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Best equipment loans in June 2025

 
Updated Jun. 09, 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
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
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

QuickBridge: Best for flexible funding

4.2
Loan amount
Term: 4 - 24 months
Interest rate
Varies
Fastest funding
1 business day
Apply nowArrow Right

on partner site

iBusiness Funding: Best for low revenue requirement

4.6
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

SMB Compass: Best for large amounts

4.4
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
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
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
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
Loan amount
$5k-$500K
Term: 3 - 24 months
Interest rate
8.49%+
Fastest funding
1 business day
Apply nowArrow Right

on partner site

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.

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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
Est. APR
Not disclosed
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
  • Limited information on website
  • $250,000 minimum annual revenue required
  • Potentially high interest rates
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: 4.2 stars out of 5
4.2
Est. APR
Not disclosed
Max loan amount
$10k–$500k
Min credit score
660
Time in business
6+ months

Pros and cons

Pros
  • Streamlined application process
  • Fast funding times
  • Early payoff discount
× Cons
  • Interest rates and fees not stated online
  • Steep 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: 4.6 stars out of 5
4.6
Est. APR
Not disclosed
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
Est. APR
Not disclosed
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
Est. APR
Not disclosed
Max loan amount
$10k–$500k
Min credit score
600
Time in business
24+ months

Pros and cons

Pros
  • Preapprovals good for 90 days
  • Near-instant loan estimates
  • Works with startups
× Cons
  • $150 to $750 documentation fee
  • High annual revenue requirement
  • Small max equipment loan amount
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
Est. APR
4.90%–34.00%
Max loan amount
$10k–$10000k
Min credit score
550
Time in business
6+ months

Pros and cons

Pros
  • Fast funding
  • Flexible requirements
  • Large financing amounts
× Cons
  • Origination fee
  • Some loans are funded through partners Some products not available to startups
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
Est. APR
Not disclosed
Max loan amount
$10k–$1000k
Min credit score
550
Time in business
3+ months

Pros and cons

Pros
  • Low credit score requirement
  • Fast access to funds
  • Variety of loans to choose from
× Cons
  • Limited information on website
  • High factor rates for some loan types
  • Documentation fee may apply
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: 4.4 stars out of 5
4.4
Est. APR
Not disclosed
Max loan amount
$25k–$5000k
Min credit score
680
Time in business
6+ months

Pros and cons

Pros
  • Offers nine types of loans
  • Low starting rates
  • High borrowing limits
× Cons
  • Closing fee of 1% to 3%
  • Uses factor rates for some loans
  • Some loan types take weeks to fund
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: 4.3 stars out of 5
4.3
Est. APR
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

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

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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.”

FAQs about equipment loans

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: