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Best Equipment Financing Companies For Small Businesses
If you need to purchase new equipment for your business, equipment financing offers competitive rates and long repayment terms. See which of the best equipment loans and leases are right for your business.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
Editor & Senior Staff Writer
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Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
REVIEWED BY
Chelsea KrauseChelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
Equipment financing represents a specialized form of funding designed to get physical assets or software into the hands of businesses. If you’re looking for equipment financing, you’re looking for a loan that uses the equipment you’re buying as security, or you’re looking for a lease.
Because it’s a more niche form of financing, it can be a little more challenging to track down equipment financers than ones who deal in working capital. Let’s try to give you a head start with our picks for the best equipment financing companies.
The best equipment financing companies offer multiple types of financing (such as equipment loans and leases), competitive rates, long financing terms, and easy application processes. Here are our top picks for the best equipment financing companies.
Multiple types of equipment loans & leases available
Quick & easy application process
Same-day approval for some products
Cons
Nontransparent rates & fees
Doesn’t disclose credit score requirements
Why We Chose Crest Capital For Best Equipment Leases
Crest Capital offers a wide variety of equipment financing options for business owners, including equipment leases and equipment loans. The company offers up to $250,000 with a quick application that requires no financial statements and gives you same-day approval (in most cases) for fast funding. If you need to borrow up to $500,000, the process is a bit more involved.
Crest Capital offers competitive rates and repayment terms up to 84 months. It offers 100% financing to cover "soft costs" and doesn't have any hidden fees.
Crest Capital Services
Crest Capital offers a variety of equipment loan and leasing programs that provide borrowers with up to $500,000.
Crest Capital Rates & Fees
Crest Capital does not disclose its rates and fees online. However, you can submit a form for a quick quote in just seconds to get an idea of the rates available to you. The company does state that all rates are “highly competitive.”
Crest’s “Application Only” financing for less than $250,000 has repayment terms of 2-6 years. Larger amounts up to $500,000 require a full application and have repayment terms of 2-7 years.
Crest Capital Eligibility Requirements
Unfortunately, Crest Capital does not list all eligibility requirements, although you can fill out a quick form to find out if you’re eligible. The company does state that borrowers who qualify generally meet these requirements:
Time in business of at least 2 years
Operate a profitable business
No bankruptcies or other credit issues
Choose Crest Capital If...
You want a fast loan or lease under $250K with no financial statements required
You want to choose between a variety of long-term equipment loan and lease options with competitive rates
Why We Chose SmartBiz For Best SBA Loans For Purchasing Equipment
While not traditional equipment financing, SBA loans are an affordable way to purchase your business equipment. SmartBiz specializes in guiding businesses through the bureaucracy of applying for an SBA loan and making it as painless as possible. SmartBiz doesn't originate the loans, however, and instead will help connect you with a bank that does. Borrowers may be eligible to receive up to $500,000 with a low-cost SBA loan.
SmartBiz also offers bank term loans and lines of credit if those funding options seem to be a better fit. The application process is quick and easy, you'll be able to compare offers to find the best one for your unique situation, and although funds may take a while to disburse, it's well worth the wait for a low-interest, long-term loan.
SmartBiz Services
SmartBiz offers the following financial products that can be used to fund your equipment purchase:
SBA loans up to $500,000 with repayment terms up to 10 years
Bank term loans up to $350,000 with repayment terms of 2-5 years
Lines of credit up to $150,000
SmartBiz Rates & Fees
Rates for SBA loans arePrime Rate plus 2.75% to 6.5%. Additional fees including bank fees and packaging fees may apply.
Bank term loans have interest rates starting at 10.99%. Additional fees may apply.
Lines of credit rates are undisclosed.
SmartBiz Eligibility Requirements
To qualify for an SBA loan through SmartBiz, you must meet these minimum requirements:
Personal credit score of 650+
At least 2 years in business
No outstanding tax liens
No bankruptcies or foreclosures within the last three years
No recent charge-offs or settlements
No overdue payments on government loans
Choose SmartBiz If...
You have a good credit score and want to receive a low-cost, long-term SBA loan
Your business has been in operation for at least 2 years and you want a competitively priced loan
Why We Chose OnDeck Financing For Businesses With Fair Credit
OnDeck is an online lender that doesn't specifically advertise equipment financing. However, its loans and lines of credit can be used to purchase equipment for your business. If you don't want to go through the long process of traditional equipment financing, only need up to $250,000, and have a credit score of at least 625, OnDeck is worth considering.
While terms may be shorter and rates a bit higher for these loans, what you get in return is a fast and easy application process and quick funding -- sometimes as quickly as the same day you're approved. This is ideal for businesses that need new equipment immediately and don't have time to navigate the traditional lending process.
OnDeck Services
OnDeck provides the following services:
Term loans up to $250,000 with repayment terms up to 24 months
Lines of credit up to $100,000 with repayment terms up to 12 months
Either of these options can be used to purchase equipment for your business.
OnDeck Rates & Fees
OnDeck’s rates start at 29.9%, although the lender does disclose that eligibility for the lowest rate is limited.
The lender’s average rate for term loans is around 50% to 60%.
An origination fee of 0% – 5% of the loan amount may apply.
OnDeck Eligibility Requirements
To qualify for an OnDeck loan or line of credit, you must meet these requirements:
At least 12 monthsin business
Personal credit score of 625+
Annual revenue of $100,000/year+
Additionally, you must have a business checking account to get funded. You must also operate a business in an eligible industry. Ineligible industries include gambling businesses, adult entertainment businesses, and money services.
OnDeck funding is not currently available to borrowers in North Dakota.
Choose OnDeck If...
You want a fast loan that’s funded as quickly as the same day
You’re a new business or have fair credit and don’t qualify for equipment financing elsewhere
Why We Chose Currency For Best Heavy Equipment Financing
Currency is a third-party loan aggregator connecting businesses to lenders by way of its lending platform. If you need financing for heavy equipment, Currency is worth a look.
This company specializes in connecting borrowers to funding up to $500,000 for farm equipment, trucks and trailers, construction equipment, RVs, and even aircraft. Currency promises competitive rates, low or no down payments, and even same-day financing.
Currency Services
Currency is a loan aggregator that connects borrowers to equipment loans and leases up to $500,000.
Currency Rates & Fees
As Currency is a loan aggregator and not a direct lender, rates and fees vary by network lender.
Currency Eligibility Requirements
While Currency works with a network of lenders, it does give a general overview of borrowing requirements for commercial funding:
2 years in business (recommended)
Personal credit score of 625 (recommended)
Business credit history
Funds must be used for essential business use
Choose Currency If...
You have an established business and want to compare loan/lease options
You want fast approval and funding for heavy equipment purchases
Simple, one-page application for funding under $75K
Cons
Nontransparent rates & fees
Doesn’t disclose credit score requirements
Why We Chose US Business Funding For Financing With High Borrowing Limits
Some of the lenders on this list only provide up to $500,000, which may not be enough to cover your equipment needs. US Business Funding can help by offering equipment loans and leases up to $5 million with the completion of a full funding package. Don't need that much cash? US Business Funding has a simple one-page application for borrowers who need up to $75,000 and an App-Only Program for borrowers who need less than $200,000.
Additionally, US Business Funding has a variety of lease types suitable for any business. While most programs require a time in business of at least two years, US Business Funding can help newer businesses that have been in operation for at least 6 months get funded.
US Business Funding Services
US Business Funding specializes in equipment leases, offering such programs as:
Fair Market Value
Dollar Buyout
Sale Lease Back
Fixed Percentage Purchase
EFA/Equipment Finance Agreement
Business Expansion
Refinance
New Business
US Business Funding Rates & Fees
US Business Funding does not disclose its rates and fees. However, the best rates and terms are reserved for established businesses with solid credit profiles.
US Business Funding Eligibility Requirements
US Business Funding does not disclose much about its eligibility requirements, including minimum credit score.
The company does note that most programs require a time in business of at least 2 years. However, there are some special funding programs available for businesses that have been in operation for at least 6 months.
Choose US Business Funding If...
You want to choose between multiple types of equipment leases
Business Loan & Funding Products Review Methodology
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.
Weighted Rating Breakdown
Rates & Fees 20%
Services 20%
Eligibility Requirements 20%
Application 15%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%
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.
Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating
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.
Equipment financing can be one of the more complicated forms of funding, so let’s try to demystify how you go about finding a financer.
Decide If You Want To Lease Or Buy
One of the most significant factors to weigh before you look at equipment financers is whether or not you want to eventually own the equipment or simply use it for a few years and then return it.
There are advantages and disadvantages to both ownership and renting. Points to consider include:
The Longevity Of The Equipment: Will you be using it for a year, a couple of years, or indefinitely? How quickly will it become obsolete?
Taxes & Bookkeeping: Whether the equipment appears on your balance sheets or your financer’s has significant tax ramifications. Some businesses prefer to write off their equipment costs as operating expenses, whereas others might prefer to write the asset off as a purchase. Talk to your accountant to figure out which.
Maintenance Responsibilities: Depending on your lease agreement, you may or may not be responsible for maintaining the equipment for the duration of your lease.
Some Leases Are Effectively Purchases: Capital leases, while still technically leases, are designed to transfer ownership to the lessee. The main difference between capital leases and loans is that the former usually doesn’t have a down payment (beyond the first and maybe last month’s payment), and it’s more likely to cover soft costs, such as shipping. Loans, however, will generally have lower interest rates.
One of the easiest ways to rule potential financers in or out is by checking to see which industries they’re willing to work with. Almost every financer has restrictions on the industries they’ll lend to. In most cases, you can find these online on the funder’s website, though in some cases, you may have to call.
Captive Lessors Are An Option For Specific Brands
If you have a specific brand in mind, especially vehicles and farm equipment, you may have an additional funding option in the form of a captive lessor. In essence, these are financers owned by the equipment manufacturer to help sell their equipment.
While they’re convenient, don’t automatically assume you’re getting the best deal from a captive lessor; you’ll still want to compare your options.
Final Thoughts On The Best Equipment Financing Companies
One of the downsides of equipment financing companies is that most aren’t very transparent in terms of rates, fees, and eligibility requirements. This is why it is so important to do your due diligence to ensure you get the best financing for your situation.
Many equipment financing companies — including the ones on this list — have instant quotes or quick forms that can be filled out to get more information. We recommend doing your research, asking questions, and using prequalification tools (that only perform soft credit checks) whenever possible to find the right funding product for your business.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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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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