Equipment financing lets you acquire the tangible assets your business runs on — without draining your cash. Because the equipment itself secures the loan, approval is more flexible than unsecured financing, down payments are low or zero, and even newer businesses qualify.
How equipment financing works
- Pick your equipment. Get a quote or invoice from your vendor.
- Get matched & approved. A one-page application plus a few bank statements is usually all it takes — often approved in a day or two.
- Take delivery, pay over time. Repay in fixed installments, usually over 1–7 years, while the equipment earns for you. At the end, it's yours.
What you can finance
- Trucks, trailers & vehicles
- Manufacturing & production machinery
- Construction & heavy equipment
- Medical, dental & veterinary equipment
- Restaurant & commercial kitchen equipment
- Technology, POS systems & office furniture
Financing vs. leasing
Financing means you own the equipment and build equity as you pay — best for assets you'll keep for years. Leasing means lower payments to use equipment the lender owns, often with a buyout option — best for tech that ages quickly. Your advisor helps you choose at no cost.
Typical equipment financing terms (2026)
| Term | Typical range |
|---|---|
| Amount financed | 80% – 100% of the equipment cost |
| Down payment | 0% – 20% |
| Repayment term | 1 – 7 years (12 – 84 months), matched to the equipment's useful life |
| Rate | About 5% – 30% APR; best pricing usually needs 680+ credit |
| Credit score | 600+ broadly; 550 – 600 possible with a larger down payment |
| Time in business | No minimum at some lenders; startups usually pay more or put more down |
| Documents | Application + equipment quote (+ bank statements for larger amounts) |
Example: financing an $80,000 machine
| Example | Amount |
|---|---|
| Equipment price | $80,000 |
| Down payment (10%) | $8,000 |
| Amount financed | $72,000 at 12% APR over 60 months |
| Monthly payment | ≈ $1,602 |
| Total interest | ≈ $24,096 |
Market ranges reviewed September 2026. Sources: IRS Rev. Proc. 2025-32. Ranges are typical, not offers; your terms depend on the funding provider.
Frequently asked questions
How does equipment financing work?
Can a startup get equipment financing?
Financing or leasing — which is better?
Equipment financing by type
Financing tuned to what you buy: restaurant & kitchen equipment, medical equipment, dental equipment, heavy & construction equipment, farm & agricultural equipment, gym & fitness equipment, and cannabis equipment. For vehicles, see commercial truck financing and fleet financing.