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Best Equipment Financing Companies and Loans in 2022

Buying equipment can be one of the biggest expenses for entrepreneurs. Startups may need to purchase equipment or machinery to get up and running, and existing businesses may need to replace outdated equipment. Equipment financing can help if your business doesn’t have the extra capital on hand.

Equipment Financing for Small Businesses
Tara Mastroeni
Real Estate and Personal Finance Expert

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

Fact Checked by: Dr. JeFreda R. Brown, DBA, CFEI and a highly respected financial expert


Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Top 6 Business Equipment Financing Companies Ranked by

ELFA reports that 19% of companies who financed equipment purchases used secured loans. But there are dozens of equipment financing companies out there that also offer unsecured loans, making it hard to know which lender is right for you. 

In this review, we highlight the terms, rates and fees of each lender, and explain what makes each them a good choice. We also share potential downsides of each company, and provide a methodology you can use to select the best equipment financing option for your needs.


Best Equipment Financing Companies and Loan Options

National Funding - Best for No Down Payment

National Funding offers equipment loans you can use to cover the cost of new or used equipment. Depending on your finances and the cost of your equipment, you may get approved for up to $150,000 in funding and repay what you borrow every month. Best of all, there is no down payment required.

Easy application
Fast funding
Fair credit accepted
Daily or weekly repayments
High annual revenue requirements
No mobile app

National Funding’s equipment loans cap out at $150,000 with repayment terms between two and five years. National Funding uses a factor rate rather than an interest rate, and rates begin at 1.10. To qualify for an equipment loan, you’ll need a credit score of at least 600, be in business for two years or more, and show $250,000 or more in annual revenue.

Main Features

 Min. Credit ScoreMin. Time in BusinessMin. Annual RevenueLoan AmountInterest Rate
6002+ years$250,000$5K - $500KBegin at 1.10 factor rate

The Bottom Line

If your business needs an equipment loan without a down payment, National Funding should be on your radar. Keep in mind that you must have $250,000 in annual revenue in order to qualify, though.

Try National Funding

Kabbage - Best for Businesses with Fair Monthly Revenues

kabbage equipment financing

Kabbage offers a business line of credit that can be used for equipment financing or nearly any other business funding or expense. Although you will need a credit score or 640 and 12 months in business to qualify, the fair monthly revenue requirement of $3,000 is a distinct advantage for small businesses. 

Fair credit and monthly revenue requirements
Straightforward application process
Excellent customer service
No prepayment penalties
Complicated fee system
Potentially high rates

If you qualify, you may be approved for a credit line between $2,000 and $250,000 or more. Each draw is repayable as a separate installment loan.

Kabbage charges a monthly fee rather than an interest rate. Business owners pay a fee for each month they have a balance. Fee ranges are as follows:

  • 6-month loan: 2-9%
  • 12-month loan: 7.5-18%
  • 18-month loan: 15.75-27%

The Bottom Line

If you have fair monthly revenue and credit, Kabbage may be a good choice for a short-term line of credit. Just keep in mind that monthly fees can be high depending on the terms.

Try Kabbage

Biz2Credit - Best for Equipment Financing for Startup Businesses

Biz2Credit offers funding that is closely tied to the equipment itself, so there's no worry of borrowing more money than you can handle. Plus, their eligibility requirements should be attainable for less-established businesses looking for financing options.

Quick application process
More lenient qualifying requirements
Longer loan terms
Collateral requirement
High interest rates
Not available in all 50 states

Equipment financing loans with Biz2Credit are closely tied to the equipment itself. Business owners can finance up to 100% of the equipment value and loan terms will often match the estimated life of the equipment.

Biz2Credit also offers unique access to funding through Accounting firms. Accounting firms that are part of Biz2Credit's CPA Business Funding Portal can refer their clients to Biz2Credit for funding.

Main Features

Min. Credit Score Min. Time in Business Min. Annual Revenue
Loan Amount Interest Rate
580 6 months $250,000 Up to 100% of the equipment value 8% - 30%

The Bottom Line

Biz2Credit’s eligibility requirements are more suited to new businesses than other lenders. However, keep in mind that you'll only be able to borrow up to 100% of the equipment value. If you need more funds, you will need to look elsewhere.

Try Biz2Credit

Fora Financial - Best for Flexible-Use Loans

It's important to note that Fora Financial does not offer a true equipment financing loan. Instead, their small business loans and merchant cash advances can be used to finance new equipment purchases and cover additional expenses.

Can be used for all business expenses
No collateral requirement
Opportunity to receive additional funding
Short-term financing
Lack of transparency

To qualify for a small business loan with Fora Financial, potential borrowers need to have six months in business and an annual revenue of at least $144,000. In addition, the company also states that it will not work with any businesses that have had a recent bankruptcy.

Main Features

 Min. Credit ScoreMin. Time in BusinessMin. Annual RevenueLoan Amount500
5006 months $144,000$5,000 - $750,0001.1 -1.35

The Bottom Line

Fora Financial offers large loan amounts with no designated use for how you spend the money, but they do need to be repaid within 15 months. If you need funding quickly, Fora Financial could be your best business financing option.

Try Fora Financial

Fundbox - Best for Low-Fee Loans

Fundbox offers two types of loans that can cover your equipment: small business loans and small business lines of credit. If low fees and flexible repayment options are your top priority, Fundbox could be one of the strongest financing options for your small business.

Short time in business requirement
No prepayment penalty and no origination fee
Access additional funds without reapplying
Short-term financing
Potentially high rates

For both Fundbox loans and lines of credit, you need to have a minimum credit score of 600, be in business for at least six months, and have $100,000 or more in annual revenue. The line of credit must be repaid within 24 weeks; and the short-term business loan must be repaid within one year.

Main Features

 Min. Credit Score Min. Time in Business Min. Annual Revenue Loan Amount Interest Rate
600 6+ months $100,000 Up to $150,000 4.66%

The Bottom Line

If you’re looking for an equipment financing loan with fewer fees, you may want to seriously consider Fundbox. Unlike most lenders, they do not charge a prepayment penalty or an origination fee. That said, those lower fees do come at a trade-off as you need to be prepared to pay off your business loan within one year.

Try FundBox

Read the full Fundbox review for more details.

Fundera - Best for Obtaining Multiple Loan Quotes

The most important thing to understand about Fundera is that it is not a direct lender. Rather, it is a lending platform that uses special technology to connect you with the funding products that best meet your needs. On the one hand, using the service will give you the opportunity to obtain quotes from multiple online lenders easily. On the other hand, you won't be able to apply for a loan with them directly.

Ability to get multiple quotes
Flexible eligibility criteria
Soft credit check
Longer loan terms (5-6 years)
Double application process
Difficult to know if you’ll qualify

Since Fundera partners with other online lenders, features will vary. In general, though, lenders will want to see a minimum credit score of 550, six months or more in business, and an annual revenue of $100,000. If you don’t meet these requirements, Fundera will do its best to get your loan funded.

Main Features

 Min. Credit Score Min. Time in Business Min. Annual Revenue Loan Amount Interest Rate
550 6+ months $100,000 Up to 100% of the equipment value 4% - 40%

The Bottom Line

If you’re new to the process of shopping around for a loan, Fundera might be an easy place to start. You'll have the ability to get quotes from multiple loans in one place. However, if you’re on the cusp of being able to qualify for a loan and need to know your lender’s eligibility criteria, you might be better suited with a different company.

Try Fundera

Bluevine - Best for Lines of Credit

Bluevine doesn’t explicitly offer equipment financing. Instead, they offer business lines of credit that can be used to buy equipment. A line of credit acts more like a credit card, where you draw against the line when needed. Interest is only paid on the amount you use.

Easy application process
Quick funding
Flexible repayment
Not available in all states
Not available for all industries

Since Bluevine does not offer equipment financing loans, there is no collateral requirement. However, in order to borrow from the company, you will have to agree to a personal guarantee, meaning you'll be on the hook for paying off the loan even if your business defaults.

Main Features

 Min. Credit ScoreMin. Time in BusinessMin. Annual RevenueLoan Amount
Interest Rate
625+6+ months$120,000Up to $250,0008% - 30%

The Bottom Line

If you need flexible equipment funding or are looking to fund other areas of your business, a line of credit from Bluevine may be your best option.

Try Bluevine

8. Credibly - Best for Borrowers with Bad Credit

Credibly offers equipment financing for almost any type of equipment your business may need. From medical devices to tools and farm equipment to office furniture, they've got you covered. Credibly has flexible business financing options and same-day funding. They accept credit scores as low as 500, making them the best for business owners with bad credit

Flexible qualifying requirements
High loan amounts
Fast funding
Lack of transparency
Collateral requirement

Since the equipment itself generally acts as collateral for the business loan, Credibly is able to offer incredibly flexible qualifying criteria. Despite requiring a minimum credit score of just 500 and a minimum time in business of six months, the company boasts that over 90% of its equipment financing applicants get approved.

Main Features

 Min. Credit ScoreMin. Time in BusinessMin. Annual RevenueLoan AmountInterest Rate
5006 months $180,000$10,000-$10M9.99% and up

The Bottom Line

If you don’t have a great credit score, Credibly could be a good business financing option for equipment financing. Their flexible qualifying requirements and short funding times ensure that your small business willl have a good shot at accessing the money you need when you need it most.

Try Credibly

How to Choose the Best Equipment Financing Company

  • Loan features: We looked into details of the business funding product, including loan amounts, loan terms, and repayment options.
  • Application process: We analyzed the details of the application process, such as the invasiveness of the application information, whether the company requires a hard or soft pull on your credit, and what the funding time looks like.
  • Interest rates and fees: We considered the costs of the loan, including any fees charged by the lender and their minimum and maximum interest rates.
  • Qualification process: We looked at what it took to qualify for equipment financing, including minimum credit score, amount of annual revenue, and length in business.
  • Customer support: We looked into various customer support features, such as the ability to talk to a customer service representative, the degree of multi-channel support, and the availability of educational information or tools.
  • Online user reviews: We read company reviews on independent review sites like Trustpilot to gain a sense of the level of customer satisfaction.
  • Perks and bonuses: Finally, we took into account any special service offerings, such as payment flexibility or advanced technology, as well as their overall level of transparency.


Main Features of the Best Equipment Financing Companies

Now that you’ve had a chance to learn about each company in depth, this side-by-side comparison will help you decide which one is the best fit for you.

CompanyMin. Credit ScoreMin. Time in BusinessMin. RevenueLoan AmountInterest Rate
National Funding6002+ years$250,000$5K - $500KBegins at 1.10 factor rate
Kabbage64012 months$3,000 montrhly$2,000-$250,0006-month loan: 2-9%         
12-month loan: 7.5-18%         
18-month loan: 15.75-27%
Credibly     5006 months$180,000$10,000 - $10M9.99% and up
Fora FinancialNot Listed6 months$144,000$5,000 - $750,0001.1% - 1.3%
Fundbox     6003 months$100,000Up to $2M4.66%
Biz2Credit5603 months$50,000Up to 100% of the equipment value8% - 30%
Fundera6002 years$130,000Up to 100% of the equipment value4% - 40%
Bluevine550-6006 months$120,000Up to $250,000Starts at 4.8%

What is Equipment Financing?

Equipment financing is a loan used specifically for purchasing equipment. It usually doesn’t include working capital loans that are meant to provide funding for day-to-day operations. ‘Equipment’ is tangible assets such as computers, freezers, vans, trucks, tools, and other functional equipment necessary for running the business. Equipment financing can also cover software.

Businesses spend approximately $2 trillion dollars investing in equipment each year. About 57% of that investment is financed through loans, lines of credit, or other financial products.

With an equipment financing loan, the total loan amount cannot exceed the total economic value of the equipment itself. You pay interest on the loan, but it is not as steep as other methods (such as credit cards or working capital loans) because the equipment acts as collateral for the loan. If you fail to pay, the lender will seize the equipment.

Remember that equipment financing is a loan, not a lease. You own the equipment and have to make payments; whereas with a lease, you are renting the equipment and do not own it. With equipment financing, you can claim depreciation on your asset to reduce your tax liability.


How Equipment Financing Works

Business equipment financing is usually viewed as a more cost-effective and lower-risk way to acquire equipment than other forms of financing. It allows businesses to maintain their cash reserves because they do not purchase the equipment outright.

Each lender that offers equipment financing and small business equipment loans will have different terms, but you can usually find a lender that will finance around 80% of the asset’s total purchase price.

Generally speaking, you will need to pay the initial 20% of the cost and then repay your lender over the term of the agreement. There are some equipment financing lenders, though, that do not require a down payment.

More than 50% of the equipment acquired by U.S. businesses is financed, according to the Equipment Leasing and Finance Association


Types of Equipment Financing

There are several types of business funding that you can use to finance an equipment investment including:

  • Equipment financing: This type of small business loan uses the equipment as collateral, potentially reducing interest rates for the term of the loan.
  • Business line of credit: As a type of short-term business loan, a business line of credit may be a good choice if you plan to pay off the debt quickly. 
  • Term loan: These business loans may be either short- or long-term and used to finance equipment purchasing or leasing. However, you may be required to put up additional collateral to secure these loans. 
  • SBA CDC/504 loan: These government-backed loans can be used to finance machinery and equipment as well as facilities and land. These loans are available only through Certified Development Companies (CDCs). 

According to the Equipment Leasing and Finance Association, Equipment financing lenders include traditional banks (53%), manufacturers/vendors (17%), and fintechs (14%).


Businesses That May Use Equipment Financing

Equipment financing loans are best suited for startup companies that find it difficult to obtain traditional loans. However, any business that needs equipment can use this method, not just startups.       

Here are some examples of businesses that could benefit from equipment financing and the types of equipment they finance:


Equipment Financing Eligibility Requirements

While every lender sets their own criteria for equipment financing loans, most work off of the same basic eligibility requirements. To approve borrowers for this type of business funding, lenders will take a close look at the following items:

  • Time in business: Most lenders want you to have at least 3-6 months of business history.
  • Annual revenue: Typically, lenders want to see you’re making at least $100,000 in revenue annually.
  • Credit score: You’ll need a personal credit score of at least 500. In some cases, a lender may ask for a business credit score as well.
  • Industry: Not all lenders service every industry. Some limit who can apply for an equipment financing loan.


Equipment Financing Rates

While equipment financing rates are very competitive (due to the collateral supplied), they tend to have high minimum loan amounts. Some lenders require business owners to finance a minimum of $20,000. If this is too high, consider a term loan or business line of credit to finance your equipment purchases.

There is little standardization for equipment financing rates because there are many different types of equipment. It’s important to distinguish equipment financing from inventory financing and equipment leasing, as the average rates will differ. Equipment financing rates and terms will depend on your specific situation, i.e., your credit score and what you require. A good equipment financing rate might be as low as 5% or even less


Equipment Financing Pros and cons


  • Fast approvals - Since the asset is being used as collateral, it’s usually much faster to arrange this type of lending. Most of the lenders on our list offer equipment financing to small business owners within 24 hours of approval.
  • Spread the cost - Financing is the perfect way to spread the costs over a long period of time so your cash flow doesn’t take a hit.
  • No additional collateral needed - Your other small business and personal assets aren’t at risk if you default on a loan. Only the asset you’ve applied to secure a loan will be seized if you default.
  • Tax benefits - You can write off all of your loan repayments as tax-deductible expenses, helping you to minimize your total bill at the end of the year.
  • Fuel growth - For small businesses that might not have the capital to purchase large pieces of equipment, loans are a real lifeline. The injection of cash can prove an incredible boost to growth.
  • Boost credit score - Like any loan, your credit will be affected. If you make your payments on time, you’ll see a gradual improvement in your score.


  • Tougher eligibility criteria - Most lenders are looking for applicants with good credit scores and strong business history.
  • Restricted applications - Your loan purpose is strictly limited to the specific asset you want to purchase. Other types of working capital loans will offer more flexibility for your small business.



At the end of the day, finding the best equipment financing company is no different than finding a lender for a different type of loan. You'll want to shop around for multiple quotes before applying and read any terms and conditions carefully before signing on the dotted line.

However, none of that can happen until you’ve chosen the lender that’s the best fit for you. If. you're ready to take the next step toward getting the equipment funding you need, use the list above to help you get started.

Frequently Asked Questions(FAQ)

Can you finance used equipment?
In some cases, you may be able to finance used equipment. However, lenders prefer financed equipment to be new or in like-new condition.
Can I get equipment financing if I have bad credit?
Yes, some lenders will accept credit scores as low as 500. That said, if you have a lower score, you may be subject to a higher interest rate or additional qualifying requirements.
What’s the difference between equipment financing and equipment leasing?

Equipment financing allows you to buy new or used equipment outright, while equipment leasing allows you to rent it for a specified amount of time. Generally, it's a good idea to lease equipment that ages out quickly and buy equipment with a longer lifespan.

Can I get equipment financing for a startup?
Luckily, it is possible to get equipment financing as a startup. You'll just have to find the right lender and you may face a lower funding cap.
Should I buy or rent heavy equipment?

There are pros and cons both to renting or buying heavy equipment. Renting equipment may provide you with more up-to-date equipment and lower initial investment. But buying new or used equipment may be cheaper in the long run and give you more flexibility, especially if jobs run over their projected timeline. 

Written by: Tara Mastroeni

Real Estate and Personal Finance Expert

Tara Mastroeni is a strategist and writer with over a decade of experience creating content for the real estate and personal finance industries.

More about me
Sarah Brooks Personal Finance Writer and Editor

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me
Dr. JeFreda R. Brown

Fact Checked by: Dr. JeFreda R. Brown

DBA, CFEI and a highly respected expert in personal and business finance

Dr. JeFreda R. Brown is more than a financial consultant: she’s an avid teacher and subject matter expert who helps people—individuals and groups in a business setting—master the skills they need to achieve lasting financial wellbeing. As Founder and CEO of Xaris Financial Enterprises, it is her passion and life goal to help others develop and maintain financial wellness.

More about me

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