Key Takeaways
- Loan amounts: $10,000 – $2,000,000+
- Interest rates: 4.5% – 18% depending on equipment type, age, and borrower profile
- Repayment terms: 2–10 years based on equipment's useful life
- Check your Bankability Score to see if you qualify
Equipment financing is a loan or lease product that allows businesses to acquire machinery, vehicles, technology, and other capital assets while using the equipment itself as collateral. This self-securing nature makes equipment financing one of the most accessible forms of business lending—approval rates are higher, rates are lower, and down payment requirements are minimal compared to unsecured products. Bankable partners with 25+ equipment lenders to find you the best combination of rate, term, and structure for your specific equipment purchase.
At a Glance
| Feature | Details |
|---|---|
| Loan Amounts | $10,000 – $2,000,000+ |
| Interest Rates | 4.5% – 18% depending on equipment type, age, and borrower profile |
| Terms | 2–10 years based on equipment's useful life |
Requirements
- Minimum 6 months in business (some programs accept startups)
- Annual revenue of $100K+ (equipment value-dependent)
- Personal credit score of 600+ (580+ for some secured programs)
- Equipment must have a verifiable fair market value
- Vendor invoice or purchase agreement for the equipment
- Personal guarantee from business owner(s)
- Down payment of 0-20% depending on credit profile and equipment age
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Explore →Frequently Asked Questions
Finance if you want to own the equipment outright and plan to use it for its full useful life. Lease if you need to upgrade frequently (technology), want lower monthly payments, or prefer to keep the equipment off your balance sheet. Bankable can structure both options for comparison.
Virtually any business equipment: construction machinery, medical devices, restaurant equipment, vehicles, IT infrastructure, manufacturing tools, salon equipment, dental chairs, office furniture, and more. Both new and used equipment qualify, though used equipment may carry slightly higher rates.
Many programs offer $0 down for borrowers with credit scores above 680 and 2+ years in business. Standard down payments range from 10-20%. Startups or lower credit scores may require 20-30% down. Soft-cost financing (delivery, installation, training) can sometimes be included.
Standard approvals take 3-7 business days. Transactions under $150K often qualify for streamlined processing with approval in 24-48 hours. Larger transactions ($500K+) may require equipment appraisals adding 5-10 days.
Yes. Used equipment financing is available for assets up to 10-15 years old depending on type and condition. Rates are typically 1-3% higher than new equipment. A professional appraisal or verifiable market value is usually required for used equipment over $50K.
Nearly any business equipment can be financed: construction equipment (excavators, cranes, loaders), medical equipment (MRI machines, dental chairs, imaging systems), restaurant equipment (commercial ovens, refrigeration, POS systems), vehicles and fleets (trucks, vans, specialized vehicles), manufacturing equipment, IT infrastructure, and agricultural machinery. Soft costs like software and installation can sometimes be included.
With equipment financing (a loan), you own the equipment from day one and build equity as you make payments. At the end of the term, the equipment is yours free and clear. With equipment leasing, you pay to use the equipment for a set period and return it at the end (or buy it for a residual value). Financing is better for equipment you plan to keep long-term; leasing works for equipment that becomes obsolete quickly.
Yes, most lenders finance used equipment up to 10–15 years old depending on type. Used equipment loans typically require an equipment appraisal to confirm fair market value. Rates on used equipment are slightly higher than new equipment (additional 0.5–1.5%) because the collateral depreciates faster. Bankable works with lenders who specialize in both new and used equipment across all major categories.
Most equipment lenders finance 80–100% of the equipment's purchase price. 100% financing (no down payment) is available for businesses with strong credit and revenue. Some specialty or high-depreciation equipment may require a 10–20% down payment. The financed amount is secured by the equipment itself, so strong collateral often eliminates down payment requirements.
Equipment financing is one of the most accessible loan types because the equipment itself serves as collateral. Approvals are possible at 600+ credit score, though the best rates require 680+. Lenders weight the value and condition of the equipment heavily, so newer, in-demand equipment makes approval easier even with imperfect credit. Bankable has lender relationships for credit scores as low as 580.
Yes, equipment financing offers significant tax advantages. Under Section 179 of the IRS tax code, businesses can deduct the full purchase price of qualifying equipment in the year it is placed in service (up to $1.16M in 2024). Bonus depreciation allows additional deductions on the remaining value. Monthly interest payments are also deductible as a business expense. Consult your tax advisor for your specific situation.
Equipment financing terms typically range from 24 to 84 months (2–7 years), depending on the type and useful life of the equipment. Heavy construction equipment and medical devices often qualify for 60–84 month terms. Technology equipment may be limited to 36–48 months due to faster depreciation. Longer terms mean lower monthly payments but higher total interest cost.