Equipment Financing: Loans and Leases for Business Equipment
Equipment financing helps you buy or lease machinery, vehicles, technology and other business equipment. The equipment itself typically serves as collateral, which can make approval easier than for unsecured options.
Common uses
- Vehicles and trucks
- Manufacturing and construction equipment
- Restaurant and medical equipment
- Computers and technology
General qualification criteria
| Criteria | General expectation |
|---|---|
| Personal credit | Often 600 or higher; secured by the equipment, so standards can be more flexible |
| Time in business | Often one or more years; some lenders work with newer businesses |
| Down payment | Often 0–20%, depending on the lender, equipment and credit |
| Collateral | The equipment itself typically secures the financing |
| Cash flow | Revenue sufficient to cover payments |
| Documents | Equipment quote or invoice, bank statements and basic business documents |
These are general, commonly cited guidelines and not guarantees. Each provider sets its own requirements, and meeting them does not ensure approval.
What providers typically look for
- Time in business and annual revenue (minimums vary by lender)
- Personal and business credit profile
- Recent business bank statements and tax returns
- Business formation documents and ID
- Equipment quote or invoice
Requirements vary by provider.
Pros
- Equipment secures the financing
- Preserves working capital
- Terms often match the equipment’s useful life
Cons
- Equipment can be repossessed if you default
- Down payments may be required
- Leases may not build equity
Related comparisons
Frequently asked questions
Loan or lease?
A loan typically leads to ownership once repaid. A lease may offer lower payments and end-of-term options, which vary by contract. Ask about buyout terms.
Can I finance used equipment?
Many lenders do, with terms depending on age and condition.
What is Section 179?
It is a tax provision related to deducting equipment costs. Ask a tax professional how it applies to you.
Other financing options
SBA Loans · Small Business Loans · Business Lines of Credit · Business Credit Cards
Epic Capital Solutions is not a lender, broker or issuer and does not make credit decisions. Information is general and not financial, legal or tax advice. Rates, fees and terms are set by providers and may change.