Key takeaways
- Equipment financing covers $5K to $2M for new or used machinery, vehicles, technology, and other business equipment.
- The equipment itself serves as collateral, so approvals are faster and credit requirements are more flexible than unsecured loans — often with up to 100% financing and little down.
- Financing builds ownership and equity, while leasing keeps payments lower and makes upgrades easier.
- Funding typically arrives in 1–3 days, and startups can be considered with strong credit.
Equipment financing lets you acquire the machinery, vehicles, or technology your business needs without paying the full cost upfront. Because the equipment itself serves as collateral, approvals are faster and credit requirements are more flexible than unsecured loans.
Finance vs. lease
- Equipment loan — you own the equipment outright once it’s paid off; build equity.
- Equipment lease — lower payments and easy upgrades; ideal for tech that ages quickly.
Best for
Any business making a capital purchase: trucking and construction, restaurants, medical and dental practices, manufacturing, salons, and more. If the purchase is a physical asset, equipment financing is almost always cheaper than a general-purpose loan.