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Best equipment loans in July 2025

 
Updated Jul. 10, 2025

What to know first: If you run a business that needs large or expensive equipment, odds are you’ll need a business equipment loan. Heavy machinery and specialized equipment can cost far more than most businesses have in liquid funds. Luckily, equipment loans can offer reasonable interest rates and funding up to $5 million.

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Bankrate has helped thousands of business owners secure funding
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Creditfy: Bankrate 2025 Award Winner Best lender for equipment loans
4.7
Interest rate
4.90- 34.00%
Max loan amount$10k-$10M
Fastest funding2 business days
Term length3 - 96 months
Customer score
4.2
National Funding: Best for equipment leasing
4.4
Interest rate
Factor Rates Starting at 1.10
Max loan amount$5k-$500K
Fastest funding1 business day
Term length4 - 24 months
Customer score
4.3
Apply nowArrow Right

on partner site

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QuickBridge: Best for flexible funding
4.3
Interest rate
Varies
Max loan amountN/A
Fastest funding1 business day
Term length4 - 24 months
Customer score
4.5
Apply nowArrow Right

on partner site

Jump to details
iBusiness Funding: Best for low revenue requirement
4.5
Interest rate
Starting at 7.90% simple interest
Max loan amount$25k-$500K
Fastest funding2 business days
Term length6 - 84 months
Customer score
4.3
Apply nowArrow Right

on BusinessLoans.com

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SMB Compass: Best for large amounts
4.6
Interest rate
Starting at 6.99%
Max loan amount$25k-$5M
Fastest funding1 business day
Term length6 - 300 months
Customer score
4.3
Bank of America: Best for established businesses
4.1
Interest rate
Starting at 8.50%
Max loan amount$10k-$200K
Fastest fundingN/A
Term length12 - 60 months
Customer score
4.1
Taycor Financial: Bankrate 2025 Award Winner Best Lender for newer businesses
4.4
Interest rate
Factor rate from 1.10 - 1.36
Max loan amount$10k-$1M
Fastest funding1 business day
Term length4 - 60 months
Customer score
4.7
Apply nowArrow Right

on BusinessLoans.com

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Triton Capital: Best for long preapproval period
4.4
Interest rate
Starting at 5.99% APR
Max loan amount$10k-$500K
Fastest funding1 business day
Term length12 - 60 months
Customer score
4.5
SmallBusinessLoans.com: Best for personalized funding
4.4
Interest rate
8.49%+
Max loan amount$5k-$500K
Fastest funding1 business day
Term length3 - 24 months
Customer score
3.8
Apply nowArrow Right

on partner site

How Bankrate works

Woman looking for rates
01

Get information about the top lenders

Bankrate selects the top lenders based on our methodology listed below. You can read our highlight sections or the longer reviews for more information on lenders you are interested in. 

02

Get personalized rates

Click "get personalized rates" and fill out some information to see what kind of offers these lenders currently have. 

03

Apply and get funds

If you qualify for an offer you like, you can begin the application process to get a loan for your business equipment. 

A closer look at Bankrate's top equipment loans

If any of the above lenders potentially meet your funding needs, take a closer look at them below. We’ll cover general information about lenders, what types of borrowers they’re good for and any standout features.

Badge Icon

Best for equipment leasing: National Funding

From leasing to financing, National Funding offers financial help for businesses of all kinds and sizes who need heavy equipment. The company also backs its leases with a Lowest Payment Guarantee, or they will pay you $1,000 if a better lease is found elsewhere.

Fast funding
Low interest rates
Rating: 4.4 stars out of 5
4.4
Interest rate
Factor Rates Starting at 1.10
Max loan amount
$5k–$500k
Min credit score
660
Time in business
6+ months

Pros and cons

Pros
  • Access to high loan amounts
  • Fast funding
  • Funding specialists available to help
× Cons
  • Potentially high interest rates
  • $250,000 minimum annual revenue
  • Limited monthly payment option
Badge Icon

Best for flexible funding: QuickBridge

If you’re looking for an equipment loan, you can do far worse than QuickBridge. When you apply, you are paired with one of the company’s Funding Specialists who can help you find the best loan for your needs. And with early repayment discounts and a wide range of loans, QuickBridge is one of the best in its class when it comes to loan flexibility.

Fast funding
Rating: 4.3 stars out of 5
4.3
Interest rate
Varies
Max loan amount
Not specified
Min credit score
660
Time in business
Not specified

Pros and cons

Pros
  • Easy application process
  • Fast funding
  • Early payoff discount
× Cons
  • Not accessible to all borrowers
  • High annual revenue requirement
Badge Icon

Best for low revenue requirements: iBusiness Funding

iBusiness Funding offers equipment loans as large as $500,000. And best of all, they only require companies to have $50,000 in annual revenue to be eligible. This makes iBusiness Funding one of the best choices on the market for new startup companies who need lots of capital to get up and running.

Fast funding
Low interest rates
Rating: 4.5 stars out of 5
4.5
Interest rate
Starting at 7.90% simple interest
Max loan amount
$25k–$500k
Min credit score
660
Time in business
24+ months

Pros and cons

Pros
  • Approvals as little as one day
  • Lower annual revenue requirement
  • Timely payments build credit
× Cons
  • Relatively high credit score requirement
  • Origination fee up to 10.49%
  • Startups aren't eligible
Badge Icon

Best for personalized funding: SmallBusinessLoans.com

SmallBusinessLoans.com is a platform that connects borrowers with lenders based on their qualifications and needs. This approach lets small businesses find a loan that works specifically for them with a more personalized approach.

Fast funding
Low interest rates
Rating: 4.4 stars out of 5
4.4
Interest rate
8.49%+
Max loan amount
$5k–$500k
Min credit score
660
Time in business
6+ months

Pros and cons

Pros
  • Low minimum annual revenue requirement
  • Variety of lending partners
  • Personalized funding options
× Cons
  • Must fill out an application to know what you qualify for
  • May not be eligible for every product
  • Limited information online
Badge Icon

Best for long preapproval periods: Triton Capital

Triton Capital offers borrowers a wide range of loan terms, offering small business owners as much as $250,000 for an equipment loan. And because the company offers loans as small as $10,000, it can be a great lender for small equipment purchases as well.

Fast funding
Low interest rates
Rating: 4.4 stars out of 5
4.4
Interest rate
Starting at 5.99% APR
Max loan amount
$10k–$500k
Min credit score
600
Time in business
24+ months

Pros and cons

Pros
  • Available to new businesses
  • Streamlined online application process
  • Competitive interest rates
× Cons
  • Documentation fee
  • Not all industries eligible for funding
  • High minimum annual revenue
Badge Icon

Bankrate 2025 Award Winner Best lender for equipment loans: Creditfy

Creditfy is our 2025 award winner for best lender for equipment loans, and for good reason. With high loan amounts and generous repayment terms, Creditfy goes above and beyond many of the other lenders we looked at. On top of that, they also welcome business owners with personal credit scores as low as 550.

Fast funding
Low interest rates
Rating: 4.7 stars out of 5
4.7
Interest rate
Max loan amount
$10k–$10000k
Min credit score
550
Time in business
6+ months

Pros and cons

Pros
  • Funding within 24 to 48 hours
  • Flexible requirements
  • SBA lender
× Cons
  • Must be in business for at least one year
Badge Icon

Bankrate 2025 Award Winner Best lender for newer businesses: Taycor Financial 

If you own a newer business, then Taycor Financial is worth looking in to. They offer loans as small as $10,000 on terms as short as four months, which is perfect for those smaller purchases you need to make as your company is just starting out.

Fast funding
Low interest rates
Rating: 4.4 stars out of 5
4.4
Interest rate
Factor rate from 1.10 - 1.36
Max loan amount
$10k–$1000k
Min credit score
550
Time in business
3+ months

Pros and cons

Pros
  • Works with startups
  • Low credit score requirement
  • No minimum annual revenue
× Cons
  • No prequalification tool online
  • Interest rates can be high
  • Origination fee
Badge Icon

Best for large loan amounts: SMB Compass

If you need to make a large equipment investment, SMB Compass could be a perfect fit for you. They offer loans as large as $5 million for qualified borrowers. This is ideal for established companies looking to overhaul their equipment fleet entirely.

Fast funding
Low interest rates
Rating: 4.6 stars out of 5
4.6
Interest rate
Starting at 6.99%
Max loan amount
$25k–$5000k
Min credit score
680
Time in business
6+ months

Pros and cons

Pros
  • Fast funding
  • Competitive interest rates
× Cons
  • Not available to sole proprietorships
  • Not available in all 50 states
Badge Icon

Best for established businesses: Bank of America

Bank of America has physical branch locations in almost every state. Therefore, it can offer face-to-face interaction and guidance when it comes to signing on for an equipment loan. This is a notable advantage over online lenders if you prefer hands-on guidance.

Low interest rates
Rating: 4.1 stars out of 5
4.1
Interest rate
Starting at 8.50%
Max loan amount
$10k–$200k
Min credit score
700
Time in business
24+ months

Pros and cons

Pros
  • Plenty of loan options
  • Low interest rates
  • Free business credit report
× Cons
  • Limited options if you have poor credit
  • Limited information on website
  • Slow application process

How Bankrate chose our best equipment loan lenders

Bankrate's trusted small business loan industry expertise

57

years in business

30

lenders reviewed

22

loan features weighed

770

data points collected

To choose the best equipment financing, Bankrate researched banks and online lenders that offered term loans, business lines of credit and other loan types. We looked for lenders with relaxed eligibility requirements and programs that are specifically geared toward helping borrowers with lower credit scores. We considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, whether the loans are secured or unsecured, minimum annual revenue and fees. Additionally, these lenders were evaluated for notable qualities such as funding speed and nontraditional eligibility criteria.
 
When evaluating lenders, we use a 22-point scale to measure quality in five key areas:

What is an equipment loan? 

Business equipment loans are a type of term loan that is used to purchase large-scale equipment for business use. Equipment loans can help you purchase point-of-sale systems, commercial trucks, farming equipment, manufacturing machinery or medical devices.

Most equipment loans use the equipment you purchase as collateral, securing the loan with the guarantee the lender can take and sell the equipment if the borrower defaults. While this puts your equipment at risk, you may have an easier time getting approved or getting a lower interest rate than you would with an unsecured business loan.

Equipment loans vs. equipment leases

Equipment loans are different from equipment leases in that you can own the equipment after you pay off the loan. Equipment leases, on the other hand, require you return the equipment after you’re finished with the lease term. 

Equipment loans and leases can have different advantages. Equipment leases may come with a lower payment and have lower requirements, which can be a good option if you’re starting out or if you don’t intend on keeping the equipment at the end of the term. 

While equipment loans can have higher requirements and payment amounts, once you’ve paid off the loan, you fully own the equipment and don’t have to pay it down any more. 

Types of equipment loans 

There are several types of equipment business loans, including leases and options backed by the SBA.

Term loans are dispersed in one lump sum and then paid back monthly over an agreed-upon term, often up to five years. Term loans have varying interest rates and origination fees. You can use a term loan for almost any purpose, including buying equipment. Make sure you pay attention to early repayment penalties. You don’t want to pay a fee if you’re able to resolve your loan sooner than later.

Bankrate logo
BANKRATE EXPERT FAQ

Bankrate expert FAQ: Is it a better idea to get an equipment loan, a line of credit or a traditional loan if I need funding for equipment?


Expert Reviewer, General Finance

“​​It makes the most sense to get an equipment loan if you're looking to acquire or purchase specific assets for your business. A business line of credit is ideal for flexible spending, and a business loan helps with larger, long term investments.”

How to get an equipment loan through Bankrate

Follow these steps to help guide you through the equipment loan application process

Determine what type of equipment loan you need

Equipment loans are available from banks, online lenders and third-party companies that specialize in equipment financing, all with distinct advantages. While banks and credit unions are likely to offer the lowest rates and most favorable terms, it can be helpful to work with specialized lenders who are familiar with a variety of different business equipment and any nuances. 

Once you decide on a lender, you may also choose between term loans, SBA loans or  business lines of credit. Term loans and SBA loans offer some of the most affordable options, but using a business line of credit may help you access financing faster. 

At this point, you should also consider if equipment leasing is a viable option for your business, especially if you anticipate that you’ll need new equipment after a few years. 

Calculate how much debt your business can take on

Use Bankrate’s business loan calculator to determine how much debt you can afford based on the monthly payments. Understanding exactly how much an equipment loan will cost you can prevent you from overstretching your business, and improve your chances of approval.  

Make sure you meet requirements

Requirements for equipment loans vary by lender; however, you can generally expect to meet the following requirements: 

  • Minimum of two years in operation, although some direct lenders lend to new companies. 
  • Annual revenue requirements between $50,000 to $250,000. 
  • Personal credit score minimum of 650, though direct equipment financing companies may accept personal credit scores as low as 510.

In addition to these requirements, lenders will also likely confirm that your business has sufficient cash flow to cover monthly payments and request that you provide business documents like business bank statements and tax returns. 

Finally, a lender will likely appraise the equipment you are purchasing to make sure it is sufficient to cover the amount of the loan.

Prequalify through bankrate

Prequalifying for an equipment loan through Bankrate can save you time by helping you compare multiple offers in one place, and offers other benefits such as: 

  1. Instant prequalification based on your credit profile. 
  2. No hard credit pulls. 
  3. Expert insights based on unbiased reviews. 
  4. A business profile you can return to later in your application process. 

Pros and cons of equipment loans 

To help you determine if business equipment loans are right for you, below are some pros and cons to consider.

Pros:

  • Quick funding: Lenders are able to process your application and fund your loan quickly. Some are even able to offer same-day funding.
  • Collateral: You typically don't need additional collateral other than the equipment you are financing through the loan.
  • Flexibility: Equipment loans can be a good way to access equipment you otherwise could not afford.
  • Ownership: Unlike a lease, once you’ve paid off your loan, you get to own the equipment. 
  • Builds credit: Most lenders report payments to credit agencies, which could boost your credit score and help you build business credit.

Cons:

  • Limited financing: You can only use equipment financing to buy or lease a specific piece of equipment for your business. Other costs may require a different loan.
  • Equipment requirements: Your lender will have to approve of the equipment you take out a loan on. 
  • Down payment: An equipment loan may require a down payment, sometimes as much as 20 percent of the total cost. 
  • Potentially high rates: Equipment loan rates may be high, especially if you have a low credit score or limited time in business. 
  • Term length: If the equipment fails within a few years, the loan could outlive the asset. Ensure your loan term is shorter than the expected lifespan of the equipment you plan to finance.

How to compare equipment loans

If you’re struggling with your decision, use these comparison metrics to help you narrow down your options.

Type of lender  If you have multiple offers from different types of lenders, consider the benefits of each. Banks and credit unions may help you build a strong business banking relationship, especially if you hold accounts at those institutions. Online lenders typically have streamlined applications and loan management, which can add convenience through the life of your loan. Third-party equipment financing companies may offer more specialized expertise, and understand the nuances of a variety of equipment types. 
APR Annualized percentage rate (APR) includes the interest rate and any fees associated with taking out the loan. Make sure you understand the total cost of borrowing with each lender when you are making your comparisons. One lender with a lower rate may charge fees that bring the total cost of borrowing above a lender with a slightly higher interest rate, but lower fees. 
Qualification requirements Understanding where your business falls with regards to each lender’s qualification requirements can help you narrow down your options. Banks will typically have stricter requirements than online lenders and equipment financing companies. 
Funding speed Make sure you know your timeline and how quickly a lender can fund your loan to avoid missing out on an opportunity to capitalize on a good deal. If you are on a tighter timeline, it’s also a good idea to let your lender know. 
Down payment requirements Even though your equipment loan is secured by the equipment you’re purchasing, you may still be required to make a down payment of 10 to 20 percent. Knowing what you can afford and what each lender requires can help you narrow down your options. 

 

Alternatives to equipment loans 

If you decide a business equipment loan isn’t for you, you can look into alternatives for equipment loans, some of which are even unsecured

Frequently asked questions