What Counts as Equipment Financing?
At its core, equipment financing covers loans and leases that fund the purchase of equipment for a business, and its benefits start with keeping cash in the company. The asset itself, whether a dump truck or a dental imaging system, secures the debt in most structures, so approval leans on the value of the financed equipment as much as on personal credit, making this financial product easier to reach than unsecured business loans.
It is the norm, not the exception: 82% of U.S. companies use some form of financing when acquiring equipment, according to the Equipment Leasing and Finance Association. Spreading equipment purchases into monthly installments preserves working capital and steadies cash flow, rather than sinking cash into buying business equipment outright.
New or used equipment qualifies across industries, from new machinery and commercial vehicles to construction equipment and software, and through the UCS network, amounts reach $10 million per piece, matching almost any business needs while keeping the business running smoothly.
How Does Equipment Financing Work?
Equipment financing works in four steps: pick the equipment and collect an invoice; apply with recent bank statements; the lender weighs creditworthiness alongside the asset’s value for credit approval. After approval, the funds go to the seller, while you repay over a loan term of 1 to 10 years.
The structure underneath varies more than most guides admit. The asset secures an equipment loan or equipment finance agreement. However, some online lenders instead provide capital through an unsecured business term loan used to purchase equipment, which prices differently and can expose other assets to a lien.
A New Jersey excavation contractor needing an $80,000 used excavator on-site in five days cannot wait on a traditional bank’s committee review. Through United Capital Source, a single packaged file moves from lender to lender without new paperwork, and qualified equipment files typically fund in 1 to 2 business days.
Equipment Financing Companies Compared: Where Each One Fits
Equipment financing companies cluster into specialists, banks, and online lenders serving different industries, and each shape rewards a different small business borrower. Verified figures sit in the sheet below; the profiles explain where these equipment financing options fit and when another equipment financing company serves a file better.
Lender Comparison at a Glance
| Provider | Amounts | Typical Floor | Speed | Fits Best |
| United Capital Source (marketplace) | Up to $10M per piece | 475+, 6+ months | 1-2 business days | Mixed-credit files |
| Crest Capital | $10K-$500K | About 650, 2+ years | Same-day decisions | Prime-credit buyers |
| National Funding | $5K-$150K | About 600, 6+ months | 24 hours possible | Fair credit, smaller tickets |
| Balboa Capital (Ameris) | Up to $500K | Not published | About 1-hour decisions | Speed-critical purchases |
| First Citizens Bank | Up to $3M | 2+ years, 640 guarantor | Tech loans in 1 day | Larger bank-grade files |
| U.S. Bank | App-only to $200K | Bank customers favored | Days to weeks | Soft-cost-heavy purchases |
| OnDeck | Term loans to $250K | 625+, 12 months | Same-day possible | Fast general-purpose capital |
United Capital Source: One Application, 80+ Lenders
United Capital Source works the marketplace side: one application reaches 80+ lenders, covering equipment financing loans up to $10 million per piece on 1- to 10-year terms, with funding in 1 to 2 business days, 1,600+ five-star reviews at 4.9, and a BBB A+ rating. The UCS equipment financing program page carries full specifications.
Crest Capital
Crest Capital, a specialist since 1989, funds $10K to $500K on one application, skipping financial statements below $250,000, and 100% financing that includes soft costs; Investopedia rated it Best Overall for 2024. Our Crest Capital review includes the fine print: qualifying typically means a score near 650 and two years under present ownership. Newer and fair-credit files tend to fund faster through a marketplace match than by waiting to age into those thresholds.
Balboa Capital (Now Ameris Bank Equipment Finance)
Balboa Capital now operates as Ameris Bank Equipment Finance, a detail most comparison lists still miss. It finances up to $500,000, issues decisions in as little as one hour, funds approved deals the same day, and takes the equipment as collateral to roughly $350,000; our Balboa Capital review flags contract terms worth a careful read. Borrowers who want those terms shopped can run the same packaged file through a marketplace first and compare the results.
First Citizens Bank
First Citizens Bank, built on the 2022 CIT merger, is among the larger bank operations: small business equipment financing reaches $3 million, technology loans can be funded in as little as one day, and 100% financing is available, with two years of registration and a 640 guarantor score expected. Younger companies outside that box can still be served through a network holding bank and non-bank programs side by side.
U.S. Bank
U.S. Bank offers up to 125% financing that wraps soft costs like installation, tax, and freight into the agreement, with no down payment on 24- to 60-month terms, plus flexible payment options billed quarterly, semi-annually, or annually. Traditional banks typically have stricter credit standards compared to online lenders for equipment financing. The application-only track to $200,000 favors existing bank customers. Businesses banking elsewhere, or needing certainty in days rather than weeks, often pair better with a specialist or a network match.
OnDeck
OnDeck appears on most equipment lists, yet its product is structurally different. Term loans to $250,000 and business lines of credit to $200,000 that can pay for equipment but are not secured by it, with no leasing offered and a personal guarantee plus possible business lien instead; minimums run 625 credit, 12 months in business, and $100K in annual revenue. Owners who want the asset itself to carry the debt are better matched to true equipment financing loans elsewhere in the market.
Note: This list is not exhaustive. Other equipment financing companies may better suit your business needs.
Equipment Loans vs. Equipment Leasing
Among equipment financing options, the loan-versus-lease decision is about ownership. Equipment loans and EFAs build equity toward holding the equipment outright, while equipment leasing means you rent equipment that stays titled to the lender, usually at lower monthly payments that help near-term cash flow, with a purchase option at term end; leasing fits fast-turnover gear, and loans fit new equipment expected to earn for a decade.
Taxes settle close calls between leasing and a funded purchase, so structure the deal to your accounting needs. An Ohio machine shop financed a $250,000 CNC mill on a seven-year term, with delivery timed for November, so the financed equipment was placed in service before December 31, capturing the year’s Section 179 deduction.
What Do Equipment Financing Loans Cost?
Most borrowers land between 6% and 30% in interest rates, and existing bank customers often see relationship discounts. Through the UCS network, SBA loans backed for equipment start near Prime + 2.75%, and private-lender files average 7% to 15%, while across the market a business equipment loan runs 4% to 45% APR; SBA 7(a) loans fund equipment purchases to $5 million, and term loans and lines of credit cover smaller recurring needs.
A worked example makes the loan amount math concrete: that contractor’s construction equipment financing option secured an $80,000 excavator at 9% APR over a 60-month loan term would cost about $1,661 per month in payments and roughly $19,640 in total interest on the financed equipment. Now apply the financing percentage. A lender covering 80% finances $64,000, leaving $16,000 down plus delivery and installation in cash, while 100% to 125% structures fold those soft costs into the funded amount and preserve working capital. Watch repayment terms and the fee print too: prepayment penalties can erase the gain from clearing an outstanding balance early, and prepayment fees or other additional fees vary by lender.
Qualifying For Equipment Financing Options
Qualifying runs on two tracks, and knowing yours saves weeks. Established small business files with credit in the mid-600s fit the specialist and bank track, where interest rates are lowest. Younger or fair-credit files fit the revenue-strength track: lenders read deposits and annual revenue alongside the score, so a Georgia landscaping company six months in with a 590 FICO and $41,000 in steady monthly deposits was matched for a $38,000 skid steer. Through the UCS network, funding at scores from 475 is considered, and bad credit business loans offer a parallel path.
Payment requirements and paperwork stay light: bank statements, an equipment invoice, and a driver’s license cover many approvals, with tax returns and other factors on larger funding requests.
How To Apply For Equipment Financing
Applying through United Capital Source takes five short steps and is handled end-to-end by an NMLS-licensed team.
Step 1: Choose the Right Structure
Decide whether a loan, a lease, or a business line of credit matches how long the equipment will earn and how you plan to fund it; a funding specialist walks through the trade-offs honestly.
Step 2: Gather Your Documents
Collect a driver’s license, a voided business check, bank statements from the past three months, and the invoice for the equipment purchase you plan to fund.
Step 3: Fill Out the Application
Apply online via the one-page application or by phone, entering the loan amount and desired funding, along with your documents.
Step 4: Speak to a Representative
A representative explains the repayment terms, rates, and payment schedule of each funded option, so nothing surprises you later.
Step 5: Receive Approval
Approved applicants typically hear back within 24 hours and receive funding in 24 hours to one week. When a Long Island restaurant’s cooking line failed on a Thursday, its $52,000 replacement was moving within 48 hours because one packaged file reached every fitting candidate at once.
| “Owners ask me to name one winner in equipment finance, but there is no single answer. The best equipment finance company for your business can differ from that of another business. The job is to match the file, not to crown a brand.”
— Jared Weitz, CEO and Founder, United Capital Source, NMLS Licensed |
Pros and Cons of Equipment Financing
Weighed honestly, equipment financing trades total cost for speed and preserved cash. The table gives the short version; the sections above carry the detail behind each line.
Equipment Financing Pros and Cons Summary
| Pros | Cons |
| Keeps cash in the company instead of a large upfront purchase | Interest and fees raise the equipment’s all-in cost |
| The equipment itself serves as collateral, easing approval | Some lenders exclude soft costs, leaving delivery and installation in cash |
| Coverage can reach 100% or more of the equipment cost | A lien or personal guarantee may apply, depending on structure |
| Potential Section 179 deduction in the year placed in service | Equipment can depreciate faster than the balance is repaid |
| Specialist and marketplace paths can fund in days | Bank paths with the sharpest pricing move slowly |
Frequently Asked Questions
What credit score does equipment financing require?
Specialist and bank programs commonly want mid-600s. Revenue-strength paths reach lower; through the UCS network, small business equipment funding files from 475 are considered when business deposits run consistently.
What is the average interest rate on equipment financing?
Typical interest rates range from 6% to 30%, with SBA-backed loans starting near Prime + 2.75% and the broader market spanning about 4% to 45% APR.
Do equipment lenders require a down payment?
Not always. Several programs finance 100% or more of the cost with no down payment, offering flexible payment options, while banks more commonly cover about 80% and leave soft costs to the borrower.
What Is the Equipment Finance Agreement?
The equipment finance agreement, known as an EFA, is a fixed-payment contract in which you hold title to the financed equipment from the start, unlike business equipment leasing, where ownership stays with the financing company.
Can SBA loans be used to purchase equipment?
Yes. SBA 7(a) loans fund equipment purchases up to $5 million, SBA 504 loans cover heavy machinery, and both carry longer repayment terms than conventional equipment loans.
What types of business equipment can be financed?
Nearly anything a business operates across industries: vehicles, construction machinery, heavy industrial equipment, medical and restaurant systems, technology, and software, whether new or used. Medical equipment financing is a specific type of equipment loan.
Compare Equipment Financing Offers Through One Application
You could shop the lenders above one at a time, or apply once and let them compete. United Capital Source packages your file and matches it with 80+ lenders offering equipment loans, leases, and lines of credit, with flexible financing and funding tailored to your business needs.
| Ready when you are.
Start the one-page application or call (855) 933-8638 to speak with a funding specialist about whatever equipment you need next. |
Equipment financing lenders adjust rates, amounts, and requirements without notice; figures here, including the Prime + 2.75% SBA-backed benchmark, are accurate as of July 2026, and prime-indexed pricing moves with Federal Reserve policy. Verify current terms with the U.S. Small Business Administration (sba.gov) or a qualified financial advisor before borrowing, and confirm any lender’s licensing in your state.
