Equipment Financing For Good & Bad Credit

If you’re in the market to purchase some new equipment for your business, you might be wondering what some of your best options are. It’s important to take the time to look around and figure out what financing methods are right for you, your budget and your company.

What is equipment financing?

Equipment financing is the process of borrowing money to fund a major equipment purchase.

What is an equipment finance agreement?

An equipment finance agreement will include the interest rate at which you’re borrowing the money, any extra fees, and the terms, or timeframe in which you have to repay the funds.

How does equipment financing work?

Instead of having to pay for the entire cost of a piece or multiple pieces of equipment up front, you can take out a loan that allows you to repay the cost of the equipment in installments over a certain period of time.

How long can an equipment finance agreement last?

While most lenders won’t want to extend the terms of the loan beyond the average lifetime of the equipment, some provide repayment terms of up to 25 years. However, most equipment financing agreements come with repayment terms between two and 10 years.

Benefits of Equipment Lease Financing


  • Quick access to cash
  • Limited paperwork
  • Equipment serves as collateral


  • Equipment could be obsolete by the time the loan is fully repaid
  • Might need to depreciate equipment, so you can’t deduct full cost each year

Equipment Financing Rates and Terms

  • Standard Rates: Borrowers with excellent credit can take out equipment financing with rates as low as 9%, while some borrowers with average or poor credit may be charged as much as 99% on a loan.
  • Standard Terms: Most equipment financing repayment terms are set between three and 36 months.
  • Price ranges
    • Equipment under $50,000: It’s easier to qualify for equipment financing under $50,000 than some higher amounts of funding. This type of financing may also come with shorter repayment terms.
    • Equipment over $50,000: Financing for equipment worth over $50,000 may be more difficult to obtain and have stricter requirements and longer processing times. With this kind of financing, you want to make sure to find the agreement with the longest repayment terms and lowest APR.

How to Qualify for an Equipment Financing Loan

In order to qualify for an equipment financing loan, you should have good to excellent credit and an extensive, positive credit history. Because equipment financing loans are larger than many personal loans and potentially higher risk to the lender than other types of funding, they can be difficult to qualify for. If you don’t have stellar credit or have some negative remarks on your report, some lenders may allow you to apply with a co-signer or business co-owner with a stronger financial history.

Equipment Financing for items under $50,000

Loan Amount: $10,000 – $350,000
APR Range: 8.00% – 25.00%%
Time to Fund: Typically 7 days
Loan Term: Up to 3 years
How To Qualify: 680+ Personal Credit Score
$250,000+ Annual Revenue
Great Option For: Borrowers With Good Credit
Short & Medium-Term Financing
Click “Check Rates” to apply to Credibility Capital

Credibility Capital is an online lender that works with businesses who have a high annual revenue and high credit scores.

  • Why they may be a good option for equipment financing: This lender offers equipment financing with fairly low rates and flexible repayment terms.
  • Short term financing: Repayment terms for this lender are usually one, two, or three years long.
  • Strong credit borrowers: Borrowers with excellent credit can get financing with rates as low as 10%.

Term Loan
Loan Amounts $2,000 to $250,000
APR Range 24.00% to 99.00%%
Repayment Terms Up to 3 years
Time to Funding Typically 1 – 5 days
Click “Check Rates” to apply to StreetShares

StreetShares offers business term loans ranging up to $250,000 to borrowers with good credit and strong cash flows.

  • Why they may be a good option for equipment financing: StreetShares offers lower rates and higher financing than many of its competitors.
  • For newer businesses:  This lender offers financing to businesses who have been in operation for as little as one year.
  • Strong cash flow: Businesses should have at least $75,000 in annual revenue to be considered for financing with this lender.
Loan Amounts $5,000 to $500,000
APR Range As low as 9.99%
Repayment Terms Term loans up to 3 years
Time to Funding As fast as 1 day
Click “Check Rates” to apply to OnDeck

OnDeck offers loans of up to $500,000 to borrowers across a range of credit scores.

  • Why they may be a good option for equipment financing: If you have low credit or need fast cash, this lender might be a good option to consider.
  • For Fast Cash: OnDeck financing can fund within as little as 24 hours.
  • For Bad Credit: This lender approves borrowers with credit scores as low as 500.

Equipment Financing for items $50,000 and over

Loan Amount: $30,000 – $350,000
APR Range: 9.7% – 11.04%
Time To Fund: As soon as 7 days
Loan Term: 10 Years
How To Qualify: 675+ Personal Credit Score
$100,000+ Annual Revenue
Great Option For: Borrowers With Good Credit
SBA Loans
Click “Check Rates” to apply to SmartBiz

Smartbiz offers large SBA loans with some of the lowest interest rates in the industry.

Why they may be a good option for equipment financing: Smartbiz’s loan terms can be as long as 10 years and can range up to $350,000.

For Fast SBA loans: While many SBA loans can take months to fund, Smartbiz’s loans fund in as little as a week.

Loan Amounts $1,000 to $100,000
APR Range 10.1% to 79.8%
Repayment Terms 3 to 6 months
Credit Score No minimum personal credit score required
Time to Funding A few minutes to several days
Click “Check Rates” to apply to FundBox

Fundbox offers loans of up to $100,000 to borrowers across a range of credit scores.

  • Why they may be a good option for equipment financing: This lender’s requirements are not as stringent as some of its competitors, so it can be a good company to look into if you’re having trouble getting approved elsewhere.
  • Fast Cash: Their loans can fund as soon as the next business day.
  • Equipment Financing requirements: To be eligible for a loan with Fundbox, you should have at least three months of invoicing history and a minimum of $50,000 in annual revenue.
Loan Amount: $5,000 – $2 million
APR Range: 6.00% – 24.00%%
Time to Fund: As early as same day
Loan Term: One to five years
How To Qualify: 620+ Personal Credit Score
$120,000+ Annual Revenue
Great Option For: Equipment Financing
Competitive Interest Rates
Click “Check Rates” to apply to Currency Capital

Currency Capital offers large business loans to borrowers with average credit scores.

  • Why they may be a good option for equipment financing: Currency Capital offers a wide range of loans, with amounts of up to $2 million. This lender is also easier to qualify for than many of its competitors.
  • Large equipment purchases: With possible loans of up to $2 million, Currency Capital offers financing to fit a wide range of equipment needs and expenses.
  • For Established Businesses With Good Credit: If you’re a business owner with an established financial history and high annual revenue, you’ll be eligible for some of the lowest equipment financing rates with Currency Capital.

Best Option For Equipment Financing: Currency Capital connects borrowers to lenders so they’re able to evaluate a variety of loan offers and find the product that’s best for them. This allows applicants to compare several equipment financing lenders at once to determine the lowest annual percentage rate and most flexible repayment term that fits their needs.

How to Apply for Equipment Financing

While some lenders require an in-person meeting or telephone interview, some applications completely online and decisions are made within minutes. Whether you’re applying in-person or exclusively online, you’ll need to have a few documents handy, including a driver’s license, bank statements, your credit score, business tax returns and an equipment quote.  

No Credit Check Equipment Financing – Does this exist?

Unfortunately, almost no company will lend to you without a prior credit check. However, companies like OnDeck and Fundbox will work with borrowers who have average or poor credit scores.

» MORE: No Credit Check Business Loans

Equipment leasing options

  • Leasing vs Financing: While with financing you will own the equipment outright, leasing allows you to effectively “rent” your purchase and pay for it in installments over the course of its life.
  • When leasing is a better idea than financing: If you’re looking to purchase equipment or machinery that doesn’t typically have a long lifespan, leasing might be the right option for you. However, if you intend to use the equipment for a long period of time or you expect it to last for several years, this option can end up being pricier than purchasing the item outright.


Whether you have excellent or poor credit, are a new or established business, it’s possible to find the equipment financing option that’s right for you. No matter what your business or financial history looks like, take the time to compare several lender’s offers in order to find the agreement with the lowest annual percentage rate and repayment terms that fit your budget.

Compare Business Loans

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