How equipment financing works
Equipment Financing
$10,000 – $5,000,000
- 1+ year in business
- 550+ credit score
- Equipment quote or invoice
Typical requirements. Individual lenders set their own criteria and availability differs by state and industry.
The lender funds one specific purchase and holds the equipment itself as security. A truck, a machine, a piece of hardware. Because there is an asset behind the debt, the requirements are looser than for unsecured borrowing.
You will need a quote or an invoice from the seller, and the money usually goes to them rather than into your account. That is normal, not a red flag.
Terms tend to track the working life of the thing you are buying, so a truck is financed over longer than a laptop.
When it suits
- Buying the first truck, van, or machine you need to go out on your own
- Adding a second or third vehicle as work outgrows what you have
- Keeping working capital free by funding the asset separately
What to watch for
- The money is tied to the purchase. You cannot redirect it to payroll or stock.
- Miss payments and the equipment can be repossessed, because it is the security.
- Financing something that loses value quickly can leave you owing more than it is worth.
Common questions
What credit score do I need for equipment financing?
Some of our lending partners start at 550. The equipment secures the loan, so lenders can accept weaker credit here than they would on unsecured funding.
Can I get equipment financing for a new business?
Often, yes. The asset does a lot of the work, so time in business matters less than it does elsewhere. Strong personal credit helps considerably.
Can I finance used equipment?
Usually. Age and condition affect the terms, and you will still need a quote or invoice from the seller.
Do I own the equipment?
Under a finance agreement you generally own it with a lien registered against it, released when the balance clears. A lease works differently, so check which you are being offered.
See whether this fits your business
A few questions and we will match your answers against what each lending partner requires. Two minutes, and checking will not affect your credit score.
US Loan Portal is not a lender and does not make credit decisions. We provide information and introduce business owners to third-party lending partners. All funding is subject to lender approval, and amounts, rates, and terms are set by the lender. Ranges shown are typical and not an offer of credit.
Find out in two minutes
A few questions, no documents, and nothing happens to your credit score.
Checking won’t affect your credit score.