What rate can I expect?

Rates range from 7.99% APR (top-tier credit, new equipment) to 18% APR (used equipment, weaker credit).

Is a down payment required?

$1 buyout loans typically require $0 down. Specialty/used equipment or weaker credit may require 10–20% down.

How long does funding take?

Most equipment loans close in 3–7 days from quote to vendor payment. Same-week funding is common for clean files.

Can a startup finance equipment?

Yes — startup-friendly equipment programs exist, typically requiring 10–25% down and a stronger personal credit profile.

A federal tax provision allowing businesses to deduct the full purchase price of qualifying equipment in the year placed in service, up to an annual cap (~$1.16M for 1969).

Can I finance soft costs (delivery, install)?

Yes — most lenders include 10–20% in soft costs (delivery, installation, training, warranties).

Lease or loan — which is better?

$1 buyout loans are best for long-life assets (trucks, machinery). True leases work for fast-depreciating tech (computers, software).

Will the lender require an inspection?

Used equipment over a certain age (typically 5+ years) may require a third-party inspection or appraisal.

Can I finance equipment from a private seller?

Possible but harder. Lenders prefer dealer/vendor transactions with full documentation. Private-party deals typically require more down.

Is the equipment loan reported to credit?

Many equipment lenders report to business credit bureaus. Personal credit reporting varies.

Can I refinance existing equipment loans?

Yes — refinancing higher-rate equipment paper into lower fixed-rate financing is common, especially after 12+ months of clean payments.

Equipment

Equipment Financing

Up to 100% financing for the gear you need.

Equipment financing lets you purchase or lease business equipment with the equipment itself acting as collateral. Simply Approved Business Loans funds up to 100% of equipment cost with terms up to 7 years and rates from 7.99% APR for trucks, machinery, restaurant gear, medical, and tech.

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Amount

$10,000 – $5,000,000

Term

1 – 7 years

Speed

Funded in 3–7 days

Best for

5 use cases

Best for

Trucking & fleet purchases
Restaurant kitchen equipment
Medical & dental practices
Construction machinery
Manufacturing & CNC tools

Key features

Up to 100% financing
Equipment serves as collateral
Section 179 tax deduction eligible
New & used equipment qualify
Quick pre-approval process

How Equipment works

Equipment financing is a secured loan or lease where the equipment itself serves as collateral. Because the lender has a recoverable asset, equipment financing offers lower rates and easier approval than unsecured loans.

There are two structures: a $1 buyout loan (you own the equipment at end of term) and a true lease (you have an option to buy at fair market value). $1 buyout is standard for trucks, machinery, and most operational equipment; true leases work for tech that depreciates fast.

Most lenders fund up to 100% of equipment cost including soft costs (delivery, installation, training). The vendor is paid directly; equipment is shipped to you.

Qualifications

Time in business	6+ months (startup programs available)
Min FICO	550
Down payment	$0 typical for $1 buyout
Documents	App + vendor quote + 3 months bank statements

Pros

Up to 100% financing — preserves cash
Equipment is the collateral — easier approval
Section 179 tax deduction in year of purchase
Terms up to 7 years on heavy equipment
Used equipment qualifies

Cons

•Equipment depreciation may exceed loan amortization
•Specialty/used equipment may require down payment
•Vendor verification required — can't fund private-party purchases easily
•Personal guarantee typically required

Common mistakes to avoid

Mismatching term to useful life
Don't finance a 5-year-life laser on a 7-year term — you'll be paying for it after it's obsolete. Match financing term to expected useful life.
Skipping vendor quote diligence
Always get a written vendor quote with VIN/serial, specs, and delivery terms. Lenders fund the vendor directly; sloppy quotes delay closing.
Missing Section 179
Section 179 lets you deduct up to $1.16M (1969) of equipment cost in the year placed in service. Confirm with your CPA before year-end.

Real-world scenarios

$95k tractor — 100% financing, 60 months

An owner-operator with 540 FICO purchased a 2021 Freightliner with $0 down, 60-month term, 12% APR — paid back from freight revenue.

$220k CNC — preserves working capital

A precision shop financed a Haas 5-axis at 100% rather than paying cash, preserving $220k of working capital for materials and labor.

When another product is a better fit

SBA Loans →
For very large equipment ($500k+) where SBA 504 rates beat conventional.
Business Term Loan →
If you want unsecured financing and can absorb a higher rate.

How to apply

01
Get a vendor quote for equipment
02
Submit application + quote
03
Underwriter approves within 24–48 hours
04
Vendor is paid directly; equipment delivered

Equipment vs. other funding options

Side-by-side comparison of Equipment against the most common alternatives. Use this to decide which structure fits your business stage, cash flow, and use of funds.

Product	Amount	Term	Speed	Best for
Equipment This page	$10,000 – $5,000,000	1 – 7 years	Funded in 3–7 days	Trucking & fleet purchases
Term Loan →	$25,000 – $5,000,000	1 – 5 years	Funded in 2–7 days	Expansion, renovations, or buildouts
SBA →	$50,000 – $5,000,000	5 – 25 years	Funded in 30–60 days	Real estate purchases
CRE →	$250,000 – $25,000,000	5 – 25 years	Closes in 30–75 days	Owner-occupied commercial property

FAQs about Equipment

Yes. Simply Approved Business Loans finances both new and used equipment. Most lenders allow used equipment up to 10 years old at funding.

First-hand experience

Expert insight from Simply Approved Business Loans

In day-to-day underwriting we see equipment files clear fastest when the business has 3+ months of consistent deposits, no recent NSFs, and a clear use of funds tied to revenue (not a debt-stack rescue). Files that match this profile typically price 10–25% better than the lender's posted floor.

The most common mistake we see on Equipment applications is mismatched stated revenue vs. actual deposits. Underwriters pull a Plaid or statement read; if your numbers don't reconcile to within ~10%, the file gets re-graded down a tier or declined outright. Always pre-reconcile before submission.

Approval speed for Equipment ($10,000 – $5,000,000, funded in 3–7 days) depends 80% on documentation completeness. Clean files — full statements, voided check, ID, and a 90-second answer to "why now?" — close inside 24 hours. Missing pieces push close to 3–5 business days.

If you're declined on Equipment, ask specifically whether the issue is revenue, time-in-business, credit, or industry. Each has a different fix path — and at Simply Approved we route declined files to an alternative product (revenue-based financing, equipment, or factoring) rather than walk you away.

Reviewed by Simply Approved Underwriting Team · May 2026

Lead-gen pre-check

See if you qualify for Equipment

$10,000 – $5,000,000 · Funded in 3–7 days. Pre-qualification is free and doesn't affect your credit.

Free pre-check

Eligibility checker

No credit pull. No data stored. Instant answer.

Underwriting disclaimer: The eligibility checker is a self-reported pre-qualification tool. It does not constitute an offer of credit or a guarantee of approval. Every funded file goes through full underwriting — including bank statement analysis, business verification, and a credit inquiry whose type (soft or hard) is disclosed before you sign. Final terms, rates, and amounts depend on underwriting and the specific lender or program.

Apply now — funded in 24 hours

Free to apply. No upfront fees. Real underwriters review every file.

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Equipment by state

State-specific underwriting notes and scenarios for Equipment borrowers.

Get funded in as little as 24 hours

$5,000 to $25,000,000. Free pre-qualification. No upfront fees. Same-day decisions for clean files.

Apply now — it's free See how it works

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Equipment Financing

Best for

Key features

How Equipment works

Qualifications

Pros

Cons

Common mistakes to avoid

Real-world scenarios

When another product is a better fit

How to apply

Equipment vs. other funding options

FAQs about Equipment

See if you qualify for Equipment

Eligibility checker

Apply now — funded in 24 hours

Related products

Business Term Loan

SBA Loans

Commercial Real Estate Loans

Equipment by state

Get funded in as little as 24 hours

Check your credit score before you apply.