From opening a new medical practice to expanding a restaurant chain, having the latest machinery and technology upgrades helps you stay relevant and ahead of the competition. With equipment financing, you can purchase the equipment you need to successfully run your business without depleting your working capital.
The most common lenders for equipment loans are banks and online lenders. Acquiring an equipment loan can be simple for most small businesses as long as you meet the lenders’ requirements. In this guide, we’ll compare the best equipment financing companies to help you match with the right lender.
Clarify Capital
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Why it’s a good choice: Clarify Capital supports thousands of small businesses nationwide and across a wide range of industries. With flexible eligibility and a network of over 75 lenders, we help streamline the application process to provide your business with fast, same-day funding.
Loan Amount Range: $10,000-$5 Million
Minimum Credit Score: 550
Small Business Administration
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Why it’s a good choice: The U.S. Small Business Administration (SBA) offers a wide selection of loans that are flexible to use for any business need, including purchasing equipment. Since the SBA guarantees a percentage of every SBA loan, most small business owners can secure them with low down payments and interest rates.
Loan Amount Range: Up to $5 Million
Minimum Credit Score: 650
Bank of America
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Why it’s a good choice: To purchase general-purpose equipment, Bank of America offers equipment financing as well as a line of credit with fixed rates as low as 6.75%. Through its business rewards program, you can take advantage of up to a 0.75% discount on interest rates.
Loan Amount Range: $25,000-$5 Million
Minimum Credit Score: 700
OnDeck
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Why it’s a good choice: OnDeck offers lines of credit and term loans, including same-day loans, for small businesses to purchase necessary equipment in quick turnaround time. It also reports on-time payments to credit bureaus, helping you build business credit over time.
Loan Amount Range: $5,000-$250,000
Minimum Credit Score: 625
Balboa Capital
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Why it’s a good choice: Balboa Capital offers up to $500K for equipment financing, which is helpful for companies purchasing heavy machinery. Quick loan approval within the hour is also available, but hard collateral is required.
Loan Amount Range: $5,000-$500,000
Minimum Credit Score: 620
Fundbox
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Why it’s a good choice: Fundbox is willing to work with businesses with less than six months in operation, which is advantageous for startups. It also has a low credit score requirement, offering same-day approval and next-day loans.
Loan Amount Range: $1,000-$150,000
Minimum Credit Score: 600
Funding Circle
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Why it’s a good choice: Funding Circles offers a wide selection of loans for small businesses as well as long-term loans up to seven years. It also doesn’t require applicants to meet a minimum revenue.
Loan Amount Range: $25,000-$500,000
Minimum Credit Score: 660
Fortunately, receiving equipment financing is easier since the equipment will serve as collateral. However, requirements for small business owners may still vary by lender. Here are ways to prepare for an equipment loan and narrow your lender options.
1. Check Your Eligibility
When applying for general business loans, lenders typically look at personal credit score, time in business, and annual revenue. They’ll also consider the value of your equipment, including the condition and resale value, to determine how much you can qualify for and your ability to repay the loan.
2. Gather Required Documents
Most lenders also request proof of your business’s performance credit history. They’ll likely ask for documents, including bank statements, your business plan, personal and business tax returns, personal credit score, and any licenses or certifications (if applicable).
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