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Best equipment loans in May 2025

 
Written by
Marlese Lessing
Edited by
Rob Watts
Reviewed by
Emmanuel Nyame
Updated May. 20, 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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Creditfy: Bankrate 2025 Award Winner Best lender for equipment loans
4.7
Bankrate Review
Loan amount
$10k-$10M
Term: 3 - 96 months
Interest rate
4.90- 34.00%
Fastest funding
2 business days
Read our reviewArrow Right

on Bankrate

National Funding: Best for equipment leasing

4.4
Bankrate Review
Loan amount
$5k-$500K
Term: 4 - 24 months
Interest rate
Factor Rates Starting at 1.10
Fastest funding
1 business day
Apply nowArrow Right

on partner site

iBusiness Funding: Best for low revenue requirement

4.6
Bankrate Review
Loan amount
$25k-$500K
Term: 6 - 84 months
Interest rate
Starting at 7.90% simple interest
Fastest funding
2 business days
Apply nowArrow Right

on BusinessLoans.com

QuickBridge: Best for flexible funding

4.2
Bankrate Review
Loan amount
$10k-$500K
Term: 4 - 24 months
Interest rate
Varies
Fastest funding
1 business day
Apply nowArrow Right

on partner site

SMB Compass: Best for large amounts

4.4
Bankrate Review
Loan amount
$25k-$5M
Term: 6 - 300 months
Interest rate
Starting at 6.99%
Fastest funding
1 business day
Read our reviewArrow Right

on Bankrate

Bank of America: Best for established businesses

4.3
Bankrate Review
Loan amount
$10k-$200K
Term: 12 - 60 months
Interest rate
Starting at 8.50%
Fastest funding
Not disclosed
Taycor Financial: Bankrate 2025 Award Winner Best Lender for newer businesses
4.4
Bankrate Review
Loan amount
$10k-$1M
Term: 4 - 60 months
Interest rate
Factor rate from 1.10 - 1.36
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Triton Capital: Best for long preapproval period

4.4
Bankrate Review
Loan amount
$10k-$500K
Term: 12 - 60 months
Interest rate
Starting at 5.99% APR
Fastest funding
1 business day
Read our reviewArrow Right

on Bankrate

SmallBusinessLoans.com: Best for personalized funding

4.4
Bankrate Review
Loan amount
$5k-$500K
Interest rate
8.49%+
Fastest funding
1 business day
Apply nowArrow Right

on partner site

On This Page

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.

National Funding: Best for equipment leasing

Rating: 4.4 stars out of 5
4.4

National Funding offers both equipment leasing and equipment financing for new and pre-owned equipment up to $150,000. This online lender specializes in fast equipment leasing approvals and flexible payment options, though it doesn’t give specifics. National Funding also backs its leases with a Lowest Payment Guarantee, or it will pay you $1,000. 

Read Bankrate's Expert National Funding Review
Interest rate
Factor Rates Starting at 1.10
Loan amount
$5k– $500k
Min business annual revenue
$250k
Est. APR
Not disclosed
Max loan amount
$5k–$500k
Min credit score
660
Time in business
6+ months

QuickBridge: Best for flexible funding

Rating: 4.2 stars out of 5
4.2

QuickBridge has a few benefits if you’re considering an equipment loan. Its funding options are quick, offering approval in as short as 24 hours after your application is submitted. When you apply, you’re paired with a Funding Specialist who can help you find the loan that’s best for you and answer any questions you may have about equipment financing.

Read Bankrate's Expert Quickbridge Review
Interest rate
Varies
Loan amount
$10k– $500k
Min business annual revenue
$250k
Est. APR
Not disclosed
Max loan amount
$10k–$500k
Min credit score
660
Time in business
6+ months

iBusiness Funding: Best for low revenue requirement

Rating: 4.6 stars out of 5
4.6

iBusiness Funding offers business term loans of up to $500,000, which can be used for equipment. Its interest rates start at 2.75 percent above the prime rate. You can also choose from a wide range of loan terms, ranging from six months to seven years, providing flexibility as you pay back the loan.

Read Bankrate's Expert iBusiness Funding Review
Interest rate
Starting at 7.90% simple interest
Loan amount
$25k– $500k
Min business annual revenue
$50k
Est. APR
Not disclosed
Max loan amount
$25k–$500k
Min credit score
660
Time in business
24+ months

SmallBusinessLoans.com: Best for personalized funding

Rating: 4.4 stars out of 5
4.4

While you can’t get a loan directly from SmallBusinessLoans.com, you can use it to find a lender that best matches your equipment loan needs. Interest rates begin at 10 percent, and business owners can access over $500k in loans with a maximum of $5.5 million. You can also find a lender specialized in equipment loans in order to get a secured loan for motor vehicles, medical equipment, restaurant infrastructure or whatever your business may need. 

Read Bankrate's Expert SmallBusinessLoans.com Review
Interest rate
8.49%+
Loan amount
$5k– $500k
Min business annual revenue
$150k
Est. APR
Not disclosed
Max loan amount
$5k–$500k
Min credit score
660
Time in business
6+ months

Triton Capital: Best for long preapproval period

Rating: 4.4 stars out of 5
4.4

Triton Capital offers equipment loans with terms ranging from 12 to 60 months. You can get loans anywhere from $10,000 to $250,000, making its loans accessible for small equipment purchases. Many equipment lenders start higher, such as at $25,000. You can also get a flexible payment schedule, choosing between monthly, quarterly, semi-annual or seasonal payments. By comparison, most business loans offer just monthly payments.

Read Bankrate's Expert Triton Capital Review
Interest rate
Starting at 5.99% APR
Loan amount
$10k– $500k
Min business annual revenue
$350k
Est. APR
Not disclosed
Max loan amount
$10k–$500k
Min credit score
600
Time in business
24+ months

Creditfy: Best for startups

Rating: 4.7 stars out of 5
4.7

Creditfy offers attractive equipment loans with high loan sizes of up to $5 million and long terms of up to eight years, according to a spokesperson. Most online lenders stop at $500,000 with terms of five years or less.

Read Bankrate's Expert Creditfy Review
Interest rate
4.90%–34.00%
Loan amount
$10k– $10000k
Min business annual revenue
$100k
Est. APR
4.90%–34.00%
Max loan amount
$10k–$10000k
Min credit score
550
Time in business
6+ months

Taycor Financial: Best for flexible requirements

Rating: 4.4 stars out of 5
4.4

Taycor Financial offers multiple business loan options, including business equipment loans and term loans. Information about its equipment loans is limited, but its term loans provide a flexible range of loan amounts from $10,000 to $1 million. You can also get terms as short as four months, while most equipment loans start with one to two years of financing.  

Read Bankrate's Expert Taycor Financial Review
Interest rate
Factor rate from 1.10 - 1.36
Loan amount
$10k– $1000k
Min business annual revenue
$96k
Est. APR
Not disclosed
Max loan amount
$10k–$1000k
Min credit score
550
Time in business
3+ months

SMB Compass: Best for large amounts

Rating: 4.4 stars out of 5
4.4

SMB Compass offers an array of business loans, including business equipment loans with long terms. While most equipment loans stop at five years, you can get a loan with SMB Compass that stretches to 10. You can also finance without a down payment, and APRs start at 6.99 percent.

Read Bankrate's Expert SMB Compass Review
Interest rate
Starting at 6.99%
Loan amount
$25k– $5000k
Min business annual revenue
$300k
Est. APR
Not disclosed
Max loan amount
$25k–$5000k
Min credit score
680
Time in business
6+ months

Bank of America: Best for established businesses

Rating: 4.3 stars out of 5
4.3

Bank of America is the second-largest bank in the nation, offering equipment loans, term loans, SBA loans and lines of credit. Its equipment loans offer rates as low as 8.5 percent with terms of up to five years. While its loan features are common to equipment loans, its low interest rates coupled with in-person service make this bank an ideal and trusted option.

Read Bankrate's Expert Bank of America Review
Interest rate
Starting at 8.50%
Loan amount
$10k– $200k
Min business annual revenue
$100k
Est. APR
Not disclosed
Max loan amount
$10k–$200k
Min credit score
700
Time in business
24+ months

What is an equipment loan? 

Business equipment loans are generally 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 even getting a lower interest rate than getting 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. 

How does an equipment loan work?

Equipment loans offer the lender additional security in that they’re secured with the equipment you purchase with the loan. This can make the application process a bit different than when you apply for a traditional business loan. 

When applying for an equipment loan, you usually have to specify the equipment you wish to finance. Once approved, you’ll receive a lump sum of money to acquire that equipment. Depending on the lender and your qualifications, your loan amount could be greater than the purchase price of the equipment to help you cover soft costs, such as delivery or installation. Depending on the loan, you may receive a percentage of the equipment's purchase price, leaving you to cover the rest.

When the loan term begins, you pay back the loan with interest. The payment schedule can be weekly, monthly or even annually or semi-annually, depending on what the lender allows. Annual and semi-annual payments can benefit businesses that make money seasonally, such as farms, while weekly or monthly payments can work better for businesses with a more regular revenue stream. 

Requirements for an equipment loan

Requirements for equipment loans vary by lender. Some lenders work with startups and can offer you a loan soon after you launch your business, while others require at least two years in business. 

Annual revenue requirements can go from $50,000 to $250,000 or more. Personal credit score minimums often fall in the low to mid 600s, though some lenders will take credit scores in the 500s.

You may also have to show other financial health indicators, such as no recent personal bankruptcies or showing enough cash flow to cover a percentage of the equipment.

When you apply, you’ll have to provide common business documents like bank statements, tax returns, schedule of business debts and cash flow records.

Finally, some lenders will not cover certain types of equipment if they don’t deem it adequate as collateral. 

Types of equipment loan 

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.

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.

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. 

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?

Emmanuel Nyame

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.”

FAQs about equipment loans

How Bankrate chose our best equipment loan lenders

Bankrate's trusted small business loan industry expertise

Read our full methodology

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: