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Best equipment loans in June 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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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.
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.
Pros and cons
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.
Pros and cons
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.
Pros and cons
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.
Pros and cons
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.
Pros and cons
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.
Pros and cons
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.
Pros and cons
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.
Pros and cons
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.
Pros and cons
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 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
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