How Equipment Financing Works
Equipment financing lets you buy the machines you need without paying the full amount upfront. A lender pays the seller, and you pay the lender back in monthly instalments over a set term.
Types of Lenders
Banks & Credit Unions
Lowest rates, strictest requirements. Best for established businesses with strong credit.
- Rates: 5.5–9%
- Approval: 1–3 weeks
- Credit: 680+
Equipment Finance Companies
Specialize in equipment loans. More flexible on credit and equipment age than banks.
- Rates: 7–13%
- Approval: 3–7 days
- Credit: 600+
Private Lenders
Higher rates, fastest approvals. Useful for challenged credit or older equipment.
- Rates: 10–18%
- Approval: 24–72 hours
- Credit: 500+
Brokers (Like IronFinance)
Shop multiple lenders on your behalf. Best when you are not sure which lender fits.
- Access to all types
- One application
- Any credit level
What Lenders Evaluate
Most lenders want 620+ but options exist below that.
2+ years is ideal. Under 2 years needs extra documentation.
Typically 10–20% of equipment value.
Age, hours, and maintenance history all factor in.
Monthly revenue should comfortably cover the payment.
Typical Financing Terms
| Factor | Typical Range |
|---|---|
| Interest Rate | 5.5% – 18%+ |
| Term Length | 24 – 84 months |
| Down Payment | 0% – 25% |
| Approval Time | 24 hours – 3 weeks |
| Equipment Age Limit | Varies — up to 15-20 years with private lenders |
Ready to See Your Options?
Find out what rates and terms you qualify for — no credit check to get started.