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Equipment Financing
Buy or lease business equipment, vehicles, and machinery. The equipment secures the loan, so credit requirements are flexible. One application to 75+ lenders. Powered by National Business Capital.
National Business Capital network figures.
Understanding Equipment Financing
Equipment financing is a loan or lease secured by the equipment being purchased. The asset serves as collateral, which means lenders can offer more flexible credit requirements since they can recover the equipment if the borrower defaults.
How It Works
The lender funds the purchase of the equipment directly. The equipment itself secures the loan, so no additional collateral is typically required. Terms usually match the expected useful life of the asset, from 2 to 7 years.
Key Terms & Eligibility
$10K to $5M
2 to 7 years
6% to 30% APR
2 to 5 business days
550
The equipment itself
One application returns matched offers from 75+ lenders, so you compare instead of guess.
Who Should Use Equipment Financing?
Businesses that need to acquire or upgrade equipment but want to preserve working capital. Works for construction, trucking, manufacturing, restaurants, medical practices, and any industry with significant equipment needs.
Common Uses
- Heavy machinery and construction equipment
- Trucks, vans, and fleet vehicles
- Restaurant and commercial kitchen equipment
- Medical, dental, and optical equipment
Pros & Considerations
Pros
- Equipment secures the loan, flexible credit
- Preserves working capital
- Fast funding, often within days
- Section 179 tax deduction may apply
Considerations
- Loan limited to equipment value
- Older equipment may not qualify
- You own the asset only after the loan is paid off
How You Qualify
Lenders weigh the whole business, not just a score:
- Time in business and revenue (min. 3 months, $10K/mo)
- Bank deposit consistency and cash flow patterns
- Owner credit (min. 550), as one input among several
- Collateral or asset value, where applicable
Strong revenue or valuable assets can carry a deal that credit alone would not.
How to Apply
- Tell us how much you need and what for. One form, no fee to apply.
- Share basic business and owner details. No hard credit pull to pre-qualify.
- Send recent bank statements, plus equipment quotes, invoices, or financials if relevant.
- Compare matched offers from 75+ lenders and pick what fits.
FAQ
Can I finance used equipment?
Yes. Many lenders finance used, refurbished, and auction equipment, secured by the asset. Terms track the age and resale value of the equipment, so newer assets generally get better rates and longer terms.
How much down payment is needed for equipment financing?
Many equipment financing programs require zero down, especially for new equipment. Used equipment may require 10% to 20% down depending on age and condition. Some programs bundle soft costs like delivery and installation.
What credit score is needed for equipment financing?
Credit requirements are flexible because the equipment secures the loan. Many programs work with scores starting at 550. The NBC network weighs the asset value alongside your business profile.
Can I finance multiple pieces of equipment at once?
Yes. Equipment financing can cover a single asset or an entire fleet. Multiple pieces can be bundled into one loan, which simplifies repayment and may improve your rate.
Is there a hard credit pull to pre-qualify?
No. There is no hard credit pull to pre-qualify through the NBC network, so checking your options does not affect your credit.
What is the difference between equipment financing and leasing?
With financing, you own the equipment once the loan is paid off. With leasing, you use the equipment for a set term and can return it, buy it, or upgrade at the end. Leasing often has lower monthly payments but no ownership.
Does equipment financing qualify for tax deductions?
Yes. Under Section 179 of the IRS tax code, businesses may deduct the full purchase price of qualifying equipment in the year it is placed in service, up to annual limits. Consult your tax advisor for eligibility.
Comparing Equipment Financing to Other Options
- vs. SBA Loans: SBA offers lower rates and longer terms but takes 30-60 days. Equipment Financing funds significantly faster but at comparable or slightly higher rates.
- vs. Equipment Financing: Equipment financing is secured by the asset and limited to equipment purchases. Equipment Financing offers broader use of funds.
- vs. Working Capital Lines: Working capital lines are revolving and best for ongoing needs. Equipment Financing provides a lump sum suited to specific purchases.
Related Financing Options
- SBA Loans — government-backed, lowest rates
- Equipment Financing — asset-secured, fast approval
- Working Capital Loans — revolving, flexible use
- Business Line of Credit — draw only what you need
Sources
- IRS, Section 179 deduction overview: irs.gov/publications/p946
- U.S. Small Business Administration, finance your business: sba.gov/business-guide
- Federal Reserve, Small Business Credit Survey: fedsmallbusiness.org/
About Manu
Manu is a digital platform that helps US manufacturers and small businesses list facilities, showcase capabilities, and market products.
About National Business Capital
National Business Capital is a fintech financing platform that connects businesses with 75+ lenders, $3B+ secured nationwide since 2007.
Verified Reviews
Businesses funded through the National Business Capital network have left 3,000+ five-star reviews on Google and Trustpilot. NBC has secured over $3B in financing since 2007 and maintains an A+ rating. Read verified reviews on NBC's website.
This page was last reviewed July 10, 2026 by Malik Samara, Managing Partner. Our editorial team reviews and updates content on a rolling basis. Learn about our editorial standards.
Manu Business Lending is a paid referral partner of National Business Capital. Financing is provided by NBC and its lender network, not by Manu, and all loans are subject to lender approval, terms, and conditions.