Equipment financing for your next big thing.

Quality you can trust. Over 400,000 loans funded.


Ready to upgrade? Let’s talk equipment financing.

LOAN AMOUNT

$5,000- $5,000,000

TIME TO FUND

As Fast As 24 Hours

LOAN TERMS

1-10 Years

INTEREST RATE

As Low as 7.5%

Equipment loan options for your industry.

Need a new backhoe? Or a credit card processing app? There’s a loan for that. Seriously. There are small business equipment loan options for nearly every industry and every kind of kooky apparatus you need – which means your wish list is probably covered.

How equipment financing works.

Equipment financing is a type of asset-based lending that helps business owners get the funding to purchase or lease equipment without depleting their working capital. Here’s how it works.

  1. Figure Out What You Need: First off, let’s get clear on what equipment you need to boost your business. It could be anything, from a new backhoe to office furniture. Once you’ve got that sorted, estimate how much it’ll cost.
  2. Apply with Us: Now, hop online and fill out our easy application. It’s painless, we promise.
  3. Pick Your Plan: After you apply, we’ll do the heavy lifting and match you with the best financing options. You’ll get to review these and choose the one that fits your needs like a glove.
  4. Get Your Gear: With the funds in hand (often in as little as 24 hours), you can go ahead and buy your equipment. Then, you’ll start repaying the loan on terms that work for you. And once you’re done? The equipment is all yours, no strings attached!
Check Eligibility
equipment leasing vs. equipment financing

Minimum requirements for equipment financing.

If your business doesn’t match some of the qualifiers below, it may be more challenging to receive funding from our lending partners.

CREDIT SCORE

520 or higher

ANNUAL REVENUE

$50,000+

TIME IN BUSINESS

0-12 months minimum

How to apply for equipment financing.

Sure, you can go the bank route with a long application process and 75% rejection rate. But if you’re looking for financing in this lifetime, Lendio offers a faster, easier application process.

STEP
1
Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

STEP
2
Receive matches.

We pair you with loan options from our network of 75+ lenders. Our dedicated funding managers can help you weigh the pros and cons of each option.

STEP
3
Get funded.

Once you’re approved, you’ll be able to access your capital in as little as 24 hours.

Apply Now

8 best equipment financing companies.

Lendio carefully selects the lenders in its marketplace and then works with you to find the best equipment financing for your unique situation. Read on for stats on each lender and what each lender is best at.

Learn about our methodology for lender selection here.

Lender/Funder*Loan/Financing AmountMin. Time in BusinessLoan/Financing TermMin. Credit ScoreTime to Funds
(After Approval)
BalboaUp to $500,0007 months7 years640As soon as same day
ClickLease$20,000Any2-5 years520As soon as same day
4 Hour Funding (Centra)
Up to $150,0002 years2-5 years590Same day
Commercial Funding Partners$500,000+3 yearsVaries665As soon as 1 day
Global FinancialUp to $1 millionAny1-5 years500As soon as 48 hours
ParadigmUp to $5 million2 years2-4 years600As soon as 1 day
South End CapitalUp to $5 millionAnyUp to 10 years700As soon as same day
Time PaymentUp to $1.5 millionAny12-60 months550As soon as 1 day

The best equipment loan options.

Continue reading for detailed information about the lenders listed above.
Ready to apply for a loan? Lendio works with 75+ lenders to find the right option for your business. Click “Apply Now” to fill out our simple application.

Balboa – Equipment financing

Funding amount

Up to $500,000

Term

4, 36, 48, or 60 months

Min. credit score

640

Time to funding

As soon as 1 day

Balboa Capital offers customers up to $500,000 in equipment financing. They do require some form of collateral for all of their financing options. However, if you use them for financing equipment less than $350,000, you’ll only need soft collateral.

Pros

  • Best for heavy machinery financing
  • One-hour approval time
  • Flexible term lengths
  • One-hour approval time

Cons

  • Restricted industries include oil/gas production and gun manufacturers
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)
  • $295 doc fee
  • $250 site inspection fee
balboa capital logo

Balboa – Equipment financing

Read Our Review Apply Now

Funding amount

Up to $500,000

Term

4, 36, 48, or 60 months

Min. credit score

640

Time to funding

As soon as 1 day

Balboa Capital offers customers up to $500,000 in equipment financing. They do require some form of collateral for all of their financing options. However, if you use them for financing equipment less than $350,000, you’ll only need soft collateral.

Pros

  • Best for heavy machinery financing
  • One-hour approval time
  • Flexible term lengths
  • One-hour approval time

Cons

  • Restricted industries include oil/gas production and gun manufacturers
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

  • $295 doc fee
  • $250 site inspection fee

ClickLease – Equipment financing

Funding amount

Up to $20,000

Term

24-60 months

Min. credit score

520

Time to funding

As soon as same day

ClickLease offers equipment financing up to $20,000 with minimum credit requirements starting at 520.

 

Pros

  • Best option for loan requests under $25k
  • No hard credit pull
  • Flexible terms and credit score
  • Monthly payments

Cons

  • Doesn’t operate in North Dakota
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

One-time initial documentation fee

Clicklease Logo

ClickLease – Equipment financing

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Funding amount

Up to $20,000

Term

24-60 months

Min. credit score

520

Time to funding

As soon as same day

ClickLease offers equipment financing up to $20,000 with minimum credit requirements starting at 520.

 

Pros

  • Best option for loan requests under $25k
  • No hard credit pull
  • Flexible terms and credit score
  • Monthly payments

Cons

  • Doesn’t operate in North Dakota
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

One-time initial documentation fee

4 Hour Funding (Centra) – Equipment financing

Funding amount

Up to $150,000

Term

24-60 months

Min. credit score

590

Time to funding

As soon as same day

4 Hour Funding (Centra) specializes in equipment financing agreements or EFAs — a lease agreement in which the financier purchases the equipment up front and the borrower pays monthly installments until they own the equipment in full.

Pros

  • Best for ease of process
  • Same-day funding 
  • Partners with equipment lenders
  • Available to startups and established businesses

Cons

  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)
  • Maximum funding limited to $150,000

$275 doc fee

4 Hour Funding (Centra) – Equipment financing

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Funding amount

Up to $150,000

Term

24-60 months

Min. credit score

590

Time to funding

As soon as same day

4 Hour Funding (Centra) specializes in equipment financing agreements or EFAs — a lease agreement in which the financier purchases the equipment up front and the borrower pays monthly installments until they own the equipment in full.

Pros

  • Best for ease of process
  • Same-day funding 
  • Partners with equipment lenders
  • Available to startups and established businesses

Cons

  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)
  • Maximum funding limited to $150,000

$275 doc fee

Commercial Funding Partners – Equipment financing

Funding amount

$150,0000- $500,000+

Term

Varies

Min. credit score

665

Time to funding

As fast as 1 day

Commercial Funding Partners offers equipment financing of up to $500,000 or more to small business owners. While you will need fairly good credit and at least 3 years of business under your belt to get approved, you may lock in flexible rates and terms.

Pros

  • Best for amount of funds
  • May lock in $500,000+ in funding
  • Funding as fast as one day

Cons

  • Minimum loan amount of $150,000
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

Varies

Commercial Funding Partners – Equipment financing

Apply Now

Funding amount

$150,0000- $500,000+

Term

Varies

Min. credit score

665

Time to funding

As fast as 1 day

Commercial Funding Partners offers equipment financing of up to $500,000 or more to small business owners. While you will need fairly good credit and at least 3 years of business under your belt to get approved, you may lock in flexible rates and terms.

Pros

  • Best for amount of funds
  • May lock in $500,000+ in funding
  • Funding as fast as one day

Cons

  • Minimum loan amount of $150,000
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

Varies

Global Financial – Equipment financing

Funding amount

Up to $1 million

Term

1-5 years

Min. credit score

500

Time to funding

As soon as 1 day

Global Financial has provided equipment financing to small and medium-sized businesses in a variety of industries since 2009. You can get approved even if you have bad credit or a history of bankruptcies or tax liens. 

Pros

  • Best for lower credit
  • No down payment required 
  • Can lock in up to $1 million in funding
  • Builds business credit
  • Equipment for sale on lender website

Cons

  • Restricted equipment includes HVAC and lighting
  • Limited financing for restaurants and owner operator trucking

$500 doc fee

Global Financial – Equipment financing

Apply Now

Funding amount

Up to $1 million

Term

1-5 years

Min. credit score

500

Time to funding

As soon as 1 day

Global Financial has provided equipment financing to small and medium-sized businesses in a variety of industries since 2009. You can get approved even if you have bad credit or a history of bankruptcies or tax liens. 

Pros

  • Best for lower credit
  • No down payment required 
  • Can lock in up to $1 million in funding
  • Builds business credit
  • Equipment for sale on lender website

Cons

  • Restricted equipment includes HVAC and lighting
  • Limited financing for restaurants and owner operator trucking

$500 doc fee

Paradigm – Equipment financing

Funding amount

Up to $5 million

Term

24-48 months

Min. credit score

600

Time to funding

As soon as 1 day

Paradigm prides itself on individualized service, straightforward terms, and quick decisions. If you want to purchase a piece of equipment valued $10,000 or more, and don’t operate in a restricted industry, Paradigm is worth exploring.

Pros

  • Best for specialty equipment
  • Considers borrowers with less-than-perfect credit
  • Access to over 500 equipment brokers nationwide

Cons

  • Doesn’t finance restaurants
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

$500 doc fee

Paradigm – Equipment financing

Apply Now

Funding amount

Up to $5 million

Term

24-48 months

Min. credit score

600

Time to funding

As soon as 1 day

Paradigm prides itself on individualized service, straightforward terms, and quick decisions. If you want to purchase a piece of equipment valued $10,000 or more, and don’t operate in a restricted industry, Paradigm is worth exploring.

Pros

  • Best for specialty equipment
  • Considers borrowers with less-than-perfect credit
  • Access to over 500 equipment brokers nationwide

Cons

  • Doesn’t finance restaurants
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

$500 doc fee

South End Capital- Equipment financing

Funding amount

Up to $5 million

Term

Up to 10 years

Min. credit score

700

Time to funding

Same-day funding

South End Capital is a division of Stearns Bank and offers equipment financing for new and used equipment. You can get approved in hours and work with one of its Certified Lease Finance Professionals (CLFP) to find term and payment options that make sense for your small business.

Pros

  • Best for term length
  • No application fees
  • 0% down payments 
  • Same-day funding available 
  • Custom payment terms
  • Equipment loans available in all 50 states and Washington D.C. 

Cons

  • 2-year minimum time in business requirement for trucking
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus

Appraisal and environmental report fees

South End Capital- Equipment financing

Apply Now

Funding amount

Up to $5 million

Term

Up to 10 years

Min. credit score

700

Time to funding

Same-day funding

South End Capital is a division of Stearns Bank and offers equipment financing for new and used equipment. You can get approved in hours and work with one of its Certified Lease Finance Professionals (CLFP) to find term and payment options that make sense for your small business.

Pros

  • Best for term length
  • No application fees
  • 0% down payments 
  • Same-day funding available 
  • Custom payment terms
  • Equipment loans available in all 50 states and Washington D.C. 

Cons

  • 2-year minimum time in business requirement for trucking
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus

Appraisal and environmental report fees

Time Payment- Equipment financing

Funding amount

Up to $1.5 million

Term

12-60 Months

Min. credit score

550

Time to funding

As soon as 1 day

Based in Boston, Time Payment is a fintech company that’s owned by the affiliates of Fortress Investment Group, a top diversified global investment manager. Once you apply for its equipment financing solutions online, you’ll receive an instant credit decision for the maximum amount you can finance.

Pros

  • Best for lower APR
  • Fast credit decisions
  • Can get approved with fair credit 

Cons

  • Restricted states include California and Vermont
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)
  • Documentation fees
  • Advanced payment fees

Time Payment- Equipment financing

Apply Now

Funding amount

Up to $1.5 million

Term

12-60 Months

Min. credit score

550

Time to funding

As soon as 1 day

Based in Boston, Time Payment is a fintech company that’s owned by the affiliates of Fortress Investment Group, a top diversified global investment manager. Once you apply for its equipment financing solutions online, you’ll receive an instant credit decision for the maximum amount you can finance.

Pros

  • Best for lower APR
  • Fast credit decisions
  • Can get approved with fair credit 

Cons

  • Restricted states include California and Vermont
  • Doesn’t build business credit (borrower may be able to self-report to credit bureaus)

  • Documentation fees
  • Advanced payment fees
buying or financing restaurant equipment

Where to get equipment financing.

There are several places you can turn to when you’re looking for an equipment loan. Each one has its own strengths, so it’s all about finding the right fit for your business.

  1. Alternative Lenders: These guys aren’t your traditional banks. They’re often more flexible and can move a bit faster, making them a great choice if you need equipment ASAP.
  2. Banks and Credit Unions: These are your more traditional lenders. They might take a bit longer to process your application, but they often offer competitive rates.
  3. The U.S. Small Business Administration (SBA): The SBA offers a variety of loan programs that can help small businesses secure equipment financing.
  4. Equipment Financing Companies: There are companies that specialize in equipment financing. They’re experts in this field and can offer guidance along the way.
  5. Online Platforms: Websites like Lendio offer a marketplace of lenders, giving you the chance to compare different loan options all in one place.

Why use Lendio?

$15+ BILLION

funded through us

75+

lenders in our network

400,000+

loans funded

“The Lendio process was amazing”

Sterling Hannemann
Co-Owner of Seven Brothers

“Lendio literally saved my business.”

Chloria Chandler
Owner of Bobbee O’s BBQ

Equipment financing FAQs

Equipment financing is a financial solution that helps your business acquire the machinery, vehicles, or other equipment it needs to operate. Instead of paying the full cost upfront, you’re spreading the cost over time, making it easier on your budget.

Getting an equipment lease or financing can help you fund a variety of business needs. This financing solution can be used for things like: 

Regardless of your company’s industry, exploring your equipment finance options could help the success of your business. Plus, equipment lenders usually report to business credit. The more business credit you build the greater opportunity you have in the future to receive the best rates and terms for the money you receive and increase your business’s ability to receive future loans without a personal guarantee.

  

The largest difference between an equipment lease and an equipment loan is that an equipment lease has a fixed term, in which you pay a monthly rental fee, with no prepay benefits, and an equipment loan can be paid off at any time with any remaining interest wiped clean. 

There are multiple structures available for equipment leasing including:

  • Equipment Financing Agreement: Fixed payments are made over a set term after which you own the equipment in full.
  • Fair Market Value: Fixed payments are made over a set term after which you can return the equipment, renew the lease, or purchase the equipment at fair market value. 
  • Purchase Upon Termination: Require the customer to purchase the equipment at the end of the lease term at a certain percentage of the original purchase price.

Equipment financing is a type of funding that gives you full ownership of the equipment. You’ll pay interest in addition to the principal balance, usually as a fixed monthly payment. But once your financing term is over, you own the equipment free and clear. 

Choosing the best equipment financing option depends on the type of equipment you need, how long you expect to need it, and how frequently you plan to update those assets. You can also use an equipment loan calculator to help you compare costs.

One of the biggest advantages of equipment financing is that it helps you grow your business with new equipment while spreading out the costs over time. Additionally, you often don’t need any collateral besides the asset itself. By integrating new equipment into your business, you could increase revenue and reach with your services. 

A drawback is that funds can only be used for equipment and sometimes soft costs associated with the purchase, such as taxes or delivery fees. Other types of financing, such as a small business loan or business line of credit, have minimal restrictions on how you use the funding proceeds. 

Pros of equipment financing

  • Scale your business
  • Spread out large capital costs
  • No additional collateral needed
  • Equipment purchases may be eligible for a tax deduction

Cons of equipment financing

  • Use restricted to equipment
  • Equipment becomes outdated and needs to be replaced

Your equipment financing payments are determined by four things: 

  • Funded amount
  • Interest rate
  • Term
  • Collateral

These factors can vary widely across industries and equipment types. That’s why we work with a variety of lenders who specialize in industry-specific small business loans, so we can help you find the best deal.

Qualifying for equipment financing can actually be easier than other business financing options because the lender uses the equipment as collateral. 

Equipment financing helps you scale your business without covering the full cost through your own cash reserves. Plus, the eligibility requirements are easier to qualify for since there’s physical collateral attached to the funding. 

It depends on your lender and funding/financing terms. However, most equipment finance terms range between one to 10 years in length. 

To get equipment financing, you’ll typically need to meet the following requirements:

  • $50,000 or more in annual revenue
  • Credit score of 520 or higher
  • Varying time in business requirements: Some equipment financing companies will work with startups from day one. Others will want to see a minimum time in business of two years.

And don’t worry if you don’t meet all of these requirements. Exact qualifications vary by lender and equipment type.

Yes, some equipment financing companies we partner with will work with startups from day one in business. Bear in mind that the financing company may place more stringent requirements on your personal credit score or only offer lower financing amounts if you have been in business less than one year.

Our methodology

Wondering how we chose the best? Here’s how we went about evaluating the lenders in our network.

  • Time to fund
  • Minimum and maximum loan amounts
  • Lenders with fees comparable to other similar lenders
  • Requirements: Credit score, revenue, and time in business requirements
  • Flexible repayment options
  • External reviews.

*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (November 28, 2022). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.

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