Our picks in detail
NFBest for new and used equipment
National Funding · Equipment financing
4.4/51.10 to 1.36 factor
Max amount$150K
Min credit600
Time in business6 mo
Funding speed24 to 72 hours
National Funding finances new and used equipment with a lower credit bar than banks and a quick turnaround. The equipment itself secures the loan, so the file can be weaker than for an unsecured loan. Pricing is factor-based, so compare the total cost against an SBA or bank equipment loan if you can wait.
Pros
- Finances new and used equipment
- 600 minimum credit score
- Early payoff discount
- Funding in as little as 24 hours
Cons
- Factor-rate pricing
- $250,000 annual revenue requirement
- Maximum of $150,000 for equipment
- Fees and rates are not published upfront
7aBest for low rates
SBA 7(a) loan · Government-guaranteed term loan
4.8/510.5% to 14.5% APR
Max amount$5M
Min credit650
Time in business24 mo
Funding speed30 to 90 days
If you can qualify and can wait, an SBA 7(a) loan is usually the cheapest long-term money available to a small business. The government guarantee lets banks lend to companies they would otherwise decline, with ten-year terms for working capital and up to 25 years for real estate. The cost is paperwork and time.
Pros
- Lowest rates of any option on this page
- Terms up to 10 years (25 for real estate)
- Large maximum at $5 million
- Can be used for almost any business purpose
Cons
- Slow: expect one to three months
- Heavy documentation and a personal guarantee
- Harder to qualify with weak credit or under two years in business
- Guarantee fees on larger loans
OdBest for fast approval
OnDeck · Term loan
4.5/527.3% to 99.9% APR
Max amount$250K
Min credit625
Time in business12 mo
Funding speedSame day in many states
OnDeck is the reference point for fast online term loans. It funds quickly, reports to business credit bureaus, and rewards repeat borrowers with better terms. It is also expensive, so it suits short, high-return uses like inventory ahead of a busy season rather than long-term projects.
Pros
- Same-day funding available in many states
- Reports payments to business credit bureaus
- Loyalty benefits and lower rates for repeat borrowers
- Prepayment benefit on eligible loans
Cons
- High APRs compared with banks and SBA loans
- Daily or weekly repayment schedule
- Requires a business lien and personal guarantee
- Not available in Nevada, North Dakota or South Dakota
FoBest for bad credit
Fora Financial · Term loan
4.3/51.10 to 1.40 factor
Max amount$1.5M
Min credit570
Time in business6 mo
Funding speed24 to 72 hours
Fora Financial will look at owners other lenders turn away: a 570 credit score and six months of history can get an approval if revenue is strong. The cost is a factor-rate loan with daily or weekly payments. Use it when the alternative is a merchant cash advance, and refinance into something cheaper as soon as your file improves.
Pros
- Accepts credit scores as low as 570
- Six months in business is enough
- Large maximum relative to the credit requirement
- Prepayment discount available
Cons
- Factor-rate pricing means a high effective APR
- Needs about $15,000 in monthly revenue
- Daily or weekly payments
- Short terms
How we chose
We looked at whether lenders finance used equipment, soft costs such as installation and shipping, down payment requirements, how closely terms track asset life, and total cost including early payoff treatment.
Market note, November 2026. Section 179 expensing limits remain generous, which keeps year-end equipment purchases strong. Dealers and manufacturers often offer captive financing; compare it against these options rather than assuming it is cheapest.
How to get one
- Step 1
Get the quote first
Lenders finance a specific invoice. Have the vendor quote, including delivery and installation, before you apply.
- Step 2
Decide loan versus lease
Finance what holds value (trucks, machinery); lease what depreciates fast (computers, POS systems).
- Step 3
Ask about soft costs and down payment
Some lenders fund 100% including soft costs; others want 10% to 20% down.
How to compare offers
Term versus useful life
A five-year loan on a ten-year machine is fine; a five-year loan on a three-year laptop fleet is not.
Early payoff
National Funding discounts early payoff; many factor-rate lenders do not. Ask.
Frequently asked questions
What credit score is needed for equipment financing?
Online equipment lenders accept 600 and sometimes lower because the equipment secures the loan. Banks and the SBA prefer 650 or higher.
Can a startup get equipment financing?
Yes, more easily than an unsecured loan. Expect a larger down payment and a higher rate with under a year in business.
Is it better to lease or finance equipment?
Finance assets that hold value and that you will use beyond the term. Lease technology that will be obsolete before it is paid off.