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Conclusion

Equipment financing interest rates play a direct role in how much it costs to buy equipment and finance it. The lower the rate, the less you’ll pay overall.

 

To help secure a low interest rate on equipment financing, build a company with an established history of financial success, improve your personal and business credit, and don’t be afraid to shop around for the best deal.
 

FAQ

How are equipment leasing rates different from loan rates?
Leasing does not involve buying equipment, so leases usually have a lower monthly cost than loans. You can read more about the differences between these two ways of funding in our article on equipment leasing vs. financing.
Are used equipment financing rates the same as rates for new equipment?
In general, financing rates for used equipment will be higher than the interest rate on new equipment loans.
What are the typical interest rates offered on farm equipment loans?

The typical rates for farm equipment financing can vary widely based on market rates and your company’s credit and financial situation. Expect to pay between 5% and 30% or more.

Are interest rates higher for heavy equipment loans compared to other purchases?
In general, equipment loans have lower interest rates than unsecured loans because the equipment you purchase can serve as collateral for the loan.

About the Author

TJ Porter

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

More about me

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