Equipment Financing
Finance the equipment you need to grow your business. The equipment itself serves as collateral, making approval easier.
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What is Equipment Financing?
Equipment financing is a type of loan specifically designed to help businesses purchase the equipment they need to operate and grow. The equipment itself serves as collateral for the loan, which typically makes it easier to qualify and often results in better rates.
This financing option is perfect for businesses that need machinery, vehicles, technology, or other equipment but don't want to tie up their working capital. You can finance new or used equipment, and repayment terms are usually aligned with the useful life of the equipment.
Pros
- Equipment serves as collateral
- Easier approval than unsecured loans
- Competitive interest rates (6–12%)
- Preserves working capital
- Potential tax benefits
Cons
- Equipment must have resale value
- Risk of losing equipment if you default
- May require down payment (10–20%)
- Limited to equipment purchases only
- Equipment may become obsolete before loan is paid
Who Should Consider Equipment Financing?
Equipment financing is ideal for businesses that need to purchase or upgrade equipment but want to preserve their cash reserves. It's perfect for:
- Construction companies needing machinery
- Restaurants purchasing kitchen equipment
- Medical practices buying diagnostic tools
- Transportation companies acquiring vehicles
- Manufacturing businesses upgrading production lines
- Tech companies purchasing servers or hardware
Eligibility Requirements
6+ months in business
Relatively new businesses can qualify
Credit score 600+
Equipment as collateral makes approval easier
Finance up to 100% of cost
Some lenders offer full equipment value
Terms: 2–7 years
Aligned with equipment useful life
Rates & Terms Breakdown
| Feature | Details |
|---|---|
| Loan Amount | $5,000 – $5,000,000 |
| Interest Rate | 6% – 12% (fixed) |
| Repayment Term | 2 – 7 years |
| Approval Time | 2 – 5 business days |
| Collateral | Equipment being financed |
| Down Payment | 0% – 20% (varies by lender) |
| Prepayment Penalty | Varies by lender |
| Best For | Machinery, vehicles, technology, medical equipment |
Is Equipment Financing Right for You?
If you need equipment to operate or grow your business but don't want to deplete your cash reserves, equipment financing is an excellent option. The equipment serves as collateral, making approval easier and rates more competitive.
Ready to Get Started?
Apply in minutes and get the equipment your business needs to succeed.
Rates, Terms & Approval Disclosure: All loan amounts, interest rates, repayment terms, and funding timelines shown on this page are representative ranges only and are not guaranteed. Actual offers are determined by individual lender underwriting criteria and depend on your business revenue, credit profile, time in business, and other factors. Approval is not guaranteed. Capital Corner is a loan broker — not a direct lender — and does not make credit decisions. We connect applicants with our network of third-party lending partners who make all final lending decisions. Submitting an application does not constitute a commitment to lend, and no funds will be disbursed without a signed agreement from an approved lender. Results vary. Not all applicants will qualify for the amounts or rates advertised. This information is for general educational purposes only and does not constitute financial, legal, or tax advice.