Through equipment financing, you can purchase anything from medical machinery to office equipment that’s necessary to run your business. Equipment loans help finance up to 100% of the total cost, using the equipment as collateral.
From opening a new medical practice to expanding a restaurant chain, having the latest machinery and technology upgrades helps you stay relevant and ahead of the competition. With equipment financing, you can purchase the equipment you need to successfully run your business without depleting your working capital.
The most common lenders for equipment loans are banks and online lenders. Acquiring an equipment loan can be simple for most small businesses as long as you meet the lenders’ requirements. In this guide, we’ll compare the best equipment financing companies to help you match with the right lender.
Best for Small Businesses: Clarify Capital
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Why it’s a good choice: Clarify Capital supports thousands of small businesses nationwide and across a wide range of industries. With flexible eligibility and a network of over 75 lenders, we help streamline the application process to provide your business with fast, same-day funding.
Loan Amount Range: $10,000-$5 Million
Minimum Credit Score: 550
Loan Details:
- Requires a minimum $10,000 monthly revenue
- 6+ months in business for loan eligibility
- Loan terms range six months to two years
Best for SBA Loans: Small Business Administration
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Why it’s a good choice: The U.S. Small Business Administration (SBA) offers a wide selection of loans that are flexible to use for any business need, including purchasing equipment. Since the SBA guarantees a percentage of every SBA loan, most small business owners can secure them with low down payments and interest rates.
Loan Amount Range: Up to $5 Million
Minimum Credit Score: 650
Loan Details:
- Must demonstrate a need for funds
- Requires an unlimited personal guarantee
Best for Traditional Equipment Loan: Bank of America
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Why it’s a good choice: To purchase general-purpose equipment, Bank of America offers equipment financing as well as a line of credit with fixed rates as low as 6.75%. Through its business rewards program, you can take advantage of up to a 0.75% discount on interest rates.
Loan Amount Range: $25,000-$5 Million
Minimum Credit Score: 700
Loan Details:
- Offers up to 100% financing for certain loan options
- Minimum two years in business eligibility
- Requires $250,000 in annual revenue
Best for Fast Approval: Balboa Capital
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Why it’s a good choice: Balboa Capital offers up to $500K for equipment financing, which is helpful for companies purchasing heavy machinery. Quick loan approval within the hour is also available, but hard collateral is required.
Loan Amount Range: $5,000-$500,000
Minimum Credit Score: 620
Loan Details:
- Monthly repayment plan for equipment financing; daily/weekly for short term loans
- Requires business operation of at least a year
- Term lengths range two to five years
Best for Startups: Fundbox
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Why it’s a good choice: Fundbox is willing to work with businesses with less than six months in operation, which is advantageous for startups. It also has a low credit score requirement, offering same-day approval and next-day loans.
Loan Amount Range: $1,000-$150,000
Minimum Credit Score: 600
Details:
- $100,000 minimum annual revenue for eligibility
- Same-day approval with next-day funds
- Weekly repayment schedule
Best for Established Businesses: Funding Circle
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Why it’s a good choice: Funding Circles offers a wide selection of loans for small businesses as well as long-term loans up to seven years. It also doesn’t require applicants to meet a minimum revenue.
Loan Amount Range: $25,000-$500,000
Minimum Credit Score: 660
Loan Details:
- Monthly repayments
- At least two years in business
- No bankruptcies within past seven years
Best for Poor Credit: OnDeck
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Why it’s a good choice: OnDeck offers lines of credit and term loans, including same-day loans, for small businesses to purchase necessary equipment in quick turnaround time. It also reports on-time payments to credit bureaus, helping you build business credit over time.
Loan Amount Range: $5,000-$250,000
Minimum Credit Score: 625
Loan Details:
- Must qualify for the prepayment benefit to cover 100% interest
- 0%-4% origination fee based on the total loan amount
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