Finimpact

Frequently Asked Questions(FAQ)

What is the minimum credit score required for Equipment Financing?

This will vary by lender. While researching, I found most companies had a minimum score of the low to mid 600s. A few had the high 500s, but only a couple had less than that. Before applying for a loan, if your score is lower than 600, spend some time trying to raise your score a bit

What is no credit check equipment financing?
Theoretically, no credit check financing would involve no credit check in order to qualify for an equipment loan. That’s nearly impossible to find since no lender wants to offer a large loan to someone if they’re unsure if they’re likely to pay it back. Any lender worth using is going to require at the bare minimum, a soft credit check.
Can startups qualify for equipment financing?
Generally, according to most lenders, you need to be in business for at least six months before qualifying for any equipment financing. Again, it’s all about risk here. Lenders don’t want to offer a loan to a business that doesn’t have an established history of doing well. Any startup that meets this qualification, should be able to qualify for some kind of equipment financing.

Conclusion

With bad credit, your loan options shrink a bit, but there are options out there. Equipment financing, even when you have poor credit, is a very helpful financing option for most business owners. It allows you to stretch out payments for expensive equipment over time so you can direct your business’s cash flow elsewhere. 


Fundbox is a flexible lender that offers some lenders loans without origination fees. It also has a line of credit option for businesses that need a more flexible option. You can read more in our Fundbox review.

About the Author

Christopher Murray

Christopher Murray

Personal Finance Expert

Christopher Murray is a professional personal finance and sustainability writer and editor who enjoys writing about everything from budgeting and saving to unique investing options like SRI and cryptocurrency.

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