Up to $150,000
Not disclosed
24 to 60 months
Not all equipment financing lenders offer equipment leasing, which could make National Funding a good fit for businesses that don’t want to buy their equipment or machinery outright. And if you aren’t sure whether leasing is right for your business, National Funding will work with you to explain your options.
If you choose to go this route, you could secure a competitive lease contract with its Guaranteed Lowest Payment program, which applies to leases over $10,000.
Note, though, that equipment financing is only available up to $150,000, so businesses seeking more expensive equipment may need to look elsewhere.
In order to qualify, you’ll need to meet National Funding’s criteria of:
$100,000 to $1,000,000
Not disclosed
36 to 108 months
Commercial Fleet Financing (CFF) specializes in commercial transportation equipment, like trucks and trailers. Since its opening in 1995, CFF has funded over $1 billion to business owners nationwide.
As a specialized lender, CFF offers specialized industry expertise in areas like tow trucks, EMS vehicles and commercial trucks.
However, it’s important to note that while Commercial Fleet Financing doesn’t disclose interest rates in advance, specialized equipment companies may have higher rates than traditional lenders.
In order to qualify, you’ll need to meet Commercial Fleet Financing’s criteria of:
$500 to $5,000,000
7.90%
12 to 84 months
With no minimum time in business or annual revenue requirements, Taycor Financial is a great option for a startup business loan. You can borrow up to $5,000,000 with commercial equipment financing or explore other options, such as a business line of credit or working capital loan.
Taycor Financial also has an equipment leasing program that offers up to $2,000,000 — it doesn’t require a down payment, though first and last payments are due in advance.
However, as a specialized lender, Taycor Financial’s interest rates can be steep, especially for low-credit borrowers.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
Up to $500,000
Not disclosed
12 to 72+ months
First Citizens Bank offers 100% financing on business equipment. This means no down payment is required, minimizing the upfront costs of the loan.
The initial online application takes just a few minutes, with funds hitting your bank account as quickly as one business day after approval. These funds can be used for new or used equipment across multiple industries, including construction, manufacturing and agribusiness.
In addition to equipment financing, First Citizens offers short-term business loans, long-term business loans, business credit cards, lines of credit and vendor financing.
First Citizens Bank isn’t very transparent when it comes to disclosing its qualifying requirements. The company chooses not to publish its minimum credit score, annual revenue or time in business criteria.
$25,000 to $500,000
7.49%
6 to 84 months
With iBusiness Funding, a dedicated account manager will guide you through the entire loan process from start to finish, ensuring you’re on the right track.
Although the lender doesn’t offer specific equipment loans, you can borrow up to $500,000 with a term loan and use the funds for almost any business-related expense — including equipment repairs and purchases. However, you may need to provide collateral to secure a loan.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
Starting at $25,000
7.00%
Up to 60 months
Existing account holders can take advantage of rate perks with Bank of America’s Preferred Rewards for Business program, making it a good option for business owners who want to handle all of their finances in one place. In addition to equipment loans, Bank of America also offers business bank accounts, credit cards and merchant services.
And with over 3,000 branches nationwide, this may also be an ideal choice if you prefer in-person support.
However, it’s worth noting that the bank’s minimum annual revenue requirements are quite high, so these offerings may be best suited for well-established businesses.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
$5,000 to $1,500,000
1.13 factor rate
4 to 18 months
Fora Financial is one of our top picks for a bad credit business loan, as its credit score requirement goes as low as 570. It offers small business loans between $5,000 and $1,500,000 for any business expense — including equipment repairs, upgrades or leases. However, you need a minimum of $20,000 monthly revenue to qualify.
And while other lenders may charge prepayment penalties for business loans, Fora Financial offers a prepayment discount. However, repaying your loan early may prove difficult (or even impossible) for some borrowers, as Fora Financial offers the shortest loan terms on this list.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
Up to $5,000,000
10.50 to 14.00
14% for loans $50,000 or less
13.5% for loans $50,001 to $250,000
12% for loans $250,001 to $350,000
10.5% for loans above $350,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
12.50 to 15.50
15.5% for loans $25,000 or less
14.5% for loans $25,001 to $50,000
13.5% for loans $50,001 to $250,000
12.5% for loans above $250,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
120 to 300 months
If you need to purchase or upgrade equipment to keep your business running, an SBA 7(a) loan provides the most significant amount — up to $5,000,000. And if you need a heavy equipment loan, an SBA 504/CDC loan is another option. You can use the funds for general equipment and inventory, like computers, restaurant appliances, office furniture, technology systems, medical equipment and more.
The Small Business Administration guarantees a portion of every SBA loan, allowing lenders to offer more affordable rates to small business owners. However, SBA loans typically take longer to process, so this may not be the best option for borrowers in need of fast funds.
Qualifying criteria for SBA loans can vary between lenders. However, to improve your chances of loan approval, the SBA typically recommends the following:
$5,000 to $250,000
31.30% This rate reflects the estimated starting APR offered to at least 5% of OnDeck customers. It doesn’t reflect the minimum APR offered by the company.
Up to 24 months
If you need fast funds, OnDeck may be a good option. The company offers short-term business loans up to $250,000 with the possibility of receiving same-day funding for loans up to $100,000. Plus, OnDeck is transparent about its eligibility requirements, so it’s easy to know if you’ll qualify.
That said, the lender’s interest rates are high compared to some competitors. Plus, the maximum borrowing limit is lower than other lenders on this list, so OnDeck may only be suitable for select businesses.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
Up to $2,500,000
Not disclosed
Starting at 24 months
U.S. Bank may not be the most transparent lender when it comes to disclosing its loan terms, but for those who can qualify, it offers some unique perks that make it worth considering. For example, borrowers have the option to choose between monthly, quarterly and annual payments. Plus, the lender finances up to 125% of your equipment costs, providing extra cash to cover added fees like taxes or installation.
Still, you should be aware that your equipment will be used as collateral for the loan. This means that if you’re unable to keep up with your payments, the lender has the right to repossess any equipment that you purchased with the loan funds.
U.S. Bank chooses not to disclose its annual revenue, credit score or time in business requirements.
Equipment financing is a business term loan that enables companies to purchase equipment needed to operate their businesses — such as computers, vehicles or large machinery.
An equipment loan is a type of asset-based financing, meaning the equipment generally acts as collateral in a secured business loan.
An equipment loan is designed to help you purchase or repair machinery and equipment for your business. In addition, you can use other types of small business loans to finance equipment.
Equipment loans generally require regular payments with accruing interest. Payment plans vary by lender and loan type, but can include daily, weekly, monthly, seasonal or deferred options.
No, leasing means you’re renting the equipment. With equipment financing, you’re borrowing money to buy the equipment outright instead.
Yes, some equipment lenders only require six months in business to qualify for equipment financing — and some don’t have any time-in-business requirements. This allows startups to finance any necessary equipment within their first year of business.
