Best Equipment Financing Options of 2024

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Equipment Financing & Loans

Find the Best Equipment Financing for Startups in July, 2024

While many businesses can now be run wholly or partially online, many still require heavy or sophisticated machinery to produce products or provide services for customers, and this equipment can be costly. In many cases, working with outdated equipment can be the difference between your business thriving and failing, and so it’s important to ensure you have the best equipment for your business.

When you can’t afford new equipment outright, equipment financing is often the best option to ensure you get the equipment you need.

Applying for equipment financing is fast and easy:

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Betst equipment financing lenders

Triton Capital

Triton Capital

Funding: Borrow up to $250,000
Minimum Credit Score: 600
Best For: Equipment Financing in various industries
Funding turnaround: 1-2 business days

Borrowers seeking equipment financing can obtain a loan up to $250K with Triton Capital and obtain fast funding without prepayment penalties. Personal guarantee is required along with a $250,000 annual income to qualify. Repayment options are flexible and the minimum time in business must be 2 years.

Credibility Capital

Credibility Capital

Funding: Borrow up to $500,000
Minimum Credit Score: 650
Best For: Term loans
Funding turnaround: Varies.

With Credibility Capital, borrowers with strong credit can obtain small business loans with attractive rates. A personal guarantee along with a business lien and revenue may be required to qualify. Note: This lender provides funding for all states except for North Dakota, Nevada, South Dakota, Vermont.

Funding Circle

Funding Circle

Funding: Borrow $25,000 to $200,000
Minimum Credit Score: 700
Loan term: 6-12 months
Funding turnaround: 24-48 hours

Funding Circle offers affordable business loans with interest rates lower than alternative lenders with monthly repayment schedules for borrowers with good to excellent credit scores.

SBA 7a

SBA 7(a) loan

Funding: Borrow up to $5,000,000
Minimum Credit Score: 650
Best For: SBA loans
Funding turnaround: Varies.

The SBA 7(a) program features lenders such as Wells Fargo in their network and provides capped interest rates and long repayment term flexibility. Term loans and lines of credit access available. Typically, collateral will be required with a personal guarantee. Funding times vary and may be longer than most other lenders.

What is equipment financing?

Equipment financing allows your business to get the equipment it needs with a loan or leasing agreement from a finance company. The equipment itself becomes the collateral for the funds, allowing the lender to charge affordable interest rates.

Traditional institutions can provide this package but may not be the best fit for you and your business. While interest rates and terms may be among the best on offer, qualifying for loans from banks is not always easy or fast. If you need the cash quickly, perhaps because something needs replacing today or you can get a fantastic deal, then you may be better off looking to alternative lenders for financing. This may come at a slightly higher cost but allow you to get what you want now.

How does equipment financing work?

Equipment financing is a little different from a normal business loan. Normally the business that needs the finance has to put up a certain amount of money itself – often around 15% of the total. The lender then puts in the other 85% and the purchase can go ahead. The 15% builds in a safety net for the lender from the beginning.

Should there be problems with repayment, the finance company can recoup their money by selling the purchased equipment. With this option available, the lender has the opportunity to charge lower interest rates than many other forms of finance. This is good news for startups. New companies often have trouble obtaining finance and often equipment finance is one of the few ways they can get outside investment.

What type of equipment can I finance?

Equipment finance can be sought for anything tangible. Among the most common are:

  • Office furniture and equipment
  • Restaurant equipment
  • Commercial fleet vehicles
  • Payment processing software and hardware
  • Food trucks
  • Construction equipment
  • HVAC and A/C systems
  • Medical equipment
  • Solar panels
  • Software
  • Forklifts/lift trucks
  • Farm equipment

What are the pros and cons of equipment financing?


  • Equipment financing is often the most affordable way of borrowing money.
  • It allows you to grow your business by acquiring the most modern equipment when you need it without leaving you short of cash.
  • There are tax benefits – the interest charged is deductible.
  • You don’t have to provide other collateral and risk your home and property.
  • The cost of equipment is spread over time.
  • At the end of the agreement, you may be able to jettison the old equipment and replace it with new.


  • You can’t repurpose the funds – it is purely for the equipment you need to buy.
  • Though relatively affordable, equipment finance doesn’t offer as low interest as that on long-term loans.
  • With some agreements, you become the owner of the equipment when it finishes. If you then need to upgrade the equipment you will have to find a buyer for the old and possibly worn-out equipment.

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Can I finance both new and used equipment?

Sometimes it makes sense to find finance for used equipment. So long as the equipment is in good repair and not obsolescent the amount of finance you need will be dramatically reduced. In addition, the balance between usage and cost means that the returns you get will be proportionately greater.

There are two main types of equipment leases you should consider:

  • An operating lease – the cheaper option.
  • A capital lease – you get to buy the equipment outright at the end of the lease.

Alternatively, you may find a business term loan is a better option for you in these circumstances.

How long can equipment be financed?

The period an equipment loan or lease lasts depends on several factors: the capital involved, its likely depreciation, and how long the lender wants to supply the money. Periods of one to seven years are common but it really depends on the equipment in question. High tech kit needs updating often while other equipment may hold its value for much longer.

How do loan repayments work when financing equipment?

An equipment loan may be like any other sort of loan. The lender agrees to give you a sum of money which you pay back plus interest at regular intervals, usually monthly, for an agreed period.

With a lease agreement, again the cost is spread over an agreed period, but at the end, you can either walk away, become the owner of the equipment or agree to pay the residual costs and own the equipment outright. Each agreement may be different so make sure you understand exactly what is involved.

How do you get equipment financing?

There are a few different ways to get equipment financing. They are:

  • Attain financing through the manufacturer of the equipment (this can be the easiest way to attain funding in some circumstances, but also may be the most expensive)
  • Work with an online lender or bank to supply the equipment loan for you - some may pay for the equipment directly
  • Choose a term loan through an online lender and use the money to purchase the equipment you need (this will be unsecured, however)
  • Consider equipment leasing - this is the best option if you’ve not been in business long enough to be eligible for other forms of financing.

Once you’ve chosen the route you want to take, compare rates and find the best lender for you. You’ll then need to gather the right documentation (such as personal and business tax returns, profit and loss statements, and similar) to supply with your application. Once approved, you’ll either get the equipment you need or be given the funds to purchase it.

How to qualify for equipment financing

To qualify for equipment financing, you’ll generally need:

  • To have been in business for 12 months (2+ years is best)
  • Have $50,000 or more in yearly revenue
  • A personal credit score of 650 or more

These aren’t hard and fast rules, and you should research any lender you’re considering working with to find out what they require before you apply. In many cases, good cash flow and being able to prove your rate of growth will trump a poor personal credit score.

Find and compare the best equipment financing rates

Once you’ve decided that equipment financing is the right form of financing for you, it’s time to start comparing rates. The key to making your equipment financing affordable is in getting a low rate of interest, so take your time and browse through the loans in our comparison tables to find the one that's right for you.

Once you’ve found one that suits your needs, it’s time to apply. Gather the information you need and start your application - in many cases, you’ll have the equipment you need to grow your business within a few weeks of being accepted.

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