Apply for Equipment Financing: Best Lenders, Rates & How to Qualify

Buying equipment is often the single largest near-term expense for a small business. Whether it’s manufacturing machinery, delivery trucks, medical devices, or IT infrastructure, the right equipment can drive growth—but paying cash upfront can strain working capital. That’s why many business owners choose to apply for equipment financing instead.

In 2025, applying for equipment financing makes even more sense due to three major factors:

• Higher base interest rates compared with the ultra-low rate era.

• New lease and loan products that give businesses more flexibility.

• Restored 100% bonus depreciation, making loan-financed purchases far more tax-advantaged.

Instead of delaying critical upgrades or draining your reserves, you can apply for financing to spread payments over time while still taking advantage of immediate tax benefits.

👉 Ready to move forward? You can apply for equipment financing online today and compare top lenders to secure the best rates and terms for your business.

Best Equipment Financing Lenders

Here are some lenders currently operating and offering equipment financing. You can compare their core features, strengths, and how quickly you can apply & get funded.

How to Apply for Equipment Financing

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How to Apply for Equipment Financing: Step-by-Step

Applying for equipment financing doesn’t have to be confusing. Here’s a streamlined process to get your application submitted, approved, and funded—focusing on applying for equipment financing and equipment financing application intents.

Tips to Streamline Your Application & Boost Approval Odds

• Maintain strong business credit & personal credit scores.

• Have vendor quote/invoice ready (equipment specs, cost).

• Show stable cash flow & revenue history. Even 1 year of operations helps.

• Know whether you want a loan or a lease—loans usually offer tax benefits; leases offer flexibility.

• Be transparent about equipment age or condition if buying used. Some lenders, like Crest Capital & Balboa Finance, used equipment.

• Work with your accountant for tax incentives (Section 179, bonus depreciation), which can affect whether you should buy (loan) vs lease.

Equipment Loans vs Equipment Leases — Which Should You Apply For?

When you apply for equipment financing, one of the first decisions is whether to pursue a loan or a lease. Both options let you access the equipment your business needs, but the right choice depends on your goals, cash flow, and tax strategy.

Equipment Loan (Ownership Financing)

• What it is: You borrow funds to purchase the equipment. Once the loan is repaid, the equipment is yours.

• Best for: Long-term use, when ownership matters (e.g., trucks, heavy machinery, manufacturing equipment).

• Balance sheet impact: Equipment appears as an asset, with a loan liability.

• Rates: Usually lower than leases, especially with strong credit. Banks, SBA, and credit unions often offer competitive terms.

• Tax treatment: Eligible for Section 179 expensing and 100% bonus depreciation in 2025 — meaning you may deduct the full cost in year one.

If you want to own your assets and maximize tax benefits, apply for an equipment loan.

Equipment Lease (Usage Financing)

• What it is: You pay to use the equipment for a set period, with the option to return, renew, or buy it at the end.

• Best for: Short-lifecycle assets (computers, medical devices, IT infrastructure) where upgrades are frequent.

• Balance sheet impact: Depending on the lease type, it may stay off-balance-sheet, improving financial ratios.

• Rates: Monthly payments are predictable but often higher than loans over the same period.

• Tax treatment: Lease payments are deductible as operating expenses.

If flexibility and lower upfront costs matter most, apply for an equipment lease.

Side-by-Side Comparison

Equipment Financing Rates & Market Trends

When you apply for equipment financing, one of the biggest questions is: What will it cost me? Rates and terms vary widely depending on your credit profile, the type of equipment, and the lender you choose. While interest rates shift with the economy, certain patterns hold true year after year.

Typical Equipment Financing Rates

• Banks & Credit Unions – Often the most competitive for strong-credit borrowers. Rates are usually tied to prime + a small margin. Historically, this has landed in the 6%–12% range, though economic cycles can push this higher or lower.

• SBA Loans (7(a), 504) – Backed by the U.S. Small Business Administration, these programs offer some of the best long-term rates, often comparable to banks but with longer repayment terms. Ideal for businesses that qualify and don’t mind a more detailed application.

• Online & Specialty Lenders – Faster approvals, fewer paperwork requirements, and flexible underwriting. The trade-off is cost: expect 10%–30% APR depending on borrower profile and equipment type.

• Vendor & Manufacturer Financing – Some vendors subsidize financing with low or promotional rates to drive sales. Great if you want to apply directly where you buy equipment.

Market Trends That Shape Equipment Financing

1. Interest Rate Environment

   • Rates rise and fall with the Federal Reserve’s policy and economic cycles. Applying when rates are lower can lock in significant savings over the loan term.

2. Tax Incentives

   • Section 179 and Bonus Depreciation provisions frequently change. In recent years, 100% bonus depreciation has made loan-financed purchases especially attractive. Always consult your CPA before applying.

3. Digital Underwriting & Approvals

   • More lenders are shifting to online applications with instant pre-approvals, making it easier than ever to apply for equipment financing without piles of paperwork.

4. Hybrid Loan-Lease Products

   • Some financiers now offer “lease-to-own” or hybrid agreements that combine the flexibility of leasing with the ownership benefits of loans.

Rate Example: Loan vs. Lease

This shows why many businesses choose to apply for equipment loans when ownership and tax benefits are valuable, and leases when flexibility is more important.

Key Takeaway

If you want the lowest total cost, apply for bank or SBA equipment loans when possible. If speed and simplicity matter most, apply online with specialty lenders. If you value flexibility and frequent upgrades, apply for an equipment lease.

Application Checklist — What You Need to Apply for Equipment Financing

When you’re ready to apply for equipment financing, preparation is everything. Lenders move much faster when you provide complete documentation up front. While requirements vary by lender, most equipment financing applications ask for the following:

Business & Financial Documents

• Business tax returns (2 years, if available) – Shows financial stability.

• Recent bank statements (3–12 months) – Verifies cash flow.

• Balance sheet & profit/loss statements – Lenders assess debt capacity and profitability.

• Business license, EIN, or incorporation papers – Confirms legal business status.

Personal Information (for small business owners)

• Personal tax returns (1–2 years) – Common for closely-held businesses.

• Personal credit score & history – Especially important if the business is new or has limited credit.

• Government-issued ID – Required for identity verification.

Equipment Details

• Vendor quote or invoice – Make, model, price, and intended use.

• Serial number (if available) – For used equipment financing.

• Condition & expected useful life – Lenders weigh the resale value as collateral.

Additional Documents (if requested)

• Business plan or projections – More common for startups.

• Guarantor information – If a personal guarantee is required.

• Insurance information – Some lenders want proof that the equipment will be insured.

Why This Matters

Submitting a complete equipment financing application increases your approval odds and speeds up funding. Many online lenders can issue a decision in 24–72 hours if your documents are ready. Banks and SBA lenders may take longer, but thorough preparation reduces delays.

👉 Whether you apply online or through a bank, having this checklist ready means you’re less likely to face back-and-forth requests that slow the process.

Tips to Get Approved Faster for Equipment Financing

Submitting your equipment financing application is only half the battle—getting approved quickly is the other. Whether you apply through a bank, an SBA lender, or an online financing company, the following steps can improve your approval odds and speed.

1. Strengthen Your Credit Profile

• Personal credit matters if your business is young or has a limited credit history. Aim for a FICO score above 650 for the best options.

• Business credit reports (Dun & Bradstreet, Experian Business, Equifax Business) are increasingly used by lenders. Pay vendors on time to build your profile.

2. Show Consistent Cash Flow

• Lenders want proof that your business can handle the monthly payments.

• Upload 3–12 months of business bank statements with your application to demonstrate stability.

• If cash flow is seasonal, consider lenders like Crest Capital or Balboa Capital, which offer flexible payment structures.

3. Choose the Right Type of Financing

• Apply for an equipment loan if you want long-term ownership, tax benefits, and lower interest rates.

• Apply for an equipment lease if you want predictable payments, lower upfront costs, or plan frequent upgrades.

• Hybrid “lease-to-own” structures are also available if you want flexibility without losing ownership benefits.

4. Prepare Collateral and Guarantees

• For many equipment loans, the equipment itself acts as collateral.

• Higher-value financing may require a personal guarantee—be prepared to provide one if asked.

• Demonstrating additional assets or guarantees can strengthen borderline applications.

5. Apply Online for Speed

• Online equipment financing lenders often provide pre-approval in minutes and funding within 24–72 hours.

• Banks and SBA lenders may take weeks, but they are ideal for businesses that qualify and want the lowest rates.

• Applying online first can help you compare offers and understand what’s realistic before committing.

6. Work With Your Accountant

• A CPA can help you highlight tax benefits (Section 179, bonus depreciation) in your application.

• Showing how financing impacts your after-tax cash flow reassures lenders that you can manage repayment.

Quick Takeaway

The fastest approvals usually come from online equipment financing applications. The most affordable rates usually come from banks or SBA loans. If you want both speed and cost savings, apply with at least one bank, one specialty lender, and one online platform—then compare results.

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FAQs About Applying for Equipment Financing

Here are answers to the most common questions business owners ask before they apply for equipment financing:

Can startups apply for equipment financing?

Yes. While established businesses with strong credit histories have more options, many specialty lenders and online financiers offer startup equipment financing. Terms may be stricter—expect higher rates, shorter repayment periods, or a personal guarantee—but approval is possible if you have a strong business plan and good personal credit.

How do I apply for equipment financing online?

Most lenders now allow you to apply online for equipment financing in just a few minutes. The process usually involves filling out a short application, uploading financial documents (bank statements, tax returns, equipment invoices), and receiving a pre-approval decision quickly—sometimes within the same business day.

Is it easier to get approved for an equipment loan or a lease?

Generally, leases are easier to get approved for because the lender retains ownership of the equipment, lowering their risk. Loans often require stronger credit and more documentation, but they usually come with lower overall costs and ownership benefits.

What credit score do I need to apply for equipment financing?

For the best rates, lenders typically prefer a credit score of 650+. However, some online and specialty lenders approve borrowers with lower scores (even in the 500s), though at higher interest rates.

Can I finance used equipment?

Yes, many lenders allow you to apply for financing on used equipment. Terms may be slightly less favorable than for new equipment because used assets depreciate faster, but financing is often available—especially for high-resale-value assets like vehicles or construction machinery.

How long does the approval process take?

• Online lenders: 24–72 hours (sometimes same-day).

• Banks & credit unions: 1–2 weeks.

• SBA loans: 2–6 weeks, depending on the program.

Do I need collateral to apply for equipment financing?

Often, the equipment itself serves as collateral. In higher-risk situations, a lender may also request a personal guarantee or additional collateral (like real estate or other business assets).

Conclusion — Apply for Equipment Financing Today

For many small businesses, equipment is the backbone of growth. Whether it’s trucks to expand deliveries, machinery to boost production, or technology to stay competitive, acquiring the right tools at the right time is critical.

Instead of draining your cash reserves, you can apply for equipment financing to spread out costs, preserve working capital, and take advantage of valuable tax incentives. With Section 179 and bonus depreciation still in play, financing your equipment can often be more tax-efficient than paying up front.

Here’s the bottom line:

• Apply for an equipment loan if you want ownership, tax benefits, and lower long-term costs.

• Apply for an equipment lease if you want flexibility, predictable monthly payments, and frequent upgrades.

• Apply online if you want speed, or through banks/SBA lenders if you want the lowest rates.

Don’t wait until outdated tools slow down your business. Compare top lenders, prepare your documents, and start your equipment financing application today.

Your business growth shouldn’t be on hold—apply now and secure the equipment that will power your next stage of success.