Equipment Financing — The Equipment Is the Collateral
Fund vehicles, machinery, and equipment. The asset is the collateral.
See if I qualifyEquipment financing is a secured loan or lease used to buy vehicles, machinery, tech, or any tangible business asset. Because the equipment itself secures the loan, lenders accept lower credit scores and shorter time-in-business than for unsecured term loans. Terms typically run 2–7 years, matching the useful life of the asset, with rates from 6–18% APR.
Fundwise compares bank, manufacturer-captive, and independent equipment lenders to find the lowest cost on your specific make and model. We work with new equipment, used equipment, titled vehicles, soft costs (software, install, freight), and Section 179-eligible purchases.
Who qualifies
- 6+ months in business
- Personal credit 600+ (550+ for some asset-based lenders)
- An equipment quote or invoice from a vendor
- Most industries — restaurant, construction, trucking, medical, manufacturing, tech
How it works
1. Send us the quote
Vendor invoice, year/make/model, and price. We match it to the lender with the cheapest rate on that asset class.
2. Approval in 24–48 hours
Soft credit pull, no impact. Many deals under $150K need a single-page app only.
3. Lender pays the vendor
Funds go straight to your equipment dealer. You make monthly payments to the lender.
Frequently asked questions
Can I finance used equipment?
Yes — most lenders go up to 10–15 years old on titled vehicles and heavy equipment. Some specialty lenders take older units.
What's the difference between an equipment loan and an equipment lease?
A loan: you own the equipment, you depreciate it (Section 179), and you can sell it. A lease ($1 buyout or FMV): lower monthly payment, off-balance-sheet treatment, easier upgrades at end of term.
Do I need a down payment?
Most equipment loans are 0% down for qualified borrowers. Newer businesses or weaker credit may see 10–20% down requirements.
Does Section 179 apply?
Yes. Equipment financed (loan or lease-to-own) qualifies for Section 179 expensing in the year it's placed in service, up to the annual limit ($1.16M for 2024).
Why apply through Fundwise
- One application, every lender we partner with
- No hard credit pull to see your matches
- Free Money screening for tax credits included
- Real human concierge if you get stuck