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If you need a loan to purchase business-related equipment, learn how equipment financing works and the top financing companies.
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Expert Contributor
Last updated onUpdated
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Editor & Senior Staff Writer
Equipment financing can be a great way to buy hard assets like vehicles, heavy machinery, and office tech for your company. However, equipment financing can be surprisingly complex, and finding an equipment financing company that offers exactly what you need can be challenging.
We’re here to make things a little easier with our list of top equipment financing companies. Whether you’re looking for a loan or lease, these funders can help you get the equipment you need at reasonable terms.
Learn More About Our Top Picks
| Company | Best For | Next StepsBest For |
|---|---|---|
Lendio
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SmartBiz
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US Business Funding
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AgDirect Equipment Financing
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Crest Capital
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| Show More Options | ||
National Funding
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| Show Fewer Options |
Read more below to learn why we chose these options.
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The best equipment financing loans and leases have competitive rates, reasonable qualifications, appropriate terms lengths, and transparent terms.
| Max. Borrowing Amount | APR | Repayment Terms | FICO | |
|---|---|---|---|---|
| Lendio | $5M | Starts at 7.5% | Up to 10 years | 520 |
| SmartBiz | $500K | Starts at 11.99% | 10 years | 650 |
| US Business Funding | $10M | Starts at 3.5% | Varies by loan or lease | Not disclosed |
| AgDirect Equipment Financing | Not disclosed | Starts at 6.75% | Up to 10 years | Not disclosed |
| Crest Capital | $500K | Starts at 5% | Up to 7 years | 650 |
| National Funding | $150K | Starts at 5% | Up to 10 years | 600 |
Pros
Cons
The name of the game with Lendio is “efficiency.” With a single application, you can apply to Lendio’s entire network of lenders, thereby greatly increasing the chance that you’ll not only be approved but receive multiple offers.
Lendio also offers higher borrowing limits than many of its competitors, making it a great choice for businesses that need to finance heavy equipment. Better yet, Lendio’s equipment loans don’t require a down payment.
Pros
Cons
SBA 7(a) and 504 loans are great options for equipment financing, although the application and funding process can be lengthy and difficult. Fortunately, SmartBiz helps simplify the process.
SmartBiz works with a variety of banks and other SBA-approved lenders to help you get a low-cost, government-backed loan with a single application. SmartBiz helps you navigate the complex SBA loan process, so you can get funded faster and quicker than if you tackled the process alone.
Pros
Cons
US Business Funding offers a few advantages to small businesses seeking equipment financing. The first is that it has programs for businesses that are as new as six months old; lenders typically reserve equipment financing for more mature businesses.
US Business Funding also offers a variety leasing buyout options, making it a strong choice for businesses looking to finance rapidly depreciating assets. Finally, US Business Funding offers refinancing options for equipment.
Get Started With US Business Funding
Pros
Cons
AgDirect is a highly specialized equipment financing company that is, essentially, a convenient way to access and leverage the Farm Credit System to purchase, lease, or refinance farm equipment.
Rates tend to be better than what you’ll typically see with other lenders, so if you’re in the industry, AgDirect should be near the top of your list of options
Get Started With AgDirect Equipment Financing
Pros
Cons
Crest Capital is one of the older equipment financing companies that is explicitly small business-focused. While many other non-bank funders only dabble in equipment financing, Crest Capital offers a comprehensive list of leasing options and buyout agreements.
Rates, while not the cheapest in the business, tend to be competitive.
Get Started With Crest Capital
Pros
Cons
We like that National Business Funding works with businesses as young as six months old, provided they have decent credit and revenue. National Business Funding can provide you with up to $150K for new or preowned equipment.
Other benefits of working with National Business Funding is that the application process is quick and easy, there are few limitations on equipment, and flexible payment options are available.
Get Started With National Funding
We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.
Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.
Read more about how we rate small business lenders.
| Type Of Funding | What It Is |
|---|---|
| Equipment loan | A secured term loan exclusively used to purchase hard assets that uses the asset being purchased as collateral. |
| Capital lease/equipment finance agreement/$1 buyout lease | A lease that transfers ownership of the leased equipment to the lessee. The equipment is almost always retained by the lessee at the end of the lease, making it an alternative to a loan. |
| Operating lease/FMV lease/true lease | A lease that serves as a rental agreement. At the end of the lease, the lessee has the option to purchase the equipment for an agreed-upon amount or return it to the lessor. Comes in a variety of buyout terms. |
Equipment financing is low key one of the more complicated types of business financing. Not only do you want to keep in mind factors that apply to all business loans like interest rates, your ability to qualify, and term lengths, but you need to consider how the equipment you’re purchasing retains (or doesn’t retain) its value and utility over time. Additionally, how the equipment appears in your accounting records can have tax implications, so you’ll want to consider whether or not you want permanently own the equipment you’re buying or, effectively, rent it with an operating lease.
Talk to your peers in your industry to get a sense of how they handle equipment acquisition and turnover to make sure getting the best return possible on your investment. And remember, many of the best business loans can be used for equipment purchases even if they aren’t explicitly for buying equipment.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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