Get the equipment your business needs — and pay for it over time.
Equipment financing lets you acquire machinery, vehicles, technology, and tools now and spread the cost across the years you'll use them. Because the equipment itself usually secures the loan, approval is often easier than unsecured financing. Learn exactly how it works, what it costs, and how to qualify — then compare lenders through Fundur with a single application.
Fundur is a financing marketplace, not a lender. Checking your options is a soft inquiry that won't affect your credit score.
monthly payment $1,431/mo
Illustrative only — shown at ≈9.9% APR over 60 months. Your price, rate, down payment, and term depend on the lender, the equipment, and your business qualifications.
What is equipment financing?
Equipment financing is business funding used to buy a specific piece of equipment — and the equipment itself typically serves as the collateral. That "self-securing" structure is what makes it one of the more accessible ways to fund a major purchase.
With an equipment loan, a lender advances the money to purchase a defined asset — a truck, an oven, a CNC machine, a dental chair, a server rack — and you repay it in fixed monthly installments over a set term. When the loan is paid off, you own the equipment outright.
The key difference from a general business term loan is the collateral. Because the loan is tied to a physical asset the lender can repossess and resell if you don't pay, the lender takes on less risk. That's why equipment financing is often available to newer businesses, or at better terms, than a completely unsecured loan — the equipment is doing part of the work of qualifying you.
Lenders can often finance up to 100% of the price for strong borrowers and late-model gear, though many deals ask for a modest down payment. Financing amounts commonly run from about $10,000 to $5 million or more, and the repayment term is usually matched to how long the equipment will stay useful.
The collateral protects the lender, not you. Most lenders also file a UCC-1 lien on the equipment and ask owners for a personal guarantee — but that security is exactly what earns you access and a competitive rate.
How does equipment financing work?
From the quote to the title, an equipment loan moves through four straightforward stages. The whole process is built around one asset with a known value and a known lifespan.
Get a quote
You choose the equipment and get a price or invoice from a vendor. That quote defines exactly what's being financed.
Apply & get approved
The lender reviews your business, your credit, and the equipment itself — its type, condition, and resale value all factor in.
Lender pays the vendor
On approval, the lender funds the purchase — often paying the vendor directly — and files a UCC-1 lien on the asset.
Repay & own it
You make fixed monthly payments over a term matched to the equipment's useful life. At payoff, the lien is released and it's fully yours.
The term is matched to the equipment's useful life
This is the principle underneath everything: lenders set the repayment term to roughly how long the equipment will keep earning. Heavy, long-lived assets like semi-trucks or CNC machinery often stretch to 60–84 months, while faster-aging gear like restaurant equipment or IT hardware tends to run 24–48 months. If the remaining useful life is shorter than the loan you're asking for, most lenders will decline — they don't want the loan to outlive the collateral.
Collateral and a personal guarantee
The financed equipment is the primary collateral, and the lender records that claim with a UCC-1 filing on that specific asset. Most lenders also require a personal guarantee from owners of roughly 20% or more, which makes you personally responsible if the business can't repay. Some deals — especially used equipment, older assets, or weaker credit — may ask for an additional down payment or extra collateral.
A landscaping company buys a $60,000 compact track loader it expects to run for 8+ years. The lender approves a 60-month term because the machine will comfortably outlast the loan. The loader secures the financing, the owner signs a personal guarantee, and payments stay fixed for the life of the loan.
- Collateral: the equipment itself
- Payments: fixed, monthly
- Term: matched to useful life
- Ownership: yours at payoff
Equipment loan vs. equipment lease
"Equipment financing" covers two paths to the same goal — using equipment you can't pay for in cash up front. A loan builds ownership; a lease prioritizes lower payments and flexibility. The right choice depends on how long you'll keep the asset.
Equipment loan
You borrow to buy, then own it outright.
- You own the equipment from day one and build equity as you repay.
- Often needs a down payment (0–20%), so slightly more cash up front.
- May qualify for Section 179 or bonus depreciation the year it's placed in service.
- Best when the asset has a long useful life you'll keep for years.
Choose a loan for trucks, heavy machinery, ovens — durable gear you intend to keep well past payoff.
Equipment lease
You pay to use it, with options at the end.
- Lower monthly payments and often little or no money down, preserving cash.
- At term end you typically return, renew, or buy (a $1-buyout lease works much like a loan; a fair-market-value lease keeps you flexible).
- Easier to upgrade when the equipment is replaced on a cycle.
- You may not own the asset — and total cost can be higher if you keep buying out.
Choose a lease for technology and gear that goes obsolete fast — computers, diagnostics, POS systems.
Fundur helps you compare both loan and lease structures from different lenders so you can see the real monthly cost side by side. Tax treatment differs between loans and leases — confirm the details with your accountant.
Types of equipment you can finance
If it's a tangible asset your business uses to make money — and it has resale value — there's a good chance it can be financed. That includes the "soft costs" that come with it.
Many lenders can bundle soft costs (shipping, installation, setup) into the loan, though some cap them as a percentage of the equipment price. New and used equipment both qualify — see new vs. used below.
Equipment financing rates, costs, down payments & terms
There's no single equipment financing rate — it's a range driven by your credit, your time in business, the equipment, and the lender. Here's how the numbers actually shape up in 2026.
What drives your rate
Equipment financing rates in 2026 generally run from about 7% for the strongest borrowers at banks to 25%+ for weaker credit with alternative lenders. Where you land depends mostly on four things: your credit profile, how long you've been in business, the type and condition of the equipment, and how much you put down. New, easily-resold equipment and strong credit push the rate down; older or specialized gear and thin credit push it up.
Illustrative ranges, not quotes. Rates move with the broader market and vary by lender and equipment.
Down payments and terms
Down payments commonly range from 0% to 20%. Strong borrowers buying new, late-model equipment can sometimes secure 100% financing, while used equipment, older assets, or weaker credit more often require 5–20% down. Terms run roughly 2 to 7 years (24–84 months), always tied back to the equipment's useful life.
Illustrative only — not a quote or an offer. Actual figures depend on the lender, the equipment, your rate, and your term. This does not account for potential tax treatment. Fundur is a financing marketplace, not a lender.
Financed and leased equipment can often still qualify for Section 179 expensing or bonus depreciation in the year it's placed in service (the 2026 Section 179 limit is $2,560,000). Rules and eligibility vary — confirm with your tax professional before counting on any deduction.
Eligibility: what lenders evaluate
Equipment financing weighs two things most: you (your business and credit) and the asset (its value and lifespan). Because the equipment carries part of the risk, requirements are often more forgiving than unsecured lending.
Financing new vs. used equipment
Both are financeable — the question is the trade-off. New equipment usually earns better terms; used equipment costs less to buy but faces more scrutiny on age and condition.
| Rates | Lower — least risk to the lender |
| Term length | Longer — full useful life ahead |
| Down payment | Lower — sometimes 0% for strong files |
| Warranty | Typically included |
| Best for | Core, long-life assets you'll keep for years |
| Rates | Higher — more risk, faster wear |
| Term length | Shorter — capped by remaining life |
| Down payment | Often 5–20%, more for older gear |
| Age limits | Commonly financeable up to ~7–10 years old |
| Best for | Stretching capital; proven, resaleable machines |
With used equipment, condition and remaining useful life matter more than age alone — a well-maintained machine with a strong resale market can finance more easily than a newer but niche asset. Private-party sales are usually harder to finance than dealer purchases and may need an appraisal.
Who uses equipment financing
Any business that relies on physical assets to operate is a candidate. These are the industries where equipment financing does the most work.
Also common: auto repair, fitness studios, salons and spas, printing, dry cleaning, and specialty trades. If the asset earns revenue, it's usually financeable.
Equipment financing vs. other business financing
Equipment financing shines when you're buying one defined asset. For ongoing or general-purpose needs, another product may fit better. Here's how the main options compare.
| Equipment financing | Term loan | Line of credit | Working capital loan | SBA 504 | |
|---|---|---|---|---|---|
| Best for | Buying one specific asset | A general lump-sum need | Ongoing, flexible cash | Everyday operating costs | Large assets & real estate |
| Collateral | The equipment itself | Varies / may be unsecured | Often unsecured | Usually unsecured | The financed asset |
| Structure | Fixed monthly, set term | Fixed monthly, set term | Revolving; draw as needed | Fixed payments, short term | Long-term, fixed rate |
| Typical term | 2–7 years | 1–5 years | Revolving | 3–18 months | 10–25 years |
| Speed | Often 1–3 days | Days to weeks | Days | Often same/next day | Weeks to months |
| Ownership | Yours at payoff | N/A (cash) | N/A (cash) | N/A (cash) | Yours at payoff |
Not sure which fits? Compare a line of credit, term loan, working capital loan, and SBA loan — or apply once through Fundur and see the options you actually qualify for.
How to get equipment financing
Because the loan is built around one asset, applying is fast. Have your equipment quote and a few months of bank statements ready and you can often get a decision the same day.
Pick your equipment
Get a quote or invoice from the vendor. This sets the amount and defines the collateral.
Submit one application
Apply through Fundur with basic business details and the equipment quote — it's a soft credit check.
Compare offers
Review loan and lease options across lenders — rate, term, down payment, and monthly cost side by side.
Fund & take delivery
Sign, the lender pays the vendor, and you put the equipment to work — often within a few business days.
What you'll typically need
How fast can it fund?
Smaller, standard deals with strong credit can be approved in hours and funded in 24–72 hours. Larger amounts, used or specialized equipment, or deals needing an appraisal take longer. Providing a clean equipment quote and complete statements up front is the single biggest speed-up.
Benefits and trade-offs
Equipment financing is one of the most practical tools in small-business lending — but like any financing, it's a fit for some situations and not others.
Benefits
- Preserve cash. Get the asset now without draining your reserves.
- Easier to qualify. The equipment secures the loan, so approval is often more accessible.
- Fixed, predictable payments that you can match to the revenue the equipment generates.
- You build ownership — the asset is yours at payoff (with a loan).
- Potential tax benefits like Section 179 or bonus depreciation (confirm with your accountant).
- Fast funding compared with most conventional financing.
Trade-offs
- Tied to one asset. The funds buy equipment — not general working capital.
- A lien and personal guarantee are typical, putting you on the hook if the business can't pay.
- You own the aging. With a loan, obsolescence and maintenance are yours.
- Down payment may be required, especially for used or older equipment.
- Rates vary widely with credit and the asset — weaker files pay meaningfully more.
A simpler way to finance equipment
Fundur is a financing marketplace. Instead of applying to lenders one at a time, you submit a single request and compare the options you qualify for — with no obligation and no hit to your credit to look.
Fundur is not a lender and does not make credit decisions or guarantee approval, rates, terms, or funding times. Offers come from third-party lenders and depend on your business qualifications and the equipment. All figures on this page are illustrative and are not an offer of credit.
Equipment financing FAQs
How does equipment financing work?+
A lender advances the money to buy a specific piece of equipment, and that equipment serves as the collateral. You repay in fixed monthly installments over a term matched to the equipment's useful life. When the loan is paid off, you own the equipment outright. Most lenders also file a UCC-1 lien on the asset and ask owners for a personal guarantee.
What credit score do I need for equipment financing?+
Many lenders prefer a personal credit score of 600 or higher, with the best rates going to scores above 680–700. Because the equipment secures the loan, some lenders will approve scores in the 500s — usually with a larger down payment or a higher rate. Your time in business, revenue, and the equipment itself all factor in alongside credit.
What's the difference between an equipment loan and an equipment lease?+
With a loan you borrow to buy the equipment and own it once it's paid off, usually after a small down payment. With a lease you pay to use the equipment, typically with lower payments and little money down, and at the end you can return it, renew, or buy it. Loans suit long-life assets you'll keep; leases suit equipment that goes obsolete quickly or that you like to upgrade on a cycle.
Do I need a down payment?+
Not always. Strong borrowers buying new, late-model equipment can sometimes get 100% financing with nothing down. More commonly, down payments range from 0% to 20% — used equipment, older assets, and weaker credit tend to require more money up front.
Can I finance used equipment?+
Yes. Used equipment is commonly financeable up to roughly 7–10 years of age, though some specialty lenders go older. Condition, remaining useful life, and resale value matter more than age alone. Expect slightly higher rates, shorter terms, and often a larger down payment than on new equipment, and note that private-party sales can be harder to finance than dealer purchases.
How fast can I get funded?+
Smaller, standard deals with good credit can be approved within hours and funded in about 24–72 hours. Larger amounts, specialized or used equipment, or deals that need an appraisal take longer. Having a clean equipment quote and recent bank statements ready is the fastest way to move things along.
Is equipment financing tax-deductible?+
Financed and leased equipment can often qualify for Section 179 expensing or bonus depreciation in the year it's placed in service, and interest may be deductible — but the rules have limits and conditions. This page is educational and not tax advice; confirm your specific situation with a qualified tax professional.
Will applying hurt my credit?+
Checking your options through Fundur is a soft inquiry and does not affect your credit score. If you move forward with a specific lender, that lender may run a hard credit check as part of final underwriting.
Is Fundur a lender?+
No. Fundur is a financing marketplace that connects business owners with third-party lenders. We don't make credit decisions or guarantee approval, rates, terms, or funding times — those come from the lenders based on your business and the equipment.
Ready to finance your equipment?
See the equipment loan and lease options you qualify for — one application, multiple lenders, no impact to your credit to check.
Fundur is a financing marketplace, not a lender. Checking your options is a soft inquiry that won't affect your credit score.