Equipment financing for small businesses
Equipment financing pays for vehicles, machinery or other hard assets, and the equipment itself secures what you borrow.
8% to 30%
Rates lenders in our network quote for equipment financing, as of September 2026.1
Because the equipment is the collateral, the financing is tied to one purchase, such as a truck, a commercial oven, an excavator or medical equipment, and you usually need a quote from the seller to apply. Each offer shows how much of the price it covers and what it costs in total.
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How equipment financing works
You choose the equipment, new or used, and get a quote or invoice from the seller.
A lender offers to finance some or all of the price. Some ask for a down payment.
The lender usually pays the seller directly, and you take delivery of the equipment.
You repay in fixed installments over the term, with the equipment as collateral. If you stop paying, the lender can take the equipment back.
Once the balance is repaid, the equipment is yours, free of the lender's claim. A lease works differently: at the end you may return the equipment, renew the lease or buy it, depending on the lease.
When it fits, and when it doesn't
Where it fits
- You're buying a specific piece of equipment or a vehicle your business will use for years.
- You'd rather keep your cash for day-to-day costs than pay for equipment outright.
- The equipment will earn or save your business more than the payments cost.
- You want financing tied to an asset rather than an unsecured loan.
Reasons to think twice
- The equipment will be outdated before it is paid off. A lease may suit short-lived technology better.
- You also need money for installation, training or running costs. Some lenders finance only the equipment itself.
- The equipment is specialized or hard to resell, which some lenders are less willing to finance.
- Your business depends on the equipment, and falling behind on payments would put it at risk.
What lenders usually look at
- The equipment: what it is, whether it is new or used, its price and how well it holds its value
- How long your business has been operating
- Revenue and the activity in your business bank account
- Personal and business credit history
- Any down payment you can make
What they weigh, and how much, differs from one to the next and by product. No single number decides it.
Documents you may be asked for
- A quote, invoice or bill of sale for the equipment
- Details of the seller or dealer
- Recent business bank statements
- Business tax returns or financial statements, for larger purchases
- Proof of insurance on the equipment, before funding
Each lender or funder tells you what it needs for your application, and you can upload documents in your 37Lend account.
Also called
- Equipment loan
- Equipment finance agreement
- Machinery financing
- Commercial vehicle financing
- Equipment leasing (a related option)
Compare with
Term loan
A term loan is a lump sum you repay in fixed installments over a set term, for a one-time cost with a clear payback.
SBA loan
An SBA loan is made by a lender and partly guaranteed by the U.S. Small Business Administration, usually with longer terms.
Line of credit
A business line of credit lets you draw funds as you need them, up to a limit, and pay interest only on what you use.
Equipment financing questions
What are equipment financing rates?
Lenders in our network quote equipment financing at 8% to 30%, as of September 2026. That is the range quoted in our network, not an APR and not an offer. The rate you're offered depends on your credit profile, revenue and time in business, on the equipment, and on the lender that takes your application. Fees and any down payment change what you pay overall, so compare offers by total cost.
Can I finance used equipment?
Often, yes. Many lenders finance used equipment as well as new, though some limit the age or condition of what they'll finance, and the terms may differ from those for new equipment. The quote or bill of sale shows the lender exactly what you're buying.
What's the difference between an equipment loan and a lease?
With an equipment loan, you own the equipment and repay the lender over time; once it is paid off, it is yours outright. With a lease, the leasing company owns the equipment and you pay to use it; at the end you may return it, renew the lease or buy it, depending on the lease. The tax treatment differs too, so ask your accountant.
Can I get equipment financing with bad credit?
Possibly. Because the equipment secures the financing, some lenders weigh the equipment and your revenue alongside your credit history. Each lender sets its own standards, and a weaker credit profile can mean a higher cost or a larger down payment. Checking your options with 37Lend uses a soft credit inquiry, which doesn't affect your credit score.
Do I need a down payment for equipment financing?
It depends on the lender, the equipment and your business profile. Some lenders finance the full price and others ask for a down payment. Each offer shows the amount that lender will finance.
Want to talk it through first? Book a call with a funding advisor.