Equipment Financing
Equipment financing lets you purchase or lease the machinery, vehicles, technology, and tools your business needs without paying the full cost upfront. The equipment itself serves as collateral, making approval easier and protecting your other business assets. Rise connects businesses with equipment loans from $5,000 to $500,000 with terms up to 7 years. Whether you need construction equipment, medical devices, restaurant appliances, or commercial vehicles, get the gear your business needs and pay for it over time as it generates revenue.
Check Eligibility
What Is Equipment Financing?
Equipment financing is a loan specifically designed to help businesses purchase machinery, vehicles, technology, and other equipment. The equipment you purchase serves as collateral for the loan, which means you typically don't need to pledge additional assets like real estate or inventory. If you default, the lender can repossess the equipment, but nothing else.
This self-collateralizing structure makes equipment financing easier to qualify for than unsecured products like a business line of credit or long-term loan. Loan amounts typically cover 80% to 100% of the equipment cost, with terms ranging from 1 to 7 years. Some lenders also finance soft costs like delivery, installation, and warranties.
Equipment financing is available for new and used equipment. Businesses in manufacturing, construction, transportation, healthcare, and food service rely heavily on equipment loans to acquire the assets that drive their operations. Use our business loan calculator to estimate your monthly payment.
Requirements to Qualify for Equipment Financing
Personal FICO Score
575+
Equipment loans are easier to qualify for because the equipment itself is collateral. Credit scores as low as 575 can qualify, though better scores unlock lower rates.
Monthly Revenue
$8,000+
Lenders verify that your revenue can support the monthly loan payment alongside your existing obligations.
Time in Business
6+ Months
Some equipment lenders work with startups as young as 3 months, especially when financing essential operating equipment.
Equipment Quote
Required from Vendor
You need a quote or invoice from an equipment dealer or vendor specifying the equipment, cost, and condition (new or used).
Not sure if you qualify? Equipment financing is one of the most accessible loan products because the equipment acts as its own security. Businesses across all industries are welcome, including restaurants upgrading kitchen equipment and healthcare practices investing in medical devices.
How Equipment Financing Works
Choose Your Equipment
Identify the equipment your business needs, new or used, and obtain a quote from the vendor. Equipment financing covers machinery, vehicles, technology hardware, medical devices, restaurant appliances, construction equipment, and more.
Apply With Your Equipment Quote
Submit your application along with the equipment quote. The lender evaluates your business financials and the equipment value. Because the equipment is collateral, approval requirements are less strict than unsecured loans.
Lender Pays the Vendor Directly
Once approved, the lender pays the equipment vendor directly. You receive the equipment and begin using it immediately. Some lenders finance up to 100% of the cost, meaning no down payment is required.
Repay Over Time as Equipment Generates Revenue
You make fixed monthly payments over 1 to 7 years. The repayment timeline is designed to align with the equipment's useful life, so the asset pays for itself as you use it. Once the loan is paid off, you own the equipment outright.
See If You Qualify in Minutes
Find out how much equipment your business can finance. The application takes less than 5 minutes and won't impact your credit score.
Pros & Cons of Equipment Financing
Advantages
Equipment Is the Collateral
No need to pledge real estate, inventory, or personal assets. The equipment you purchase secures the loan, reducing risk to your other business assets.
Easier Qualification
Because the loan is secured by the equipment, credit and revenue requirements are typically lower than unsecured products.
Preserve Working Capital
Pay for equipment over time rather than depleting your cash reserves. Keep capital available for operations, payroll, and growth.
Potential Tax Benefits
Section 179 of the IRS tax code may allow you to deduct the full purchase price of qualifying equipment in the year of purchase. Consult a tax professional for specifics.
Fixed Payments, No Surprises
Monthly payments are predictable and fixed for the life of the loan. Budget with confidence knowing exactly what you owe each month.
Disadvantages
Funds Can Only Be Used for Equipment
Unlike a business line of credit or short-term loan, equipment financing can only purchase the specific equipment named in the loan. You cannot use excess funds for payroll, marketing, or other expenses.
Equipment Depreciates
The equipment loses value over time while you are still paying for it. If the equipment becomes obsolete before the loan is paid off, you may owe more than the asset is worth.
Down Payment May Be Required
Some lenders require a 10% to 20% down payment, especially for used equipment or borrowers with lower credit scores. This upfront cost may strain cash flow for smaller businesses.
Alternatives to Equipment Financing
- Use funds for equipment or any other business purpose with no restrictions
- Revolving access means you can draw again after repaying
- No vendor quote required; purchase equipment when you're ready
- Requires stronger credit profile than equipment-specific loans
- Better for businesses that need flexibility beyond a single equipment purchase
- Government-backed loans with competitive rates and terms up to 25 years
- SBA 504 loans are specifically designed for major equipment and real estate
- Lower interest rates than most private equipment financing options
- Longer approval timeline, typically 30 to 90 days
- Best for established businesses with strong credit that can wait for funding
- Lump sum capital that can be used for equipment plus other investments
- Repayment terms from 1 to 10 years with fixed monthly payments
- No restriction on use, so you can fund equipment, expansion, and operations together
- Requires stronger financial track record and credit history
- Better when equipment is part of a larger growth investment
Frequently Asked Questions About
Equipment Financing
Equipment financing is a loan specifically designed to help businesses purchase equipment where the equipment itself serves as collateral. It covers machinery, vehicles, technology, medical devices, restaurant appliances, construction equipment, and more.
Trusted by Small Businesses Across the USA
Fast Approval
As Little As 2 Hours
Funding Available
$5K to $5M
Businesses Funded
Across All 50 States
Equipment Financing in Your State
Available across all 50 states and Washington, D.C. Pick your state to see local programs, qualification specifics, and state-tailored FAQs.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Finance the Equipment Your Business Needs
Get the machinery, vehicles, and technology your business needs to grow. Apply in minutes, get approved fast, and start using your equipment while you pay for it over time.