What is equipment financing?
Equipment financing is a specialized category of business lending where the loan is secured by the equipment you are buying. The equipment itself serves as collateral, which makes approvals faster and down payments lower than unsecured business loans.
If you run a construction company, a trucking fleet, a medical practice, a restaurant, or any business where physical assets generate revenue, equipment financing is almost always the cheapest way to acquire what you need.
How much of the equipment cost is typically financed?
In 2026 the market standard is up to 100% of the equipment cost, with many deals closing at 0% down payment for borrowers with solid credit. Lenders that require a down payment usually ask for 10% of the equipment price, plus soft costs like taxes and delivery.
Total loan amounts range from $5,000 for a single piece of kitchen equipment to $2 million for a semi tractor or an industrial CNC machine. Our direct lender partners cover this entire range.
Lease vs. finance: which one do you want?
Equipment financing comes in two flavors, and choosing between them is the most important decision you will make:
Equipment Loan
You own the equipment from day one. The loan is like a car loan — fixed monthly payments, fixed interest rate, and when the loan is paid off, the equipment is yours free and clear. The equipment acts as collateral until the loan is fully repaid.
Choose a loan when: you plan to keep the equipment for its full useful life, you want the tax advantages of Section 179 depreciation, and ownership equity matters to your balance sheet.
Equipment Lease
The lender owns the equipment. You pay for the right to use it. At the end of the lease you typically have three options: buy it out (often for $1 on a capital lease), return it, or upgrade to a newer model.
Choose a lease when: you expect the equipment to become obsolete before it is paid off (technology equipment is a classic example), you want the lowest possible monthly payment, or you prefer to preserve cash for other uses.
Who qualifies in 2026?
Equipment financing is one of the most accessible forms of business credit because the collateral reduces lender risk. Typical minimums across our partner network:
- Time in business: 12+ months
- Monthly revenue: $10,000+
- Personal credit score: 620+ (some lenders go to 600 for lower amounts)
- Equipment quote: from a vendor, dated within the last 30 days
- Down payment: 0% to 10% depending on credit profile
Industries we fund
Every industry that uses physical equipment is fundable. The biggest verticals in 2026:
- Construction: excavators, loaders, skid steers, cranes, lifts, trailers
- Trucking: Class 8 tractors, day cabs, sleeper cabs, reefers, flatbeds
- Medical and dental: imaging, surgical, dental chairs, x-ray, lab equipment
- Manufacturing: CNC machines, presses, welders, robotics, packaging lines
- Restaurants: ovens, walk-in coolers, hoods, dishwashers, POS systems, furniture
- Auto repair: lifts, alignment machines, diagnostic computers, paint booths
The Section 179 tax advantage
One of the biggest reasons to buy rather than lease in 2026 is Section 179 of the US tax code. Section 179 lets you deduct the full purchase price of qualifying equipment in the year you place it in service, rather than depreciating it over 5 or 7 years.
For most small businesses that translates into a significant tax savings, often enough to cover several months of loan payments. Consult your CPA about your specific situation.
How fast can you close?
Equipment financing typically closes in 1 to 5 business days from application to funding. The only step that ever causes delays is the vendor quote. Lenders need a formal quote from the equipment dealer before they can fund, and getting that quote is usually on you.
Pro tip: have your equipment quote ready before you apply. That alone can cut 48 hours off the timeline.
Ready to finance your equipment?
Submit our 3-minute application and we will match you with the equipment lender most likely to approve your specific situation. Or call 1-866-315-LEND to talk to a funding specialist before you apply.