Equipment loans use the equipment itself as collateral. Lenders finance 80% to 100% of the purchase price, with terms tied to the useful life of the asset (typically 2 to 7 years). Rates run 6% to 25% APR depending on credit, time in business, and equipment type. Because the asset secures the loan, approval is faster and credit requirements are softer than for unsecured term loans.
| Lender Type | % of Equipment Financed | Term Length | Typical APR |
|---|---|---|---|
| SBA 7(a) | Up to 90% | Up to 10 years | Prime + 2 to 4.75% |
| SBA 504 | Up to 90% (combined) | 10 to 25 years | 5% to 7% fixed (CDC portion) |
| Bank equipment loan | 80% to 100% | 2 to 7 years | 7% to 13% |
| Online equipment lender | 100% | 2 to 6 years | 8% to 25% |
| Captive lender (manufacturer) | 100% | 2 to 7 years | 0% to 12% (promo rates) |
| Equipment leasing | 100% (lease) | 2 to 7 years | Effective 6% to 30% |
Sources: lender published rate tables, SBA program guidelines, and industry data as of June 2026. Rates and qualification criteria change frequently. Confirm with each lender before applying.
Equipment financing is one of the easiest business loan categories to qualify for because the asset secures the debt. Lenders care less about FICO and more about the resale value of what you're buying. Used equipment, specialized machinery, and titled vehicles all qualify, though terms vary. Equipment lenders publish rate sheets that move with the broader rate environment, so comparing 2 or 3 live quotes is the only reliable way to know current pricing.
Stop guessing which lenders will say yes. See your actual matched lenders in under 2 minutes with a soft credit check.
Get StartedSee your actual matched lenders in under 2 minutes. Soft credit check only, no impact on your FICO score.
Get My Business Loan Options