Equipment Financing — Buy Any Business Asset

Equipment Financing at a glance

Typical amount

$5,000 – $5,000,000

Typical term

2 – 7 years

APR

6% – 24% APR

Minimum time in business

1 year

Minimum credit score

600+

Common uses for a Equipment Financing

• Machinery
• Vehicles
• Technology
• Medical devices
• Restaurant equipment

How LendWorks matches you with a Equipment Financing lender

1. Apply in about two minutes — no credit-score impact.
2. Our AI underwriting engine grades your file and matches you with a dedicated advisor.
3. Your advisor presents vetted Equipment Financing offers side by side — you choose or walk away.

Equipment Financing FAQs

What is a Equipment Financing?

Equipment financing uses the purchased equipment as collateral, making it one of the most accessible forms of business funding for asset-heavy industries.

How much can I borrow with a Equipment Financing?

Typical funding amounts range from $5,000 – $5,000,000. Your exact offer depends on revenue, time in business, credit profile, and business performance.

What are the rates for Equipment Financing?

Equipment Financing typically runs 6% – 24% APR. Your actual pricing depends on revenue, time in business, credit profile, and term — your advisor breaks down the real cost and total payback before you commit, so there are no surprises.

How long does it take to get funded with Equipment Financing?

Funding timelines vary by product and lender — some options fund within a few business days, while larger or government-backed programs take longer. Your advisor gives you a realistic timeline for Equipment Financing based on your documents and lender fit.

What do I need to qualify for Equipment Financing?

Most lenders look for at least 1 year in business and a 600+ credit score. Your advisor will assess your full profile.

Is Equipment Financing right for my business?

Equipment Financing fits best when you need machinery or vehicles and can work with a 2 – 7 years term. If your timeline is longer or you can wait for a lower rate, your advisor may recommend an alternative — the goal is the right fit, not just the fastest approval.

How does LendWorks match me with a Equipment Financing lender?

LendWorks runs your profile through AI underwriting to match you with a real advisor — not a lead form. Your advisor reviews your situation and presents options from our vetted lender network.

Does applying for Equipment Financing hurt my credit score?

Checking your options with LendWorks does not impact your credit score. We use a soft pull to assess eligibility. A hard pull only occurs when you move forward with a specific lender offer.

Frequently asked questions

What is the difference between equipment financing and an equipment lease?

With equipment financing (a loan), you own the asset from day one and the lender holds a security interest until the loan is repaid. At loan payoff, you have full ownership and equity. With an equipment lease, you are essentially renting the asset for a defined term. At lease end, you typically have the option to purchase at fair market value ($1 buyout leases are structured more like loans), return the equipment, or renew. Leases often have lower monthly payments and may offer better tax treatment for businesses that prefer to expense payments over capitalize assets, but you build no equity. The right structure depends on your tax strategy and how long you expect to use the equipment.

Can I finance used equipment?

Yes — most equipment lenders will finance used equipment, though the age and condition of the asset affects both approval odds and advance rate. Equipment that is less than 5 years old and in good working condition typically qualifies for the same rates and terms as new equipment. Equipment older than 10 years may require an independent appraisal, a higher down payment, or a shorter term. Specialty lenders focus specifically on aged or specialty equipment across industries like construction, trucking, and printing.

What is a Section 179 deduction and how does it apply to equipment financing?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment placed in service during the tax year, rather than depreciating the asset over its useful life. For 2025–2026, the deduction limit is approximately $2.5 million per year, with a phase-out beginning at $4.0 million in total equipment purchases. When you finance equipment, you can still claim the full Section 179 deduction on the purchase price in year one, even though you are paying for it over multiple years — potentially creating a significant first-year tax benefit that offsets the cost of financing.

How much can I finance for equipment?

Many equipment lenders offer up to 100% financing on the equipment invoice value, including "soft costs" like installation, training, shipping, and extended warranties — up to 15–25% of the hard asset value. Maximum loan amounts depend on your business profile and the lender's appetite: smaller specialty lenders cap at $500,000–$2 million, while large institutional equipment finance companies routinely do $5–20 million transactions. Down payment requirements (typically 0–20%) are common for startups or borrowers with lower credit scores.

Do I need a down payment for equipment financing?

Established businesses with strong credit profiles often qualify for zero-down equipment financing, where the equipment value fully secures the loan. Startups, businesses with credit challenges, or transactions involving heavily specialized equipment (low resale value) may be asked for 10–20% down. Putting down a larger deposit always improves approval odds and rate. Some lenders structure the first and last monthly payments due at signing in lieu of a traditional down payment.

How fast can equipment financing close?

Equipment financing is one of the faster commercial lending products because the collateral is defined and easy to verify. Simple transactions under $250,000 with established businesses can close in 24–72 hours. Larger transactions, used equipment, or complex multi-asset schedules may take 5–10 business days due to additional underwriting and UCC search requirements. Having a clean equipment invoice or purchase order from the vendor ready at application is the single biggest accelerator of the approval process.

What happens if I default on equipment financing?

Because the equipment is collateral, the lender has the right to repossess the asset in the event of default. Unlike unsecured business loans, the lender does not need a separate judgment to take the equipment — the security agreement signed at origination grants repossession rights. If the equipment sale does not cover the outstanding loan balance, the lender can pursue the deficiency against the borrower personally (if a personal guarantee was signed). Equipment repossession is less damaging to business operations than a UCC blanket lien enforcement, which can freeze all business assets.

Can a startup get equipment financing?

Yes — equipment financing is one of the most startup-accessible commercial lending products because the equipment serves as collateral, reducing the lender's risk. Many lenders will approve startups with strong personal credit (700+ FICO) and a reasonable down payment (10–20%), even with no business revenue history. Startup-focused equipment lenders focus heavily on the owner's credit profile, industry experience, and the resale market for the specific equipment type. A broker who knows which lenders have startup-friendly programs can make a significant difference in getting a new business funded.