy equipment, Smarter Finance USA is a standout choice. Unlike other brokers, it specializes in that area and offers a personalized approach to funding. With access to a network of nearly 40 lenders, it’s one of my top picks since it aims to structure each application in a way that maximizes approval chances without requiring a minimum credit score, time in business, or revenue threshold.
While the broker is flexible, it’s important to understand that most lenders still prefer applicants with credit scores above 600. If your business has a lower score or additional risk factors, then you may need to offer stronger compensating elements, such as a sizable down payment or solid financial reserves, to improve your business’s chances of getting funded.
Smarter Finance USA commonly helps businesses finance commercial vehicles and heavy machinery, including trucks, excavators, bulldozers, backhoes, and cranes. To explore your options or apply, you can visit its official website for more information.
How to qualify
- Credit score: None, but 600 recommended
- Time in business: None
- Annual revenue: None
- Down payment: Varies
Rates & terms
- Starting interest rate: 7% to 20%+
- Loan amount: $10,000 to $1 million
- Loan term: 2 to 5 years
- Repayment schedule: Weekly, monthly, seasonal, and deferred
- Time to fund: 1 to 4 days
SMB Compass: Best for long-term financing needs
I chose SMB Compass mainly for its long repayment terms; however, it also offers high loan amounts and favorable equipment financing rates. This can be a great option if your business needs some flexibility when financing equipment to support its operations. Whether you’re looking at new or used equipment, this provider can help you get the funds you need to maintain operations and cash flow.
It considers a variety of equipment and industries that are eligible, and its required qualifications are favorable when compared with other lenders. Should you choose to apply, there’s no impact on your credit score — plus it’s free. One of its representatives will reach out to you after you submit your application and help you understand your financing options.
To learn more about its offerings or the application process, visit the SMB Compass website. There, you can also get contact information to get in touch via phone or email should you have any questions along the way.
How to qualify
- Credit score: 600
- Time in business: 2 years
- Annual revenue: Not stated
Rates & terms
- Starting interest rate: 5.99%
- Loan amount: Up to $5 million
- Loan term: Up to 10 years
- Repayment schedule: Monthly
- Time to fund: 24 to 48 hours
National Funding: Best for startups or borrowers with low credit scores
My pick for startups or borrowers with less than ideal credit is National Funding. It’s known for fast funding and strong customer service. Additionally, if you plan to repay your loan early, you may benefit from an early payoff discount, making it a practical option if you’re also seeking to minimize long-term costs or secure affordable monthly lease payments. It provides financing for both new and used equipment and typically does not require a down payment or collateral to get started.
A standout feature is its Lowest Payment Guarantee. If you find a lower lease payment through another lender, National Funding will give you $1,000. This guarantee makes it a valuable option if you have a budget-conscious business or startup wanting to compare lease offers easily.
Another advantage is the personalized support you receive throughout the process. National Funding assigns each applicant a dedicated funding specialist who helps tailor financing solutions to fit the specific needs of the business. For more details or to start the application process, visit the National Funding website.
How to qualify
- Credit score: None, but 600+ recommended
- Time in business: 6 months
- Annual revenue: None
- Down payment: Not stated
Rates & terms
- Starting interest rate: Factor rate of 1.10× and up
- Loan amount: Up to $150,000
- Loan term: 2 to 5 years
- Repayment schedule: Monthly
- Time to fund: As little as 24 hours
Creditfy: Best for high funding amounts
Creditfy offers one of the highest funding amounts in this guide, so I recommend it if you’re looking to finance a large transaction. While other providers like Lendio and 1West offer similar loan amounts, it is a great option if you want to take advantage of competitive rates and terms. It also boasts a 90% approval rate, which means it’s willing to work with a wide variety of qualifications.
Notably, it offers both customized financing and leasing options for new or used equipment. There’s no down payment required, and various fees associated with the transaction can be financed. It also works with various applicable industries that traditional banks may shy away from.
With its exclusive lending partnerships and experienced lending professionals, Creditfy is a highly rated provider that aims to help your business get the funding it needs. To learn more or speak with one of its specialists, visit its website, where you can also begin your application if you think it might be the right fit.
How to qualify
- Credit score: None
- Time in business: None
- Annual revenue: Not stated
Rates & terms
- Starting interest rate: 1.06% (monthly rate)
- Loan amount: Up to $5 million
- Loan term: 3 to 7 years
- Repayment schedule: Monthly
- Time to fund: As fast as 24 hours
1West: Best for a quick application process
1West is a loan broker that makes getting an equipment loan a breeze. Not only are you presented with multiple loan options from its partnering lending network, but the application is also a truly simple process that allows you to save time and money when comparing lenders. For that reason, it’s my top recommendation if keeping the application and approval process easy is important to you.
It utilizes a tool named “ABLE” (Automated Business Lending Engine), which provides you the opportunity to apply for financing at any time of day without the need to speak to a lender. With minimal documentation required, you can apply and review potential loan options in as little as 15 minutes. Whether you’re looking to finance new or used equipment, 1West’s network of over 50 partnering lenders, along with its loan specialists, can help you get matched with financing best suited for your needs.
While funding may take a bit longer than other providers in this roundup, it’s still a worthwhile option if you’re looking to simplify the overall process. To learn more or submit an application, head over to 1West’s website. If you apply, you can check the status of your loan application via the online portal.
How to qualify
- Credit score: 550
- Time in business: 1 year
- Annual revenue: $120,000
Rates & terms
- Starting interest rate: 7%
- Loan amount: $10,000 to $5 million
- Loan term: 5 to 60 months
- Repayment schedule: Monthly
- Time to fund: 1 week
Triton Capital: Best for small to midsize businesses
I picked Triton Capital based on its loan offerings that can benefit small to midsize businesses. It can provide equipment financing across a broad range of business sizes and industries and customize loan options tailored to your niche equipment needs, whether you need a bulldozer or medical equipment.
It’s also a great pick if you need funds fast, as you can get approved and issued terms in as little as 4 hours. If accepted, funds can be issued within one or two business days. That said, you can opt to finance either new or used equipment, and loan amounts, rates, and terms are fairly competitive when compared with other lenders. Notably, it also offers other forms of small business financing, such as working capital and SBA loans, if you’re looking to branch out.
To apply, you can submit your application via its website. You can also speak with one of its dedicated client advocates if you have any questions, but be prepared to provide bank statements and an equipment quote with your application.
How to qualify
- Credit score: 580
- Time in business: 2 years
- Annual revenue: $150,000
Rates & terms
- Starting interest rate: 5.99%
- Loan amount: Up to $250,000
- Loan term: 12 to 60 months
- Repayment schedule: Monthly
- Time to fund: 1 to 2 days
eLease: Best for startups or businesses with limited resources
eLease earned a spot on this list due to its accessibility for businesses of all qualifications. Like Smarter Finance USA, it specializes in equipment financing and has experience working with established businesses alongside startups. If you are looking for a provider that has flexible qualification requirements and will work with you based on your specific equipment needs, consider eLease.
While it may not have the highest funding amounts of this guide, it is still a great contender that offers competitive rates and terms and can be suitable for businesses with small funding needs. It’s a very industry-inclusive provider in that it finances even the most niche of businesses. I recommend checking out its website for specifics of your industry.
While its qualification requirements aren’t publicly disclosed, it will review applications case-by-case. Be prepared to provide necessary documentation and any other details as requested by the lender. To start an application, visit eLease’s website. There, you can get contact information if you wish to speak to a representative.
How to qualify
- Credit score: 500 recommended
- Time in business: None
- Annual revenue: None
Rates & terms
- Starting interest rate: 8% and up
- Loan amount: $1,000 to $500,000
- Loan term: Up to 5 years
- Repayment schedule: Monthly
- Time to fund: As fast as 48 hours
Visit eLease
My methodology
I’ve seen various types of equipment loan deals, and while all differ in terms of specific business needs, there are a few common features that are important to highlight. When selecting the best equipment loan providers, I focused on factors that would be most important to businesses that utilize equipment as part of their core operations. My background in loan processing also allowed me to closely consider which providers meet criteria that can be favorable to a wide business audience.
My methodology included the following:
- Interest rates and loan terms: I examined how competitive each lender’s equipment financing packages were, paying close attention to interest rates and repayment structures, to find the most cost-effective and flexible options for business owners.
- Speed of loan processing and funding: I assessed how quickly lenders approve applications and release funds, which is especially important when businesses need to acquire equipment promptly to avoid disruptions in operations.
- Lender reputation: I researched customer reviews and industry feedback to determine how dependable each lender is, particularly in terms of service quality, support during the loan process, and long-term client satisfaction.
- Transparency: I evaluated how clearly lenders communicate fees, repayment terms, and contract conditions to ensure borrowers fully understand the financing agreement with no hidden charges or unexpected clauses.
- Target audience suitability: I identified which business types each lender is best suited to serve based on their financing solutions and experience, whether it be startups, established companies, or specific industries, like manufacturing or healthcare.
How to choose an equipment financing provider
There are a few key factors to take into account when choosing the right equipment financing provider for your business. When looking for a lender, I suggest considering the following items to be best prepared:
✅ Determine your equipment requirements. Identify the specific tools or machinery your business needs, and explore financing options that align with how you plan to use the equipment in day-to-day operations.
✅ Check lender eligibility criteria. Every lender has different standards for approval, typically including factors like your credit score, how long you’ve been in business, and your annual revenue. Reviewing these ahead of time can help you apply strategically and improve your chances of securing funding.
✅ Compare financing terms and total costs. Evaluate loan offers from multiple lenders to understand key details such as interest rates, down payment amounts, and repayment structures. Choose the lender that aligns with your financial plan and cash flow capabilities.
Frequently asked questions (FAQs)
How do equipment loans differ from equipment leases?
Equipment loans typically allow you to own the equipment once the loan is matured and paid off. Leasing, on the other hand, essentially lets you utilize equipment for a period rather than own it. With leasing, you won’t have ownership responsibilities like maintenance or repairs, and it can benefit you if you only need the equipment for a short time. That said, if you plan to keep the equipment or use it long-term, a loan is likely your best bet.
Can startups or businesses with bad credit qualify for equipment financing?
It is possible, depending on the qualifications required of the lender. Note that equipment loans for startups tend to be considered risky, so you may have to offset the risk of these factors with potentially higher rates, fees, or collateral. However, some providers are flexible and will work with borrowers of varying qualifications.
Does equipment financing affect my credit score?
It can if the application requires a hard credit check or in the event you default on the loan. As with any form of financing, you should consider the potential impact on your score and prepare accordingly before applying.
